Selling Dreams and Ideas in Patents

A source of earning passive income is a practice that a few strive to build and secure for building their personal wealth and others are not aware. Do you have plans for passive income sources?

A Letter of Patent or ‘Patent’ is recognition by the Federal government (in Canada) to a inventor giving sole rights, to make, use or sell his or her, invention for a period of years, from the date on which the patent was issued. A ‘patentee’ is the person that is entitled to the benefits of the patent, during this time.

A few people have learned to enter the business of creating a idea and patenting this idea but do no work to produce this idea. Strange? Not really but proving financially lucrative for a few people.

Canada’s Patent Act defines a invention as ‘any new and useful art, process, machine, manufacture or composition of matter, or any new and useful improvement of any art, process, machine, manufacture or composition of matter’. Take a look around and ask yourself, can I build, invent or improve upon, a existing or create a new product?

Letters Patent originated during Tudor times in England to attract skilled craftsmen to the country by giving them a monopoly on the sale of their works. Patent Acts exist in the United States and Britain that Canada used, to model their own but Canada seeks to use theirs as a reward, for an invention. Main principles are as follows;

– encourage investment for production facilities and manufacture of new product(s)
– encourage industrial research and invention by rewarding research monies
– provide a marketplace for new technologies
– provide a medium for circulating knowledge upon expiry date of Patent
– provide a basis for developing export markets and expansion of national business to foreign countries

Procedures are in place that provides protection to the inventor and patent buyer that must be followed carefully to transfer the rights of a patent, legally. Applications for a Patent are very in-depth requiring assistance of a Patent agent, different with every nation with their own separate, application procedure and may consist of the following layout;

– request for a Patent
– detailed description of the invention
– filing fee
– diagrams or drawings
– verify the invention does not exist anywhere else
– verify the invention hasn’t been sold anywhere else

Income is created when the inventor sells the right for the manufacturing of the product to somebody else, in return for a specific fee, called a royalty, on each product manufactured and sold. The patentee can also sell the idea outright for a fixed sum.

The selling process will require careful research on companies of the specific industry and contacting them. If they think the patent can be easily commercialized or complementary to their existing products, they may be set to quickly buy your idea. It’s important to get your patent in front of a group of companies who are interested in new patents and looking to buy or license to launch new products. Patents must be filed individually with foreign nations.

A few resources are available to the inventor, to make sure all legal rights are transferred properly and to provide support for both patent buyer and seller, such as the following ;

A few resources are available to the inventor, to learn and make sure all legal rights are transferred properly and to provide support for both patent buyer and seller, such as the following ;

– The United States Patent and Trademark Office
– Canada Patent office
– Internet Patent auction sites

– Internet Forums
– Patent attorney offices
– Tynax

The importance of following proper procedures and filing of documents is highly important to prevent law suits, exploitation, infringement, scams and theft. Laws, rules and regulations are set down for the legal sale of a patent and prevent lengthy court battles for income and rights. Upon sale of a patent, a ‘Reassignment’ form will be required to be approved before change of ownership can take place. All fees should be included in this purchase agreement. A income is generated and collected upon product sales procured. It’s not a easy path and requires work but the rewards can be great. Read related —> here and there.

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Article(C)2009 - 2011 Dame Scribe, all rights reserved. Dame Scribe creates articles and posts online. She creates articles on business skills & development, health, science, technology and society and has a strong passion for writing.