IP Licensing or Manufacturing – What’s Best to Get Your Invention

You have patent-pending invention but don’t have any idea what you should do next? And what are the different money-making options available for you? This article will give you information on how you can get your idea to market which includes manufacturing and IP licensing.

In the beginning, you must study your invention thoroughly and be familiar with the marketplaces it could be utilized in. Do market research!

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Google is a great resource to do this. Find the most reputable firms and emerging players that are active in the target markets of your invention, and research the current offerings of their companies. Blogs, online business magazines and business publications on the internet are all excellent sources of information. Also, try to know the latest technologies and going to hit your market in the coming years. There may be an item that violates your technology and you can be able to file an IP suit for infringement against the maker. Your technology may be used to improve the capabilities of a previously-existing product. This could lead to IP licensing opportunities.

You need to think from the customer’s perspective in order to be successful. Review customer feedback on social media, e-commerce sites as well as the official websites of companies as well as online blogs. Examine the issues customers face with current products and assist them in finding solutions. In this way, you can create your personal brand, and establish your own fan base. Customers can also be informed about future product launches or business plans.

Let’s consider an illustration. A company is selling an electronic device, and it has an early heat-up problem. There is a solution. You can search the internet for reviews about the problem and then inform the customers that you have a solution. It is possible to create trust among customers and make it easier to promote your product.

If you conduct thorough market research and thoroughly, you can win half the game. The next stage is studying market analysis reports as well as an individual developing an IP strategy to monetize your invention. Two options are offered:

License IP

Patent licensing is the same as leasing a home to a tenant; you remain the owner of your IP rights and at the same time let someone use them to manufacture and sell products for a certain period. The licensing agreement could be signed between inventors or corporations. The IP holders is known as the Licensor, while the person that gets the right to sell, use, or produce, or manufacture products using the patent-pending technology is known as a licensee.

You, as an IP owner, have the right to determine the conditions and terms of your licensing agreement. You could be required pay a portion of the royalty, or a fixed sum for future sales.

It is difficult to estimate the amount you could earn as an inventor when you license your idea to others. It is contingent on the value of your patent that is affected by various factors. The factors that influence this include:

  • The market’s size in its entirety and the rate of its growth
  • Number of customers that are not in the patent’s life
  • The number of customers who purchase
  • Taxes and costs that are associated with the development of products
  • The manufacturer earns an annual profit

There are two kinds of IP licensing that are exclusive and non-exclusive. Exclusive licensing grants the licensee all rights to market and create an invention. This is typically done for start-ups to help them grow. Non-exclusive licensing on the contrary, gives multiple licensees to access the patent-pending technology at the same time. This maximizes the IP’s potential.

Manufacturing on your own

Typically, the royalties an inventor gets by IP licensing range between 2% and 10 percent of the revenues. If you think “why should I get just a tiny slice of the pie, when I deserve the entire amount”, you should go to the manufacturing and sale of products for yourself.

According to a study by Ed Zimmer and Ron Westrum More than half of the inventors who decided to manufacture and market on their own claims to be successful.

In order to be a successful businessperson it is essential to know the business world. In addition, you should possess these characteristics of a personality:

  • Salesperson:All entrepreneurs have one common aim i.e. to sell their products to an extensive number of customers. It is important to inform people about your products, and convince them to join your list of paying customers.
  • Risk taker:Sometimes you need to leave the crease and score six on the final ball to be victorious in the game. There is always the possibility of losing the ball however this is not an alternative. Similarly, to grow as an entrepreneur, you must be willing to risk it all. While you may be experiencing financial difficulties or bankruptcy, problems, there are a good chance that you’ll return for another round.
  • InnovatorInnovation is a crucial tool for business growth. It is essential to be an expert in this field. By providing people with new and innovative products and enhancing products and services with the most recent technologies helps in attracting new customers and retaining the existing customers.
  • Manager: You should have management skills and be able to lead an entire team. Recognizing that employees are at the heart of any business is crucial, and could boost sales. It which requires you to stay focused and motivated.


Manufacturing and licensing are the two options to introduce an invention into the marketplace. But, it is difficult to tell which one is better. Both have their own benefits as well as drawbacks. It is your decision to choose depending on your individual preferences.

Your goal should be clear. You could start your own company, or let someone else use your IP rights.

The returns on investment are greater if you go with manufacturing. It takes thousands of dollars to establish a company. If you do not have the funds, IP licensing is the right way for you to take.

Manufacturing or licensing, what do you think is best option for IP commercialization?

Scintillation Research and Analytics is a leading IP services firm based in Mohali, PB, and it specializes in intellectual property search, IP licensing, prosecution, and market research.

What differentiates Scintillation’s patent documents from other IP firms is their detailed information on market trends, including trends in the market competitor analysis, customer needs analysis, etc. Clients will gain a better understanding of their customer needs and target markets, and thus develop distinctive strategies for IP.