What Does It Mean When a Patent Is Pending?
If you’ve recently filed a patent application or have an invention but haven’t filed yet, you may be wondering how to start making money from your idea while the patent is pending. While patent pending status doesn’t grant full protection, it signals to potential investors and partners that you’re serious about securing your intellectual property. This phase can last months or even years as a patent examiner reviews your application, making it crucial to explore ways to generate revenue while awaiting approval.
The Challenges of Monetizing a Patent Pending Invention
One of the biggest hurdles with monetizing a patent pending invention is uncertainty. Since the final scope of protection is unknown until the patent is granted, potential buyers or licensees may hesitate. Companies prefer issued patents because they provide clear legal protection and exclusive rights, reducing risk. Additionally, without an issued patent, enforcing intellectual property rights can be more complex, making potential investors wary of committing resources.
Ways to Generate Revenue While Patent Is Pending
- Licensing Opportunities: While more challenging, some companies will license a pending patent if market demand is strong and the invention shows promise.
- Strategic Partnerships: Collaborating with a company that has manufacturing or distribution resources can help bring your product to market faster and more efficiently.
- Crowdfunding: Platforms like Kickstarter allow inventors to validate demand and raise early-stage capital while demonstrating product viability.
- Selling Early Versions: If possible, small production runs can generate revenue and market interest before full patent approval, providing proof of concept.
- Consulting & Speaking Engagements: Sharing your expertise on your invention’s industry can help build credibility while generating income.
Protecting Your Idea in the Process
While patent pending status offers some protection, securing NDAs when working with manufacturers or potential partners is advisable. However, many investors won’t sign NDAs, so having a filed patent application is often your best safeguard. Additionally, keeping detailed records of development and agreements can help in potential disputes.
Final Thoughts
Although monetizing a patent pending invention presents challenges, it is possible with the right approach. Focusing on partnerships, proving market demand, and strategically protecting your intellectual property can increase your chances of success. Once your patent is issued, its value — and your revenue potential — will grow significantly, opening the door to more profitable opportunities.
Are you interested in getting patent for your invention or learning more about your intellectual property rights? Book a free consultation with our Michigan-based patent attorney team today.
