What are the costs involved in selling patents?
The primary cost is the development of the marketing and due diligence package that is used as the basis of the sale. The greater level of detail a seller can provide about the background and potential encumbrances on a patent, the extent the claims of the patent are being used in current and future products, the amount of revenue derived from these products, and other useful information, the better the chance of completing a sale and for a more favorable price. Other costs will include fees associated with the review and transfer of patent files, drafting the patent sale agreement, and broker’s fees. Typically, IPotential will fund all aspects of the sales and marketing activity and the seller pays their own attorney fees. Brokers are typically paid on a retainer plus contingency fee or contingency fee only model. IPotential will work under a compensation model that makes the most sense to the seller, based on their situation.
