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I currently hold a patent and I'm looking to possibly sell it to a company for 5% stake.

I have interested investors in the idea, but need to move the patent into their company. The company's initial business will be based on the patent entirely. What's the pushback I'll get on asking for this 5% to include a clause of mechenism to make it "non dilutable", all else being equal?

I'm looking into other approaches.

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They won't really like it, but it's doable. Is it what you really want, though? An equity stake is only good if the company (i) is sold, (ii) goes public, or (iii) declares a dividend. If none of those happens, you're holding stock that you'll have a really tough time selling.

Why aren't you asking for a royalty?

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I agree with Chris - is this really the question you should be asking? – TimJ Apr 21 '12 at 4:24

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