Licensing your product...do you need a patent??

Ok, so I'm looking for ways to create a steady stream of income with my business as things are rough when you're just starting out and I had heard about licensing. But after reading into it, it sounds like I would need to have invented something in order to do so, and need a patent. Is this true? I'd like to find a way to get my unique stylish accessories into the millions of style-savvy diabetics around the world, but not with all the large corporate headaches, but still have design control and say. Is this really possible??

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Permalink Reply by SUp.biz, CEO on June 12, 2008 at 11:51pm: First let me start by saying great site - stylish and very inviting!

As for your legal question: “…it sounds like I would need to have invented something in order to do so, and need a patent. Is this true?”

No. You do not need to have invented something and have a patent for you to license your product. A licensing agreement is simply a contract that gives the “licensee” the right for use, and the “licensor” the right to receive compensation for that use. However, when it economically makes sense, it would be best to protect your business by investigating whether you can place a patent or copyright on your product. Without a patent or copyright, someone could view your website and replicate your business idea themselves. My advice to you is to consult an intellectual property attorney to investigate whether your product can be protected under patent or copyright law so that you have legal recourse against infringement.

Until your patent or copyright is finalized, you can ward off some infringement by stating that your products are “patent pending” or using the © symbol next to your products. Also, when you sit down with potential licensees, make sure you bring a non-disclosure non-compete agreement that they must sign before you start revealing information about your product and business.; ▶ Reply to This

Permalink Reply by Stick Me Designs:Rickina on June 13, 2008 at 7:08pm: Thank you very much for that insightful answer, and for the compliemt ;) I guess my real issue is that I want to grow my company into a multi-million dollar force...but not sure how I could do that without the funding, the network or the know-how??? That's what got me thinking about licensing. But certainly your information will be put into my 'go with me everywhere little pink book'

Thank you again.; ▶ Reply to This