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They may be viewed as commercial realizations of the experimental Network Voice Protocol (1973) invented for the ARPANET .
Voice over IP traffic might be deployed on any IP network, including ones lacking a connection to the rest of the Internet, for instance on a private building-wide LAN .
Licensing your inventions can be an exciting alternative to going into business. It's usually the best way to defray the high cost of development, manufacturing and marketing.
Licensing is one of the primary strategies successful inventors use to secure development income. It is frequently the fastest way to earn profits and to get an innovation launched.
What is a license?
Simply stated, patents give you the exclusive right to manufacture, use and sell products falling under the scope of the patent. In turn, a license conveys those rights to others. A patent owner who conveys those rights is called the licensor. The company receiving the rights is the licensee. The agreement between the parties is called a license.
Most individual inventors should consider licensing their "patent rights" to an existing manufacturer and simply collect a quarterly royalty. It is important to understand that you license the "patent rights" and not the invention. In other words, you must either have a patent or have applied for a patent ("patent pending"). No manufacturer is going to seriously consider licensing your idea without a patent or patent pending.
Licensing your invention is basically a Four Step Process:
- Locate Manufacturers
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Prepare Marketing Material
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Submit Marketing Material to Manufacturers
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Negotiate License
Of course reaching Step 4 depends upon how well you do Steps 1 - 3. You will first want to Locate 20 to 100 Manufacturers who make products similar to your invention. You will then want to prepare a professional looking Marketing Letter and possibly even a Professional Brochure of your product. You may even want to start your own Product Web Site showing your invention in further detail for the manufacturers that receive your marketing letter.
After you receive some responses from manufacturers, the next step is to Negotiate the Licensing Agreement which you should hire an experienced attorney for. If you are unable or unwilling to take the time for the Four Step Process, then you should consider our People Who Can Help section for assistance in marketing your invention to a manufacturer.
Licensing income is referred to as royalties. There are many variables determining royalty rates, such as the strength of the patents and the sales potential of the invention.
The basic elements of a License agreement are:
- You grant a licensee for the rights to manufacture, use and sell products falling under the scope of your patents and intellectual property.
- The licensee pays you royalties.
- The licensee must actively promote your invention else its rights are terminated.
- You are protected against any claims by third parties resulting from the licensee's use of the patents.
- Records are kept by the licensee which you may review.
There are many additional elements that may be in a license agreement based on your invention and licensing strategy. Don't be naive and think that your licensees will be beating a path to your door and that you can send out "any old agreement" for them to sign. They really have to be tailored to your specific needs with much thought and consideration.
One other important factor to consider is that companies interested in licensing your patents will want to deal directly with you and not through an invention promotion company or your attorney. Besides, using an attorney could easily cost $20,000 or more. Learn all you can before you start and save a small fortune
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