Protect, commercialise and manage your patents

Businesses 'license out' patents to earn money from their inventions. If you want to use one of these patents, you'll need to become a licensee and sign a licensing agreement with the patent owner. Alternatively, you can buy the patent outright.

Buying or licensing a patent lets you:

• save time and money - by using an existing invention instead of creating new technology
• stay competitive - by accessing advanced technology to gain an edge in the market
• expand your products - by adding new features, processes, or products to your lineup

Finding a patent to license or buy

Start by doing a patent search using tools like Espacenet or search the UK Intellectual Property Office's (IPO) database to find patents that fit your needs. You can also connect directly with inventors, startups, or companies working on relevant technologies. If you're unsure where to start, patent brokers or licensing consultants can help you find the right opportunities.

Key considerations before licensing a patent

Before licensing a patent, review the entire agreement to ensure it aligns with your business needs. Here are some things to consider:

• Patent search and validity: Confirm the patent is valid, active, and enforceable in your region. Ensure the claims cover the technology you need.
• Freedom to operate: Confirm that the patent owner has the legal right to license the technology and that it does not infringe on other existing intellectual property rights.
• Terms of the licence: Decide if you need an exclusive or non-exclusive licence and review restrictions like usage rights, geographic limits, and sub-licensing terms.
• Costs and royalties: Understand the fees, royalties, or profit-sharing terms, and ensure they align with your expected return on investment.
• Technical and commercial feasibility: Confirm the technology integrates with your operations, fits market demand, and supports your business strategy.
• Quality control: Agree on quality standards to protect your product and reputation.
• Legal and compliance risks: Ensure the licence avoids infringement risks and complies with relevant industry regulations.
• Duration and renewal: Review how long the licence lasts and if renewal or renegotiation options are included.
• Exit strategy: Establish clear terms for ending the agreement if the partnership fails or the technology becomes outdated.

By considering these factors, you can secure a licensing agreement that supports your business goals while minimising risks.

Key considerations before buying a patent

While licensing gives you temporary access to a patent with ongoing terms, buying it outright provides full ownership with a one-time payment.

When buying, you'll need proper documentation, like an assignment agreement, to transfer ownership. This needs to be recorded with the IPO.

Buying a patent is a big upfront expense, but it gives you full ownership and control. It's a good option if the patent fits your long-term goals or gives you a competitive edge. However, you need to weigh the costs against the potential benefits to ensure it's worth the investment.