Royalty mode

For the patentee, the advantage of paying the patent fee in one lump sum is that he can get high income in one lump sum. Even if the buyer can't get a good profit from the later use of the patent, the patentee is not responsible for it. However, if the patent plays a huge economic role in the hands of the buyer, the patent transferor cannot ask the transferee to pay additional patent fees.

First, the payment method of patent royalties

1, pay the patent fee in one lump sum.

For the patentee, the advantage of paying the patent fee in one lump sum is that he can get high income in one lump sum. Even if the buyer can't get a good profit from the later use of the patent, the patentee is not responsible for it. However, if the patent plays a huge economic role in the hands of the buyer, the patent transferor cannot ask the transferee to pay additional patent fees.

For the licensee, the advantage of buying out the patent held by the patentee at one time is to look at the transferee's vision and the value of the patent. If the value of the patent is brought into play after purchase, you can get huge benefits, but the risk of doing so is relatively large. The buyer needs to pay a high amount of patent fees in one lump sum, and the profit value cannot be realized after the patent is obtained, so the buyer is in a state of loss, although it is in a state of loss, it has no right to demand it.

2. royalty payment

In the case that neither party will bear great risks, the patentee and the licensee will generally pay their respective patent fees according to the amount of patent sales and the percentage of royalties.

The disadvantage of paying the patent fee by royalty is that there is no way to immediately obtain the patent fee obtained by licensing others to use the patent. In the past, the expenses incurred in patent research could not be realized immediately, and in the process of licensing others, the licensee could not be guaranteed to obtain good profits. To sum up, it is impossible to recover the funds immediately, and it is impossible to guarantee the profits from the patent, and it is necessary to bear certain risks.

3. Patent license fee plus commission

Patent license fee plus royalty means that the licensee needs to pay a fee to the patentee after obtaining the patent, and then in the process of selling the patent, how much fee needs to be paid to the patentee according to the turnover of the patent.

Second, the difference between patent licensing and patent transfer

1, different patent ownership.

In patent licensing, the licensee can only exploit the patent licensed by the licensor within a certain period of time, in a certain area and in a certain way, and pay a certain fee. The patent ownership is still in the hands of the licensor, and the licensee has only limited right to use it, and the licensor has the right to transfer its patent.

Patent transfer is different. The transferor loses all patents and the transferee gains all patents. The assignee becomes the new patentee and has the right to completely control the patent.

2. Different conditions for entry into force

Patent licensing only requires the licensor and the licensee to conclude a written contract, and the relevant clauses in the contract are the main reference conditions for the patent to take effect.

Patent transfer requires both parties to conclude a contract and must be registered with the relevant patent authorities before it can take effect.