Usually, these companies also claim that they can patent your idea, which is impossible. (Any competent patent attorney will tell you that you can only patent an invention, not a mere idea.) However, even the smartest inventors tend to be drawn in by these alluring promises. While it may seem logical to chalk this up to laziness, that doesn’t seem to be the case. Inventing is hard and diligent work. The most likely explanation is that the inventors are not familiar with the business side of patents and these companies seem like a smart way to do it.

In fact, inventors with patent ideas can bypass this fool’s game and do most (if not all) of their patent sales filings themselves. All you need is some knowledge of how companies evaluate patents and how to emphasize the benefits of yours. With that in hand, you’ll be primed and ready to go out and sell your patent to a buyer.

First, you need to decide how you want to sell your patent. Your two options are to license your patent or assign it. Essentially, licensing your patent allows you to retain the underlying rights but give someone else, the licensee, the right to do something based on the patent. In exchange, he gets royalties and any performance obligations you write in the license agreement. An assignment of a patent, on the other hand, is a direct transfer to another person, after which that person is the sole and exclusive owner of the patent. (Read our detailed article on patent licenses to learn more about both options.)

Once you’ve decided whether to sell your patent through license or assignment, the next step is to determine which company to submit your proposal to. For example, the inventor of a new, lighter, more durable bicycle tire might assume that he needs to talk to Wal-Mart or the Sports Authority. Actually, he wants to talk to companies like Huffy or Schwinn, that is, companies that make and manufacture bicycles. They are the most likely to buy your patent because it matches their existing line of business. It’s what those in the business call a “natural fit.”

You might even want to go further down the chain and approach the company that makes bike tires, if it’s a different company. The closer you get to the physical implementation of your idea, the more likely your presentation will be received favorably.

The reason for this is simple. The higher you go, the more layers your idea has to go through before it reaches the people whose lives will be specifically affected by it. Not only that, but other people won’t present your idea with the energy and enthusiasm that you will. The importance of narrowing down the list of companies to make your sales pitch to in this way cannot be stressed enough.

Once you identify the company you need to talk to, you need to work out what you will tell them. To keep with our example of a new type of bicycle tire; wants to emphasize to the tire manufacturer why their tire design is superior. Beyond that, you want to demonstrate why the business needs to use your design. For example, you might want to include a survey in your presentation where 75% of respondents said that poor quality bike tires are the reason they don’t buy new bikes. The idea is to focus on the benefits to the company, rather than hype and self-promotion. This is what will make them eager to buy your patent and use it in their products.

Once you’ve prepared a clear, benefits-oriented presentation, the final step is to launch. You’ll usually find a business development mailing address or email address on the company’s website. Just send them a short, to the point note saying you have a business proposal you’d like to discuss. Be sure to include enough detail to grab their attention, but not so much that your note turns into a novel.

Above all, be confident in yourself and your patent. If you’ve thought things through carefully, you can sell your patent on terms that are favorable to you and your future prospects.

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