There are tons of less than forthright organizations that allegedly help individuals sell their inventions to industry. In all my many years of working as a patent lawyer, I have got never come across a single individual that ever used one of these brilliant organizations to effectively market or sell their invention. However, I have got met several who successfully marketed their inventions themselves.
Before you take any steps to link, you ought to take 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 could very well ruin the likelihood of ever being granted a valid patent. In fact, a lot of companies will not even speak with you until you have filed a patent application.
Prepare a Formal Information Package – You need to prepare an informative and concise information package describing you, your invention along with the potential advertise your invention reaches. The package needs to include color photographs of your invention, as well as a one page executive summary.
Prototype – It is a lot easier to sell a product if potential customers can easily see, touch and experience the product. Creating a working prototype is often a key element of selling your invention. Naturally, some goods are challenging to prototype, in which case a non-working mock-up may have to do. In every event, make the most professional prototype or mock-up you can.
Obtain Financing – Building prototypes and filing patent applications require funds. Finding that initial launch funding is often difficult; however, there are 2 well tested methods, namely partnerships and incorporations. A signed partnership agreement is a sure way for a couple people to pool their financial resources in a project. If several investors are participating, then an incorporated clients are an improved method. Essentially, the business takes ownership from the invention along with the investors contribute money towards the company in exchange for shares. The number and value in the shares may be tailored to fit the specific needs from the project.
Since we certainly have managed several of the preliminary issues, allow us to consider the mechanics of selling your invention into a company. The particular steps at the same time are as follows:
1. Compiling a listing of Prospective Buyers – Choosing a company that may be happy to get the invention is easily the most challenging portion of the process. It begins by generating a list of companies that could be enthusiastic about the see this. You can use a business directory to generate that list. Business directories list companies by the products they manufacture (or services they provide) and will include basic specifics of these organizations including their address, phone and fax number, and the name from the president (CEO or owner). Suitable business directories may be found in the business section of the local reference library.
2. Contacting Prospective Buyers – Your set of potential customers might include many companies. You just get in touch with each company listed and ask them when they would be interested in getting solicitation for the new invention. Then receive the contact details about who from the company to deliver your information to.
3. Presenting the Invention to Prospects – After you have thinned your list, the next step would be to submit your information to each of the companies on the list. This can involve calling the folks identified to become the “contact” for first time product ideas and telling them that you will be sending them an information package relating to your product. Your package should include a job cover letter as well as a one page synopsis of the product (including a picture). The information needs to be clear, concise and it must appear as professional as is possible. Don’t attempt to overwhelm the recipient – you wish to impress them, not burden them.
4. Follow Up – Do not expect the prospect to come to a quick decision about the invention. It might take a prospect many months (even a year or more) to make up his/her mind on the project. You need to be patient. It is essential to periodically follow-up using the company but tend not to “pester” the prospect. Remember, individuals considering your invention are probably quite busy with several other projects – annoying them may do little to speed the project up and may cause them to drop the project altogether.
5. Negotiations – If you find a firm that is certainly thinking about collecting the project, then anticipate to negotiate the relation to the sale. The key here will be reasonable. From my experience, nothing kills off a prospective licencing deal faster than an unreasonable inventor. Realistically, the most you will likely get is a good return on your own investment. Seeking a lesser signing fee together with a modest royalty is actually more likely to generate a signed agreement than holding out for any big payoff.
6. Royalty Amount – I am usually asked the question “just how much should i sell try this for”. I don’t be aware of answer; however, here are a few rules that can help you figure out a 1nventhelp royalty rate. First of all, try and negotiate a royalty which is broken down directly into two parts, a basic signing payment plus an annual royalty payment. The primary payment should cover your main costs of the project. The annual royalties should represent an amount which happens to be sufficient to represent a good return in your investment without getting a burden in the manufacturer. The normal “guideline” is to request a tiny percentage (1% to 5%) from the net sales from the product. Additionally it is possible, and perhaps advisable, to correct the annual royalty payment with an easily calculated amount (e.g. $1.00 per unit sold).