How do I find a licensee for my patent?
Your patent has been filed, maybe even granted. Now what? Many inventors wait for a company to call. That almost never happens. Licensees have to be found actively and systematically. Here are six steps that have proven effective in practice.
1. Find the right companies
Ask yourself: Who makes money with my invention? Usually that means manufacturers in your industry, their suppliers and their competitors.
An often overlooked tip: Search the patent databases, for example Espacenet, the free database of the European Patent Office. Companies that file their own patents in your field are investing in development there and are obvious candidates.
Draw up a list of 20 to 30 companies and rank them by how well they fit.
2. Show the benefit in numbers
Companies don't buy ideas. They buy higher sales, lower costs or an edge over the competition. Summarise on a single page:
What problem does your invention solve?
What is the measurable benefit, for example 20% less material or half the assembly time?
How is the invention protected, and in which countries?
How big is the market?
The better you can prove the benefit, with a prototype, test results or an independent assessment, the more seriously you will be taken.
3. Approach the right person
An email to info@ rarely reaches the right desk. You are looking for the people who decide on new products:
in SMEs, usually the managing director or the head of development,
in large corporations, the innovation, technology scouting or licensing department.
LinkedIn and trade fairs are good ways to find these people and approach them personally.
4. Handle confidentiality wisely
In your first contact, show only what the benefit is, not how the solution works in detail. Disclose technical details only once a non-disclosure agreement has been signed.
Good to know: Many large companies will not sign a non-disclosure agreement for unsolicited ideas and have their own rules for idea submissions. Read them carefully before you submit anything.
5. Follow up patiently
Decisions in companies often take months. Follow up politely after two to three weeks. And if you receive a rejection, ask for the reason. That is where you learn the most for your next conversations.
6. Prepare for the negotiation
As soon as a company shows interest, you should know what you want:
exclusive or non-exclusive licence,
for which countries and applications,
upfront payment, ongoing royalty and minimum royalty,
term and termination options.
You can read more about this in my article "Sell or license your invention: Which pays off more?".
The most common mistakes
Revealing too much too early: Share details only after a non-disclosure agreement.
Mass emails: Ten targeted enquiries achieve more than a hundred generic ones.
Unrealistic price expectations: A company bears the market and investment risk. That is reflected in the price.
No proof: Without a prototype or test results, your invention remains just a claim for many companies.
Conclusion
Finding a licensee takes work, but it can be planned. If you know the right companies, demonstrate the benefit clearly and approach the right people, you significantly improve your chances.
Would you like to license your patent but don't know where to start? In a free and confidential initial consultation (30 minutes), we will work out which companies are a good fit for your invention and how best to approach them.
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