Guide

Who pays for this patent? A buyer map for security, identity, and trust technology

The licensees for a security, identity, or trust patent are the companies whose product, platform, or operation would carry the claimed method, and inside each one a specific seat with a budget line and a reason to act now. Find them by mapping use cases to seats, ranking the seats on a licensee ladder, and grading every entry by how you know it before anyone sends an email.

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Most owners start the search for licensees with a list of famous companies. The list feels thorough and is nearly useless, because a company does not license a patent. A person inside it does, with a budget, a problem, and colleagues in engineering, legal, and product who each have to agree. The work is finding that person and the reason they would say yes.

This guide is the method we use, written so you can run it yourself. It works best when the product is already defined. If nobody outside engineering can explain what the patent makes possible, start there, because a buyer map built on an undefined product maps the wrong buyers.

Why does a list of big companies not work?

A big company is many buyers with different budgets, and the one that matters for your patent is usually two or three levels below anyone you can name from the outside. A list of logos tells you nothing about which group owns the problem, whether it has money this year, or what it would need to see.

In security and identity the same company can be a vendor, a platform, and an operator at once. Its product group might license your method to ship a feature. Its platform group might want it so partners can build on it. Its own security operations team might want it inside the company and have no interest in a license at all. Each of those is a different conversation with a different owner.

There is also the question of who has to agree. A licensing conversation crosses design, legal, and marketing inside the buyer, and any one of them can stop it. A good buyer map names who sits in each of those seats, or at least which function you would need to win first.

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 .

How do you turn claims into use cases?

Start from what the claims let a product do, not from the technology's history. Write each use case as a buyer, a job, and a result: the buyer who has the problem, the job the claimed method does, and the measurable result they would pay for.

A typical identity or authentication patent supports more use cases than the inventor first lists. A verification method might serve account recovery, high-value payment approval, workforce access, device onboarding, and regulated age or identity checks. Each one lands in a different industry and a different budget line.

Write every use case down, including the ones you doubt, then mark which claim, if any, covers it. A use case with no claim behind it is a roadmap item or a continuation question for counsel, not a licensing target. A use case with a clear claim behind it and no plausible buyer is a dead end you have now found cheaply.

  • Buyer: the role that owns the problem, for example the head of fraud at a payments processor, not the processor.
  • Job: what the claimed method does for that buyer, in the buyer's words.
  • Result: what changes when it works, such as fewer account takeovers, faster onboarding, or a certification passed.
  • Claim basis: which claim covers it, or a note that none does yet.

What is a licensee ladder?

A licensee ladder is the ranked list of candidate licensees, ordered by how likely they are to sign and how much the deal would teach you, from the first deal you can realistically close to the large deal you want later. It exists because the first license sets the terms, the reference, and the story for every one after it.

The top rung is rarely the biggest name. It is a company where the problem is acute, the buyer is reachable, the claimed method fits the roadmap they already have, and a license is easier than building around you. A mid-sized vendor with a real gap often signs faster than a platform that could take a year to route the request through its own process.

We rank each candidate on four questions. How badly does this buyer need the result? How directly does the claimed method deliver it? Can we reach the person who owns the budget? What would it cost them to design around the claims instead? The last question belongs partly to counsel, and we say so in writing.

  • First rung: one or two licensees who can sign this year and become the reference.
  • Second rung: a category of similar companies the first deal makes easier to approach.
  • Third rung: platforms and large vendors, approached once the first deals show the method in a real product.
  • Off the ladder: candidates who would compete with your own product, or who conflict with an existing license.

How do you know a buyer is real?

Grade every entry by evidence: Confirmed when someone in that seat said it in writing, Verbal when they said it in a conversation, and Inferred when it is your reasoning. Then act on the grade, because a plan built on Inferred entries should spend its first weeks turning them into Verbal or Confirmed ones.

The grades sound bureaucratic until you watch a company spend months pitching a buyer who was only ever a guess. They also protect you in front of investors and your board, who will ask how you know. Saying that buyers in the right seats confirmed the problem in writing is a different answer from saying the market is large.

The fastest way to move a grade is a short validation conversation with the person in the seat, framed as a question about their problem rather than a pitch. People in security and identity roles are often willing to describe what they would pay to fix, as long as you are not selling them anything in the same call.

How is licensing activity trending?

Licensing remains an active channel, and AUTM's survey of university licensing shows options and startup licenses growing. Options are worth noticing: a short paid option lets a buyer test the technology before committing to a license, and it is often the first deal shape a cautious buyer will accept.

University technology transfer is a different world from a private company licensing a security patent, so treat the survey as a direction, not a benchmark for your deal. What carries over is the shape: buyers who are unsure prefer to start small, with an option, an evaluation license, or a field-limited license, and expand once the technology proves itself in their product.

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 .

What do you send a licensee first?

A short, non-confidential summary of the product and the problem it solves, written for the buyer's seat, with the patent number and nothing that needs an NDA. Claim charts, evidence of use, and pricing come later, and only after counsel has seen them.

The first message has one job: earn a conversation with the person who owns the problem. It should say what the buyer gets, in their words, and why now. It should not lead with the patent, the mechanism, or a claim of infringement. A first message that reads like a demand letter ends the conversation and can create risk for you.

After the first conversation, the buyer will tell you what they need to see. Some want a technical deep dive with their engineers. Some want to know how other companies use it. Some want terms. Each of those is a different package, and building the wrong one first is the most common way early licensing efforts stall.

What does a finished buyer map contain?

A finished map is a page or two that anyone in the company can read: the use cases with their claim basis, the seats and budget lines for each, the ranked licensee ladder, the evidence grade on every entry, and a list of what is still open. It is a work plan, not a report.

  • Use-case inventory, scored and tiered, with the bottom tier killed in writing so nobody revives it.
  • Seats and budget lines for each surviving use case.
  • The licensee ladder, with the reason each candidate sits on its rung.
  • An evidence grade on every claim the map makes.
  • Questions for counsel on claim coverage and design-around risk.
  • What the map did not settle, with the cheapest next action and who owns it.

Questions for your patent counsel

  1. Which of these use cases are covered by the allowed claims as written, and which would need a continuation?
  2. For the top candidates on the ladder, what design-around options should we expect them to consider?
  3. What can we share in a first message and a first meeting without creating risk for us?
  4. Do any existing agreements, grants, or assignments limit who we can license, or in which fields?
  5. What license structures would you want us to avoid proposing before you have reviewed the terms?

Questions we hear

Can I license my patent to more than one company?

Often yes, through non-exclusive licenses or licenses limited by field, product, or region. Which structures fit your patent, your existing agreements, and your own product is a question for your counsel before you offer terms.

How much is my patent worth to a licensee?

What a licensee will pay depends on what the claimed method is worth inside their product and what it would cost them to avoid it. That is why the map starts from the buyer's result rather than from a valuation method.

Should I use a marketplace listing to find licensees?

A listing can help buyers who are already searching find you. It rarely reaches the person who owns the problem inside a security or identity company, who is not browsing listings. Direct, graded outreach usually does more.

A company wants to license my patent. What do I ask for?

Before terms, ask what they want to do with it: which product, which field, which regions, and on what schedule. The answers tell you whether an option, a field-limited license, or a broader license fits, and your counsel should see any terms before you propose them.

Who should I talk to if I want to license my patent?

Inside a candidate licensee, the person who owns the problem the patent solves and the budget to fix it, usually a product, platform, or risk leader rather than the licensing or legal department. Outside, your patent counsel, before and after every conversation.

Where Patenture fits

Patenture builds the use-case and evidence half of this map for security, identity, and trust patents as the Claim to Market Read: a plain-language claim explainer, a use-case inventory scored and tiered with the bottom tier killed in writing, an honest moat read, order-of-magnitude sizing, questions for patent counsel, and a table of what the read did not settle. Every entry carries an evidence grade, and the validation conversations draw on relationships built over a career selling this technology. For owners who already ship the technology, the ranked licensee ladder comes in the Licensing Reach Read.

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.