Idea Design Studio Blog Tips: Licensing vs. Manufacturing: Which Is Best for Your Invention?

Idea Design Studio Blog Tips: Licensing vs. Manufacturing: Which Is Best for Your Invention? 16

Idea Design Studio Blog Tips. Consider your goals and the invention’s specifics before making the choice.

Idea Design Studio Blog Tips. After you have successfully vetted your invention idea, the next step is taking it to market. Licensing and manufacturing are two main ways that inventors get their products out there. Nevertheless, understanding which is best for your invention can be challenging, reminds the team at Idea Design Studio.

As an inventor, you should weigh your options carefully and talk to experts who can help you make the best decision for how to take your invention to the next level.

When Is Licensing Your Best Choice?

Idea Design Studio Blog Tips. Securing a license agreement is the ultimate goal for inventors who choose the licensing route. In a license agreement the inventor becomes the licensor, allowing a third party, referred to as the licensee, to commercially use the invention. Licensing can involve the right to use a product, production process, patent rights, trademarks, or copyrights.

Licensing agreements usually establish clear timeframes and specify whether the inventor will receive ongoing payments called royalties, or a large one-time payment. The agreements also outline what rights are being transferred. Often, inventors need to have patents for their inventions before they can get a licensing agreement.

Inventors may choose licensing to enter smaller markets or those where it may be difficult for direct deals. This can be an attractive option because costs and resource requirements are often low.

When Is Manufacturing Your Best Option?

Developing and manufacturing your own invention can be a big undertaking. You will be responsible for hiring domestic or overseas manufacturers to make your product. You maintain full control of your invention, but also assume the risks and costs associated with the manufacturing process.

You will need to fully understand a manufacturer’s capabilities. Some may be able to offer a short production run, but some may require the inventor to pay for a large number of units that could go unsold. But don’t worry, we have lots of experience helping inventors navigate through this process and even have manufacturing partners already in place. You just need the right idea.

Inventors who aspire to turn their inventions into businesses where they sell their products should consider manufacturing. This can be a rewarding experience for many inventors, just be sure to have a solid plan and the resources to devote to manufacturing.

Making the Decision

Deciding whether to license or manufacture your invention is tough. If manufacturing seems too costly or complicated, a licensing agreement may be a better option. Usually, the company that licenses an invention handles the manufacturing and assumes the risks and costs.

Every invention is different in complexity and structure. You should carefully consider these aspects when deciding whether to license or manufacture the invention. Some may need little setup, making manufacturing simpler. Others may need in-depth research and engineering for production, making manufacturing expensive.

Do you have an idea that you want to take to the next level? We can help you decide if manufacturing or licensing is your best option. Call our inventor hotline at 888.864.1780 or email us at


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