How Does Patent Licensing Work?

If you are looking to obtain a patent license, you have a lot to consider. A patent license allows you to utilize a patented idea for your purposes without the worry of legal action because of infringement. If you are the inventor, you have the ability to offer the license at a price and most likely limit its use to one or more companies. In some cases, obtaining a patent license is the obvious financial choice for patenting your own idea. For those who hold the patent, your whole business model may depend on licensing your idea out to other companies. When parties come to terms with the patent license, they will enter into a licensing agreement. It is in everyone’s best interests to seek counsel before acting. Whether you are looking to obtain a patent license or offer one, you should contact a New Orleans, Louisiana patent lawyer from Lemler IP for assistance with all patent licensing matters.

Things to Consider Regarding Patent Licensing

If you are hoping to obtain a patent license, you need to do some research. With the help of Lemler IP, you can potentially save a lot of money. Lemler IP will conduct due diligence for your prospective endeavor. Lemler IP will investigate whether the intellectual property is in use or just held by one inventor, and also whether the patent is for the United States alone. Other factors Lemler IP may consider include whether the patent covers the scope that would satisfy your needs, and whether the examiner at the patent office did a thorough search before granting the patent. There may be an already exhausted patent on file that could satisfy your needs and save you a lot of money. These and many other questions should be answered before obtaining a patent license.

How to Prepare a Durable Licensing Agreement

Though licensing a patent usually comes with no issues, there is always a potential for problems. The licensing agreement is going to detail what protection each party has when things divert from the norm. If the other party breaches the contract, you may have to consider your legal options and hold them accountable for the violation.

For example, patents should be renewed in the 4th, 8th, and 12th years of their existence. If the patent holder fails to renew the patent, your contract may have legal language that says you are no longer obligated to pay royalties. An optimal contract would consider this inaction a breach of the contract, allowing you to take legal action. If the holder of the patent license deviates from the contract, the holder of the patent should be able to use the contract to protect the patent from abuse and hold the other party accountable.