Guide
Your product uses the patent and your claims reach three other markets: what do you do?
License the reach you will never sell into, by field, to companies that will never compete with you, after screening each one against your own customers, partners, roadmap, and existing licenses. Done in that order, licensing outside your market can add revenue without weakening the product the patent was filed to protect.
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Operating companies tend to file patents to protect what they ship and then forget about everything else the claims cover. In security, identity, and trust technology that is a lot to forget. A method written for one product often describes something a payments company, a device maker, an industrial controls vendor, or a healthcare platform would also need, in markets the owner has no plan to enter.
Almost nothing is written for this owner. Most licensing content assumes either a lone inventor with no product or a large company with a licensing department. A company with a product, a sales team, and a patent that reaches further sits between the two, and its first worry is the right one: will licensing hurt the business we already have? This guide is about answering that before anyone signs anything.
How do you find where your claims reach beyond your product?
Read the claims for what they require, not for what your product happens to do, and list every product category that could meet those requirements. The gap between your product and that list is the reach you can license.
Engineers read their own patents through the product they built, which can make the claims seem narrower than the language is. A claim to a method of binding a credential to a device, for example, may not name the kind of device. Your product might be a workforce authentication app; the same claim language might also describe a point-of-sale terminal, a vehicle key system, or a medical device that has to verify its operator. Whether it actually reaches those products is your counsel's call.
We map reach in three columns: what the claims require, the product categories that would meet those requirements, and which categories your company serves today or plans to. Whether a given product actually falls within a claim is a legal question for counsel. The map's job is to give counsel the right list of candidates to look at.
- Fields: industries or applications your product will never serve, such as industrial or automotive for a company that sells to banks.
- Channels: ways to market you do not use, such as embedded in another vendor's hardware when you only sell software.
- Regions: countries where you have patent coverage and no sales presence, a question counsel should confirm claim by claim.
Will licensing to another market hurt our customers?
It can, which is why the conflict screen comes before any outreach. Every candidate licensee gets checked against your customers, your partners, your roadmap, and every license you have already granted, and anyone who fails the screen comes off the list in writing.
The obvious conflict is a licensee who competes with you. The less obvious ones do the damage: a licensee who sells to your largest customer and will now be in the same procurement meeting; a partner whose contract gives them rights you forgot about; a roadmap item nobody has announced that would put you in the very field you just licensed away; or an old license with a most-favored-licensee clause that changes your terms for everyone.
A good screen is a table, not a judgment call. Each candidate gets a row, each conflict type gets a column, and each cell gets an answer and an evidence grade. The roadmap column needs a straight answer from your own product leadership, and the existing-license column needs counsel.
- Customers: does the candidate sell to, partner with, or compete for any of our top accounts?
- Partners: do any channel, OEM, or technology partner agreements give someone rights in this field already?
- Roadmap: is there any plan, even a soft one, to enter this field within the life of the patent?
- Existing licenses: do any licenses we have granted carry exclusivity, field rights, or terms that a new deal would trigger?
What kind of license fits a field you will never sell into?
Usually a license limited by field of use, and often non-exclusive within that field, so you can license several companies in the same market without granting anyone rights in yours. Exclusive licenses within a field can make sense when a licensee needs exclusivity to justify the investment, and they need more care.
Field-of-use licensing is the usual tool for containing that risk. The license is drafted to grant rights only within the defined field, so that a licensee in industrial controls gets nothing in banking. The definition of the field is where the risk lives, and drafting it is your counsel's work. Our job is to bring counsel a clear commercial description of each field, written from how the market actually buys, so the definition matches reality.
The first deal in a new field often starts smaller than a full license: an evaluation license, an option, or a limited first field that expands once the licensee ships. In our experience buyers who are unsure prefer a small first step. AUTM's survey of university licensing shows option agreements growing; treat it as a direction, not as evidence about your buyers.
Sourced facts
In AUTM's 2025 U.S. Licensing Activity Survey, licenses rose more than 7%, option agreements rose 10%, and licenses with startups grew 15%.
Source: AUTM, 2025 Licensing Activity Survey, key findings. Checked .
Who inside a licensee has to agree?
At least three groups: the engineers who would build it, the lawyers who assess the patent, and the product or marketing people who decide it is worth launching. A licensing pitch that convinces only one of them stalls.
This is why a company that already ships the technology has an advantage it rarely uses. You can show the engineers a working implementation, show the product people what customers do with it, and give the lawyers a clean picture of what you own. A lone inventor can do none of that. Your product is your best licensing material, provided you share it in a way that does not hand a future competitor your roadmap.
Sourced facts
An essay in les Nouvelles (March 2019) sets out four classes of patent licensing and says a hopeful licensor must convince at least three groups inside a manufacturer: design, legal, and marketing. If one is unconvinced, there is probably no deal.
Source: Licensing Executives Society International, The Four Classes of Patent Licensing. Checked .
A worked example (illustrative)
Here is how the screen works on an invented case. A company sells an identity verification product to banks, holds a patent on a method of checking a live document against an issuing authority's record, and finds the claims reach three other fields.
This example is invented for this page. It describes no client, product, or patent.
The three fields are car rental counter check-in, age verification for regulated online retail, and building access for secure facilities. The screen removes the first: a large rental platform turns out to be a customer of the company's biggest bank client, and the bank's procurement team would read a license there as the company entering travel. The second survives with one flag: the company's roadmap has a soft plan for retail age checks, so product leadership has to decide in writing whether to give that field up. The third survives cleanly: no customer overlap, no partner rights, nothing on the roadmap.
The result is a licensee ladder for building access, a decision memo for retail age checks, and a written note that rental check-in is off the table and why. Nobody has been contacted yet, and the company already knows which conversations are safe to have.
What should a company do before contacting any licensee?
Finish four things in writing: the reach map, the conflict screen, a proposed license structure for each surviving field, and a ranked licensee ladder. Then send the lot to counsel before the first outreach email.
The order matters. Companies that contact licensees first and screen later find their conflicts in the worst possible way, in a customer's email or a partner's lawyer's letter. Companies that screen first can approach each licensee with a structure that already protects their own business, which also makes them more credible in the room.
None of this is assertion. Licensing reach you will never use, to companies who want to build with it, is a commercial deal between willing parties. If a candidate's response is that they would rather fight than license, that is a separate conversation for counsel and outside this work.
What does this cost the core business?
Done well, very little: some time from product leadership on the roadmap question, some time from counsel on the license terms, and a decision about who owns the licensing relationships. Done badly, it can cost a customer, so the screen is not optional.
The commitment that surprises owners is relationship management. A licensee in another field will have questions, want updates, and sometimes ask for help. Somebody has to own that, and it should not be your sales team, whose job is your own market. Decide who owns it before the first deal, even if the answer is that the work is contracted out.
Questions for your patent counsel
- For each field on the reach map, which claims would a product in that field need to practice, and how confident are you?
- Do any existing licenses, partner agreements, or customer contracts grant rights or exclusivity in these fields?
- How should each field be defined in a license so it cannot be read to include our own market?
- Would a non-exclusive license in one field affect our ability to grant an exclusive license elsewhere?
- Are there foreign patents or pending applications we should consider before licensing by region?
- What should a first evaluation license or option include so it cannot become a full license by default?
Questions we hear
Core versus non-core patents: how do we tell the difference?
A useful test is whether the claim covers something you ship or plan to ship within the patent's life. Claims that only cover fields you will never enter are candidates for licensing; claims that cover your product are usually kept exclusive in your market.
Can we license a patent our product uses?
Yes, if the license is limited to fields, channels, or regions you do not serve and the conflict screen is clean. The structure and definitions belong to your counsel.
How do we license technology outside our industry without a licensing team?
Build the map, the screen, and the ladder first, then decide whether to run the outreach yourself or have it run for you. Either way, counsel drafts and closes every license.
What is a field-of-use license?
A license that grants rights only within a defined field, such as an industry, an application, or a product type. It lets an owner license the same patent to different companies in different fields while keeping its own market.
Will licensees in other fields become competitors later?
They can try, which is why the field definition and the conflict screen matter. A field-limited license is drafted to grant no rights outside the field, and the screen should flag any licensee whose own roadmap points at your market. Counsel decides how tightly the field is drawn.
Where Patenture fits
Patenture does this work for security, identity, and trust technology as the Licensing Reach Read: a claim reach map, a conflict screen against your customers, partners, roadmap, and existing licenses, a license structure for each opportunity, a ranked licensee ladder, questions for patent counsel, and a table of what the read did not settle. The Licensing Program follows where you want the outreach run for you. Patent counsel drafts and closes every license.
By Mike Dayton. Published . Updated .
Every engagement starts with a mutual NDA and a written data-handling annex your counsel can review before intake. How confidentiality works.
Patenture is not a law firm. The claim explainer and the counsel question list are commercial analysis; claim construction, validity, and prosecution strategy stay with your patent counsel, whose access is a condition of the engagement.
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