Key Takeaways

  • Patent marketing strengthens a company’s competitive edge and attracts potential partners, investors, or licensees.
  • Marketing strategies should include storytelling, market segmentation, patent landscaping, and value proposition development.
  • Divestiture and licensing are important strategies to monetize non-core or underused patents.
  • A patent’s value can be enhanced through early-stage marketing efforts, bundled technologies, and strategic timing.
  • Comprehensive IP portfolios can be strategically marketed to align with a company’s business model and growth trajectory.
  • Legal professionals can assist in patent marketing, including negotiating licenses and managing commercialization risks.

A patent marketing strategy is an important step in the success of your business. According to Forbes, "about 70 percent to 80 percent of a company's market capitalization comes in the form of intangible assets, which include intellectual assets such as patents, trademarks, copyrights, and other business knowledge and know-how. Patents are moving from a legal role to a strategic management one, and company leaders must be prepared.”

What is a patent anyway? A patent is an intellectual right given to an inventor by the federal government that prohibits others from using their patent for a specific amount of time. The patent must also be published. A patent not only enables your business to have legal protection, but it also plays an important role in your marketing strategy.

Who Benefits From a Patent?

A patent can change your business relationship with three different parties:

  • Your customers
  • Your competitors
  • Your partners

Primarily of interest, owning a patent may profoundly impact the way your customers and potential customers view your company. The word "patented" and the phrase "patent pending" signify to your customers that your company offers something that no other company can. This adds loyalty and value to your product or service, especially in high-tech fields.

In addition, it lends you more credibility and defines you as a leader of innovation in your field. After all, the high-tech field is always growing, and consumers know they can benefit from using the most advanced and innovative technology available.

Your competitors are also affected by your patent status. If another party copies your idea, you'll legally be in the right to take legal action against them. However, it also ensures that you'll probably never have to, as the possibility of a lawsuit will deter many businesses from trying to copy your invention. Who wants to be involved in expensive and time-consuming litigation, especially when it's likely they will lose the case?

Your partners will also benefit from the reputation you've earned with a patent. This could lead to creative innovation, collaboration opportunities, and more possibilities to connect with others who know about and are interested in your ideas. In addition, you can decide to license or sell your inventions. It's up to you.

Trademarks, Service Marks, and Collective Marks

The success of your small-to-medium enterprise (SME) is partly dependent on a well-crafted trademark or service mark. As such, it can be a definitive tool for your company. The right mark will allow customers to identify products and services from your company and distinguish them from those of your competitor. Your product's positive qualities will be associated with your mark, and thus, your company. Plus, it may also add to your company's ability to tap into a new market, particularly if attention was paid to the design of your mark so that it is attractive to your target market.

It's important that you look for conflicting marks and make sure they do not pose a legal risk. Do this before you fill out an application or use a new mark associated with your products or services. You might want to hire a competent attorney or agent to proceed with this task. This could defend your SME from significant expenses if an identical or conflicting mark already exists.

A collective mark identifies a cooperative or association of businesses and lets member SMEs benefit from an acquired collective reputation generated by shared characteristics. When the origin or another shared characteristic is a significant indicator of quality or good taste, this can be an especially productive tactic. In addition, a collective mark could support cooperation with other members SMEs, and all members may be able to take advantage of shared resources.

Why Develop a Patent Marketing Strategy?

There are countless reasons to develop a patent marketing strategy. A few of the primary reasons are:

  • Your company will be able to develop its market share and margins.
  • Your patent will protect your market share from competitors and infringers.
  • Your research and development will benefit from patent research.
  • Joint ventures, partnerships, and acquisitions will be enhanced with successful patenting.
  • Your company will be able to more easily secure financing and develop new revenue sources.

Risks and Challenges in Patent Marketing

While patent marketing offers significant potential, it also comes with challenges:

  • Valuation Complexity: Accurately determining a patent’s worth can be difficult due to market volatility and uncertainty of adoption.
  • Infringement Risk: Disclosing too much during marketing may lead to infringement without legal protections in place.
  • Lack of Market Fit: Even if a patent is technically sound, it may not align with current market needs or trends.
  • Cost of Marketing: Effective marketing may require investment in prototypes, consulting, IP brokerage, and legal support.
  • Negotiation Challenges: Navigating licensing deals, especially across borders or industries, can be complex and time-consuming.

Working with an intellectual property attorney can help mitigate these risks and streamline patent commercialization.

Marketing Patents for Startups and Research Institutions

Startups, universities, and R&D organizations face unique challenges when marketing patents. They often operate with limited resources and need to demonstrate the value of early-stage technology. Strategies to overcome these hurdles include:

  • Technology Transfer Offices (TTOs): Universities typically work through TTOs to assess market potential, protect IP, and identify commercialization partners.
  • Provisional Patents and Early Prototyping: Filing a provisional application allows organizations to begin marketing while completing product development.
  • Showcasing Potential Impact: Highlight how the patented invention addresses an unmet need or creates social and economic benefits.
  • Industry Collaboration: Partnering with companies in the relevant sector can accelerate development and increase credibility.
  • Startup Licensing: Forming a startup around core patents is a viable route for researchers, with structured licensing agreements and equity arrangements.

Patent Monetization Options

Patents are not only protective tools—they are assets with monetization potential. Some of the most common patent marketing methods include:

  • Licensing: Licensing agreements allow other companies to use your patent in exchange for royalty payments. Exclusive or non-exclusive licensing can be used depending on your commercialization goals.
  • Divestiture (Selling Patents): Businesses may choose to sell underused or non-core patents outright. This can provide immediate capital and reduce maintenance costs.
  • Patent Pooling: In certain industries, combining related patents into a pool allows members to cross-license technology, often leading to faster adoption.
  • Bundling: Grouping patents with related technologies or services can increase the overall value of a transaction.
  • Enforcement: While not preferred as a primary strategy, litigation or the threat of enforcement can be part of an overall strategy to extract value from infringing parties.

These monetization options should be aligned with the company's broader innovation strategy and financial goals.

Components of an Effective Patent Marketing Strategy

An effective patent marketing strategy incorporates multiple elements that align legal protections with business objectives. It goes beyond simply securing patent rights—it ensures that those rights are leveraged for financial and strategic benefit.

Key components include:

  • Patent Landscaping: Analyzing the patent ecosystem to identify competitors, emerging trends, and whitespace opportunities. This insight guides where to position your patented innovation in the marketplace.
  • Value Proposition Development: Clearly articulating how the patented invention solves a market problem or adds value. This involves translating technical features into business or consumer benefits.
  • Target Market Segmentation: Identifying which industries or companies would benefit most from the patented technology, and tailoring messaging accordingly.
  • Strategic Storytelling: Communicating the patent’s innovation in compelling terms, including how it outperforms existing solutions and supports future market demands.
  • Proof of Commercial Viability: Including supporting materials such as market research, prototypes, or proof-of-concept demonstrations can increase attractiveness to potential licensees or buyers.

Frequently Asked Questions

1. What is patent marketing? Patent marketing is the strategic process of promoting and commercializing a patented invention to generate revenue or achieve business goals through licensing, sale, or partnerships.

2. How can a patent be monetized? Patents can be monetized through licensing agreements, direct sales (divestiture), bundling with other technologies, or enforcement against infringers.

3. Why is a patent marketing strategy important? A well-developed strategy helps inventors and companies position their technology, attract interest from potential partners, and maximize returns on their intellectual property.

4. Is patent marketing only for large companies? No, startups, research institutions, and individual inventors can all benefit from patent marketing by aligning their innovations with market demand and commercial opportunities.

5. When should I start marketing my patent? Ideally, marketing efforts should begin once a provisional or utility patent is filed. Early outreach can help gauge market interest and identify potential collaborators or buyers.

If you need help with a patent marketing strategy, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.