Guide to Patent Auctions for Inventors

Online or live, find a marketer to turn your invention into cash

By W. Eric Martin

1. Earn a royalty or one-time fee for your patented idea.
2. Develop a reputation as an innovator.
3. See your creation transformed into reality.

Action Steps
The best contacts and resources to help you get it done

Consult a patent attorney

Intellectual property firms or patent attorneys can advise you on how to market your patent or present it in a manner most attractive to buyers.

I recommend: Contact an intellectual property law firm such as ThinkFire or search the Findlaw lawyer directory for a patent attorney near you.

Market your patent online

Sure, some potential patent buyers do scan the list of new patents, but you're more likely to sell your idea by placing it in an auction or exchange.

I recommend: The details and fees for each site vary, but online sites such as Free Patent Auction, IP Market Holdings, Idea Trade Network, Shop4Patents.com, and ipAuctions generally let you post information about your patent, describe its potential use, set a price or ask for bids, and set an expiration date for an open auction.

Use an auctioneer

The auction sites listed above are passive; they rely on bidders on finding you. Ocean Tomo, an intellectual capital merchant bank, hosts two live patent auctions a year that bring bidders together and can create excitement and competition for your invention.

I recommend: Sign up to have your invention pitched to a live audience by Ocean Tomo. Even if the bids don't meet your asking price, you'll find out what level of interest buyers have and may able to work out a deal after the auction.

Helpful advice for making the most of this Guide

• •  Remember that a U.S. patent does not protect your invention outside the borders. You must patent your invention in other countries to maintain control.
• •  Work with a patent attorney to specify exactly what rights to your invention are available.
• •  Decide whether you want to license your patent for a limited time, either exclusively or not, or sell all rights for a one-time fee.