The Hard Truths of the Invention Industry

Understanding the Realities of the Invention Industry

Bringing an invention to market and licensing intellectual property (IP) sounds promising, but the industry is filled with challenges and misconceptions. Many inventors invest time and money without a clear strategy, only to face setbacks. This page provides a reality check on what it takes to succeed.

The Challenges of the Invention Industry

A Patent Does Not Equal Profit

Many inventors believe that obtaining a patent guarantees financial success. The reality is that a patent is only a protective tool—it does not generate revenue on its own. Without a business or licensing strategy, a patent can become an expensive document with no return.

The Costs Can Be Overwhelming

From patent filing fees and legal costs to product development and marketing, bringing an invention to market is expensive. Many inventors underestimate the financial burden and run out of resources before they can commercialise their product.

Competition is Fierce

Even if your invention is unique, existing companies may have the resources to create similar products, often at a lower cost. Market research and a strong go-to-market strategy are essential to stay competitive.

Harsh Truths About IP Licensing

Licensing Deals Are Rare and Hard to Secure

Companies receive countless invention pitches, and only a small percentage get licensing deals. To stand out, you need a well-developed product, a compelling value proposition, and a strong pitch.

Royalties Are Not Always Lucrative

Even if you secure a licensing deal, royalties are often small (typically 3-5% of sales). Without high sales volume, the income from licensing may not be as profitable as expected.

Companies Prefer Proven Products

Businesses are more likely to license inventions that are already tested and market-ready. A mere idea or a basic prototype is often not enough to attract serious interest.

Strategies for Realistic Success

Develop a Business Plan

Businesses are more likely to license inventions that are already tested and market-ready. A mere idea or a basic prototype is often not enough to attract serious interest.

Protect Your IP Wisely

Not all inventions need patents. Sometimes, trade secrets or copyrights provide better protection with lower costs. Consult with an expert before investing in IP protection.

Understand the Market Before Investing

Conduct thorough market research to determine demand, target customers, and potential competition. This can prevent costly mistakes and help refine your strategy.