If you have a patent or patent pending for your invention you should think about licensing your patent rights to a manufacturer. This allows you to collect a quarterly royalty. However, there are several things you need to consider and find answers to before you start contacting manufacturers.

First, locate manufacturers that make products like yours. You should compile a list of at least 20-100 manufacturers that answer the following questions:

• What manufacturers are already making products similar to yours?
• Which of these manufactures are looking to license patent rights?

Here are some ways that you can find manufacturers:

1. Go to stores.  See which manufacturers make similar products. For example, if your invention is a drill, go to Lowe's and see who makes their drills that are like your own. Find information about the manufactures producing these drills and similar items.
2. Search for companies seeking new ideas.  The National Invention Fraud Center has a list of such companies that you can look at. Research which companies are interested in products like yours.
3. Visit Trade Shows.  These can be very helpful because they not only help you discover manufacturers that make similar products to yours, but can also give you ideas to improve your invention.  The Trade Show News Network is a great resource to find these.
4. Talk to local governmental agencies.  Local economic development agencies can help you locate regional manufacturers.
5. Look at magazine advertisements.  Look at magazines that relate to your invention's industry for advertisements by manufacturers. For instance, if your invention is related to cooking, look at food magazines and kitchen supply magazines.
6. Utilize free manufacturer databases.  These can be found at your local library and online. The Thomas Register is an excellent resource to find manufacturers.

Once you have made your list, rank the manufactures in order of potential buyers of your patent rights. These will be the manufacturers you will want to focus on and contact first. Before contacting them, you need to research each of them. Find answers to these basic questions:

• Have they purchased other patent rights in the past?
• Who is their biggest customer, and would that customer be interested in your invention?
• What is the best way to reach the manufacturers?

Next, you should prepare a few marketing materials to present to them. First compose a marketing letter that is brief and professional explaining who you are, what your invention is and does, why you chose that particular manufacturer and that you are looking to license your patent rights. Make sure you tailor each letter to the specific manufacturer. One generic letter will not cut it. Wait one month and if the manufacturer has not contacted you, directly contact them via telephone to determine their interest.

Also include a professional looking brochure that is in color and one page in length. This should describe your invention and its benefits and provide a link to the product web site if you have one. If you do not have a brochure, drawings of your invention can be used as an alternative. You should attempt to have the manufacturer sign a Confidentiality Agreement before disclosing your full invention. You should speak with an attorney prior to sending these materials to a manufacturer.

After manufacturers express interest, you should higher an experienced reputable lawyer before discussing any numbers or details with the manufacturers. Have the lawyer draft a non-disclosure agreement for you.

When pitching to manufacturers, remember to include these items:

• What makes your invention unique from other similar products already out there
• How it benefits consumers
• Why customers (retailers and end users) will buy it
• Show proof that customers are already purchasing the product

If manufacturers want to license your patent rights, make sure you have a lawyer who has negotiated licensing agreements before and has been successful in doing so.

It is likely that you already know some manufacturers. Use these people to help you get your foot in the door. Once you do that, you just need to research them and pitch to them.