How to Manufacture an Invention
A license agreement is when the inventor (licensor) agrees to let a third party (licensee) commercially use his invention for a period of time.
Step-by-Step Guide
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Step 1: A license agreement is when the inventor (licensor) agrees to let a third party (licensee) commercially use his invention for a period of time.
Typically, the inventor would receive either an ongoing payment called a “royalty”, (calculated as a percentage of sales of the invention) or a one-time lump-sum payment.
The company/licensee normally proceeds with developing, manufacturing and marketing the invention, which allows the inventor to shift these cost and risks to the licensee.
Also with licensing, the inventor can rely on the company’s experience and established business to boost the product’s chance of success.;
Detailed Guide
Typically, the inventor would receive either an ongoing payment called a “royalty”, (calculated as a percentage of sales of the invention) or a one-time lump-sum payment.
The company/licensee normally proceeds with developing, manufacturing and marketing the invention, which allows the inventor to shift these cost and risks to the licensee.
Also with licensing, the inventor can rely on the company’s experience and established business to boost the product’s chance of success.;
About the Author
Richard Hart
A passionate writer with expertise in cooking topics. Loves sharing practical knowledge.
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