Step 6:  Approaching Companies, The Initial Approach

Before you start approaching companies, you should have completed, or be in the process of completing, the methods laid out in Steps 3 through 5.

• From your patent market research plan, you should know the key players in your industry and where to contact them. You should also have learned which company can best meet your expectations for your product. (Step 3) 
  
  
• You should have a prototype or model, and make duplicates, if possible. (Step 4)
  
  
• You should have customer feedback and be involved in test-marketing your product. (Step 5)

It's possible to sell your patent without some of those elements, but it is usually difficult. Even if you managed to succeed without all of the recommended elements, it's likely that your negotiating position would be much less favorable. That would leave you with a final patent royalty agreement that would be much less profitable to you. The items discussed in Steps 3 through 5 will give you the knowledge and proof not only to find companies that will buy into your patent, but also to give you a strong and confident negotiating position so that you can get the most profitable patent royalty contract when it comes down to business.