What is Product Licensing?

Stephen Key and Andrew Krauss at inventRight have been coaching and mentoring entrepreneurs and inventors for the last 20 years on how to bring their products to market through licensing. On inventRightTV, we have over 500 videos helping you commercialize your inventions by licensing your product ideas.

What we teach and guide people to do is called product licensing. You're basically renting or licensing your product idea to a company that's already in business. They're currently selling their own products online and in stores, and they're going to bring your product to market, and in exchange, they're going to pay you a royalty on each and every unit they sell. So they're doing all the heavy lifting while you supply them with the great idea. It's a perfect partnership.

The traditional way to bring a product to market is to start a company. That means you must write a business plan. You've got to raise capital, do the marketing, manufacturing, advertisement, fulfillment. And in most cases, dump everything else you're doing because running a business is all-encompassing.

But there are many people that don't have the time, money, experience, or desire, to start a business. When you license your product to a big company that already has shelf space, they can bring it to market very quickly. And because of their size and distribution, it's the best way to protect your idea from copycats, sell it first and sell it fast, license it. There are simple tools to test the market without spending large amounts of capital, filing expensive patents, or even building expensive prototypes. You do not need to quit your day job.

As with any business, there is always risk, but with the licensing business model, you're putting the vast majority of that risk off onto your licensee and you can work on and test a lot of ideas. And you'll always have the financial bandwidth to move on to your next idea, because you're selling the benefits first, without building prototypes, filing expensive patents, or even starting a business. So, your costs are extremely low compared to manufacturing the product yourself.

You guys are going to learn so much on inventRight TV. You're going to learn how to find companies looking for ideas. You're going to learn how to license your product with a simple one page advertisement we call a sell sheet. You're going to learn how to protect those ideas of the provisional patent application. You're going to learn what's important when signing a licensing agreement. Basically, you're going to learn how to become a professional inventor and learn the licensing business model. Also, you're going to learn from industry experts, giving you the latest tips, advice, and strategies.

If you have questions about how to invent, how to be creative, design, how to do market research, prototyping, manufacturing, negotiating, pitching, how to sell, how to cold call, how to reach out to open innovation companies, licensing agreements, non-disclosure agreements, patents, copyright, trademarks, and intellectual property in general — subscribe to inventRightTV! New videos every week, including tons of entrepreneur success stories.

Join the inventRight community for priceless inventor education, mentorship, support, accountability, hand-holding, honesty about the invention industry, and so much more.

inventRight, LLC. is not a law firm and does not provide legal, patent, trademark, or copyright advice. Please exercise caution when evaluating any information, including but not limited to business opportunities; links to news stories; links to services, products, or other websites. No endorsements are issued by inventRight, LLC., expressed or implied. Depiction of any trademarks/logos does not represent endorsement of inventRight, LLC, its services, or products by the trademark owner. All trademarks are registered trademarks of their respective companies.

[inventorj]

Singlehandedly the most interesting thing I have learned this year! The idea of licensing all my invention ideas lit a fire under my butt. I've been going through the process with my first idea and am currently writing my PPA. Thank you for helping fast track this process with all the great videos.

[idohandystuff]

Cant wait till i get my PPA and start submitting my idea to companies!!!! So exciting!!!!

[stPrinciples]

By PPA, does it mean without the Claims? If without claims, i was told by an agent its unsafe to disclose yet

[happyandhealthy]

and licensing business model or system or even method?

[stevelawrence]

A key question being if someone not considered a professional inventor by traditional standards has an unlicensed product in their possession of unlimited market potential to sell for the obvious reasons prefers to sell rather than develop this product again i reiterate for some very obvious reasons what then would be the proper approach given the sensitive nature of this product as relative to the above circumstances ?

[sharkwhisperer]

Do I need to be a business to license a product?

[effiongedubio]

Hey Andrew thanks for your beautiful videos. How can I get through to you privately like an email. Have an idea but don’t know how to go through it. God bless

[Greg]

Hey guys, what are the key factors in play when licensing is not the best way to go and starting a company makes more sense? I love your site btw!

[completesolution]

Hello, l been watching the videos for
Many years, the point is l have too many ideas or inventions since 20 years l contact many companies and when l make a decision l call
World pattern marketing and they just stealing money from dreamers
l am one of those, now can you guys help me to develop my inventions.
My question is somebody speak Spanish please let me know thanks.

[aster]

So far great videos. I'll watch a few more of your vids. Maybe subscribe