Inventor-Entrepreneurs: Patents and Patent Licensing in the Early Republic
Independent inventors have limited routes to secure financial returns on the time and capital they invest to develop and realize a new idea. Research into two centuries of inventors has identified their options as licensing patents once they are issued, selling inventions (and patents) to existing companies, forging consulting arrangements with operating firms, or raising funds and starting a business. This article explores patent licensing as an entrepreneurial approach using a case study of the largely unknown licensing program undertaken by Samuel Hopkins after receiving the first U. S. patent. A license agreement signed between Hopkins and Eli Cogswell, a potash manufacturer in Vermont, offers a case study of how an inventor-entrepreneur worked in the early American republic. It also provides insights into the links between intellectual property and entrepreneurship, the mindset of inventor-entrepreneurs, and the challenges of bringing a new technology to market at a foundational moment in U. S. history.