9 Frequently ask questions about Inventor Education

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?

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!

Copyright © 2009 InventorEducation.com - Helping Inventors One Patent At A Time. All Rights Reserved

Patents , Where Does an Inventor Start?

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

Invention Evaluation

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

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.

Copyright © 2009 InventorEducation.com - Helping Inventors One Patent At A Time. All Rights Reserved

Licensing Agreement Checklist

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.

Copyright © 2009 InventorEducation.com - Helping Inventors One Patent At A Time. All Rights Reserved