Want to invent new products but don’t want to take the entrepreneurial path? We’ve worked with many inventors over the years that love to start inventing and turn an idea into a product. They’ve come to us with a great idea but the question, “What do I do with an invention?”
Don’t worry, there is a great solution: licensing.
What is Licensing?
Put simply, licensing is taking your invention and letting another person (or corporation) manufacture and sell it for a specified payment. They take over all the risk of bringing your product to market and you can move on to your next idea. In essence, you’re renting out your invention idea.
The question is, how do you get from your idea to a signed contract and royalty checks arriving in the mail?
When you have an idea, you need to protect it. This entails developing a prototype and beginning the copyrighting and/or patenting process. Doing so cements your claim to your idea and gives you legal options if someone tries to take your idea away from you.
Once you have the legal documentation in place, your idea is (legally speaking) property. It’s not physical property like the home you live in is, but it is very similar within the legal world. And just like a landlord can rent out an apartment, you can rent out your idea.
Once you have the intellectual property of your idea secured, you can begin to schedule meetings with companies that would see your product as a competitor in the marketplace or a key addition to their own product. If they like the idea, you move forward negotiating what is called a licensing agreement, and voila! You have an income stream straight from your idea to your pocket; no muss, no fuss. And you are free to move on and start building a blueprint for your next idea.