Questions to Consider Before Licensing

by Attorney Richard Stim

Got a great idea that you think others will pay you to use? Before offering it up for licensing, ask yourself the following questions.

1. Can you prove ownership?
You can’t license your idea unless you can guarantee your ownership. Ownership may be challenged by your employer, a coworker, a contractor, or another inventor. For more information, see Profiting From Your Patent FAQ.

2. Is your idea protected by law?
You will have little luck licensing your idea if it can’t be protected under a legal principle such as a utility patent, design patent, trade secret, trademark, or copyright. Without such protection, any competitor can freely copy your work. For more information, see Qualifying for a Patent FAQ, Copyright Basics FAQ, or Qualifying for Trademark Protection FAQ.

3. Have you researched prospective licensees?
Learn about the industry and the companies you are considering licensing your invention to. One of the worst mistakes you can make as an inventor is to solicit a company blindly, without knowledge of that company or the overall industry.