Should I Keep Selling My In-Patent Tool or Look into Licensing?

The decision to either continue selling or explore licensing your patented but in-patent pending tool hinges on several critical factors and implications. The highly qualified attorney in the MLM field can provide valuable insights based on the tool's applicability to the network marketing and multi-level marketing industry.

If the tool's profitability and market performance are high, you might consider patenting it as you will likely need to do eventually. From there, you can decide whether to continue selling the item yourself or to expand the market and potentially increase your earnings with less effort. This is a business decision that is not within my expertise, but it's important to evaluate the potential impact on your business goals.

Exploring Licensing Opportunities

Licensing your product to other companies can be a lucrative option, as it allows you to generate additional income while reducing the effort required to manage and market the tool. However, there are several risks and considerations to keep in mind. If a large company perceives your patent as a threat, they might initiate an Inter Partes Review (IPR). These reviews can be expensive, and about 60% of third-party challenges are unfavorable to the patent owner.

Given the complexity and potential downsides, it's important to weigh the benefits of licensing against the risks. Additionally, licensing might attract unwanted attention from competitors, and there is a risk that someone could sue one of your licensees claiming that your tool infringes on other patents.

Considering Your Long-Term Goals and Market Dynamics

Several factors need to be considered before making a decision:

Long-Term Value: Evaluate the long-term value of the tool over 2, 5, or 10 years. Is it a sustainable and valuable product in the future? Improvements: Do you plan to offer any future improvements, or will the current version suffice for the foreseeable future? Business Focus: Are you passionate about building a comprehensive business around the tool, or are you more interested in licensing and creating additional tools? Market Intensity: Is your market so niche that no other companies are interested in licensing your tool, or is it a broader market with significant interest? Income vs. Sales Impact: Will licensing increase your income, or will it cut into your direct sales? Legal Risks: Are there potential legal pitfalls you should consider, such as infringement claims from other patents?

Seeking Professional Advice

Without more information about your tool and your long-term business goals, it is challenging to give specific advice. However, consulting a specialized patent attorney, such as Schmeiser Olsen Watts, led by Arlen Olsen, is highly recommended. Arlen, a highly experienced attorney, can provide tailored guidance and assist in navigating the complexities of patent licensing and the broader business landscape.

For further insights and advice, particularly regarding the network marketing and multi-level marketing (MLM) industry, it is beneficial to read Kevin Thompson's advice and thoughts on the subject. Kevin, recognized as one of the most highly qualified attorneys in the MLM field, can offer invaluable perspectives and strategic direction.

In conclusion, your decision to either keep selling your in-patent pending tool or explore licensing options should be based on a thorough understanding of your business goals, market dynamics, and the legal landscape. Collaborating with experienced professionals in your industry and evaluating each aspect of the decision will help you make an informed choice.