Not taking action with your patent will cost you over $250,000. And that’s not counting the cost of lost revenue opportunities or litigating any infringement.
It’s estimated that the average cost over the course of the 20-year life span of a single patent is about $100,000.00 – or roughly $5,000 per year in maintenance fees. And that doesn’t begin to cover the initial investment, which on average is about $150,000.00 to develop a single patentable invention. That’s due in part because the U.S. patent office currently rejects about 65% of all patent applications.
Then there’s the cost of IP litigation. According to a cost study conducted by the American Intellectual Property Law Association, the average inclusive litigation costs for a patent infringement suit range between $767,000 and $2,645,000.
The most important thing you can do with your patent is take action. If you don’t do something with it, nothing will happen. Licensing puts your patent in motion. Your action focuses your time (and money) on finding a company with the expertise and resources to bring your patent into the commercial market. In effect you are plugging into a company that is already in motion in the marketplace.
An established licensing partner already has the capital, personnel and marketing systems in place. They fill gaps in your business and make up for insufficient resources.
Licensing is a faster way to commercialize your patent in the marketplace. You can license your patent in months as opposed to the 18 months to 2 years it takes to setup and launch a new business.
Licensing is also a lower risk strategy. You’ll avoid some of the most common pitfalls when trying to commercialize your patent including running out of money, lack of the necessary skills such as production and marketing, or wasting a lot of time and money executing the wrong strategy.
Licensing let’s you harness the expertise, capabilities and resources of a licensing partner. It’s a low risk strategy to launch your new product or technology into the market with the best possible chance for commercial success.
Are you losing money on your patent? If so, contact us today. Licensing Consulting Group can help you turn your patent into an income producing asset.
Rand Brenner is an IP professional whose passion is helping inventors, startups, and businesses of all sizes use licensing to turn their IP into income-producing products, services, and technologies. His decades of experience run the gamut from medical devices to food technology to consumer products. He’s licensed some of the biggest Hollywood entertainment blockbusters including the Batman Movies (1 and 2), and the number one kid’s action TV show, the Mighty Morphin Power Rangers. Rand speaks about licensing and is a featured speaker at investment conferences, trade shows, colleges, and startup events. His first book, Hidden Wealth: The Money Making Power of Licensing was released in 2019 and is available on Amazon.com. He’s also a published writer with articles appearing in several prestigious trade magazine including The Licensing Journal, Intellectual Property Magazine, and License India. Rand also mentors at the Cal State Fullerton School of Business and Economics and is a judge for their startup business plan competitions.