There are plenty of under forthright organizations that allegedly help individuals sell their inventions to industry. In all of the my numerous years of employed as a patent lawyer, We have never stumbled upon a single individual who ever used one of those organizations to effectively market or sell their invention. However, I have met several who successfully marketed their inventions themselves.
Before you take any steps to check my blog, you must go on a few preliminary steps.
Patent Application – Don’t publicly disclose your invention until right after a patent application is filed. Publically disclosing the invention before filing a patent application could possibly ruin the probability of ever being granted a valid patent. In reality, some companies will not likely even talk with you until you have filed a patent application.
Cook a Formal Information Package – You need to prepare an informative and concise information package describing you, your invention as well as the potential market your invention reaches. The package should include color photographs of the invention, and a one page executive summary.
Prototype – It is a lot easier to offer a product or service if potential customers are able to see, touch and feel the product. Building a working prototype is generally a key step in selling your invention. Needless to say, some goods are difficult to prototype, whereby a non-working mock-up may have to do. In virtually any event, produce the most professional prototype or mock-up it is possible to.
Obtain Financing – Building prototypes and filing patent applications require funds. Discovering that initial set up funding is usually difficult; however, there are 2 well tested methods, namely partnerships and incorporations. A signed partnership agreement is one way for several men and women to pool their financial resources in to a project. If several investors are involved, then an incorporated clients are a greater method. Essentially, the business takes ownership of your invention along with the investors contribute money to the company in return for shares. The amount and value of your shares could be tailored to fit all the needs of your project.
Since we certainly have managed a number of the preliminary issues, we will glance at the mechanics of selling your invention to some company. The particular steps during this process are highlighted below:
1. Compiling a List of Potential Buyers – Locating a company that is happy to get the invention is easily the most challenging portion of the process. It begins by generating a listing of companies that could be considering the read more. You can use a business directory to build that list. Business directories list companies by the products they manufacture (or services they supply) and may include basic specifics of these organizations like their address, phone and fax number, and also the name of your president (CEO or owner). Suitable business directories can be based in the business area of the local reference library.
2. Contacting Potential Customers – Your set of potential customers could include literally hundreds of companies. You only contact each company on the list and ask them should they would be interested in receiving a solicitation for a new invention. Then receive the contact info about who inside the company to send out your information to.
3. Presenting the Invention to Prospects – Once you have thinned your list, your next step would be to submit your information to each of the companies on the list. This could involve calling individuals identified to be the “contact” for brand new product ideas and telling them you are sending them an information package relating to your product. Your package should include a cover letter as well as a one page synopsis of your product (such as a picture). The information has to be clear, concise and it must appear as professional as you possibly can. Don’t try to overwhelm the recipient – you want to impress them, not burden them.
4. Followup – Will not expect the prospect to visit a simple decision about the invention. It could take a prospect many months (a year or higher) to make up his/her mind with a project. You must be patient. It is important to periodically follow up with all the company but will not “pester” the prospect. Remember, the people considering your invention are most likely quite busy with a number of other projects – annoying them may do little to speed the project up and may even make them drop the project altogether.
5. Negotiations – If you discover a company which is considering picking up the project, then anticipate to negotiate the relation to the sale. The key here will be reasonable. From my experience, nothing kills off a possible licencing deal faster than an unreasonable inventor. Realistically, the most you will probably get is an excellent return in your investment. Looking for a smaller signing fee plus a modest royalty is much more more likely to produce a signed agreement than holding out for a big payoff.
6. Royalty Amount – I am just usually asked the question “simply how much can one sell YOURURL.com for”. I don’t understand the answer; however, here are several rules that can help you determine a 1nventhelp royalty rate. First of all, make an effort to negotiate a royalty which is divided directly into two parts, a preliminary signing payment as well as an annual royalty payment. The primary payment should cover most of your costs of your project. The annual royalties should represent an amount which happens to be sufficient to represent a great return on your own investment without getting a burden about the manufacturer. The normal “general guideline” is to request for a small percentage (1% to 5%) from the net sales of the product. Also, it is possible, and in some cases advisable, to repair the annual royalty payment to a easily calculated amount (e.g. $1.00 per unit sold).