Understanding Patent Pending Status
If you’ve taken the step of filing a patent application, you’re likely wondering how to profit from your invention while the patent is pending. Patent pending status means your application is under review, but full legal protection is not yet granted. While this stage introduces some challenges, it also presents opportunities to start generating revenue.
Why Monetization is Tricky When Patent is Pending
Since pending patents don’t offer guaranteed protection, potential investors and partners may be cautious. The uncertainty around what claims will ultimately be approved can make licensing agreements harder to secure. Businesses often prefer dealing with issued patents that provide clearly defined legal rights, reducing potential legal risks. Additionally, without a granted patent, preventing competitors from replicating an invention can be difficult.
Ways to Earn Income from a Patent Pending Product
- Licensing Deals: Some companies may license your idea under flexible terms, even if the patent isn’t yet granted, particularly if they see strong commercial potential.
- Business Partnerships: Collaborating with established companies can help get your invention to market faster, leveraging their distribution and sales channels.
- Crowdfunding Campaigns: Showcasing your product on platforms like Kickstarter can attract both funding and customer interest, demonstrating proof of demand.
- Limited Product Sales: Selling small batches or prototypes can generate income while building brand awareness, helping to validate the market.
- Advisory & Consulting Services: If your invention relates to a specialized field, consider monetizing your expertise by offering consulting services.
Safeguarding Your Invention During Negotiations
While NDAs provide an extra layer of security when discussing your invention with manufacturers and business partners, many investors avoid signing them. Having a filed patent application acts as a stronger deterrent against idea theft. Additionally, carefully structuring contracts and agreements with clear intellectual property clauses can help minimize risks.
Conclusion: What To Do While Patent is Pending
Monetizing an invention before securing a full patent requires strategy. This is where a patent attorney can be a vital asset on your legal team.
Building partnerships, testing market demand, and protecting your intellectual property can help maximize your invention’s potential. Once your patent is granted, the opportunities to profit will significantly expand, making the efforts during the patent pending phase worthwhile.
If you’re looking to secure a patent for your invention, you can book a free consultation with our Austin-based patent law team today.