Licensing
What happens if the licensee never commercializes my patent?
The short answer
Without protective clauses: nothing — they hold your rights and owe you little. The base rate justifies the paranoia: only about 40% of patented inventions reach market launch even when commercialization is genuinely attempted. Minimum royalties, performance milestones, and reversion clauses exist precisely for this scenario.
The full picture
The three standard protections: minimum royalties (non-performance costs them money annually), diligence milestones (specific development and launch deadlines with consequences), and reversion or termination rights (rights return to you if they miss them). An exclusive license without all three is a gift of your patent's best years.
Also watch the subtler version: the licensee who commercializes minimally — one token product — to satisfy the letter of the deal while shelving the real opportunity. Well-drafted diligence clauses define effort in measurable terms. If you're negotiating a license now, these are the clauses to fight for; if you're already stuck in a dormant deal, there are usually more options than owners assume.
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.