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Do I Pay a Company to License My Patent?

annevoeg's Avatar

Hello -

Brand new here.  I was approached for the first time by a company last week to license my patent.  They sent me a licensing agreement, but I'm very skeptical because this is extremely new to me.  I was offered a 15% of net proceeds with a one time payment of $7,000 to them.  He told me they charge only those who have not been already in the market selling their product.  Even me being brand new like I stated, this doesn't sound right to me at all.  If someone wants to license my patent, shouldn't they be paying me?  Any insight would be truly appreciated.   

Thank you!

Anne Marie

Elizabeth Crouch
Anatoliy Omelchenko
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gizmo's Avatar

Better start running fast as you can! Who is this company? 

Dan K
williamj
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kabuj's Avataree_badge

Welcome Anne, Run and run FAST!!! In my humble opinion... There a PLENTY of companies out there who are looking to exploit an inventor's (especially first-time inventors) excitement, dreams and enthusiasm about their product. If the only option they are offering you is a large up-front fee, I would decline. Best of Luck.! BTW - Did you submit to EN?

Mary Kisko
williamj
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keeztan's Avatargold

Welcome Anne!

Run fast from this company.

15% of Net proceeds?

No sales = $0 Proceeds

Anne =  Minus $7000.00

The Company= + $7000.00

Anatoliy Omelchenko
Karen C Adams
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phonepaal's Avatargold

Go ahead and name the company (it is not confidential).  This sounds like garbage.

Gizmo
Charlotte Culver
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kiskom's Avataree_badge

Save your money, because they can't guarantee you a profitable licensing deal. 

SCAM

RUN- ANNE- RUN!!!!

Aimee Carroll
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chucky's Avatar

A valid company will never charge you a fee to license your product.  Also, royalties should always be paid from gross sales.  A lot of fancy footwork can be done when talking about the net amount.  As others have mentioned, I would run the other way.

Aimee Carroll
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joserey's Avatargold

Check this previous post.  Same modus operandi... 

https://app.edisonnation.com/forums/patents/topics...

In that case, the name of the scammers were:

- Universal Manufacturing Corp

- Global Express Manufacturing

The USPTO has a page dedicated to scammers:

- https://www.uspto.gov/patents-getting-started/usi...

I would do some google searches for the name of the company; it is likely that the fact that it is asking for money upfront is a big tell, and that they target many at the same time.

Mary Kisko
Aimee Carroll
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