How much do you need to calculate the costs of using a patent?


Our B4B CONSULTANT POOL expert on patents and trademarks: Patent attorney Dr. Bertram Rapp. Photo: B4BSCHWABEN.de

Is it possible to buy protection rights? And what costs can be expected? Patent trustee dr. Bertram Rapp knows the answer.

“Are the prices for patent usage regulated in any way, or is it just a matter of negotiation with the rights holder?”

Our patent and trademark expert dr. Bertram Rapp of CHARRIER RAPP & LIEBAU answers:

It is a common misconception that an active patent (or any other intellectual property such as a trademark, design or utility model) can be bought. In principle, the patent owner has the right to claims for annulment of the court order (future) and compensation for damages (past). Therefore, the patent owner can demand that no one use his patent, even if he is willing to pay for it. The patentee is completely free to decide whether to grant licenses to third parties and, if so, under what conditions. In the case of a substantial willingness to grant a license, the amount of the license fee payable is purely a matter of negotiation, and negotiations are naturally influenced by the industry and the margins available and the license agreements already in place.

How much does a patent license cost?

As a rough rule of thumb, a patent license costs between 1 and 5 percent of the revenue generated from the product. For example, in the mobile communications sector, these typical license rates are much lower because thousands of patents are realized in a single product. In other fields, such as fashion, these amounts can be far exceeded. Ultimately, this is purely a matter of negotiation. A patent license can only be applied in a few exceptional cases, namely when it is a so-called standard essential patent, without which a device or process cannot be developed according to an industry standard. This is almost exclusively relevant in the field of telecommunications. In such cases, the patent holder must issue a license to the licensee on fair, reasonable and non-discriminatory terms.

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You have questions for patent expert Dr. Bertram Rapp, would you like more detailed advice? Then get in touch now.

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