There are a lot of less than forthright organizations that allegedly help individuals sell their inventions to industry. In every my several years of employed as a patent lawyer, I actually have never stumbled upon a single individual that ever used one of these organizations to effectively market or sell their invention. However, I have got met several who successfully marketed their inventions themselves.
Prior to taking any steps to why not try here, you must require a few preliminary steps.
Patent Application – Don’t publicly disclose your invention until after a patent application is filed. Publically disclosing the invention before filing a patent application can potentially ruin the possibilities of ever being granted a sound patent. In reality, a lot of companies will not likely even talk to you till you have filed a patent application.
Make a Formal Information Package – You ought to prepare an informative and concise information package describing you, your invention along with the potential market your invention reaches. The package should include color photographs of the invention, along with a one page executive summary.
Prototype – It is much easier to promote a product or service if possible buyers can see, touch and experience the product. Creating a working prototype can be a key step in selling your invention. Naturally, some merchandise is tough to prototype, whereby a non-working mock-up might have to do. In every event, make the most professional prototype or mock-up you may.
Obtain Financing – Building prototypes and filing patent applications require funds. Finding that initial start up funding is usually difficult; however, there are 2 well tested methods, namely partnerships and incorporations. A signed partnership agreement is an excellent method for a few individuals to pool their financial resources in a project. If several investors are involved, then an incorporated clients are a better method. Essentially, the company takes ownership of your invention and also the investors contribute money on the company in return for shares. The number and value of your shares may be tailored to accommodate all the needs in the project.
Since we certainly have dealt with some of the preliminary issues, allow us to glance at the mechanics of selling your invention into a company. The particular steps at the same time are listed below:
1. Compiling a listing of Possible Buyers – Choosing a company which is willing to get the invention is regarded as the challenging section of the process. It begins by generating a summary of companies that could be enthusiastic about the see this site. You can use a business directory to produce that list. Business directories list companies by the products they manufacture (or services they supply) and can include basic information about these companies such as their address, phone and fax number, along with the name in the president (CEO or owner). Suitable business directories could be in the business area of the local reference library.
2. Contacting Possible Buyers – Your list of potential customers might include hundreds of companies. You simply get in touch with each company on the list and request them when they would be curious about receiving a solicitation for a new invention. Then get the information about who from the company to send out your data to.
3. Presenting the Invention to Prospects – After you have thinned out your list, your following step is always to submit your details to all of the companies listed. This can involve calling individuals identified to become the “contact” for brand new product ideas and letting them know that you are sending them an information package about your product. Your package will include a resume cover letter as well as a one page synopsis of your own product (together with a picture). The details has to be clear, concise and it also 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 – Usually do not expect the prospect to come to a brief decision concerning the invention. It may take a prospect many months (a good year or even more) to produce up his/her mind over a project. You have to be patient. It is very important periodically follow up together with the company but tend not to “pester” the prospect. Remember, the individuals 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 might make them drop the project altogether.
5. Negotiations – If you find a company which is enthusiastic about getting the project, then anticipate to negotiate the relation to the sale. The key here is usually 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. Seeking a smaller signing fee together with a modest royalty is way more very likely to generate a signed agreement than holding out for a big payoff.
6. Royalty Amount – I am usually asked the question “how much can one sell image source for”. I don’t understand the answer; however, below are a few rules which can help you discover a 1nventhelp royalty rate. First of all, make an effort to negotiate a royalty which can be split up straight into two parts, an initial signing payment and an annual royalty payment. The first payment should cover most of your costs in the project. The annual royalties should represent an amount which can be sufficient to represent a good return on your own investment without being a burden about the manufacturer. The overall “guideline” is to inquire about a little percentage (1% to 5%) in the net sales of the product. Also, it is possible, and in many cases advisable, to fix the annual royalty payment for an easily calculated amount (e.g. $1.00 per unit sold).