The ability of a patent owner to allow another person or business to purchase, use, manufacture, etc., their patented innovation is known as patent licensing. This is carried out in accordance with predetermined terms and circumstances, for a predetermined purpose, in a predetermined location, and for a predetermined amount of time. Having a patent allows one to keep the invention and get royalties from potential sales of the product. A patent holder may choose to provide one or more businesses an exclusive license.
“Carrot” and “stick” licenses are the two types of licenses. A “stick license” is the result of a patent enforcement action, whereas a “carrot license” is one that is entered into freely.
Stick Licensing
When a potential licensee is already using the patented invention and violating your patent, a stick patent licensing strategy is used. “Take a license or else… I will take you in court” is the value offer here. With this strategy, if the licensee refuses to accept a license, the patent owner threatens to prosecute them for patent infringement.
Our business development staff can assist you in locating the appropriate individuals within the “infringing” organization to negotiate a contract, and Signicent can perform searches to uncover partial or total infringers.
Licenses for Carrots
This strategy is appropriate when the potential licensee is not violating the patented innovation and, therefore, obtaining a license is not necessary. “My patent technology is superior, and by licensing it, you will sell more products,” is the value argument here. Or perhaps “my patent technology is cost-effective and you will gain more by licensing it.” Therefore, convincing a licensee to accept a license is a strict marketing tactic in which Signicent can assist. Occasionally, instead of licensing, you might sell the invention or patents to the other business, giving them full ownership of the rights for the duration of the patent.
These businesses that are eager to purchase or license the patents can be found via Signicent.
Exclusive Rights to Use
Under an exclusive license, the patent owner gives the licensee only the patent title and all other ownership documentation. All rights under the patent are transferred to the licensee by the patent owner, including the ability to sue for infringement and grant a license. The licensee essentially takes the position of the patent owner and gains the authority to sublicense the invention and file a lawsuit for infringement. Additionally, the patent owner guarantees the licensee that no one else will be granted a license in a certain sector of usage.
Licenses That Are Not Exclusive
The patent owner guarantees not to sue the licensee for patent infringement by issuing a non-exclusive license. A non-exclusive license may or may not grant the licensee the ability to operate in the area covered by the licensed patent, despite the fact that this is commonly misunderstood. Whether or not the licensee’s products violate other patents will determine this.
