- 1). Obtain a patent from the U.S. Patent and Trademark Office. Since patent protection is extended retroactively to your initial filing date, it is possible to begin negotiating a patent license while still in the "patent pending" phase. However, your licensees are unlikely to sign a final contract until your grant of patent proves to them that they needn't worry about your application being denied.
- 2). Search for companies capable of manufacturing your invention. Use business connections or online databases such as ThomasNet (see Resources section), or companies with both manufacturing and distribution capabilities. Narrow your list of potential licensees to those with experience manufacturing similar technology.
- 3). Create marketing materials for your invention. Focus on two aspects of your invention -- how it is innovative in terms of its function, and how it can make money for the licensees. You may have to conduct significant market research to draw up these materials.
- 4). Approach several potential licenses and give marketing presentations using your marketing materials. Work with several licensees at the same time if possible.
- 5). Negotiate a licensing agreement. Grant nonexclusive licenses to maximize your royalties. Include a clause mandating minimum monthly royalties, so that a licensee preoccupied with other matters will not be tempted to "sit on" your invention without attempting to market it to end users. Avoid "perpetual" licenses -- the license should have a definite expiration date.
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