IP Licensing or Manufacturing

You’ve invented something patentable but aren’t sure what you should do with it. What are the various opportunities to make money? This article will provide specifics on how to make your invention marketable with manufacturing, as well as IP licensing.

The first step is to study your invention comprehensively and become familiar with the fields it could have applications in. Market research is essential!

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Google is an excellent resource to do this. Look up the top companies and emerging players operating in the markets that are targeted by your invention, and research the products and services they offer. Sources and references may include business magazines, online journals, magazines, or blogs. It is also important to keep in mind technologies that are likely to be in demand in the near future, and are likely to appeal to your target markets. You may come across products that violate your invention and be able to file an IP suit for infringement against the maker. Perhaps your technology could be utilized to improve the functionality of the product already in use, thus creating IP licensing possibilities for you.

If you wish to be successful, it is important to consider the needs of your clients. Review customer feedback on social media, e-commerce websites, companies’ official sites, and online blogs. Help customers find solutions to their issues in relation to current products by analyzing them. By doing so you can build your personal brand, and create your own fan base. In this way, you can tell customers about your future product launches and business plans.

Let’s consider an example. A device that is electronic is sold by a business. It’s got an early heat-up issue. There is a solution. You can search the internet for feedback on the issue and then tell your customers that you have the solution. You can establish trust among the customers and allow them to market your products.

If you do extensive market research, you win half of the game. The next step is studying market analysis reports as well as an unique building IP monetization strategy for your invention. There are two possibilities:

IP licensing:

Patent licensing is the same as renting a home to a tenant. You keep ownership of your IP rights and at the same time allow someone to use them to manufacture and sell products for a given period. The license agreement may be held between individual inventors or businesses; the IP owner is referred to as Licensor, while the person who is granted the rights to use, sell, manufacture from the patented technologies is called licensee.

You, as the IP owner are entitled to determine the conditions and terms of the license agreement. The terms could comprise an amount fixed for future sales or a part of the royalty per unit.

It’s difficult to determine the amount of money you can earn as an inventor when you license your invention to others. It is contingent on the value of your patent that is affected by a variety of variables. These include:

  • The size of the market and the growth rate
  • Customers who are not covered by the patent
  • Customers make purchases
  • Taxes and development costs for products
  • Profits per year for the manufacturer

There are two kinds of IP licensing two types of IP licensing: exclusive and non-exclusive. Exclusive licensing gives only one licensee the right to market and create the invention. This is usually done with start-ups in order to assist them in their growth. On the other hand, non-exclusive licensing allows multiple licensees to use the patent-pending technology simultaneously, thus utilizing the IP to the fullest extent.

Produce your own

Usually, the royalties that inventor gets by IP licensing can range between 2% and 10 percent of the revenue. It is recommended to consider making your own products and selling them.

Based on a study conducted by Ed Zimmer and Ron Westrum, more than half of the inventors who decided to produce and sell their own claimed to be successful.

To become a successful businessperson is to be familiar with the world of business. Personality traits are also important.

  • Salesperson Every entrepreneur has the same goal: selling their products to the maximum amount of people. Therefore, you must possess characteristics of a salesperson explaining your products to people and convincing them to be included into your list of customers who pay.
  • Risk it:Sometimes you will need to move from the crease in order to score six on the last ball. This is how you take the lead in the game. There’s always the possibility of running out however this is not an alternative. It is also important to be open to taking risks to increase the size of your company. You could face financial difficulties or even bankruptcy, however, you have fair chances to come back to play another game.
  • InnovatorInnovation is a key tool to boost business growth. You must be an expert in this area. Offering new services or products to your customers, as well as updating existing customers with the latest technology can allow you to draw in new customers and retain your existing customers.
  • Manager: You should have management skills and be able to manage an entire team. Knowing that employees are the foundation of a company is crucial, and will help increase sales is possible only when they are motivated and committed.


There are two options to put an invention on the market either through manufacturing or licensing. But, it is difficult to determine which is the better option. Each has its own benefits and disadvantages. It’s up to you to choose which suits your needs best.

Therefore, your objective should be crystal-clear. You could start your own business, or allow someone else to utilize your IP rights.

However, returns on investment are higher if you opt to manufacturing, however you need thousands of dollars to set up a company. If you do not have the funds, IP licensing is the best way to take.

Manufacturing or licensing, what do you think is best option for IP commercialization?

Scintillation Research and Analytics is a leading IP services firm based in Mohali, PB, and it specializes in intellectual property search, IP licensing, prosecution, and market research.

What sets Scintillation’s patent report from that of other IP companies is the detailed market analysis, including market trends, competitor analysis, customer demand analysis, etc. Customers can gain a greater knowledge of their needs and target markets, which allows them to design unique IP strategies.

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