Licensing is as important for your valuable idea as it is to develop and market it well. Licensing is done to secure your idea and the product from getting it hijacked and also to protect to develop it further and obviously, for the royalty purpose that will help you market yourself I future also. It does not only help you in gaining name and credibility of the idea as an inventor but also help secure your product/idea in so many domains. But how to do it? Let’s figure out-
Have a know how about the license you can issue–
There are three variants of a license. An exclusive license which limits the company that can produce or manufacture your patented idea/product. Secondly, a sole license under which you too can produce your product. And thirdly, a non-exclusive license which allows both licensor and the licensee to exploit the intellectual property rights to produce the patented product.You have to make decision about which variant is going to be suitable to your idea/product in the long-run for your endeavors.
Stay neat on the T and C of the license-
Licensing your product to another company or an individual for commercial purposes can be very tricky and a cumbersome work. Also, it is like giving away a part of your physical self to someone else to breath on it. Making sure on some points and staying flexible about them and strict, when needed is equally important. While licensing your product, it is imperative to lay down some terms and conditions like time length of the license, advance payment and future benefits,exclusivity of the contract, royalty rights conditions, legalities, mode payment, modification and geographic expanse.
Justify to yourself if you need a patent before licensing your work-
Patents are expensive and they should only be filed if the idea needs higher level of protection from companies who might use your idea without your permission. Besides, more than patents, companies thrive on ideas itself. If your idea is worth investing on, they will collaborate with you, no matter how much secure your idea is or not. Before initiating the process of patenting, you should also consider running a small test run of your product from your idea. If it works well in a smaller sample audience, then chances are bright for the idea to work at larger levels. Till then, patenting is not really required.
Keeping in mind the nuances for patenting and further licensing your product/idea for commercial purposes by another individual or a company, you should go ahead with decisions that can be life altering. Meanwhile keep thinking, keep generating ideas.