Inventor Education

Success Series – Evaluations

2009-09-10T14:06:00.001-07:00

1. Who will do my evaluation?

You will complete your own personal invention evaluation from our template. You will never disclose your invention to us for the evaluation. You will be able to complete the evaluation test at your leisure in the convenience of your home or office.

2. How long will my evaluation take?

You should be able to complete the evaluation test inside of 3 to 5 days. However, many clients have taken their time and completed in about 10 days while others were very excited and completed it in one day.

3. Where do I go for help after I get my evaluation report?

You can continue to use our services if you wish or obviously hire any reputable company to assist you. Words of caution, DO NOT hire an invention scam company. To find our more about these companies, read the details on our website.

4. Do I need to have my patent before getting an evaluation?

Absolutely not. In fact, we recommend obtaining an evaluation first. Patents can cost a lot of money.

5. Do I need to have a prototype to get an evaluation?

Not in most cases. Our evaluation system is designed to work at the idea stage. This enables you to get an objective evaluation before you potentially invest a lot of money in your project.

9 Frequently ask questions about Inventor Education

2009-09-09T14:56:00.001-07:00

1. Why would an inventor choose to work with InventorEducation.com?

For the same reasons consumers buy any service: convenience and cost. For example, in order to obtain similar services as those offered by our company an inventor would have to spend thousands of dollars and not even have control over the activity of your project.

2. Will "The InventorEducation.com People" tell me if I have a good idea?

No one at in our company is permitted to or will express an opinion about or evaluate or appraise the merit or marketability of your invention idea. If they do so, it is improper and we ask that you contact us immediately.

3. Is InventorEducation.com part of any corporate or government organization?

No; we are an independent program. Our purpose is to stimulate innovation by providing an honest and objective source of advice and information. Our services are designed to provide inventors and innovators with an honest assessment of the commercial potential of their inventions and new products. We do not assist with marketing or invention development. We are completely different than most of the invention company scam sites in that we DO NOT charge thousands of dollars for services.

4. I have a new product, not an idea or invention. Can you help?

Yes, your first step is to take the Invention Evaluation Test. It will immediately let you know if you a new or idea or that is worth pursuing or not.

5. Why are there so many misconceptions about inventing?

Most Innovators would like to see their idea commercialized. Most, though, have little business or invention experience. So it's not surprising that there are a few myths about the business of inventing that we think new innovators should be aware of. Our eBook ‘Save Your Money…To Save Your Invention’ will explain to you the myths and how to avoid the hurdles

6. Who will you tell about my idea?

No one. We won't disclose your idea or invention to anyone outside of our staff without your express written permission, and that is only if your purchase the Provisional Patent Application program or other services from us. All of the people involved in our company have signed confidentiality statements that are kept on file. Generally only two or three people will ever see your information:

7. What other services does InventorEducation.com provide?

We provide services that are geared to inventors who do not have a large amount of capital to invest. We strive to keep your costs down especially in the early stages of your development. Once you complete your evaluation, you can use our service of ‘Patent Pending in 48 Hours™’. The cost is only $497 and that is far less than any other service or patent attorney. We also provide services to inventors that will take them through every step of the invention process.

8. How much money will I end up paying to you?

That is entirely up to you and your invention. The Invention Evaluation Test is only $97. It is quite possible that the results of the test will advise you to discontinue with your project. If that is the result, your entire investment will be only $97. If you continue the process and actually utilize all of our services, your total investment can be around $1,500

9. Will InventorEducation.com take over the development of my idea or invention?

No--You are responsible for any development and commercialization.

Next - IE Success Series – Evaluations

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What Really Is Invention Success?

2009-09-03T18:33:00.001-07:00

Over the years I have heard from hundreds of inventors who have told me ‘I am a successful Inventor’. When I ask them to define what ‘successful’ means they almost always tell me ‘I have a patent.’

My response to them almost always is ‘Yeah, but have you made any money yet?’ Can you guess what their answers are?

I call these inventors ‘ego I.P.-ists.’ I.P. stands for Intellectual Property which is a patent, trademark or copyright.

To merely say your success as an inventor is that you have a patent is like saying ‘I’m a major league baseball player and I have a ticket to every game in the stands but have never played a game.’

In essence, having a patent and not doing anything else with it like making money is just like sitting in the stands watching the ballgame. In both cases you paid money to get your patent/ticket, however, that’s all you got.

Here are some statistics to think about. In 2008 the United States Patent and Trademark Office (USPTO) reports that there were 485,312 patent application filed. In addition, there were 185,224 patents granted (issued). (It’s important to understand that the issued patents did not come from the applications in 2008 because the patent office is running anywhere from 3 to 5 years behind from application to issuance). The application figures have increased over the years as more and more private inventors and institutional inventors are filing both domestic and foreign.

A more revealing statistic and one to be more concerned about is that the USPTO claims that ‘only about 3% of issued patents have made more money than the inventor invested.’ That claim includes issued patents from both the private and commercial sector. If you eliminate the commercial sector, I would venture to guess that figure of success is closer to 1% or less in my opinion.

So, let’s calculate that in real numbers;

1. 485,312 applications, 185,224 issued patents. That’s about 38%. Keep in mind it took 3 to 5 years to issue.

2. The 3% success figure: 185,224 issued patents vs. a 3% success rate. That’s about 5,500 patents that made money.

3. The 1% success figure: 185,224 issued patents vs. a 1% success rate. That’s about 1,800 patents that made money.

4. Applications to the 3% success rate: 485,312 applications vs. a 3% success rate. That’s about 14,500 patent applications that may become successful. Again that is over a 3 to 5 year period.

5. Applications to the 1% success rate: 485,312 applications vs. a 1% success rate. That’s about 4,800 patent applications that may become successful. Once again, a 3 to 5 year period.

6. A 1% success rate over a 5 year period vs. 485,312 applications means that about 960 inventors will have the potential to make money per year with their invention.

If you look at these statistics carefully it is bound to scare some new inventors away from the invention process. The numbers can be too much of a risk for a novice to begin their invention journey. However, and this is a big however, it should not necessarily prevent a new inventor from entering the invention industry. Quite frankly it should educate the new inventor about something completely different.

Here is the education.

1. There is a right way and a wrong way to begin the invention process.

a) The wrong way is to immediately hire a patent attorney or agent before you know if you truly have a marketable product concept. If you do, you will become nothing more than a USPTO statistic mentioned above. You will be an ego I.P.-ist.
b) The right way is to have a professional invention evaluation completed to see if you truly have a marketable product concept.

2. The WRONG WAY is to hire a deceptive invention company.

a) They will do absolutely nothing for you other than to take (legally steal) your money.
b) They will tell you what you want to hear and try to convince you to buy their services. Do not fall victim to the commissioned salesperson.
c) They will skirt the issue of telling you that they will evaluate your invention whereas they do not.
d) They will tell you that they will get you a patent, however the patent they get for you is usually very weak and/or just a design patent. As stated above, don’t get the patent first.
e) They are a waste of your time and money – period.

3. The RIGHT WAY is to read and learn as much as possible before you jump into the invention process.

4. Understand the risk to reward ratio prior to making any substantial investment.

5. Ask as many questions to the experts as you can without divulging details of your invention.

6. Understand that the invention process is to be attacked as a business venture and not an emotional activity.

7. Save your money to save your invention.

If you follow the 7 steps about, it will help you to reduce your risks and increase your statistical chances for success.

Here are some just some of Thomas Edison’s famous quotes.

“Anything that won't sell, I don't want to invent.

“Everything comes to him who hustles while he waits.”

“Genius is one percent inspiration and 99% perspiration.”

“I have not failed. I've just found 10,000 ways that won't work.”

“I never did anything by accident, nor did any of my inventions come by accident; they came by work.”

“Many of life's failures are people who did not realize how close they were to success when they gave up.”

“The chief function of the body is to carry the brain around.”

In conclusion, do you want to be an ego I.P.-ist, or do you want to be a successful inventor? The choice is and will always be yours!

Patents , Where Does an Inventor Start?

2009-09-02T19:25:00.001-07:00

Getting an invention off the ground has always been the big question mark for new inventors.
Who do you call? Where do you start? What do you have to do?
Let’s tackle the first question, who do you call. The first fact I will convey to you is WHO NOT TO CALL. Do not call any of the invention scam companies who advertise. You will find their ads on the Internet, TV and radio. These companies prey on first time inventors who don’t know what to do. The companies lure inventors in with hooks such as ‘Free Inventor’s Kit’ or ‘Sell Your Idea’ or ‘Wanted Inventors and Ideas’ and many others. These companies are to be avoided at all costs. All they do is take your money and promise the moon and deliver nothing – Caveat Emptor.
So, who do you call? There are several credible resources to contact.

1. Local Invention Clubs.
2. Patent attorneys (call at least 3 different ones).
3. Local Universities.

Each one of them will give you an understanding of the invention process and help you to make intelligent decisions without spending any money.
The second question above is really the same as the first. You start by contacting the list above.
The third question, what do you have to do will be based on the answers you get from the contacts you have made. Here are some of the first steps.
1. Documentation - write down in a Journal everything that you do. One page per day and date each page. Have someone sign each days page as well (More on that topic in another article).
2. Research – read as much as you can about the invention process before you invest any money.
3. Organize – establish in advance the important information that your new invention idea must answer. Here are some examples:

a. Exactly what is your invention or product?
b. Who will want it?
c. Where and how will they be able to get it?
d. How much money is needed and specifically for what (product development, manufacturing, marketing, distribution, business management costs)?
e. How much does the investor make and when does he get his money back (potential return of investment (“ROI”) and return time frame)?

Make sure you have at least preliminary answers to these questions because that is what will be asked of you from all of the people you will be speaking with during your preparation time.
As you can see - getting an invention started takes lots of planning and leg work. If you do it right you are at least giving yourself a chance to potentially succeed. If you do it wrong such as contacting and/or working with an invention scam company you are doomed to fail.
Copyright © 2009 InventorEducation.com - Helping Inventors One Patent At A Time. All Rights Reserved

UNDERSTANDING THE FINANCIAL RESOURCE REQUIREMENTS

2009-09-01T18:44:00.001-07:00

LICENSING VERSUS STARTING YOUR OWN BUSINESS

Should the inventor license the invention to a third party, or should the inventor open their own business and manufacture and market their invention? This decision will affect not only how you earn money, but also how much financing you will need to proceed.

Differences in Financing

In terms of financing your invention, licensing usually requires much less capital than the alternative of opening your own business and manufacturing and marketing your invention yourself. What's usually required is money to create a prototype (or other suitable presentation to potential licensees), to market the invention, and, perhaps, to solicit and negotiate with potential licensees. On the positive side, a successful licensing agreement will potentially provide an inventor with a financial gain and then be able to possibly pursue inventing new projects while still profiting from the last idea. On the negative side, a bad licensing deal will limit the amount of profit an inventor can make and may tie up their innovation or, worse, result in legal battles over royalties.

If you start your own business you will need far more financing to manufacture and market your invention. Money is required for producing a prototype, creating tooling and/or molds, mass producing the product, distribution, insurance packaging, collecting payments, and enforcing your patent rights. In addition, entrepreneurial inventors often become involved in more complex financing than an inventor-for-royalties -- for example, you may need to form a corporation and sell shares of stock (or other interests) in the business and the invention. On the positive side, the financial rewards are potentially much greater -- which is precisely why it appeals to more entrepreneurial inventors. On the negative side, manufacturing and marketing are incredibly risky and can cause tremendous anxiety and engulf your personal life.

Which Is Right for You?

If going into business is your goal, and creating your invention is your means of full time career, then starting a business could be the right choice for you. If you're not afraid of taking risks and you have the capital or least access to the capital and you love to innovate in commerce, going full time into a new business is your best option. But if none of the above appeals to you, licensing is the correct course of action for you.

Find the money you need to bring your invention to life!

There are many sources of potential investors who are looking for a great idea to get behind. Look at the list below for some of these sources.

If you have absolutely no money and you want to get your invention into the marketplace, it is very unlikely that you will be able to turn your invention into a commercial product. By no money, we mean someone who is unable to earn money above living expenses, raise money, or borrow any money.

However, if you are willing to work there are opportunities out there.

When soliciting for money, conduct yourself in an appropriate businesslike manner. An email inquiry asking for financial support penned in an informal manner and full of grammar and spelling errors will get no response. The same goes for badly penned snail mail or confused sounding phone calls.

Stretch What You Have

It's a good idea to use what you have before borrowing what you don't. Here are some common-sense--yet often bypassed--strategies to make the most of what you've got:

Cut corners in your everyday life. Most likely, profits won't be rolling in a month after you launch your business. So, think of what you can do without. It can be as small as giving up that daily $3 cup of coffee (it adds up!) or as substantial as waiting to invest in a new car or a larger home.
Keep working. Don't give up your day job too soon. Many successful inventors work on their project at night and on weekends, and take the process as far as possible before leaving their paying jobs. If you have a supportive spouse or partner, involve them in the planning. When you reach a point where your business becomes a full-time venture, perhaps you can negotiate with your partner so he or she agrees to support the family while you build your business.
Spread it out over time. Avoid incurring large expenses all at once by spreading out your process over time. In other words, you don't have to accomplish everything from market research to prototyping to manufacturing overnight. Let your finances help set the pace.
Work with your vendors. One of the best ways to finance your project is to find vendors who'll share your financial strain. While you can't ask them to work for free, you can ask them to give you their absolute bargain price now. Let them know that with success, their support will be rewarded by your loyalty. You may also request to pay via a scheduled payment plan. Time your payments for when you know you'll have available funds, such as on payday.

In addition, be sure to communicate! If you're going to be late with a payment, don't avoid your vendors--let them know upfront. This way you can work on a solution together, such as incremental payments, etc. The quickest way to sour a relationship is to ignore their inquiries.

The money you spend early on will help finalize your idea through the prototype stage. It will also let you make initial contacts with industry insiders. Here's a rundown of typical costs:

1. Initial seed money: $100 to $1,000. This money-self-funded through credit cards, savings or the sale of personal property-is used for an invention evaluation, patent search, possible legal protection with a provisional patent application. You might also want to attend a trade show to check out products and interview industry people.

This will give you a better understanding of your idea's market potential. Prepare a presentation on why your invention will sell.

2. Researching the Market: $1,000 to $3,000. Attend trade shows and association meetings to start networking and learning about competitors. You'll use the presentation developed with your seed money to explain your product to industry contacts and potential investors. After this period, you should have a better presentation, and you should make a sample brochure. You may need a concept model for the brochure.

Even if you don't need the money, this is a good time to start adding investors because you only need to ask them for small amounts. You could ask for $500 from each of three investors to prepare a concept model and a sample brochure, and visit two trade shows. Your goal is to line up industry contacts as early investors you can rely on during your invention process. You may want to apply for a provisional patent before attending the show so you can say your product is patent pending.

Government Resources for Financing Your Invention

Many branches of the government give grants and loans to fund research and development of inventions. However, the grants are often very specific as to what type of inventions funding is given. For example, the U.S. Department of Energy offers grants for the development of inventions that benefit the environment or save energy. The U.S. Department of Small Business offers small business loans. Getting a grants or loan will require footwork and research on your part.

Grant Programs

Invention grants and financing are available from government sources; however, they are not just sitting there waiting to hand money to you.

There is a process to follow just like any other funding process.

Governments at all levels have an interest in supporting research, development and commercialization of technologies related to the environment, energy, health sciences and high-tech.

With the "meltdown" of economies and the proliferation of "bailouts", governments realize there is a need for change. This can only help inventors needing government support for starting a small business.

CRITERIA

Government programs are often very specific as to what types of inventions they will fund and what criteria is required to apply.

There are numerous databases for grants, which include available resources and funding requirements. The criteria for qualifying varies depending on the source of funding.

Understanding the process and preparing qualified applications is important.

For example, the Small Business Innovation Research (SBIR) program provides grants to small businesses with innovations that have the potential to be profitability commercialized. The criteria for these grants include a business plan and a technical evaluation of your invention.

Researching and preparing grant applications can be a difficult task, so it helps to have help.

· US Small Business Administration

· Regional SBA Offices

· Office of Entrepreneurial Development

· National Science Foundation - Promotes and advances scientific progress in the United States by competitively awarding grants and cooperative agreements for research and education in the sciences, mathematics, and engineering. Includes extensive list of funded activities.

Find an Investor - Venture Capital

· Venture capital or VC is funding invested, or available for investment, in an enterprise such as bringing invention to marketplace that offers the probability of profit (along with the possibility of loss) to an investor.

· Traditionally, venture capital is part of the second or third stage of financing for a business startup, which starts with the entrepreneur (inventor) putting their own available funding into a shoestring operation.

· Next, an angel investor may be convinced to contribute funding. Generally an angel investor is someone with spare funds and some personal (family) or industry-related interest. Angels are sometimes said to invest emotional money, while venture capitalists are said to invest logical money that is they are willing to help give the new enterprise a more solid footing. Did you get your business plan together yet? Your potential investor will want to see it.

In closing, do not, I repeat, DO NOT use an invention company. They will try to lure you into their web by promising to do it all for you at what may appear to be a smaller capital input than described above. The fact is any money you spend with them will be a total loss.

Remember, the invention industry is a risk and a gamble. Don’t gamble with the invention companies.

Exclusive Funding Source Directory

Disclaimer: All information was accurate at time of directory compilation, InventorEducation.com is not responsible for any changes in guidelines, company policies and or contact information.

SBA.GOV

Official website for the SBA business loans.

http://www.sba.gov/

Advanced Financial Organization Lends on Assets Based Financing

404-256-2123 http://www.advancefinancialcorp.com/

All City Services
Provides Business Loans in addition to Commercial Loans. (781) 233-4850 http://www.allcityservices.com/

Bentley Banks Financial Corporation

Lends to Businesses as well as equipment leasing programs. (403) 328-3179 http://www.bentleybanks.com/

Berkman Financial Services Finances Businesses and Lends to Businesses. (925)

284-4400 http://www.storyloan.com/

Business Finance Services Inc

A Great alternative source for business funding. 877-411-6691 http://www.businessfinancialservices.com/

Business Lenders, LLC

Non-Bank SBA Lender with great lending programs for businesses. http://www.businesslenders.com/

Loans & Cash Advances

Alternative source for business financing. http://www.loansandcashlive.com/

Capital Management Group

Funds business loans and international loans. (714) 439-9600 http://cm-group.com/

Creative Financial Corporation

A reliable business funding source. (212) 534-2795 http://www.creativefinancialcorp.com/

DGH Financial Services Inc.

Source for SBA business funding. 818-998-3224 http://www.sba4you.com/

A & E Funding

Great business loan source. 201-944-8646 http://www.aefunding.com/

Execunet Financial Many different business financing options

http://www.execunetfinancial.com/home.htm

Financial Managers Resource Great source for business funding. 978-256-8634

http://www.finance-manager.com

First Fund Source

Business Funding loan solutions (630) 410-8140 http://www.firstfundsource.com/

Interstate Finance Inc.

Business Financing Source (425) 203-0035 http://www.interstatefinance.com/

Sun State Consulting Great source for start-up financing.

480.994.1086 http://www.sunstateconsulting.com/

Wachovia Corporate Services A reliable source for business loans.

http://www.wachovia.com/corp_inst

IMPORTANT INVENTOR DISCLAIMER

it is very important for all inventors to understand that the invention process is a major risk. There are no guarantees of success. You must understand that any and all capital that you or your investors may invest into your project can be subject to complete loss. If you are not prepared or able to risk any monies, or if you cannot locate investors, it is highly recommended that you stop now and do not move forward with your invention idea.

Technorati Tags: FINANCIAL,RESOURCE,REQUIREMENTS,VERSUS,Should,inventor,decision,money,capital,prototype,presentation

Invention Evaluation

2009-08-31T19:12:00.000-07:00

Evaluation “Anything that won’t sell, I don’t want to invent.” - Thomas Edison
One of the most overlooked tasks in the invention process is product evaluation. A product evaluation should be conducted during the earliest stages of invention development. Why during the early stages? Because, you will soon reach a point where everything you do regarding your invention will cost money, sometimes lots of money.
The product evaluation is a very important, yet commonly skipped process. Neglecting to research the viability of a product is one reason only about 3% of patents ever make more money for the inventor than was invested. Inventors spend thousand of dollars getting their product patented only to discover that for whatever reason the product was not viable. They did not evaluate before patenting — a costly mistake.
There are many elements to consider in a product evaluation. Some of the more obvious points are the window of opportunity for a product, manufacturing costs versus perceived retail price, availability of necessary materials, size of the market, existing products, the fit with existing equipment, and ease of use.
A great deal of money can be saved discovering the facts before funds are spent on a presentation prototype and then more money filing a patent application.
You need to be able to objectively decide if your new invention will be able to do all of the following:

Can fulfill a consumer’s needs or desires.
Can be manufactured and sold at the right price, sold at no more than five times what it costs to make.
Can be delivered to market, a way to distribute your product is in place and the market opportunity is established.
Can pass safety, legal, environmental and performance expectations or standards.

If your new invention cannot pass all of the above criteria and your intention is to make money, you need to improve the areas that are weak before you continue to the next step. It is extremely important to evaluate your new invention early in the development stage. You can start with your own opinion and that of close friends, but it is unlikely that you or your friends have an objective opinion or the research ability to understand and determine if your new invention can meet the above criteria.
If you are trying to raise venture capital, sell or license your ideas, you will be ready with the hard facts that can impress a potential investor or buyer. Can you answer all of the questions by yourself that a professional report answers? Do you want to be left speechless at a business meeting? Do you want to appear naive?
The Invention Evaluation Test offered by InventorEducation.com will provide you all the tools you will need to complete an unbiased invention evaluation. There are 155 questions in the evaluation. At the conclusion of the test you will be given guidance as what to do next based on the results of your answers.

20-Point Invention Evaluation Checklist
Honestly evaluating your product against general, industry, market and product criteria will help determine whether it has a good chance of success. Use this checklist to lead to that evaluation.
You need to take into account complex variables, including the most unpredictable variable of them all: human behavior. This variable turned bell bottoms, Mood Rings and Hula Hoops into huge successes.
Review the Checklist below to get a better understanding of what a complete and professional new product evaluation will contain. Use the checklist as a guide to prepare for the complete evaluation.
General Criteria
__ Legal __ Environmental __ Safety __ Quality __ Social acceptance __ Any negative impact
Industry Criteria
__ Competition __ Existing/similar products __ One product or a line of products
__ Competitive pricing
Market Criteria
__ Trend __ Need __ Seasonal? __ Long-term value __ Who will buy it __ Instructions
Product Criteria
__ Costs to get it to market __Service/maintenance __Warranty __Packaging
This is a basic checklist to prepare you for the complete evaluation test. DO NOT ANWER THE ABOVE QUESTIONS NOW.

Tips on Testing Your Invention Ideas

Become a Buyer: You can begin testing your idea by trying to imagine that you are the person interested in buying the product. The important feature here is to be as objective as possible.
Ask yourself: ‘How will this product benefit me or my company?’ Write down as many answers as possible. The benefits of your product are vital to success.
Discuss the invention with others: Getting feedback is always important. It can highlight the strengths and weaknesses of the product. The obvious problem with talking to others is trust. You need to maintain confidentiality to prevent others from talking the idea for them selves.
Therefore, you can disclose the product idea in one of 2 ways. You can refer to the product in indirect terms by only discussing what problems the product solves and some of the benefits it has. Make sure you do not discuss the details of how it does it. Or, you can be very specific about the details of the product. If this is the option you choose, prior to disclosing your invention to others, make sure you ask them to sign a non-disclosure agreement (NDA). The NDA ensures confidentiality. It binds the signatory to keep any talks with you about the invention confidential. It means that they cannot disclose commercial or technical information about your invention to any other individual, company or third party.
Market Research: If your invention is a consumer product that is going to available for sale in retail stores, you should go and visit the type of stores that you anticipate will carry your product. Look for any and all similar products. Perhaps even buy them if the costs are not too high. If you buy the products, show them to friends and neighbors and ask them their opinions of these products. Let them tell you the positives and negatives. Pay special attention to the negatives because this is where your product improvement can be.
Compare your product to these competitors. Compare retail prices, materials, packaging, legal protection and anything that has a relationship to your product. Look for ways to improve the product and build it into yours.
If your invention is more specialized or designed for the commercial trade or industry you should consider hiring a professional market research company. They have the knowledge and expertise to complete a market research report that will help you move forward. If you do hire a company, make sure you have them sign an NDA.
Copyright © 2009 InventorEducation.com - Helping Inventors One Patent At A Time. All Rights Reserved

INVENTION SCAM COMPANIES AND HOW THEY OPERATE

2009-08-30T19:06:00.001-07:00

Many of the invention scam companies advertise on TV, radio and/or especially on the Internet.
These companies promise to protect your invention, present the details of your product to manufacturers, distributors and retailers. They even promote that they represent you at tradeshows and assist in negotiate licenses agreements. They provide these services for an upfront fee.
These companies hire commissioned salespeople whose job is to contact inventors that responded to the advertising methods described above. The truth is that these salespeople care very little about your invention and will say practically anything to get the inventor excited and comfortable with the salesman. The salesmen only want to make a commission. These companies do very little in return for the money you just spent.
The following is the typical process followed by these illegitimate firms.
Step 1 – “The Hook”: The Company runs ads on television or radio offering free information for inventors on how to patent and market their inventions along with a TOLL-FREE number for ordering the material. The material that arrives is typically only promotional brochures about the company. In most cases it includes an invention submission document requesting the inventor to submit their invention in confidence. DO NOT SEND BACK THAT DOCUMENT!
Step 2 – “The Initial Pitch”: The salesperson makes a follow-up call to the inventor and explains the invention process (according to that company’s systems). They try to establish creditability with the inventor and ultimately offer for a fee, to obtain a registered patent attorney or patent agent’s opinion letter and a marketing analysis report for the invention.
This so-called marketing analysis is a complete waste of money. Over 90% of the information included in the report is generic that every inventor receives. Very little information is specific to the invention. They try to bolster the value of the report by including some kind of artwork. The artwork can be a 3D-drawing or even a first draft patent art piece. Regardless of the art medium, the only reason it’s included is to get the inventor excited when they see their invention come to life. It is nothing more than a ploy by the invention company to keep getting more money from you.
The salesperson typically states that if the opinion and analysis are favorable, the company will offer their services for patenting and/or marketing. The salesman tells the inventor that they will send an agreement that will explain and verify everything that the salesman told them. In most cases, the agreement is effectively a contract which describes in very oblique language the terms and conditions of the services which may vary significantly from the terms expressed verbally. Please note that it is always recommended that you consult a lawyer before signing any contract, particularly when you are uncertain as to what it is that you are signing.
In addition, the salesperson may suggest that in order to protect the invention that the inventor should also mail a set of the first set of documents to themselves. It is important to note that this does not protect your invention and is of little practical value.
Step 3 – “The Set-Up Pitch”: The inventor is told that the invention has passed a rigorous screening process and has been selected by the company for development. The company may even provide a “realistic” figure for cash advances and royalties that can be earned by the inventor. At this point, the company asks for an up-front fee for their services as well as a royalty of all further earnings from the invention. In some instances, the company also offers to reduce the royalty in exchange for more up-front money. However, the company does not notify the inventor of any negative opinion letters and the “market assessment” is typically not specific for the invention itself. That is, a market report for a new toothbrush would state how many toothbrushes were sold in North America last year and not identify the likely number of the invention which could be sold. Finally, the royalty rate quoted by the company is likely to sound very reasonable, because the company does not expect to make any money off of the up front fees – all of their profit comes from the royalties.
Nothing is farther from the truth. Rarely if ever does the inventor earn any royalties and obviously neither does the invention company. The company makes 100% of their profits from the up front fees.
Step 4 – “Marketing Services”: The invention company promises to present your invention to manufacturers, distributors and retailers. They even promote that they will represent you at invention tradeshows and assist in negotiate licenses agreements. However, their promotional package typically includes all of the inventions currently being promoted by the invention company and is not directed to any specific field or industry. These packages are sent arbitrarily to companies. Most if not all of the recipients generally discarded these packages because they know they are bogus. Think of this, does a busy manufacturer really have the time to browse through this package? The truth is that most manufacturers dislike these invention companies. They know who the legitimate companies are and will usually only do business with them.
The trade shows at which the invention is promoted (if it is promoted at all) is often a trade show for invention marketers. These trade shows do very little for the inventor but it sounds very credible. The invention company cannot possibly present all of the inventions they have because it would much too time consuming and it never happens that way.
The company may also offer to include your invention in a database and to relay all offers to you and help you in negotiating licenses. As you will appreciate, these services are of little benefit if no one sees the database and no offers are received.
Finally, the company may promise to file a “patent document” to protect your invention. This “patent document” may be: a patent filed at the United States Patent and Trademark Office. However, 90% of the patents offered by the invention company are Design patents. A Design patent only protects the way an article looks and NOT how it works. Therefore, if you have an invention with moving parts and the like and you only obtain a Design patent you actually have very little protection. It is not suitable for most inventions. On some occasions the invention company will provide a Utility patent with claims so narrow, that no effective protection is obtained. Even if the company employs a qualified patent agent or attorney to prepare the documents, it is important to note that the attorney is working for the company and not the inventor.
In closing; there are a number of warning signs that can indicate that the invention promotion company you are dealing with is not legitimate. These include the following:
· Company offers to provide invention assistance or promotion in exchange for large advance fees. If a company says that they make their money off licensing fees, why are they asking for up-front money? Reputable licensing agents rarely rely on up-front fees.
· Company claims to have great records licensing their clients’ inventions. Ask the firm how many clients have made more money than they spent. Ask for names of some representative clients.
· Company promises or assures you that your invention will make money. No one can guarantee an invention’s success.
Remember, once a dishonest company has your money, you are unlikely to ever get it back.

PATENT SEARCH

2009-08-29T21:21:00.001-07:00

Free US patent search - The revelation that will save you time and money.

Over the last few years, the U.S. Patent and Trademark Office (USPTO) and other organizations have put patent databases online — free for everyone’s review and search.

The service provided directly by the USPTO. http://www.uspto.gov/patft

Many inventors conduct a preliminary patent search prior to hiring a patent agent or patent attorney to file a patent. This search is generally performed to discover whether or not a particular invention is truly original or if, in fact, it has already been patented.

POSSIBLE PROBLEM

If they find no patents exactly like their invention they are happy and continue on their merry way. This is a very poor approach because there is more research needed.

We suggest examining patents closely to find additional possible product features, identify other potential uses for products, identify companies recently receiving patents in the area (potential licensees), closely study the background sections and any data presented in the background sections and any data presented in the patents. You can learn a great deal from those who have gone before.

A patent search by an attorney or company can run up to $1,000 or more, especially if your invention is in what’s called a “crowded” field of art — that is, lots and lots of products in the same field of your invention.

Patent searching is an interactive task.
To do a good search you must determine how your invention works, NOT how you will use your invention. For example, an improvement on an automobile switch will be found with switches--not with automobiles. Why, because the invention is a switch, not an automobile.

Why Conduct a Preliminary Patent Search?

A. Patent searches are conducted for many purposes. Among them are to:

1. Determine if a particular invention is unique

2. Identify potential features for new product

3. Identify other possible uses for a new product

4. Determine independent inventors or companies currently or historically obtaining patents in a particular area

5. Find the patent(s) for a particular invention

6. Determine the state of the art in a particular area

7. Identify patents in a specific field for generating citation maps (a tool in determining the relative importance/value of a specific invention

8. Study the rate of innovation in a particular area

9. Determine the patent portfolio of a specific company

10. Determine if an invention infringes upon the intellectual property rights of others

11. Learn about an industry or a specific company

12. Search for potential solutions to design or safety problems

13. Identify potential licensees

14. To identify additional reference materials such as journal articles, books, product literature of use to those working in this area. Patents often list printed reference materials.

15. Identify inventors working in a certain field.

B. Conduct a Self-Search

The 7-Step U. S. Patent Search Strategy

Step 1: Determine what type of patent you will be seeking. A utility patent covers the functional aspects of an invention, while a design patent only covers the appearance of an invention.

Step 2: Access an online patent database such as the ones provided by the U.S. Patent and Trademark Office (USPTO). Determine the most relevant classes and subclasses for your invention.

Step 3: Read the class descriptions in the database to see which are relevant to your idea.

Step 4: Review all patents issued within those classes.

Step 5: Perform comprehensive keyword searches for your potential invention. Leave no stone unturned.

Step 6: Assemble your search results into a report that can be readily referenced.

Step 7: If and when it is time to proceed for a full patent, provide all of your referenced information to the patent attorney or agent you hire.

Completing a preliminary patent search on your own is really not difficult. You just need to have the time to sift through the information, document it and present it to your patent attorney/agent down the road.

If you are concerned about doing your own search and don’t mind investing a few dollars, we can offer a preliminary patent search for you for only $397.00. Give us a call at 1-888-780-3463 to discuss your options.

Thomas Edison – the most important inventor in modern history. Did you know that Edison had 1,093 patents? Not all of his patents became financially successful.

His Light Bulb patent (left) and his actual first working light bulb (right) are one of his most famous inventions. This invention made him wealthy. On September 4, 1882, the first commercial power station, located on Pearl Street in lower Manhattan, went into operation providing light and electricity power to customers in a one square mile area; the electric age had begun.

Technorati Tags: invent help,inventors,invention submission,invention submission companies,inventors beware,inventhelp,scam alert,patent search,patent searches,provisional patent application

PROTOTYPING

2009-08-29T06:33:00.000-07:00

Why build a prototype?

Because it is much cheaper to change a product early in the development process than to make changes after you obtain patent protection.

A prototype is often the best way to gather feedback from users while you are still planning and designing. It is a quick way to find out if you are on the right track with your plans and design.

SOME HISTORY

Before 1880, every inventor had to present a working model or prototype of his or her invention to the patent office as part of the patent application. You do not have to submit a prototype any longer. However, prototypes are great for several reasons.

Legally a prototype proves what is called a "reduction to practice" and if the question ever comes up, a prototype can be proof that you were the first inventor. The United States uses the first to invent rule, granting a patent to the first inventor who conceives and reduces the technology or invention to practice, for example a working prototype or a well written description.
You can include photos of your prototype in your inventor's logbook.
A prototype helps you figure out any design flaws your invention has and if it really works.
It can help you make sure your invention is the right size, shape, and form.
A prototype helps you sell or license an invention. You can use it during demonstrations.

Making one can prepare you to write your patent application and make your patent drawings

As stated above, you will need a prototype to verify if your idea works the way you think it will. Your prototype doesn't necessarily need to be made from all the same materials as your final product will be, but it needs to be a close approximation of your final product to prove to you, investors and potential partners that your idea does work.

Some inventors get all the way through the product development process, "perfect" their product, invest in a patent, but when they finally try to build the product, it doesn't work. Then they make changes in their product to make it work, but by doing so, sometimes their own product changes invalidate their patent protection. That is why it is so important to make a working prototype before you invest in a full patent. Having a Provisional Patent Application (PPA) during this process is something to consider.

Building the Prototype

Depending on your product, you may or may not be able to build the prototype on your own. Remember that your prototype doesn't need to be made of all the same materials as your final product; it just needs to work and look like your final product will.

If you cannot build the prototype on your own, you may need to hire a professional prototype builder, an engineer or just a capable person.

Paying for Your Prototype

Building a prototype can be the first costly step in your product development (depending on the complexity of your product). If you don't have a fair amount of savings, or the opportunity to take a small loan, you may need investors to help pay for your prototype.

Family and friends are often the best place to start for some small investments. Some of them may already know about your product, they may have been encouraging you, and now may be the time to ask for some investments. You want to be upfront about the risk of investing in a new product, especially if you hope to keep good relations with your family and friends. Some may want to invest a lot of money into your product, but we don't believe this is a good idea unless they want to become partners in your business. Investing in new products is risky and you don't want to take advantage of family and friends who are eager to help.

Once you start taking on investors beyond your family and friends, you will need to talk to a business lawyer to make sure you aren't breaking any laws with your investors.

Prototype design and construction cost vary depending on the simplicity or complexity of your product. Most working prototypes can cost between $1,500 and $15,000 to make.

Virtual Prototypes

Virtual Prototypes are very useful for pitching an invention to a potential licensee at a cost that is much lower than that of a physical prototype. A Virtual Prototype is a series of photo realistic images of an invention that can be developed by designing the invention in three dimensions on the computer. The results can be viewed from different angles, and illuminated to create professional virtual photographs of the invention. The invention can also be an Animated Virtual Prototype and shown as a video. The price for most virtual prototypes is usually between $1,500 and $3,500 depending on complexity.

PRESENTATION OF THE PROTOTYPE TO DIFFERENT PARTIES

Each idea is different and the best approach to prototyping depends on the specifics of the idea. However there are some basic principles that can help. The first question to ask is: "What is the prototype for?"

When presenting your idea to an investor or company representative it might not actually be necessary to have a working prototype. It is often possible to convey the idea or invention to an interested party using a graphic presentation or virtual prototype. The idea should be designed, ideally using computer aided software, and then images of the product laid out on presentation boards. It is probably best to get a professional product designer to complete the design work and show how the product looks and what it does. Try to find a design company that specializes in product design for inventors.

If funds are tight it is better to spend the money on a professional presentation rather than a prototype. The presentation will be more cost effective than the prototype and will be quicker to produce. The work done during the design stage can help reduce the cost of the prototyping stage if it becomes necessary at a later date.

When a prototype is necessary

Concept prototypes are sometimes necessary to either prove that an idea works or instantly convey an idea that is hard to describe on paper. If people need to interact with the idea to be persuaded of its benefits then a prototype can make all the difference.

Often people are more prepared to back an idea if they can see that a lot of the development work has already been done and a prototype demonstrates this. An inventor could typically expect to charge more for an idea if it has been prototyped so it is worth considering if the funds are available.

What are the different types of prototype?

There are three main categories of prototype:

1. Proof of principle: A prototype that simply proves that a particularly new system or mechanism works. Often it is just part of the overall idea and it does not need to look like the final product.

2. Aesthetic model: A prototype that looks like the final product but is not fully functional.

3. Pre-production prototype: A pre-production prototype looks, feels and works like the final product. This type of prototype can be produced to mimic how it would actually be manufactured to check that everything will fit together correctly.

What is rapid prototyping?

Rapid prototyping is a technology that takes a 3D computer model and builds a 3D plastic part. There are three basic techniques for rapid prototyping: Stereo lithography, Selective Laser Sintering and Fusion Deposition Modeling. For all these processes the model needs to be professionally designed using computer aided design.

FINAL CONCLUSIONS

Recently there have some reality shows on TV for inventors. The first one was called ‘American Inventor’. The series lasted two years. In my opinion it was a farce of a show (but that’s for another time to discuss). Another and more recent show is called “Shark Tank’ (no comments yet). On both shows the inventors were required to show their products to the judges. Without my getting into the details of the inventions, the inventors presented their inventions in ways that they felt were best.

They point is that some of the inventors presented first class prototypes or working models while others presented much less appealing prototyped products. It’s up to you to decide what level of prototype you wish to present to whom.

MARKETING and BUSINESS PLAN DEVELOPMENT

2009-08-28T09:05:00.000-07:00

You’ve got a great idea. But negotiating your way from the invention you first sketched on a napkin to a successful product can be daunting.

Laying careful groundwork will make all the difference in whether your invention ever makes it to market. I’m continuously surprised by the number of neophyte inventors who throw a product up on the Internet and see if it sells. 99.9% of these product ideas fail when not the inventor does not follow a solid marketing plan.

Benefits of a Marketing Plan

Successful products are based on solid marketing plans. Without a marketing plan, you waste time, money, and most importantly, missed opportunities. If you have a good product, you need to have an equally good marketing plan.

A first-rate marketing plan is the foundation of a winning product.

Benefits of a marketing plan include:

Provides a clear roadmap based on facts, data, and analysis.
Keeps you on track to generate product sales.
Reduces wasteful spending by following a strategy rather than gut feel.
Uncovers your customer's true desires and characteristics as the basis of marketing messages (emotional and logical connections).
Identifies openings in the market.
Identifies how to create competitive advantages.
Identifies markets to avoid.
Identifies the best strategy to meet your goals and objectives.

Four steps in the successful inventor’s approach:

Refine/Define your product.
Define the market.
Define the business itself.
Understand the “meta driver” that’s pushing your invention at this moment. “Why is this a business opportunity now?”

Within those steps are a number of factors every inventor needs to address.

Refine/Define Your Invention
It’s a no-brainer, right? You know what your invention is. But your idea might evolve as you do more research. Too often, inventors worry about rushing to the marketplace, but don’t spend enough time evaluating the product or what niche it will fill. “Inventors think ‘I’ve got to get it out there before anybody else. They forget to design the business, to look at who the competitors are and who might be complementary businesses.

As you evaluate the marketplace, be receptive to the needs of your potential customers. Some entrepreneurs are content to conduct “obvious market research,” looking at megatrends. Too often they miss that individual conversation in which people really reveal what they need. This is good news, in a way, for the independent inventor operating on a shoestring budget. You can learn a lot simply by observing and talking to individuals. See how consumers use a similar product or participate in an activity where your invention would be used.

It might seem early in the process, but it’s not too soon to start thinking about the second generation of your invention, either. Plan for the adoption curve, noting who is likely to use your invention first, and how you can improve it for subsequent users.

As you continue to develop your idea, the ultimate reality will be how to protect your intellectual property rights.

Decide on a Marketing Plan
Designing a business to market your invention or licensing your invention to another company are the two pathways to market. Choosing to handle the manufacturing and marketing of your product involves considerable more work and risk on your part. It can be hard to fight for space on store shelves for your product or to establish your customer base. In addition, many big companies don’t want to buy an idea from somebody unless they had a track record of proven sales. It’s kind of like winning the lottery.

As you approach companies, you’re also not likely to get them to sign non-disclosure agreements. You have to weigh the risks involved in sharing information about your idea. If you’re an individual inventor without much money, you really don’t have much bargaining power. You really have to find a company you trust. Tell them your idea, and see if they want to work with you.

Most companies have channels by which ideas are submitted. Some large corporations even offer submission areas on their web sites. A reputable licensing agent can help your invention find a home with a manufacturer but will take a percentage of the royalties.

Conduct Research
Feasibility studies will let you know if planning your own business makes sense. “People way underestimate the startup costs. They way underestimate customer acquisition time and costs. Make sure your plan holds water.

Process to Create a Marketing Plan

We've developed a structured process to create a productive marketing plan. The process is flexible to accommodate the special needs of clients and new products.

The steps used to create a marketing plan are:

Organize – Gather information covering your goals, objectives, product details, and the market potential.
Market Research – With an understanding of your needs, perform market research. The key indicators are industry trends, market success factors, competition, opportunities, customer demographics, customer behavior, and the product characteristics important to your customers.
Create Plan – With the knowledge gained from research, the marketing plan begins.
Implementation – The marketing plan should be laid out in phases so you can complete the action items in an orderly manner. You can hire others, or do them yourself. Your goal is to learn and grow.

Marketing Plan Contents

There is no one standard marketing plan format. However, we've found that by researching and analyzing certain topics, provides a solid foundation and leads to successful strategies to generate product sales.

Your marketing plan should cover:

Industry – The current activities and trends related to your product's market.
Market Data – Statistics and data related to your market, competition, and customers.
Market Success Factors – The specific industry norms and customer expectations.
Opportunities – Any current and future openings in the market for your product.
Threats – Factors to take notice, avoid, and monitor including the competition, government actions, and technology trends.
Competition – Analysis of comparable products.
Customer – Your customer's demographics, psychographics, and buying behavior.
Influencers – The understanding of how certain people influence your customer's buying decision.
Product Characteristics – Uncovering the important product benefits, features, and functions sought by customers.
Strategies – Based on your current situation, the strategies (product, pricing, marketing communications, distribution, partnerships) to meet your goals and objectives.
Tactics – The actions to achieve the strategies (methods to generate awareness, interest, sales, and re-purchase).

Cost to Create a Marketing Plan

A marketing plan is actually an investment rather than a cost. A good marketing plan generates product revenue that far exceeds the cost.

· The time to research and create a typical marketing plan takes about 20 hours of work by a professional. At a rate of $150 per hour, times 20 hours, the total amount comes to $3,000. If you have completed a detailed business plan along with market studies, the total cost can be lower. If extensive market research is needed, such as surveys, interviews, and focus groups, the amount will be higher.

· Marketing plans developed by large marketing firms often start at $10,000 to $20,000 and carried out by junior staff members. You do not need this type of marketing plan.

Ask yourself the following questions to see what you will need.

MARKETING PLAN INTAKE QUESTIONS

1. Is your product in the market or in development?

2. What is your product or product idea?

3. Currently, what is your main business issue or problem or need?

4. When did you launch your product, or when did you begin development?

5. Do you have a written business plan?

6. What is the approximate current marketing expenditure, or plan to spend on a monthly or yearly basis?

7. Do you have these funds or are you looking for investors?

8. Who are the people that make the business and marketing decisions (or yourself only)?

9. What are your expectations?

Did you know that the U.S. Patent & Trademark Office estimates that nearly 97% of all patents fail?

Only 3% of the patents issued by the Patent Office actually make more money than it cost to get the patent in the first place.

Inventors – 5 Golden Rules How to Save Your Money

2009-08-27T17:19:00.000-07:00

When was the last time you threw $500 or $1,000 away? You would never do that right?

Well it amazes me that new inventors are doing just that everyday, throwing their money away. Here is how and why combined with the 5 Golden Rules to Save Your Money.

Never hire an Invention Company.
Never get a patent before you evaluate the potential of your invention.
Don’t get emotionally involved with your invention
Don’t hire the first patent attorney or agent you speak with
Again – Don’t hire an Invention Company – (this rule is that important to repeat)

Let’s examine the rules one by one.

First, ‘Never Hire An Invention Company.’ The FTC says that over $300 million dollars is lost to invention fraud companies every year. These companies do absolutely nothing for the inventor. They all sound professional and inspiring but they are shams. The people who call the inventor from these companies are all commissioned salespeople who will say anything to get your money. Do not respond to any of their ads on TV, the radio or the Internet. Avoid the ads that might say ‘Free Inventors Kit’ or ‘We can Get You A Patent’ or ‘Wanted Inventors and Ideas’ and many others. They know how to reel a new inventor into their web.

Second, ‘Never Get A Patent Before You Evaluate The Potential Of Your Invention.’ All too often a new inventor thinks to themselves, “well I’ve got this great new invention and I don’t want anybody to steal it so I better get a patent.” Of course patent protection is important, however, not until the product concept has been proven to be worthwhile. It is estimated that over 90% of the patents issued to date are for products that have never made it in the marketplace. Time and money have been spent on legal protection prior to discovering if the invention really has any value. A professional evaluation on the invention before patent protection would help the inventor to save the costs of a patent if the evaluation proved the invention concept was not worth the time, effort and costs. At the least, an evaluation would allow time for the inventor to improve upon the areas within the invention cycle to boost the potential of the invention. Once the improvements are made then you can start the patent process but not before.

Third, ’Don’t Get Emotionally Involved With Your Invention.’ Let’s face it an inventor is usually a creative and passionate person. We all believe very strongly in our invention idea. We are told by others that it’s a great idea and we are sure it will make us rich. Inventors are generally driven by the potential to make a lot of money. Now don’t get me wrong, I am not saying that making a profit on our invention is a bad thing. It’s actually a great result. I wish more inventors would succeed. However, one big negative element to an inventor’s failure is not knowing when to stop or give it up. Professional poker players for example know when to hold them and know when to fold them. Their chances of success are greater when they understand the risks if they choose to continue. The new inventor unfortunately does not have the same business type of approach to their project. They treat their invention idea as their baby, their road to financial success without knowing risks or even understanding the process. That is why over 90% of the issued patents are not making money for the inventors. You must separate your emotions about your invention and treat it as a business.

Fourth, ‘Don’t Hire The First Patent Attorney Or Agent You Speak With.’ Patent attorneys are an integral part of the invention process. They will provide all of the legal expertise required to obtain a patent for the inventor. It is safe to say that most patent attorneys are credible and professional. The down side for a new inventor is not knowing exactly what it is that the patent attorney will be doing for them and at what price. There are no set price structures from patent attorneys. They can charge what ever they feel their value is for the inventor. The only set prices are from the United States Patent and Trademark Office. An inventor should interview at least 3 different patent attorneys to ultimately select the one that they are most comfortable with. Here is a short list of what an inventor should ask the patent attorney.

Do you specialize in my products field of development?
How much will a patent search with a legal opinion of patentability cost?
How much will the entire patent process cost including government fees?

These are just some of the important question need answers to at your initial meeting. If the patent attorney does not provide specific answers, move on to the next.

Fifth, ‘Never Hire An Invention Company.’ If you want to be a statistic with the FTC or the United States Patent and Trademark Office then by all means hire a scam invention company. If you want to save your money and put it towards a more realistic approach for your invention idea stay away from these companies. Do not call them. Do not write to them. Do not waste your time with them. This subject is that important to have repeated as I have done.

Getting rich from your invention is a direct result of saving your money while going through the invention process. By following the 5 golden rules above you will effectively limit your risks while increasing your potential rewards. You must understand that the risks are still very high in the invention game. You just want to be able to know when to hold them or when to fold them.

Licensing Agreement Checklist

2009-08-26T11:37:00.000-07:00

Licensing Agreement Checklist

Licensing a new invention is a detailed undertaking. There are experts who specialize in the actual negotiations on behalf of the inventor. Usually these experts will negotiate for either a flat fee or a percentage of the royalties the inventor will make. These experts are well worth their fee if you choose to hire one.

On the other hand, some inventors choose to negotiate on their own behalf. We do not recommend this approach, however, if you really do want to negotiate your own licensing agreement we have developed a checklist for you to follow.

This list is not comprehensive, but is intended only as an indicative checklist for those intending to license their inventions. In practice, you should check each invention on a case-by-case basis and take account of the prevailing circumstances when drawing up the agreement.

Introduce the Parties and your basic Objectives
Specifications
Object of licensing agreement
- Type of license seeking (exclusive or non-exclusive)
Industrial property rights pertaining to the object of the agreement
Scope of license
- authorized exploitation methods
- geographical scope
- any restricted application areas
- authorized period
Changes, further development and improvements to the licensed technology
Obtaining and maintaining industrial property rights
License payments
- one-off payment
- initial payment
- royalty
- minimum annual royalty
Bookkeeping obligation, inspection rights and reporting
Obligation to exploit
Authorization to sub-license
Technical assistance and training
Confidentiality
Compensation for damage
Limitations of liability
Enforcement of industrial property rights
Action against infringements of industrial property rights
Invalidation of industrial property rights
Official approvals and permits
Manufacture of competing products
Rights of notice and cancellation
Implications of ending of contract
Period of validity
Transfer of contract
Force majeure
Invalidation of contract in part
Notifications
Applicable law
Resolution of disputes

Keep in mind that there are additional factors that may contribute to your specific invention. Therefore, if you have negotiated on your own behalf, it is highly recommended that you at least show the licensing agreement to an attorney familiar with the licensing process. This will at least provide you some protection and possibly catch something in the agreement that you are/were not aware or familiar with.

Top Nine Tips For Inventors

2009-08-20T11:46:00.000-07:00

Coming up with a brilliant idea is by far the easiest part of the invention process. Developing that brainwave and turning it into a successful, moneymaking product can prove to be a minefield. We offer advice on how to avoid the pitfalls that often beset first-time inventors...

One of the most important things to do before spending time and money is to absolutely avoid the invention scam companies. They will try to lure you in to their web and they will provide you absolutely nothing in return. The second thing to do is to do an evaluation of your invention idea.

Once you have completed an evaluation you will immediately know if you have something to move on with or not. If the evaluation is overwhelmingly negative, STOP RIGHT THERE and abandon the project and move on to something else. If the evaluation is positive, then check that the idea is new, that it is technically practical, and that there is a potential market for the idea.

Our service provides a very cost-effective way of finding out whether these things are true for your idea or business.

Nine Important Things to Do!

1. Keep it to yourself - One of the most tempting things to do if you’ve just come up with an ingenious new invention is to tell your friends without even a whiff of a confidentiality agreement. Not only does this make your idea liable to be stolen, you will also not be able to patent it, as it will be considered to have entered the public domain. Our website contains a typical Confidentiality Agreement that you can adapt.

2. Do Your Research - So many people come to us with an invention without having dared to find out if it’s been done before - sometimes we type a ‘new’ idea into Google and it’s the first result. Spend a little time having a look yourself. By finding out what the competition is you are in a much better position to improve your idea and sell it successfully.

3. Beware of Invention Companies - It may also be tempting to take your idea to one of the big companies - for example, take your improved lawn-mowing device to one of the large garden machinery brands - but many of them won’t sign a confidentiality agreement. Without this you are in danger of losing the rights to your idea.

4. Don’t fear lawyers - All patent attorneys will offer a free half-hour confidential consultation in which they will quickly offer invaluable advice about your invention and the patent implications.

5. Make sure it can be built - If a picture is worth a thousand words, then a prototype is worth a million. It makes it a lot easier for people to work out what your invention is if they can see and touch it. But don’t spend money on making a prototype until you are really sure that you can protect the idea and that there is a market for it! Even if it doesn't work in its original form, you may be able to improve it or seek alternative technologies that could make it work

6. Don’t waste your money - We know of people who have spent hundreds of thousands of dollars on patents, lawyers and manufacturing, without ever checking whether it was a new idea or whether anybody would actually want to buy the thing. Just because your family and friends say they would use your invention doesn’t necessarily mean that anybody else will. Always do your market research on strangers to see if it would sell.
In addition, don’t hire a bogus invention company. All they want to do is take your money and tell you what you want to hear. They are sales companies that hire commissioned sales people. For more information on this subject, request a copy of our eBook from our home page.

7. Patent, patent, patent - In the US, the first to invent gets the right to that invention. Apply for the Provisional Patent Application as your first step in the patent process. In other countries it’s the first to patent. Your Provisional Patent Application will help you if you decide to patent outside the U.S.

8. Registered designs & trade marks: could be better- If a patent is not appropriate, a registered design or trade mark can be a much less expensive way to protect the appearance of your idea or your business or product name, slogan or logo. Registering your company name is not the same as registering a Trade Mark. A web site name (URL) has no legal standing in protecting a name or brand either. The value of many large organizations is in the goodwill in their brand names, not just the technology in their business. This is especially true of service and software businesses.

9. Stay positive! - While all these legal complications can seem overwhelming, inventing is a wonderful thing, and the perfect way to escape the drudgery of a 9-to-5 job. A healthy dose of enthusiasm and genuine belief in your idea (as well as a touch of arrogance) can do wonders for you, and for your invention.

visit www.inventoreducation.com for more information

What Are The Future Inventions In Our Future?

2009-08-10T12:42:00.000-07:00

What Are The Future Inventions In Our Future?

Think back, what gizmos and gadgets in our current lives were not around perhaps 25 to 50 years ago? What was the status of home computers and cell phones – 25 years ago? How about the GPS we use in our cars or the iPod?

Think back 100 years ago, in 1903, the Wright Brothers achieved their monumental goal of flight at Kitty Hawk, North Carolina. Most people don't know that there were quite a few other people trying to build an airplane at the same time. One was Alexander Graham Bell; another was the President of the Smithsonian InstitutiAll of these men were much better funded than a certain little-known pair of bicycle shop mechanics from Ohio with a wind tunnel in their garage. But there's a key difference that led to the Wright Brothers' success. The other guys focused on making a more powerful engine. Orville and Wilbur Wright focused on the plane.
Specifically, the Wright Brothers built their airplane as a glider without an engine - then mounted the engine later, almost as an afterthought. They flew it in the breeze first, then, added power later. That was the key to their success. They discovered that when you're building an airplane, the wings are more important than the engine.

Do you remember the days when computers in a company took up the space of some 400 square feet just to house the computer systems? Today, high end laptops have the same capacity as those clunkers and they are getting better everyday.

That is what innovation was in the past and that is what innovation will continue to be in the future.

Well, what might we expect to see over the next 20 to 50 years from now?

The future of invention will be no different than the past. People will come up with ideas that will help to overcome a problem or a need. The only difference will be that the technology to do that is far more advanced than that of the most recent past. One of the future inventions, we see every once in a while has been improved upon from Japan - robots. These robots in the future will be able to clean our homes, perhaps even drive our cars. The Japanese inventors anticipate that these robots will eventually be able to do the everyday chores that we as humans dislike doing.

Medical innovation has come on strong recently with the development of artificial organs. People in need of a new kidney or even a heart will not have to wait on a donor list. These artificial organs are closer than you might think. The development of artificial arms and legs has already been improved upon over the past 3 years.

Another interesting new product will be in the development of food caplets. These caplets will enable a person to eat a full meal in a matter of seconds. Pharmaceutical companies are working on the development of caplets which will contain the exact number of calories and nutrients that will make our lives fully functional. When you consider the shortage of food around the world, these caplets could make a real difference.

Solar power has been around for about 10 years, but costs for production of solar panels and the maintenance of the solar panels are not yet economical for the production of electricity. This will change, and scientists do expect a breakthrough in our lifetimes. Such a development would be a major breakthrough in our dependence on foreign oil.

Forward thinkers are even discussing new developments for the cell phone, one of the largest growth industries in the technical world. Some of the additions include building in a carbon monoxide detector. Another feature which we could see over the next few years would be health diagnosis – a sensor could measure blood pressure and your pulse level. And there is an exploration of putting a laser pointer into your phones. Even with all of these new ideas, it is expected that the cell phone will become smaller and lighter!

For the blind, a new cane is being developed. Instead of tapping ahead to find an object, there is an ultrasonic detector built into the cane to provide a warning about an obstruction in the path.

What about ‘Forward Thinkers’ in the past? There was an interesting story that's most often told that in 1899 the head of the U.S. Patent Office sent his resignation to President McKinley urging the closing of the office because "everything that could be invented has been invented." It's been told and retold so often that even President Reagan used it in a speech.

The "quote" is often attributed to Charles H. Duell, who was Commissioner of Patents in 1899. However, according to The Great Idea Finder, Duell was far from pessimistic about the future of new inventions and patents. He even encouraged Congress to improve the patent system.

Today the patent office is actually over burdened with new patent applications. So many in fact, the patent office is running behind on issuing new patents. In fiscal year 2007 over 184,000 patents were issued compared to 50,000 in 1980 and 100,000 in 1995.

The list of future innovations is endless and the continued growth of innovation combined with patent applications is expected to exceed 200,000 in the very near future.

That being said, it is now up to you, ‘Future Thinkers’ to continue the innovation process and come up with new ideas that will help us overcome a problem or fulfill a need. Your creativity will help catapult mankind into the future and there is no limit to what can be accomplished.

To Your Success

Vic

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