Patent and Invention Help Forum

Can two competing companies be involved at the same time

My question relates to having more than one company in a negotiation at the same time. One very simple product I am working to patent is a way for company #1  to be more competitive with company #2. For company #2 perhaps they will sell fewer of the product but it helps to keep their advantage in this area over company #1. So do I go to each company in private and get their thoughts or is there a way to get both companies at the same negotiation?

Part 2 of the question. This product I refereed to is in production and sells very well. I am just adding 1 simple switch to the product that gives it a whole new appeal or a whole new version of the same basic product. What could someone expect as far as profitability from a simple change? The item could still be sold in its old form, but new sales would be generated from the new version. I am starting to see the answer might / should be based on new sales. Then as far a a percentage of sales, rough ideas or thoughts?

Brad

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Re: Can two competing companies be involved at the same time
« Reply #1 on: May 12, 2015, 10:27:47 AM »
You can do a "non-exclusive license" of your patent to 2+ companies.  However, the price you get is usually less for doing a non-exclusive license vs. an exclusive license.  You should talk to each to see what sort of deal may be possible.


Normally in a license agreement (if the licensing attorney for the company is smart) they will only pay based on the increased sales price attributed to your invention.  So if a hammer normally sells for $10 and your improved hammer with a better grip sells for $12 you may only get a % of that extra $2. 


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