Selling Ownership
The purpose of a selling your invention or the rights to your "intellectual property" is usually for financial gain. The specifics are outlined in the terms of the agreement.

Royalties vs. Selling
If you decide to sell your invention, you will completely give up the rights that you have on your patent, and in return receive one payment. On the other hand, if you decide to license your invention, you still own it, but you allow one or more entities to make use of it, and you receive royalties in exchange. The disadvantage to licensing your invention is that you may not ever see any royalty fees if should your product not sell. Once you sign you can start enjoying the financial benefits of your invention.

The following are among the most common myths:

Myth #1: The first thing an inventor should do is get a patent.

Truth: It's understandable why this is such a commonly held belief. The topic of getting a patent is so pervasive among the inventing literature, conferences, websites and tv commercials, it's no wonder that many people feel they can't move forward without getting a patent first. Many inventors spend 80 -100% of their initial effort and money on obtaining a patent because that is the myth that's been sold and supported by those who stand to profit from it. Certainly a patent can be a valuable tool later in the process, but you should first determine the viability of your invention as a business before moving forward. Remember that filing a patent has little impact on a successful product launch & cost $10,000 or more-so unless getting a patent for its own sake is your end goal, it doesn't usually make good business sense to apply for a patent first thing off the bat. Most importantly- if you file a patent first, then encounter overwhelming obstacles later on, you may have invested in a patent for nothing.

Myth #2: If I tell people my idea, they'll steal it.

Truth: The theft of a new invention idea is actually very rare. A lot of sweat equity goes into developing an invention and this is a big barrier to most potential "thieves." That doesn't mean ideas are never stolen. Keep in mind, copying and competition are facts in any business. However, once you have an understanding of how much work goes into taking an idea to market, you'll understand why most ideas are stolen only after a product's proven successful. It's like betting on a horse. You're more likely to win by betting on a horse with a winning record than you are by backing an unproven long shot. That being said, don't be careless.

Myth #3: My idea is worth a million dollars!

Truth: Earning a million dollars with an invention is less likely than making slightly lesser amount depending on the depth of your invention. Study the process, set realistic expectations, take action, work hard and you can find success, especially if you have more than one marketable idea.

Overcome the Obstacles
In addition to setting aside your false beliefs, taking action involves shifting your approach to challenges that develop along the way. As an inventor, you're an entrepreneur who already thinks creatively. That creativity will benefit you throughout the inventing process. We encourage you to tap into those creative thinking abilities as you proceed through the inventing process. When you're confronted with a challenge, don't change your goals but your plan of action. Constantly create new options for yourself during all the steps as an inventor and you will succeed.
Every great invention begins with a great thought. By taking action to help encourage and develop your great ability to think--whether it's debunking myths or facing challenges creatively--you'll be on your way to success as an inventor, and as an entrepreneur.