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Patent licensing is a revocable agreement between a patent owner and a licensee; the patent owner gives another entity (the licensee) permission to use the patented technology, while the patent owner retains ownership. In the patent assignment, the original owner permanently transfers its ownership to another entity.
Selling a patent allows the inventor to generate income that will help pay the bills or finance other promising ideas. Selling a patent outright also eliminates the huge financial outlay required to start up a business based on a new product.
It may be possible to license your patent-pending invention. However, only having a provisional patent application pending may not be sufficient for licensing. Since it is never disclosed to the public, a licensee would have limited options in verifying what is actually patent-pending.
By acquiring rights to a patent, a licensee can: create new products, services and market opportunities for themselves. reduce costs to acquire new technologies, without having to develop their own. save time getting a new product to market. gain a competitive advantage over rivals, especially if their licence is exclusive.
Typically, royalties are paid as a percentage of the products gross sales. The typical percentage for royalty payments will be 3-5%.
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It may be possible to license your patent-pending invention. However, only having a provisional patent application pending may not be sufficient for licensing. Since it is never disclosed to the public, a licensee would have limited options in verifying what is actually patent-pending.
Patent Licensing is an act of or a process of granting, to a third party, permissions to extricate benefits by selling and using the licensed product. The patent owner gives license to a third person to use, sell and extract benefits from his patented invention, for an amount already decided as royalty.
What is Patent Licensing? When a patent is licensed, an agreement is made between the patent owner (or the licensor) and the person or company that wants to use and benefit from the patent (the licensee). It permits the licensee to make or sell the product, design, or technology in the patent.
A patent owner can license his invention for many reasons, such as, he may not have enough money to or manufacturing facilities, so he gives license to third party to make, sell and distribute his patented invention in return of royalty.
Rates can range from 0.1% to 8% of the net sales for most patent licensing agreements, depending on the product or industry.

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