How to Sell Your Patents

Sell patents through a legal process called patent assignment.

According to the United States Patent and Trademark Office (USPTO), inventors own their patents and their patent applications. The USPTO allows the transfer of patent rights to third parties in a legal process called patent assignment. This transfer of patent rights, or the sale of the patent, takes place at the inventor’s discretion. To finalize the sale of a patent, inventors and assignees must adhere to procedures outlined by the USPTO’s Manual of Patent Examining Procedures.

Instructions

1. Hire a patent attorney or patent agent to draft a patent assignment agreement. Selling a patent requires a legal contract called a patent assignment. Consult a qualified patent attorney or patent agent to draft the patent assignment according to your requirements. Include the names and contact information of the assignee(s) and inventor, invention title, patent number, filing date, geographical restrictions and remuneration to the inventor.

2. Negotiate with the buyer or his designated agent to finalize the patent assignment agreement. Through your attorney, negotiate until both you and the assignee agree to a final patent assignment document.

3. Sign and notarize the patent assignment. The USPTO requires all parties sign the patent assignment before a notary public or an officer authorized to administer oaths.

4. Complete PTO Form 1595. The USPTO must receive PTO Form 1595 to assign the patent to a new owner and record that information in its archives.

5. Mail the patent assignment agreement and PTO Form 1595 to the United States Patent and Trademark Office. Address the correspondence to:

   Mail Stop Assignment Recording Services

   Director of the United States Patent and Trademark Office

   P.O. Box 1450

   Alexandria, VA 22313-1450

6. Pay the associated patent assignment fee. To validate and record the patent assignment, the USPTO charges a patent assignment fee. As of July 2010, the patent assignment fee ran $40. Enclose this fee as part of the patent assignment/PTO Form 1595 package sent to the USPTO.

Tips & Warnings

• Sell a patent early in its life to maximize your profit potential.

• Consult a qualified patent attorney to ensure you completely understand the patent assignment agreement.

References

• United States Patent and Trademark Office: Assignments and Licenses
• United States Patent and Trademark Office-- Manual of Patent Examining Procedure: 300 Ownership and Assignment
• Patent-Assignment.com: Patent Assignment Transfers the Patent Rights
• United States Patent and Trademark Office: MPEP 1.21 Miscellaneous Fees and Charges

Resources

• United States Patent and Trademark Office: PTO-1595
• LegalZoom.com: Patent Assignment