Patent Portfolios – A Way to Reduce Inventories And Increase Profits?
By using a Patent Portfolios business model, entrepreneurs, start-ups and established companies can:
- enhance profitability
- reduce inventory
- decrease product liability risks
A Nontraditional Business Model utilizing Patent Portfolios
After spending years in your market space, you invented an improved Widget. Actually, it was the genesis of a long line of better Widgets. Instead of plodding along with the traditional business model of raising capital, building a sales staff and increasing inventory, you opted for the “brain rather than brawn” marketing strategy. To be sure this business model is not for everyone, but for a select few, here is what can happen…
Implementation of a Nontraditional Business Model can include the following:
- Develop and test several prototypes to determine the best prototypes.
- File as many Patent Applications as is economically feasible.
- Patent, Patent, Patent as many improved Widgets as possible!
- After the Patent Applications are filed, advertise as best fits the company’s budget.
- Take the line of Widgets to trade shows to demonstrate the improved Widget line for potential manufactures.
- When one or more manufacturers appear interested in the Widget line, offer reasonable royalty rates and license agreements to keep the manufacturers coming back – don’t be greedy, when the manufacturers profit, you will too.
- Purchase intellectual property insurance to protect and preserve your Widget Patents, if the need arises.
- Sell your company’s services to assist the manufacturer with the advertising, making and selling of the Widget Line.
Licensor of Patent Portfolios instead of Manufacturer
As a licensor rather than a manufacturer, you can eliminate all or at least most of the following expenses: inventory, transportation, property taxes, regulatory and labor. You also have the potential to perpetuate your company’s Patent monopoly for decades.
Business Risk
With each new endeavor, there is the risk of failure. However, if your licensor business model should fail, your monetary losses would likely only be a small percentage of the losses associated with the traditional model of scaling up your Widgets for sale.
This nontraditional business model is not for every company, but if your company is interested, please contact Business Patent Law, PLLC and we will discuss possibilities for your business and intellectual properties.
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