For those who would like to license their invention there are several options. Most inventors try to do it on their own by contacting companies directly. The main problem they face is that many companies have a policy that do not accept unsolicited submissions. The reason they have this policy is to protect themselves from any possible claim of patent infringement. Another approach is to hire a licensing agent who works in the market nice that your product belongs and is known in that industry.
There are several ways to find a licensing agent. You can contact LES (Licensing Executive Society). LES is one of the large international organizations whose members are licensing agents. Another way to find a licensing agent is to conduct an online search.
It is recommended prior to hiring a licensing agent you conduct marketing due diligence about your product. It’s important to know as much as you can about your invention and where it fits in the marketplace. There are several benefits to bringing this information to a potential licensing agent. It will make it easier for them to determine if they can help license your idea or invention. The licensing agent will respect your efforts and see you are serious about your invention.
Choosing a licensing agent for your invention is an important decision. It is no different from hiring an accountant, lawyer, or any other professional. You should do your due diligence and interview them to determine if they have licensed products in your category. Ask them about other types of ideas and inventions they have licensed, and request the names of their clients and a referral you can call.
Like most professionals, licensing agents will let you know how they receive compensation. Some will work on a percentage of the licensing deal they bring you, while others will ask for a monthly retainer. There is no hard rule, but the best way to hire a licensing agent is to pay with a fixed percentage of the licensing deal they make. When paying a percentage, you are not paying any funds out of your pocket for their services.
EXAMPLE OF AN INTRODUCTION LETTER TO PROSPECTIVE LICENSING AGENTS
Below is a sample introduction letter to licensing agents whom you believe would be the best fit for your idea or invention. This letter is standard and commonly used, but you may want to change the language slightly based on whom you are sending the offer. If you have any questions regarding aspects of the letter, it is advised to seek the advice of a business attorney.
YOUR LETTER HEAD
Name
Address
Telephone
Mobile
Date:
Name of Contact
Name of Company
Address
RE: Licensing Agent Inquiry
Dear_______________________
I am an inventor seeking a licensing agent for my (patented) or (patent pending) product and learned about your services through _______________(include how you found them if you think this will add any creditability to the introduction). My product is in the category of ___________________. Please let me know if you represent products in this industry. If you do I would like to set up a meeting (or conference call) to explore hiring you as my agent.
Prior to any meeting I would ask you to sign a non-disclosure agreement since the meeting would include information of a proprietary nature. Please let me know if you sign non-disclosure agreements. If so I can send you my NDA prior to our call for your review and signature.
Thank you
Your Name
Title