Strategy

Patent Monetization: From Protection to Profit

Jessica Torres
January 5, 2025
6 min read
Patent Monetization: From Protection to Profit

Patent Monetization: From Protection to Profit

Many companies view patents solely as defensive tools, but a strategic approach can transform your IP portfolio into a significant revenue source.

Monetization Strategies

1. Licensing Agreements

The most common approach:

  • **Exclusive licenses**: Higher fees, single licensee
  • **Non-exclusive licenses**: Multiple licensees, broader reach
  • **Cross-licensing**: Trade IP with competitors
  • 2. Patent Sales

    Outright asset sales work when:

  • Patents don't align with core business
  • Cash flow needs are immediate
  • Technology has matured
  • 3. Litigation and Enforcement

    Strategic enforcement can:

  • Generate settlement revenue
  • Deter infringement
  • Establish licensing precedents
  • Valuation Considerations

    Accurate patent valuation requires analyzing:

  • Market size and growth
  • Competitive landscape
  • Remaining patent life
  • Implementation costs
  • Case Study: $5M Licensing Success

    We recently helped a SaaS client:

  • Identify underutilized patents
  • Find strategic licensing partners
  • Negotiate favorable terms
  • Generate $5M+ in licensing revenue
  • Building a Monetization Strategy

    Our approach includes:

    1. Portfolio audit and categorization

    2. Market opportunity analysis

    3. Partner identification

    4. Deal structuring and negotiation

    Transform your patents into profit. Contact us for a portfolio review.

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