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If an independent inventor licenses their invention to a manufacturer, they will receive no more than 15% of the net sales via the license. So if the manufacturer sells the invention at $20, but after certain expenses the net sales price is $10, then the royalty paid to the inventor would be $1.50 for the invention.


If an independent inventor has an independent manufacturer produce the invention for the inventor, and the inventor sells the invention on the market themselves, they would receive all the profit minus the manufacturing cost. So if it costs $2 to manufacture the invention and the inventor sells it in the marketplace for $20, the inventor receives $18 profit.


If an independent inventor assigns their patent to a manufacturer, they can receive royalties in addition to the purchase price of their patent. This amount could be in the tens or hundreds of thousands of dollars.

Learn more about licensing, assigning, and manufacturing

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The content of this website is intended to convey general information about Lingbeck Patent Law and should not be relied upon as legal advice. It is not an offer to represent you, nor is it intended to create an attorney-client relationship.

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