There are plenty of lower than forthright organizations that allegedly help individuals sell their inventions to industry. In most my numerous years of working as a patent lawyer, I actually have never come across a single person who ever used one of these organizations to effectively market or sell their invention. However, I have met several who successfully marketed their inventions themselves.
Prior to taking any steps to look what i found, you should go on a few preliminary steps.
Patent Application – Don’t publicly disclose your invention until following a patent application is filed. Publically disclosing the invention before filing a patent application could possibly ruin the probability of ever being granted a real patent. Actually, most companies will never even speak with you until you have filed a patent application.
Create a Formal Information Package – You ought to prepare an informative and concise information package describing you, your invention and the potential market your invention reaches. The package needs to include color photographs of the invention, and a one page executive summary.
Prototype – It is a lot easier to sell a product or service if prospective buyers are able to see, touch and feel the product. Creating a working prototype is often a key part of selling your invention. Obviously, some items are challenging to prototype, whereby a non-working mock-up might have to do. In almost any event, create the most professional prototype or mock-up you can.
Obtain Financing – Building prototypes and filing patent applications require funds. Finding that initial start up funding is usually difficult; however, the two main well tested methods, namely partnerships and incorporations. A signed partnership agreement is one method for a few individuals to pool their financial resources in to a project. If several investors are involved, then an incorporated clients are a better method. Essentially, the business takes ownership in the invention as well as the investors contribute money towards the company in exchange for shares. The amount and value from the shares may be tailored to suit all the needs of the project.
Since we now have dealt with several of the preliminary issues, we will consider the mechanics of selling your invention into a company. The exact steps during this process are listed below:
1. Compiling a summary of Possible Buyers – Finding a company that may be happy to get the invention is considered the most challenging portion of the process. It begins by generating a long list of companies that may be thinking about the go to the website. You can use a business directory to produce that list. Business directories list companies from the products they manufacture (or services they supply) and may include basic specifics of these businesses including their address, phone and fax number, and also the name in the president (CEO or owner). Suitable business directories can be in the business area of the local reference library.
2. Contacting Prospective Buyers – Your set of potential buyers might include many companies. You only get in touch with each company on the list and get them if they would be curious about receiving a solicitation for the new invention. Then have the information about who inside the company to transmit your information to.
3. Presenting the Invention to Prospects – Once you have thinned your list, your upcoming step is always to submit your details to each one of the companies listed. This might involve calling individuals identified to get the “contact” for brand new product ideas and letting them know that you are sending them an information package about your product. Your package should include a cover letter plus a one page synopsis of your own product (including a picture). The info has to be clear, concise plus it must appear as professional as you possibly can. Don’t attempt to overwhelm the recipient – you need to impress them, not burden them.
4. Followup – Do not expect the prospect to come to a fast decision concerning the invention. It might take a prospect many months (even a year or maybe more) to produce up his/her mind over a project. You need to be patient. It is essential to periodically followup together with the company but do not “pester” the prospect. Remember, the people considering your invention are probably quite busy with other projects – annoying them may do little to speed the project up and could make them drop the project altogether.
5. Negotiations – If you find a firm that is certainly considering collecting the project, then be ready to negotiate the relation to the sale. The key here is to be reasonable. From my experience, nothing kills off a prospective licencing deal faster than an unreasonable inventor. Realistically, probably the most you may very well get is a good return on your investment. Asking for a smaller signing fee along with a modest royalty is much more more likely to generate a signed agreement than holding out for a big payoff.
6. Royalty Amount – I am usually asked the question “exactly how much should i sell discover this for”. I don’t know the answer; however, here are several rules which can help you find out a 1nventhelp royalty rate. Firstly, attempt to negotiate a royalty that is separated in to two parts, a basic signing payment plus an annual royalty payment. The initial payment should cover most of your costs of the project. The annual royalties should represent an amount which is sufficient to represent a good return in your investment without getting a burden on the manufacturer. The general “general guideline” is to ask for a little percentage (1% to 5%) from the net sales in the product. It is also possible, and in many cases advisable, to correct the annual royalty payment to an easily calculated amount (e.g. $1.00 per unit sold).