Invention Marketing and Licensing for the Inventor

There are several but forthright organizations that allegedly facilitate people sell their inventions to industry.  In all my years of operating as a patent lawyer, I've got never come back across one person who ever used one of these organizations to effectively market or sell their invention.  However, I've got met many who successfully marketed their inventions themselves.

Before you take any steps to plug your invention, you ought to take a few preliminary steps.

Preliminary Patent Search – A preliminary patent search is generally a smart initial step.  A preliminary search of varied patent offices can be conducted for a reasonable fee (simply contact a patent agent/lawyer), and it's even potential to conduct one free (see the US patent office at http://www.uspto.gov/)

Patent Application – Don’t publically disclose your invention until when a patent application is filed.  Publically disclosing the invention before filing a patent application will doubtless ruin the possibilities of ever being granted a valid patent.  In fact, many Firms can not even talk to you till you've got filed a patent application.

Prepare a Formal Data Package – You should prepare an informative and concise data package describing you, your invention and therefore the potential market your invention reaches.  The package ought to include color pictures of the invention, and a one page executive summary.

Prototype – It's a lot easier to sell a product if potential patrons will see, bit and feel the product.  Building a working prototype is typically a key step in selling your invention.  In fact, some product are difficult to prototype, in that case a non-operating mock-up could must do.  In any event, create the foremost skilled prototype or mock-up you can.        

Obtain Financing – Building prototypes and filing patent applications need funds.  Finding that initial start up funding is usually difficult; but, there are two versed strategies, specifically partnerships and incorporations.  A signed partnership agreement is one means for a few people to pool their money resources into a project.  If several investors are concerned, then an incorporated company may be a higher method.  Primarily, the corporate takes ownership of the invention and also the investors contribute money to the corporate in exchange for shares.  The amount and price of the shares will be tailored to suit the actual needs of the project.

Now that we have a tendency to have forbidden some of the preliminary problems, let us observe the mechanics of selling your invention to a company.  The particular steps in the process are as follows:

1. Compiling a List of Potential Consumers – Finding a company that's willing to buy the invention is the most challenging part of the process.  It begins by generating an inventory of firms that will be fascinated by the invention.  You'll use a business directory to come up with that list.  Business directories list corporations by the product they manufacture (or services they supply) and include basic data about these corporations like their address, phone and fax variety, and the name of the president (CEO or owner).  Appropriate business directories might be found within the business section of the native reference library.

2. Contacting Potential Consumers – Your list of potential buyers could embody literally hundreds of companies.  You just call up each company on the list and raise them if they'd be fascinated by receiving a solicitation for a brand new invention.  Then get the contact data concerning who in the corporate to send your information to.

3. Presenting the Invention to Prospects – When you've got thinned out your list, the next move is to submit your data to each of the businesses on the list.  This may involve calling the people identified to be the “contact” for new product concepts and telling them that you're sending them an info package regarding your product.  Your package should include a cowl letter and a one page synopsis of your product (together with a picture).  The information should be clear, concise and it should seem as professional as possible.  Don’t attempt to overwhelm the recipient – you want to impress them, not burden them.

4. Follow Up – Don't expect the prospect to come to a quick decision regarding the invention.  It might take an opening several months (even a year or a lot of) to create up his/her mind on a project.  You have got to be patient.  It is important to periodically follow up with the company however do not “pester” the prospect.  Bear in mind, the folks considering your invention are probably quite busy with several other comes – annoying them may do very little to hurry the project up and could cause them to drop the project altogether.

5. Negotiations – If you find a company that's inquisitive about picking up the project, then be prepared to negotiate the terms of the sale.  The key here is to be reasonable.  From my experience, nothing kills off a potential licencing deal faster than an unreasonable inventor.  Realistically, the most you're possible to urge may be a smart come back on your investment.  Requesting a smaller signing fee along with a modest royalty is way a lot of seemingly to get a signed agreement than holding out for a huge payoff.

6. Royalty Quantity – I am sometimes asked the query “how much can I sell my invention for”.  I don’t know the answer; however, here are some rules that can facilitate you work out a cheap royalty rate.  Initial of all, strive to negotiate a royalty that is attenuated in to two elements, an initial signing payment and an annual royalty payment.  The initial payment should cowl most of your costs of the project.  The annual royalties ought to represent an quantity that is sufficient to represent a sensible come back on your investment without being a burden on the manufacturer.  The overall “rule” is to ask for a small proportion (1% to 5%) of the web sales of the product.  It's conjointly attainable, and in some cases advisable, to mend the annual royalty payment to an easily calculated amount (e.g. $1.00 per unit sold).

Selling your invention to a manufacturer is attainable however it's not easy.  How successful are you possible to be?  From my experience, individual inventors are way additional probably to successfully sell their invention by themselves then by looking some invention promotion organization.  Like every business, the possibilities of success are a perform of your determination, knowledge and willingness to require risks.

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