Workflow of Patent Licensing
Patent is something which has been in place since several years but has started to gain more acceptance and popularity since the last few years. Since the cases of infringements have grown tremendously in India, even the small and mid-sized businesses have started considering patents to save and protect their ideas. The procedure of applying for patents has gotten simpler with time which is the reason more and more people want to take it. Patent Attorney in India is responsible to go through the applications and finally grant patents to the applicants on the basis of their records, nature of business and requirements.
What exactly is Patent Licensing
Many of you must have heard about Patents and must be well aware of its benefits and process but for many of you, Patent Licensing might be a new term. Patent Licensing, as the name suggests is a process where a business which owns a patent on its product, licenses it to another business which grants the other business, an authority to sell, use or make the product and use it for its benefits. Since, it is a win-win situation for both the parties involved in the process and the average cost to license a patent is very less, Patent Licenses are sold and purchased quite frequently these days.
One of the best things about patent licensing is that it is done on an agreement between the two parties so that there are no legal differences afterwards. Both the parties have to agree to common terms and conditions related to the mode of payment, purpose of license and the access to usage of the licensed products.
There might be many reasons why the product owner license his products like shortage of funds, failure to fulfill the needs of the customers etc by which he can earn some money and utilise it to expand his business further which is a far better way than selling the license completely.
Things you should know before licensing a patent
Before you completely make up your mind to license your patent, you must ask a few questions to yourself so that you are not in a dilemma anymore. Remember, coming up with an idea and taking a patent on it is a very big and tedious process while licensing on the contrary doesn’t take much of your time. There are many benefits of licensing a patent you own but you need to be clear in your mind and think if that is what your final call is.
Business giants across the world have been making huge money by licensing their patents to other giants which is helping them to expand their business further in other directions. So, one question you must always ask yourself is whether you have sufficient capital to expand your business or you have to go with the licensing
Choosing the company or an individual for the license is completely in your hand so must decide whom you should choose. There might be some legal differences in the process but what you must consider is their capability and license the patent to somebody who can use it in the best way possible. Another question you must ask yourself is whether you will license your patent or will sell it completely. When you have the answer for all these questions, you are good to go.
Types of Patent Licenses that exist
There are 8 types of patent licenses which you must know
Exclusive License- The only thing that is left with the owner in the exclusive license is the title. Rest everything is acquired by the licensee. Apart from transferring the license to somebody else, the licensee acquires all the rights.
Non-Exclusive License- Non-exclusive license can be granted to more than one party and all of them have equal rights on the product
Cross-Licensing- Exchange of licenses between different organisations is called cross-licensing
Sub-License- In sub-licenses, the owner can grant access to other people for manufacturing the product. Also, the licensees can grant the license to other parties.
Compulsory License- In compulsory license, the government allows you to practice a work on somebody else’s license. Usually common in pharmaceutical sector.
Voluntary License- In this license, the patent holder grants license to third parties on exclusive or non-exclusive basis giving them right to manufacture, import or distribute the product
Carrot License-Carrot license is a marketing strategy and not an actual license where the patent owner gives a glimpse of what all he has to offer with his license to lure other parties.
Stick License-This licensing is used when the other party is already using your patented technology making it an infringement.
How many years does a patent last
In India and all across the world, a utility patent generally lasts for 20 years. There are some differences in the laws in different parts of the world but this 20 years time is the same in almost all the countries. Although, in order to maintain the life of a period for 20 years, a periodic fee must be submitted which again differs in different countries.
When it comes to design patents, it’s usually granted for a period of 14 years from the date of granting the patent and the same periodic fee is required to maintain its enforceability.
Can a patent be renewed after 20 years
Can you renew a patent after the completion of its term? Well, the answer to this question is NO. You cannot renew the patent after 20 years while you can maintain it for 20 years by submitting maintenance fee from time to time and the fee structure is different for different countries.
Patent , Patent Infringement
Tags : Average cost to license a patent , Patent Attorney in India , Patent Licenses , Patent licensing companies