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5

Process Technology License


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#1 kangas

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Posted 20 January 2022 - 05:18 AM

Anyone knows how much can you sell a process license? is it one-off payment or is ongoing payment for some years? Do you get money per plant build?

 

I am developing a process that I would like to license to chemical companies in the future.


Edited by A.Kangaris, 20 January 2022 - 05:19 AM.


#2 SilverShaded

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Posted 20 January 2022 - 08:35 AM

You will need to patenet it first, then either sell a one off license or less typically you can charge annual royalties.



#3 Pilesar

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Posted 20 January 2022 - 01:32 PM

Process licenses are whatever a willing buyer and willing seller agree upon. A patent is not required, but is helpful as a selling point. Some processes are not covered under patent so the license is considered a 'know how fee' to get the expertise of the seller. License fees are often based on the size of the plant (dollars per unit of annual production capacity). Whether patented or not, expect your technology to be copied against your wishes so try to make as much profit as soon as you can before all value is lost. Unless you want court battles in the future, you may be better served to sell your technology outright to another company who will then deal with the licensing issues.



#4 kangas

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Posted 21 January 2022 - 04:21 AM

Process licenses are whatever a willing buyer and willing seller agree upon. A patent is not required, but is helpful as a selling point. Some processes are not covered under patent so the license is considered a 'know how fee' to get the expertise of the seller. License fees are often based on the size of the plant (dollars per unit of annual production capacity). Whether patented or not, expect your technology to be copied against your wishes so try to make as much profit as soon as you can before all value is lost. Unless you want court battles in the future, you may be better served to sell your technology outright to another company who will then deal with the licensing issues.

 

So you suggest, that the best and less risky approach is to sell the whole know-how as one off fee than trying to sell licenses over a period of time.



#5 Pilesar

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Posted 21 January 2022 - 09:29 AM

Patents do not keep anyone from copying the detailed description of the technology you publish with the patent -- it provides work for lawyers to argue. A small 'improvement' or 'difference' from the patent gives work for the other lawyers. This assumes that the patent owner would find out the technology was copied and that there was enough money involved to make it worthwhile to go to court after paying all the lawyers. Most great ideas do not make much money for the smart inventor. If your real question is 'how do I best profit from this process I developed?' I do not think forming a licensing company will be the answer. I am frustrated for you and hope you find a way to be properly rewarded.



#6 daraj

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Posted 22 January 2022 - 03:24 AM

"Patents do not keep anyone from copying the detailed description of the technology you publish with the patent"

 

True, especially if it is a Chinese customer or one of those countries where patent enforcement is a joke 



#7 daraj

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Posted 22 January 2022 - 03:27 AM

Pilesar, is it possible for the inventor here to strike a deal where he gets a royalty cut everytime the technology is licensed out by the customer who buys the know-whow? 



#8 Pilesar

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Posted 22 January 2022 - 06:10 AM

Licenses are hard to sell. Even with a commercial scale plant demonstrating the best technology available, licensors struggle to make a sale. Every mother thinks their own gosling is a swan. The inventor will need to find a buyer and they will each try to make the best deal.



#9 SilverShaded

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Posted 24 January 2022 - 03:18 AM

I'm going to slightly disagree on patents.  Without a patent any fool can copy your design.  That includes big technology licensors who will patent your design and cut you out.  This is true in hardware and software and yes software can be and is patented (algorithms mostly).  IP is a big issue in technological industries.


Edited by SilverShaded, 24 January 2022 - 03:20 AM.


#10 breizh

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Posted 24 January 2022 - 06:38 AM

Hi,

As others said you need to have your work patented . Try to check within your organization whether someone is knowledgeable about the process to patent your work ( lawyer or colleagues) . You may find in your country association or organization familiar with this type of projects .

 

Pay attention that your current employer may ask royalties if he thinks that your research was carried out during your working time . 

 

Best of luck 

Breizh 






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