General Tips for Patent Monetization
Patent monetization refers to earning revenue or, the process of steps by which an inventor or a business earns revenue, by selling or licensing its patent portfolio. IP monetization looks different for every patent and industry.
Each business may have specific targets, financial among others, for its patent monetization strategy. Companies may have other business objectives that either conflict with or complement these financial goals. The first step in any monetization campaign is to be clear about these goals. Broad goals may vary and could possibly include:
- Generate revenue;
- Build a brand name;
- Negotiate deals;
- Get an advantage over a competitor;
- Recovering the cost involved in research and development of the idea;
- Recovering the cost involved in the patent grant process.
The steps involved in a patent monetization process, include:
- Patent Portfolio Evaluation:
First step to every monetization process is to evaluate and rate the product. In this case, the patent portfolio is mined to find most promising assets. Further, such evaluation helps with appropriate allocation of resources which may be employed for maximum patent monetization.
- Identify Targets:
Identification of potential IP infringers, are important to identify potential clients for your patent portfolio. This is usually accomplished using reverse engineering services and patent claim charts.
- Determine Sales Value:
After an evaluation of the patent portfolio and a patent infringement analysis, assets are determined which could generate better revenue through either the sale of the asset or the enforcement of the patent.