Avoid These Mistakes When
Monetizing Your Patents

IP News and Information

The patent monetization game is constantly evolving and although the goal is the same for all patent owners who want to monetize their inventions and technologies, there are many paths one can take to get there. Successfully monetizing a patent, or patent portfolio, takes several important steps and many patent owners make key mistakes along the way. While some of these mistakes are minor and can be easily overcome, there are other mistakes that can be extremely costly, in both monetary and labor-related resources. That’s why if you are looking to monetize your patent portfolio you need to be aware of the missteps that can prevent you from achieving your full earning potential.

Choose Your Strategy Wisely

There are several different patent monetization strategies to choose from and there is no one-size-fits-all strategy for everyone who wants to monetize. However, it’s important for patent owners to choose which method is best for them. They can choose to sell their patents outright, or to license them and receive a royalty. Patent owners can also choose to litigate against anyone who might be infringing their technologies in order to force a licensing deal and receive monetary damages. Another strategy is to acquire patents to add to one’s existing portfolio to give a portfolio greater strength and reach. Whatever method you choose, it’s important to have a clear strategy from the get-go.

Know Your Valuation

Another mistake that can be costly is not having a proper valuation of your IP, or not having any valuation at all. Any patent owner that plans to monetize must have some kind of idea of how much their patent is worth. Even more important though, is having a realistic valuation in mind. Valuing a patent is one of the key factors in monetization and there are many things to consider, including the current market, evidence of use, and the cost of acquisition to name just a few. If you make the mistake of not completely understanding the industry and market of your invention it could cost you dearly when you attempt to monetize. But whatever measures you use to determine a valuation, make sure you have a realistic number before you try to monetize.

Finding the Right Buyers

Patent owners must also avoid the mistake of going after the wrong buyers. They need to have a solid understanding of who the potential buyers are and then focus their efforts on approaching them. Additionally, if patent owners are going to look for opportunities to go after infringers, then they have to know which companies to target. Litigation can be very expensive and take up a lot of resources. Therefore it’s very important to choose those battles wisely and to go after the cases that are most likely to produce a favorable result. Lastly, according to IPTrader president, Arlen Olsen, “it’s always a good idea to seek help from an experienced patent brokerage firm that can help you navigate successfully through the patent monetization maze.”

IPTrader Guides You Through the Process

The bottom line is the patent monetization process is not easy and it often takes some trial and error before finding success. However, by avoiding these common mistakes patent owners are much more likely to achieve their goals and see their patents reach their full monetary potential. But remember, monetizing patents is usually a slow process. It’s not the same as buying a car or even a house. Would-be patent buyers typically take their time to review patents in order to determine if a given technology, or technologies, is right for them. So another important mistake to avoid is being impatience. Most likely it will take longer than you want to successfully find a buyer, so patience is important. At IPTrader, we understand the perils of patent monetization. If you are looking for help to monetize your patent, or to add to your patent portfolio, then please contact us for assistance.