How does a patent translate to money for the inventor, and how is it normally enforced? Let’s say that you invent the McCormick Reaper. Ok, so you get the basic design down. What happens when someone makes an iterative improvement? What then? Do you simply get a cut of every copy of the mechanised reaper bought and sold that is your version?
Do patents apply only for commercial usage?
In: Technology
A patent gives you a temporary monopoly on that invention. Either you can use that to sell it without any competition and earn profits, or, you can give other people a license to sell it and you earn royalties from charging them for the license. You can charge a flat fee for a license if you want, but often people negotiate to get a cut of the profits. You can also sell the patent rights to someone else instead of just giving them a license, so the patent holder isn’t necessarily the inventor.
If someone produces, sells or imports your invention without a license, you can sue them for patent infringement, which might mean they have to pay you any money they made from your invention.
Someone who improves an existing invention can apply for a new patent on the improved version. They will have the monopoly on that version.
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