Selling vs licensing a patent: choosing the right deal

Owners rarely face a simple choice between selling and keeping. The right structure depends on your cash needs, appetite for risk, and whether you want to keep using the invention.

Outright assignment

You transfer ownership and receive a price, usually upfront. Clean and final — but you give up future upside and must record the transfer with the patent office.

Exclusive licence

The licensee alone may use the invention, often in a defined field or territory. Expect higher royalties and minimum guarantees, and diligence obligations to make sure the licensee actually commercialises.

Non-exclusive licence

You can license the same patent to many users. Lower rates per licence, but broader reach — common for platform technologies and standards.

Structuring payments

Most technology licences combine an upfront fee, milestone payments and a running royalty. A valuation tells you what the whole package should be worth, so you can compare offers that look very different on the surface.

This article is general information, not valuation, legal or tax advice.