Earning money with patents: more options than you think
In a series of blog posts, Marco Coolen gives an insight into his work as a Dutch and European patent attorney at AOMB.
Published on August 31, 2025
Marco, a patent attorney at AOMB since 2013, shares his expertise on IO+ about patents—how they work, why they matter, and when they lose their value.
A patent? Isn't that mainly intended to keep your competitors out? Certainly, but a patent can be much more than just a means of protection. It can also become a serious source of income even if you don't produce anything yourself.
When they hear the word ‘patent’, many entrepreneurs immediately think: ‘I've invented something, I'm going to make it myself, sell it, and protect it’. And indeed, that is the classic model. But there are other, sometimes surprising, ways to earn money from a patent. Let me give you a few examples.
Marco Coolen, photo © Bart van Overbeeke
Produce and sell yourself
The most obvious route:
- You develop an innovation.
- You patent it.
- And then you bring it to market yourself.
Your patent ensures that competitors are kept out of the game, so you can grow undisturbed and maximize your margins.
Licensing model: let someone else do the work
However, you don't always have to build a factory yourself. Think of knowledge institutes and universities. They are constantly developing new technologies, but often don't have the desire or capacity to manufacture products themselves.
What do they do? They protect their invention with a patent and then offer licenses. This allows them to earn money from their innovation, while others build, market, and sell the product.
✔️ You have the knowledge.
✔️ The licensee has the network, production, and distribution.
✔️ Both parties earn money.
This is an excellent model, especially for entrepreneurs with a good idea but limited production resources.
Patent pools: collaborating instead of fighting
In sectors with many standards (such as telecommunications, electronics, or video formats), patent pools often emerge.
Companies pool their patents in such a pool. Through an intermediary, other companies can then purchase a single license that covers a large package of patents in one fell swoop.
Advantages
- No endless lawsuits.
- No complex individual negotiations.
- Clear license revenues for everyone in the pool.
Patent sharks and patent trolls: the controversial players
Patent trolls actively buy patents with the aim of suing companies that may infringe them. They do not produce anything themselves, but earn money through settlements and lawsuits.
Patent sharks take a slightly friendlier approach: they try to proactively market their portfolio through licenses and collaborations, without immediately threatening legal action.
Both models are sensitive, but they are legal ways to extract value from patents.
The common thread: patents are commodities
Ultimately, it boils down to this:
- A patent does not produce anything.
- But it does represent value.
- And value can be traded, protected, or used as a bargaining chip.
Whether you manufacture yourself, offer licenses, or bundle your patents cleverly, if you own a good patent, you have an economic tool at your disposal.
Patents as assets
Patents are more than legal documents. They are assets. And if you play your cards right, they can generate money without you ever having to tighten a screw.
So if you develop something new, don't just think about protection. Consider the revenue models your patent enables. Because sometimes a good idea is worth twice as much if you market it smartly.
The World of Patents
Dutch and European patent attorney Marco Coolen (AOMB) provides us with a deeper understanding of the world of patents. How do they work, why are they essential, but also: when do they lose their usefulness?
View The World of Patents