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Marketing MARKETING
OF INVENTIONS When should I market my Invention? Before marketing the patent, you should contact a Patent attorney. A Patent attorney will advise you on how to best avoid jeopardizing your Invention or Patent in the market place. Be aware of 'get rich quick' scams, contact a Patent attorney first before disclosing your invention. Patent attorneys are required by professional rules to keep your information confidential. The marketing of patents is unique and requires skills of professionals who understand patents. A Patent generally represents intangible property whose entire value may be destroyed by a Patent invalidation. How much is my Invention worth? It is difficult especially in rapidly changing fields t predict the value of an invention over the 20-year life of a Patent. In some cases a patented invention have become obsolete before or even shortly after the patent is issued. For instance, the industry may refuse to adopt a superior machine because it would require abandoning a huge capital investment in order to adopt the new machine. In other instances, some Patents are adopted within a short period of time and produce a lot of profits. The development costs associated with a Patent usually influences the marketability of the invention. Patent Protection is a major factor in marketability of an invention. An inventor that has a Patent is in a better bargaining position than an inventor that has no Patent protection. Frequently the Inventor will possess know-how or other valuable information over and beyond that contained in the Patent Application or Patent such as information about large scale manufacturing. How much should I expect for my Invention? It is difficult to lay any hard set of rules on how much you should ask an Investor to pay for your invention. Some industries have standardized royalty payments in other industries, there are no set royalty standards. The best royalty rate is a rate that is reasonable. An excessive royalty rate is likely to hinder the licensee or the manufacturer. This may cause the licensee or manufacturer to evade the use of the license or to invalidate the Patent rights. Above all else, availability of alternative inventions, and the financial condition of the licensee are some of the factors that will determine the royalty rate. Contact us for more information. How do I market my invention? You may manufacture and distribute your invention yourself, or you may license it to a manufacturer in return for royalties. Most inventors prefer licensing because it is generally easier. Many inventions provide improved features or additional benefits to existing products. Therefore, the companies that already sell similar products are the best prospects. Look in stores, catalogs, popular magazines, or trade magazines for these products. The manufacturers' names and addresses are often printed on product packaging and advertisements. Manufacturer listings, such as Thomas Register, and Dunn's Million Dollar Directory, are available in the reference section of most libraries. File a patent application first before submitting your invention to the manufacturer. It should be noted that your invention is not fully protected until the patent is issued or granted. Nevertheless, although not recommended, some inventors start marketing their inventions before the patent is granted. Seek legal counsel on this issue. If you wish to submit your invention to manufacturers without filing a patent application, try to get them to sign a Non-Disclosure (confidentiality) Agreement first but this will be at your own risk and is not recommended unless you know that a manufacturer is absolutely ethical. It is best to at the very least file a patent application before submitting your invention to the manufacturer. Great caution is required if you submit your invention to any third party before filing a patent application. Many companies require inventors to sign a waiver, sometimes called an "Invention Submission Agreement", before reviewing their inventions. A typical waiver states that the company not be required to keep the invention secret, that it may do with the invention as it wishes, and that the inventor must rely solely on the patent laws for protection. You must carefully weigh the risk of signing such waivers. It is highly recommended that you seek legal counsel if you plan on taking this route. "Invention marketing companies" are organizations that offer to help inventors sell or market their inventions. Typically, they will first send you a free "Inventor's Kit" that includes a disclosure form for you to provide a description of your invention. Very Great Caution is required here. Seek legal counsel before submitting or disclosing any part of your invention to such a company. Contact us for more information. |