Intellectual PropertyPatent
How to License Your Patent: From Valuation to Term Sheet
This guide walks the full arc of monetizing a patent through licensing, from honestly assessing whether your patent is a licensing candidate, to valuing it under the cost, market, and income approaches, to structuring and papering the deal. It explains the Georgia-Pacific reasonable-royalty framework and the apportionment rules that constrain it, the choice between exclusive and non-exclusive grants and the field-of-use and territorial hybrids in between, and the royalty architecture of upfronts, running royalties, minimums, and milestones. It covers the protective machinery of audits, representations, warranties, and indemnity, and the doctrinal landmines every licensor must know: the Brulotte/Kimble bar on post-expiration royalties, the Lear right of a licensee to challenge validity, patent exhaustion, and patent misuse. It includes an annotated term sheet and addresses university licensing under Bayh-Dole and standard-essential patents under FRAND. It is educational, not legal advice.