Price to License your invention - why setting a price for your invention is not practical.
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- เผยแพร่เมื่อ 9 ก.พ. 2025
- Why setting a sales price for your invention is not practical, instead you should license your invention for a royalty if you find a company interested in your invention.
Check Out The Free Online Course on How to write a custom NDA / Confidentiality Agreement (Link below). Tt's quick, easy and includes precedent agreement and clauses.
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You are good
Another great/valuable video!
Another fat "THUMBS UP" from Montréal!
Thanks counselor, informative...and wise🎓
😂 dear Elias, I have been googling so many things today about my inventions, and just received a beautiful pic of my 2D
pic from my designer. It's so beautiful. Yes, it's something revolutionary, and much needed by every person on the planet who buys groceries daily. In particular, one essential daily food item. And here comes up your video! Perfect timing, thanks Elias. 🤗
I wish you every success with your venture. Please let us know how it works out, and let me know if there’s any topic you would like to see a video on.
@@PatentToronto thank you so much dear. Yes, I will let you know, as I'm doing a few enquiries already. I'm in South Africa, but would prefer to get my inventions produced in the USA, for maximum sales. A suggestion about an upcoming video....yes please...😊 Could you explain how the PPA, and licencing fees, taxes paid by an inventor from another country, like myself, etc, works? Assuming my inventions are licensed by a company/ies, in the US, do they deduct income tax from any royalties, before they pay my royalties, or do I pay tax when I receive my royalties?
Thanks Elias. 😊
Just wondering how long licensing agreements usually last for and can they be inherited
Straight to the point
I'm trying to understand how to license product my idea I'm really having problems and I need help when I got a great idea for the world global
Hi Elias Thank you for all the help and information that you given us over the years; it's been invaluable.
I have invented a cheap small tool that I have Patent pending and following a short zoom meting with a large tool manufacturer here in England, they have requested that they be sole Licensee to this product with the offer of 2% with no Patent; or 5% with Patent. Its only small priced tool that would sell for less than $3 or $4. They are waiting for me to send over a prototype. Given that they are making offers this early in the process and without even testing the item themselves, should I perhaps use this to barter for more percentage or even take the product to other manufacturers ? personally I think it's unusual for a company to 'show their hand' at this stage in the game.
I can’t really advise as to what you should do specifically in this case. However, I think a royalty in the range of 2-5% seems in the typical range. If this were my deal I would try to negotiate a minimal royalty amount and ask for an upfront pre-payment of royalties. For example, I might ask for $10k up front, with that amount being applicable against future royalties.
@@PatentToronto Thank you, Elias for your kind reply; It’s very much appreciated. I’ll keep you informed of my progress. Best Regards
Alan
@Elias Borges Hi Elias, As promised, I said I will update you with my progress. Well, last week I had a meeting with a large tool company here in the UK. In fact it was in the same week my Patent was published, albeit still patent pending, but it's now in the public domain. It was an interesting meeting as the tool company seem very keen to manufacture my invention and offered me some terms. 4% on Net sales for 2 years, then dropping to 2% thereafter to continue in perpetuity. No signing fee was mentioned. (4% on their Net Sales equates to roughly £1,600.00/year) They told me to have a think over the weekend and come back to them with my thoughts.
Over the next few days I will have to choose as to whether to accept their offer as it stands, or maybe try and barter on the above mentioned figures. It's tricky, as I don't want to lose them but at the same time, a drop to 2% on a £1.00 item is extremely small. Either way, I feel a request for a signing fee maybe a good idea, as you suggest in your video. The question is how much?!? I have much to ponder on....
Thanks again for posting your helpful videos.
Your commercial was very informative and clear to me makes me want to hire you for mine, I live in Nevada and the distance from you to deal with my invention, how that will be? How much would you charge me or how you will work? Some percentage?my invention is in the refrigerator comercial and residential, the cost for this will be around 80 dollars but will save electricity and make it more efficient and I am almost done with the prorotipe I believed that once they see it will love it, what you recommend?
Thank you for your interest, but I am not accepting new clients at this time. I suggest you do a google search of patent agents/lawyers in your area. Good luck.
Sir I have issued pattent, and working module.
Can you give the way to sell please. Thanks
Hello sir can u help me? Im from the philippines.
I have an new take on electronic/internet connected platform.. that will compete with things like smart phones, gaming systems, VR, streaming media etc.. I need to price the invention to get funding.. I planned to show profit vs costs for like 4 or 5 of closest items on market.. and put mine in the middle.. better than nothing I suppose.. thoughts?
That sounds like a good strategy; however, the pricing of individual products has a lot more to do with manufacturing costs amortized over units sold. That’s why low volume products tend to cost more. Your approach to look at products of similar or analogous construction might be a good approach if you’re not sure about manufacturing costs. Alternatively, you might think about pricing in terms of pricing a startup business as opposed to a single product. Startups that have had success seem to pitch themselves as “the next big thing” to help attract venture capital.
Good luck, and let us know how you make out.
What if I show my invention to someone and then they will say no, and once they see it they may start doing it ? Not the same but almost , I bet it had happened, right?
Yes, this does happen quite frequently. I suggest protecting yourself with a non disclosure agreement (NDA). I have a video on NDAs and a free course on how to write one - just check my other videos on the subject.
Sir I have tried to contact you regarding sale of patent, i did not get any response from your side, thanks
I’m sorry, I don’t provide those services. I’m a retired patent lawyer/agent and I make videos on inventing/marketing, but I don’t provide marketing services directly to clients.
I have the best idea
Elias do you have Latin roots?
Yes, I’m of Portuguese ancestry.
I have a card game that I invented that I really want to bring to market selling a product license I want to make a deal if you can help me
I really need help great idea
Elias Borges, I could really use your help on my invention.
may I have your email to explain my situations.. Thank u
I think you sound very confident in what you do. Can I have your email so as to talk further...thanks in anticipation
I received your email and shall reply.
How can I get a percentage of an invention that saves losses for the company, for example, the company loses 10 million in a field, but the invention reduces the cost to 5 million?
You can ask for a percentage of savings. Make sure to include an audit clause so you can verify that your full royalty amount.
Can i please have your email