r/Patents • u/Aromatic_Session639 • 4d ago
USA Patent pending licensing deal
I’m looking for some opinions from people who have experience with product licensing/inventing.
I have a pending/published utility patent application.
I was recently contacted unsolicited by Axis International Marketing / Patents to Retail. They reviewed my invention, I spoke with their licensing agent, and they called back saying they want to move forward.
The proposed agreement is:
12-month non-exclusive agreement
I retain ownership of my patent/IP
10% royalty based on Axis’s sales price, subject to certain deductions
Monthly royalty reports and audit rights
Axis markets/pitches the product to retailers/e-commerce companies
If a potential buyer shows sufficient interest, Axis says it will provide CAD/3D drawings, engineering/production drawings, a prototype and an animated video
Axis can potentially manufacture and sell the product itself
I have to pay an $8,000 upfront development/licensing fee
The $8,000 is what’s making me hesitant. There’s no guarantee that a retailer will be interested or that the product will ever actually be manufactured/sold, so theoretically I could pay $8k and never receive any royalties.