How do patents make money?

Common ways to make money from patents include patent transfer, licensing, pledge, and technology shareholding.

I. Patent Transfer

Patent transfer means that the patentee transfers the ownership of his patent to the assignee, and the assignee pays the agreed price. The party that obtains the patent right through the patent right transfer contract becomes the new legal patentee, and the original patentee no longer has control over the patent.

Second, patent licensing, in fact, patent licensing is similar to patent leasing, and there are many ways of "leasing".

1. exclusive license: after the patent right is licensed to the licensee, it can only be used by the licensor alone, and no one else, including the patentee himself, can use the technology recorded in the patent.

2. Exclusive license: No one can use the technology recorded in the patent except the licensee and the patentee.

3. Cross-licensing: Patent parties license their own patents to each other, which is generally free.

4. General license: The patentee can use the patented technology by himself and license the patented technology to multiple users.

5. Compulsory license: The patent right is collected by the government, and the patent license fee is paid at a certain price.

Third, the patent pledge.

The biggest difference between patent pledge, patent transfer and patent license is that both patent right and patent use right are reserved in the hands of patentee. Only when there is an accident, the pledgee has the right to control the patent right, that is, he can make profits through licensing, transfer and implementation. Therefore, in the existing patent pledge process, more is the pledge guided by the government. Moreover, in view of the intangible asset characteristics of intellectual property and the fact that its actual price is influenced by many uncontrollable factors such as the market and the ability of operators, most of the existing pledges are based on tangible assets, while the financing of pure patent pledge is less, and its term needs to be improved.

Fourth, technology stocks.

On the condition of patented technology, it is also one of the common ways to make money by taking shares through patent formation technology. But in practice, more technology shares with patents will be regarded as a means of business cooperation, and the value of patents themselves will be weakened. Therefore, for investors and technical experts who only own patents but don't turn them into products and tools to improve economic efficiency, patents are likely to become "specialized" rather than "profitable" in the end.