Should You License Or Produce Your Invention?
Forbes.com:
Most inventors follow a typical pattern: They perfect their invention, determine its marketability and take steps to protect it under patent laws. But then comes a difficult decision. How will the inventor make money from it? Should he license the invention to a 3rd party, or should he manufacture and market the invention himself? This decision will affect not only how an inventor earns money, but also how much financing will be needed to proceed.
If you are a typical inventor, you will probably want to license your invention and collect royalties, or even sell it outright – we’ll call this typical person the “inventor-for-royalties.” But if you are more motivated and have a competitive business streak – we’ll call this type of person the “entrepreneurial inventor”–you may wish to start a small business to produce your invention and market it. In that case, you will need substantially more financing to develop, produce and distribute your product.
To some extent, your decision is influenced by your invention. Certain innovations, because of their complexity, scope or exorbitant cost of production, may lend themselves to licensing. Often, however, the decision should be based more on you than on your invention. You must objectively examine your inventing personality. More.
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