Money & Business Structure
What deal structures exist besides a straight sale or license — options, JV, partnership?
The short answer
The menu is wider than most owners know: option agreements (a company pays to evaluate exclusively for a period), equity-for-IP deals, joint ventures, sponsored development, and hybrids of all four. Options and equity are the growth segments — option agreements rose 10% and equity-included deals 16% in a single year.
The full picture
Options deserve special attention: a company pays a modest fee for six to twelve months of exclusive evaluation, crediting it against a license if they proceed. You get paid during their diligence; they get certainty. It's the standard bridge for early-stage technology and dramatically widens the pool of companies willing to engage.
Equity structures — contributing the patent to a venture in exchange for ownership — make sense when the IP anchors a whole company and you want upside, not royalties. Each structure trades risk, control, and reward differently. Matching the structure to your patent and your goals is a strategy conversation, and it's one of our favorite ones to have.
Where does your patent stand?
The Beyond the Patent Commercialization Score answers that — a professional, factor-by-factor read on your patent's licensing, sale, build, and partner potential.
Related questions
General information for patent owners — not legal advice. Read the disclaimer.