Wednesday 9 September 2015

Factors To Consider When Selling Patents To Companies

By Kenya England


Companies are always buying products that they can use to make profits. There are products and invention owners out there who are interested in selling to companies, but they do not know how to go about it. A successful sale is dependent on certain factors. Here are factors to consider when selling patents to companies.

First, analyze the market. There is a specific market for the product and you must analyze it to come up with information on how to sell. By analyzing, it will be possible to determine the amount of money you expect to make from the sale. Assess the strengths and weakness of the companies willing to buy. It is wise to sell to a firm that can fully utilize the product.

Make sure to advertise that the invention is on sale. Since it is a sale, it is important to put the product out there. There are several marketplaces to list the item for the public to see. Another way to sell is to approach manufacturers and distributors who deal with similar products. There are different ways of advertising the product; you just have to find the right one.

The other factor to consider is the price. The price should be fair. Do not sell if you are not comfortable with the price. Conduct research to find out the worth of the product and its valuation. This will set a limit to the amount that can be accepted. There are professionals who can help with valuating of the invention. Negotiate with the interested party until you reach a favorable agreement.

Consider the level of experience. In every market place, there are new companies and old ones. Most of the old companies have gone through changes over the years so that they can adapt to the changing environment. Such companies have the ability to utilize the invention unlike the new companies. This is because they have the resources and labor to maximize on what they buy.

For the firms that show interest, negotiate terms with them. Once there is a genuine buyer, go ahead and negotiate the about the details of the agreement. Negotiation is the most important part when it comes to sales. The negotiation skills are what will determine the amount of money you get. You will have to convince them to accept the terms of sale. If they do not offer favorable terms, stand on your ground until both parties can agree on terms favorable to them.

Consider the selling options available. There are terms that come with sales of products especially for huge companies. For instance, you may have to sign a non-compete clause or be subjected to another condition. Whichever the condition, ensure that you are comfortable with it.

The last thing to do is to execute the agreement. The buyer will offer cash or the agreed mode of payment, then the seller transfer the rights to the buyer. The article shows the steps followed when selling a patent.




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