Should You Manufacture Your Invention or Lease It?

After getting a patent almost every inventor will be left with decision of choosing whether you should manufacture your invention or lease it for royalties. Developing, marketing, and manufacturing of your own invention will seem like a dream come true for most inventors. Still there are others will just like to lease the rights to their invention and watch the royalty checks fly in. No matter what you decide, your product will be useless if you don't have a patent ( or patent-pending) on your invention.

Licensing an invention revolves around letting a third part commercially use the rights for the product for a short period of time , that is contractually obligated in almost all cases. The company will do all of the heavy lifting, manufacturing and marketing of the product. This allows the inventor to essentially get rid of all of these costs and risks associated with bringing a new product to the marker. Even more importantly, you can rely on the companies experience and expertise to carry your invention into world wide recognition. By choosing to lease your invention you receive either a one time lump sum for the duration of the product or a an ongoing payment called a royalty. Royalties are calculated are calculated percentages of the sales of your invention.

Developing and manufacturing of an invention will require mountains of dedicated time on your part. This is more of a business venture rather than a way to get your invention out into the main stream. You will have to find someone who wants to invest in your invention to have the funds ready to start up the manufacturing of the invention. You will have complete control in the way your invention is made, marketed, and price. With all of this control comes the intense amount of risk. You will also be able to profit handsomely off of this risk fi your invention sees decent sales because you have put you will presumably have ownership of the company.

When considering if you should manufacture or lease your invention , the real question is if you have a business mind. If you don't then you should choose the option of leasing the invention, as it requires supreme business experience to take a new product to market.

Source:

http://www.ipfrontline.com/depts/article.asp?id=16145&deptid=2, IP front Line