[Music]
hello everyone welcome back to this
channel my name is karan and today we
will discuss how to sell a patent so
basically a patent is one of the most
integral parts of the innovation process
as it opens up a few opportunities for
an innovator first it provides the
ownership of the invention onto the
innovator thereby protecting the idea
from the infringer after that it gives
exclusive rights to the inventor for its
utilization
and consequently it identifies the
steady hard work for months years that
an innovator has put in to create
something that never existed before
however owning a patent is just the
starting how one is able to use this
protected innovation is dominant while
the utilization aspect may vary from one
innovator to another one can either
license or sell it to others or market a
product based on underlying inventions
now let's discuss the different steps
for selling a patent first step is
valuation of market applicability the
easier it is to materialize the
invention the higher are the
possibilities of selling a patent that's
why the first step of selling a patent
successfully is to recognize the
patented inventions market applicability
we have to measure two things number one
is how easy is it to make a product
based the patented invention
second is how commercially viable the
overall process of production is for
example whether the product has demand
in the market or not now the second step
is estimation of market value once they
established
the high market applicability of the
patent the next step is to estimate the
patent and know its fair market value
the estimation is the vital part of the
process as it keeps the sellers or
innovator well known on their patents
worth or value
hence it results in better decision
making and keeps the seller well aligned
at the time of negotiations there are
different approaches to realize but the
prominent strategies are market-based
approach income-based approach and
hybrid based approach a cost-based
approach now the third step is
identifying the capable buyers after
estimating best value for the patent
now the next step for selling a patent
is to identify the potential buyers in
this steps we search for the players
that may be interested in the subject
technology of the patent hence while
looking for such players the seller must
examine whether the company has in-house
r d practice or a history of patent or
company acquisition this practice
comprises that the company is into
organic growth for its patent portfolio
and may not be very keen on purchasing
them but if it's a history of
acquisition it's more inclined toward
organic growth and it may willingly
purchase the patent therefore companies
that opt for company acquisitions to
grow their patent or correct portfolios
could be good for candidates for selling
the patent portfolio now the fourth step
is approaching the recognized prospects
to complete the identified prospects
it's vital to take the starting steps of
reaching out to the prospects properly
while a correct strategy can lead to the
desired outcome wrong one can close the
deal before it begins therefore for as
suitable execution the initial step is
to package a list of patents correctly
this should be shown in the insights
provided by analysis of infringement
this way it keeps the pitch more lined
up to the requirements of the client and
the market a pitch book is prepared to
connect to the potential companies and
negotiate the steps if comprises all the
details that aid a capable wire our
licensee understand how a specific
invention can benefit them for example
it includes facts of the patent the
relevancy of technology the problem it
addresses market study or other
advantages now the fifth step is
negotiation the next step is to execute
the deal and it is done in two parts
first all the interested buyers and
sellers enters a confidential disclosure
agreement or non-disclosure agreement
these agreements are vital to protect
patented information and other vital
insights from being leaked into public
domain
once the confidential disclosure
agreement is in place the seller can
supply further information with
certainty here ip service providers can
knowingly simplify coordination among
the parties apart from these it is vital
to make sure that these dialogues result
in a win-to-win situation for both
further the seller has to remember that
the buyer will estimate the patent and
correct reasons to lower the asking
prices
referring to the points and information
from the pitch book would help better
negotiate the deal once the negotiations
are finished the deal closure would
involves assigning the patents to the
buyer so in the end an organized
approach that begins by assigning the
market applicability of the patent is
the key this helps the inventor make
better decisions regarding the process
of selling a patent comprising whether
to sell it it also weighs on the
different methods of patent evaluation
so that the seller recognizes the fair
price of a patent and it also ensures
that the buyer does not devalue the
patent so that's it for today for more
videos please subscribe to this channel
thank you
[Music]