Becoming licensing agents for inventors is one of the toughest jobs but it gets easy if you know the right techniques or steps to take.
Many inventors have products to bring into the market but don’t have the idea and the licensing right to do that, which is why as a licensing agent is your duty to come in and help these companies or inventors.
Now I know what’s going on in your mind, which is what does a licensing agent do? What are the steps to take to help your inventors?
Well, all this will be explained to you in this article. So, just relax and read to the end. The table of contents provided below will give you an overview.
What Is Licensing For Inventors?
Licensing involves getting permission from a company (licensor) to allow your product to instantly enter the market that others spent decades building.
The return is a percentage of revenue from the products or services that have your license.
Licensing fees per item that you sell are small but add up fast. You settle for a small percentage, but licensing revenue trends towards a high margin.
There’s a good probability of success if you are interested in buying licensing rights of a well-known name or product.
Furthermore, The licensing retail market is in billions and gives you the interest in a borrowed name that is either well-known or unique, but it also takes marketing and selling to succeed. When used well, licensing can be an effective tool for profit.
Who Is A Licensing Agent?
According to UpCounsel, a licensing agent is also called a Patent agent. This is a person who identifies possible licensees for the licensor’s property, shows the property in trade shows, and presents the property and proposals to licensees while negotiating contract terms.
For a licensor who doesn’t want to do these tasks, hiring a licensing agent is a good idea.
Also, a licensing agent helps the licensor develop his properties to be more attractive for licensing.
The agent will review the license by obtaining and reviewing samples of the licensed product and collecting royalties and other payments.
Some licensors prefer to receive the samples and payments and pay a commission to the agent.
Why Do You Need A Licensing Agent?
Licensing/patent agents are highly specialized in a particular field of patent law and are less expensive than attorneys.
Patent agents have as much knowledge as patent attorneys when it comes to filing patent applications.
Also, the outcome with a licensing agent is generally just as good as with an attorney for applications that are relatively straightforward and do not require any litigation or court time.
How Much Do Inventors Get Paid?
An inventor can earn millions depending on the invention made, A good invention can keep the inventor going for years, or inventing can be a money sink that never amounts to anything.
So, if you want to invent, try to invent smartly and try to put more effort if you want to make a profit.
A recent survey showed that 54 percent of inventors think their invention will make over $5 million with another 24 percent expecting at least $1 million.
Getting five or six-figure is more realistic, but it only happens if you put more effort, invest a lot of money, and don’t hold out for a jackpot that may never come.
Furthermore, inventors in the United States make an average salary of $53,852 per year or $25.89 per hour.
Licensing Your Product
licensing your product can be a very necessary aspect of bringing your product to the market and profiting from your time, effort, and money spent.
This is also the best option when you can not manufacture and market your product yourself because of financial and logistical reasons.
To license your product, a licensing agent will always want an up-front fee with no guarantee of success and will want approximately 30% of the royalty.
But the problem is that most people don’t know how to license their product. not to worry we will show you how to do that.
Steps on how to license your product
How To Become A Licensing Agent For Inventors
Licensing is a perfect business. The beauty of licensing is difficult to beat: it’s low risk and low cost.
While the concept of licensing is simple: you create an idea, submit that idea to a company, and are paid if that product is selected for manufacture and retail.
As for most businesses, licensing is a numbers game. How many ideas can one individual generate?
Or can other inventors and industrial designers get it? As you know, the use of open innovation continues to grow. Furthermore, almost 97% of all inventions never generate any money.
This is because most individuals simply don’t know how to bring their product to the marketplace; they don’t have the knowledge of all the steps required to do so.
So, the opportunity to be the best inventing agent for your inventors and successfully license all the product ideas is to get an Internet connection, the phone, a go-getter attitude, and to learn the skills necessary to be a licensing agent.
So, by doing this you will see that the sky is the limit for the amount of money you will make.
licensing means giving another individual or company the exclusive right to use, market, or create your invention in exchange for profit.
The inventor typically receives a portion of the licensing agent’s net profit from each sale.
So to devote your product as an inventor, you will need to find the right company with a strong brand and resources to license your invention.