{"id":37406,"date":"2021-11-04T10:00:17","date_gmt":"2021-11-04T04:30:17","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=37406"},"modified":"2021-11-01T14:19:48","modified_gmt":"2021-11-01T08:49:48","slug":"commercialization-of-patents-a-way-for-inventors-to-regain-their-initial-investment","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/commercialization-of-patents-a-way-for-inventors-to-regain-their-initial-investment\/","title":{"rendered":"Commercialization of Patents-A way for inventors to regain their initial investment"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Every invention is precious, and one can obtain the full reward for their inventions when it starts bringing out monetary benefits. Now it is up to the inventor to use the absolute rights of the patent successfully to his advantage. The commercialization of a patent is not mandatory, but if a person waits for too long, another person will make the most on a similar idea and capture your invention. It always requires that one push from the inventor increase the demand for the patented inventions. Let us look into what is Patent Filing and commercialization of Patents.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/commercialization-of-patents-a-way-for-inventors-to-regain-their-initial-investment\/#What_is_Patent_filing\" >What is Patent filing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/commercialization-of-patents-a-way-for-inventors-to-regain-their-initial-investment\/#What_is_Commercialization_of_Patents\" >What is Commercialization of Patents?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/commercialization-of-patents-a-way-for-inventors-to-regain-their-initial-investment\/#What_steps_are_required_for_the_commercialization_of_Patents\" >What steps are required for the commercialization\nof Patents?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/commercialization-of-patents-a-way-for-inventors-to-regain-their-initial-investment\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Patent_filing\"><\/span>What is Patent filing?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Patent filing is a\nprocess of applying in a patent office requesting a Patent grant to your\ninvention. Patent Right is a monopolistic right that could restrict others from\nusing or infringing on the patent holder\u2019s rights. Given that, the inventor\nspends an appreciable amount of time and resources on creating a unique product\nor process. It also gives courage to the inventors to bring out their\ninventions in public. But merely securing a patent and bringing out the\ninvented product or process does not guarantee the key to a money chest. A\npatent filing adds value to the product or process among potential investors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Commercialization_of_Patents\"><\/span>What is Commercialization of Patents?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Commercialization of Patents here means the actual owner of the patent has either-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Sold the patent,&nbsp;<\/li><li>Licensed the patent, <\/li><li>Introduced a new product based on the patent in the market in his firm already in existence or for a new firm.<\/li><\/ul>\n\n\n\n<p>Hence, a minimum\nrequirement is that the patent has generated some income for the owner. However,\nit is not sure that the actual owner gets the profitability through\nCommercialization.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What are the ways of Commercialization of Patents?<\/h3>\n\n\n\n<p>The purpose of Patent filing is to factually analyze the relationship between commercialization and the renewal of patents. Also, it considers protecting patent strategies and asks if any third factors that affect the commercialization and renewal decisions. Below mentioned are the various ways of commercialization of Patents-<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>1.<\/strong> Licensing of Patent<\/h4>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/patent-registration\"><strong>Patent Licensing<\/strong><\/a> is a practical and cumulative approach to commercialize the patent. Hence, an actual owner should have a comprehensive study of the Patent licensing options. The Patent holder shall measure the profitability of each of the licensing while deciding.<\/p>\n\n\n\n<p><strong><em>A patent holder can opt for complete licensing and can give the permit to the\u2013<\/em><\/strong><\/p>\n\n\n\n<ul><li>Manufacture, <\/li><li>Use, or <\/li><li>Sell the patented product only to one company\/firm\/organization.\n<\/li><\/ul>\n\n\n\n<p>The patent holder can\nget an exclusive licenseglobally or within a geographical region.Also, the\nowner can grant patent licensing to more than onecompany\/firm\/organization\nthrough non-exclusive licenses. Consequently,many licensees will be\nmanufacturing the same product.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">2.&nbsp; Determining\nthe licensing fee<\/h4>\n\n\n\n<p>The Patent holder shall analyze the value of the patent while determining the licensing fee and the most common strategy to decide the fee is by benchmarking. Through Benchmarking, the parties will compare the patent with older and existing technologies. After <em><strong>Benchmarking<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Benchmarking\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>, both the parties conduct a watchful study of already existing licenses and arrive at the licensing fee.<\/p>\n\n\n\n<p>The companies adopt a\ndifferent approach for determining the fees in case ofnew Inventions, where a\ncomparison cannot be made with the existing technologies.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">3. Ensuring the potential and capable licensees <\/h4>\n\n\n\n<p>Before licensing the patent, the licensor should study and sort out that the patent is in the right hands. Ensuring the potential and capable licensee will result in the successful commercialization of patents. It is always advisable to set targets that the licensee should achieve within a stipulated time.<\/p>\n\n\n\n<p>These targets and\nperformance obligations will keep the licensee agile and put the product on the\nmarket soon. However,if the licensee is unable to achieve the performance\nobligations, the licensor can terminate the Patent license.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">4. Self-manufacturing and outsourcing<\/h4>\n\n\n\n<p>A patent holder may\ndecide to Self-manufacture or outsource his patented product. However, Self-Manufacturing\nmight get success in a scenario where the invention is novel, and there is a\nhigh potential for the success of the product in the market. <\/p>\n\n\n\n<p>The Licensor may also\noutsource the manufacturing process to another company. Outsourcing helps the\nlicensor to sell the product in their brand name without making any investment\nin Plant and machinery.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">5. Selling the patent<\/h4>\n\n\n\n<p>In certain cases, The Licensor may also opt to sell their patent if the focus of the organization is towards Research and Development, and the organization is not ready for marketing risk. An inventor not having appropriate contacts to manufacture or outsource the patented product will consider the selling of the patent product the best option.<\/p>\n\n\n\n<div class=\"shadow1\"> The above mentioned are the basic strategies a patent holder can adopt for the commercialization of patents. Also, it is advisable to carry and adopt the strategy that suits the most to gain maximum benefits.<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_steps_are_required_for_the_commercialization_of_Patents\"><\/span>What steps are required for the commercialization\nof Patents?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>For the successful launch of an innovative product and its Commercialization in the market, below mentioned steps are required-<\/strong><\/em><\/p>\n\n\n\n<ul><li>Pre-manufacture, <\/li><li>Market launch and,<\/li><li>Mass production.<\/li><\/ul>\n\n\n\n<p><strong>Pre-Manufacturing<\/strong> <strong>&#8211; <\/strong>This stage requires intelligent assessment of the market potential, approving the commercial opportunity, and testing of the manufacturing process. <\/p>\n\n\n\n<p><strong>Market Launch &#8211;<\/strong> Market Launch helps in figuring out the right products. Market launch helps in identifying your competitors, your customers, and your Partners.<\/p>\n\n\n\n<p><strong>Mass Production &#8211;<\/strong> Mass production is one of the steps required for commercializing the Patent where production is done on large scale using assembly line techniques.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Conclusively, The Patent holder has various ways to Commercialize the Patents and avail benefit from the patented products. Commercialization of patents has its own set of advantages and disadvantages that a patent holder could choose as per the need. Commercialization of patents requires proper strategies that should be aligned with bigger goals of achieving maximum profit. Turning inventions into products or processes, Licensing, Patent Enforcement, Pooling, and Selling a Patent are the most effective ways that would help in getting the best money out of it. The Patent holder needs to analyze the Commercialization strategies in a way to hit the bull\u2019s eyes.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/culture-for-working-of-patent-in-india\/\">What is the Culture for Working of Patent in India? <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every invention is precious, and one can obtain the full reward for their inventions when it starts bringing out monetary benefits. Now it is up to the inventor to use the absolute rights of the patent successfully to his advantage. The commercialization of a patent is not mandatory, but if a person waits for too [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":37577,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[282],"tags":[2013],"acf":{"service_id":"20"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4852,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/37406"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=37406"}],"version-history":[{"count":25,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/37406\/revisions"}],"predecessor-version":[{"id":37434,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/37406\/revisions\/37434"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/37577"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=37406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=37406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=37406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}