How PatentPool Works

Inventors (licensors) submit their provisional or non-provisional patents with complete licensing terms including royalty rates, territory restrictions, license duration, and quality control standards.

Each listing includes a detailed description, funding goal, minimum investment amount, and all legal provisions required for a binding licensing agreement.

Investors (licensees) browse patent listings and join the crowdfunding pool. Each investor receives a proportional share of royalties based on their contribution to the total pool.

The pooled investment model democratizes access to IP licensing — investors of all sizes can participate in high-value patent opportunities.

Once a patent reaches its funding goal, a comprehensive licensing agreement is generated covering:

• Grant of License: Defines exactly what rights are being licensed (exclusive, non-exclusive, or sole)
• Territory Restrictions: Geographic boundaries for the license
• Royalty Terms: Payment structure, frequency, and KPI metrics
• Quality Control Standards: Requirements licensees must maintain
• Duration: Clear start and end dates for the agreement

Patent owners benefit from robust legal protections:

• Right to Terminate: Ability to terminate the agreement if the licensee misuses the IP
• Injunctive Relief: Right to file for court orders to immediately stop misuse
• Monetary Damages: Legal basis to seek financial compensation for breaches
• Quality Control: Standards that must be met to maintain the license

Investors and licensees also receive comprehensive protection:

• Defined Scope of Use: Clear boundaries of what is permitted under the license
• Indemnification Clauses: Protection from third-party lawsuits in applicable cases
• Dispute Resolution: Pre-agreed mechanisms (arbitration, litigation, or mediation)

All agreements include a dispute resolution mechanism chosen by the licensor:

• Arbitration: Binding resolution through a neutral arbitrator — faster and more private than court
• Litigation: Traditional court proceedings for complex disputes
• Mediation: Collaborative approach with a neutral mediator to reach settlement

PatentPool helps avoid common licensing pitfalls by implementing industry best practices:

• Centralized Storage: All agreements stored securely in one place
• Regular Audits: Quarterly compliance reviews based on defined KPIs
• Clear KPIs: Measurable performance indicators for royalty calculations
• Scope & Duration Clarity: Precise definitions to prevent ambiguity and breaches

Once the agreement is active, investors receive royalty payments according to the agreed schedule (monthly, quarterly, or annually). Payments are proportional to each investor's share of the pool.

Regular compliance audits ensure that KPIs are met and royalties are calculated accurately.