Interest in obtaining licensing for
your New Invention Idea?
The purpose of licensing is to grant
another individual, company or
corporation the right to use your
intellectual property for a specific
amount of time and for a specific
purpose. The specifics are outlined
in the terms of the agreement.
A licensor may grant licensing under
"intellectual property" to do
something (such as copy software or
use a patented invention) without
fear of a claim of intellectual
property infringement brought by the
licensor.
A license under intellectual
property usually has several parts
including a term, territory,
renewal, as well as other
limitations deemed vital to the
licensor and licensee.
Many licenses are valid for a
particular length of time protecting
the licensor should the value of a
licensing agreement increase, or
market conditions change.
About: Licensors
A licensor is a term used in the law
to describe a person or company who
forwards usage rights of their
intellectual property of another
person or company for the purpose of
profit. The owner of the property,
called the licensor typically allows
the licensee to use their
intellectual property under the
terms of a licensing agreement. The
licensor and licensee typically sign
the licensing agreement with the
support of a professional attorneys
who specialize in licensing
agreements.
About: Product Royalties
Royalties are payments made by one
party (the "licensee") to another
(the "licensor") for ongoing usage
of an asset, usually an intellectual
property (IP) right. The royalty for
a given case is determined by many
factors including: market drivers
and demand structure, territorial of
rights, exclusivity of rights,
inherent risk, strategic need,
fundability, deal structure, level
of innovation, stage of development,
sustainability of the product, and
availability of similar
technologies.
Navigating through the royalty terms
is important. You commonly have both
an advance royalty, which is a flat
fee paid upfront, and ongoing
royalties, which are paid as a
percentage of every sale you make.
The advance royalty is basically a
guarantee that the licensor will get
some money even if your product does
not sell. Then, if and when your
product sells, the licensor will get
a percentage of the sale on average,
about 5 percent of the wholesale
price of each product sold.
The licensor usually decides what
the royalties will be, and those
rates are pretty firmly set. So make
sure you understand what they are
and that they are spelled out in
your licensing agreement to avoid
any surprises later. In fact, that
agreement is crucial in determining
not only what the licensor receives,
but also what rights you get.
About: New Product Development
In today's market, new product
development (NPD) is a term used to
describe a complete process of
bringing a new product or service to
the marketplace. There are two
similar paths involved in any NPD
process: one involves the idea
generation, product design, and
finite engineering; the other
involves market research and
marketing analysis. Companies
usually see new product development
as the first and most important
stage in generating and
commercializing new products within
the overall strategic process of
product life cycle management which
is used to maintain or grow their
market share.
About: Selling your idea
A sale is the activity involved in
selling products or services in
return for money or other
compensation. It is an act of
completion of a commercial activity.
A sale is completed by the seller,
the owner of the goods. It starts
with consent (or agreement) to an
acquisition or appropriation or
request followed by the passing of
intellectual property or ownership
in the item and the application and
due settlement of a fixed price, the
obligation for which arises due to
the seller required to pass
ownership, being a price the seller
is happy to part with ownership of
or any claim to the item. The
purchaser, though a party to the
sale, does not execute the sale,
only the seller does that. The sale
completes prior to the payment and
gives rise to the obligation of
payment. If the seller completes the
first two above stages (selling
ownership) of the sale prior to
settlement of the price the sale is
still valid and gives rise to an
obligation to pay.
Should you do your own invention
promoting?
Many people ask themselves should I
market or promote my invention
myself or hire someone to do it for
us? Either way, whomever promotes
your design concept should
understand the following: It is
crucial to your product presentation
that you provide a quality Marketing
Invention Analysis of your design
concept for maximum impact.
Knowledge about your market
demographic, market trends and other
information can greatly increase the
value of your presentation enabling
you to maximize you potential for
sales or licensing your product idea
promoting.
Simply follow the step by step
marketing guide to create your
Marketing Invention Analysis
directly from your dashboard. You
will create a simple concise set of
marketing details to show others
that your design is exciting and has
market potential. Lastly, if you
have problems simply contact your
project manager who can answer any
questions you may have.
About: Advertising Your Invention
Advertising is a type of
communication that commonly attempts
to persuade potential customers to
purchase more of a particular brands
product or service. Many
advertisements are designed to
generate increased consumption of
those products and services by
creating and reinforcing of brand
image and brand loyalty. Advertising
sometimes has a persuasive message
combined with factual information.
Major mediums used to deliver these
messages include television, radio,
cinema, magazines, newspapers, video
games, the Internet and billboards.
Advertising is often placed by
advertising agencies on behalf of a
companies or other organizations.
Advertising is seen on the seats of
shopping carts, on the walls of an
airport walkway, on the sides of
buses, in telephone messages and
in-store public address systems.
Advertising is often placed where
audiences can easily and frequently
access visual, audio and printed
information. Some organizations
spend large sums of money on
advertising that sells what is not,
strictly speaking, a product or
service include political parties,
interest groups, religious
organizations, and military
recruiters. Non-profit organizations
are not typical advertising clients,
and may rely on free modes of
persuasion, such as public service
announcements.
So what should your very first
action be:
-Getting a patent, perhaps?
-Going on a fact-finding mission to
manufacturers in China?
-Calling QVC?
While all these steps may be
appropriate down the line, it's
critically important that you first
take action by shifting your thought
process. I know what you're
thinking. Thinking doesn't seem very
actionable, does it? Maybe not, but
over the years, countless inventors
make devastating mistakes based on
false beliefs and inaccurate
assumptions.
For this reason debunking some
common myths associated with
inventing is important. Myths and
misperceptions can be debilitating
to your progress and costly to your
pocket book. Although it may not
seem very "actionable," it's vital
to begin the inventing process with
a realistic understanding of some of
the basics for bringing an idea to
market.
The following are among the most
common myths:
Myth #1: The first thing an inventor
should do is get a patent.
Truth: It's understandable why this
is such a commonly held belief. The
topic of getting a patent is so
pervasive among the inventing
literature, conferences, websites
and tv commercials, it's no wonder
that many people feel they can't
move forward without getting a
patent first. Many inventors spend
80 -100% of their initial effort and
money on obtaining a patent because
that is the myth that's been sold
and supported by those who stand to
profit from it. Certainly a patent
can be a valuable tool later in the
process, but you should first
determine the viability of your
invention as a business before
moving forward. Remember that filing
a patent has little impact on a
successful product launch & cost
$10,000 or more-so unless getting a
patent for its own sake is your end
goal, it doesn't usually make good
business sense to apply for a patent
first thing off the bat. Most
importantly- if you file a patent
first, then encounter overwhelming
obstacles later on, you may have
invested in a patent for nothing.
Myth #2: If I tell people my idea,
they'll steal it.
Truth: The theft of a new invention
idea is actually very rare. A lot of
sweat equity goes into developing an
invention and this is a big barrier
to most potential "thieves." That
doesn't mean ideas are never stolen.
Keep in mind, copying and
competition are facts in any
business. However, once you have an
understanding of how much work goes
into taking an idea to market,
you'll understand why most ideas are
stolen only after a product's proven
successful. It's like betting on a
horse. You're more likely to win by
betting on a horse with a winning
record than you are by backing an
unproven long shot. That being said,
don't be careless.
Myth #3: My idea is worth a million
dollars!
Truth: Earning a million dollars
with an invention is less likely
than making slightly lesser amount
depending on the depth of your
invention. Study the process, set
realistic expectations, take action,
work hard and you can find success,
especially if you have more than one
marketable idea.
Why use the Protomine Process?
The Protomine process was created to
offer an alternative to expensive
invention submission companies that
offer so much and produce so little.
Do the research and we know you'll
see the difference.
What does it cost to develop a
product?
Manufacturers follow a complicated
and costly product development
process called product lifecycle
management (plm). This approach
encompasses the complete lifecycle
from concept design through
manufacturing and disposal of a
product. The typical cost for
product development starts at around
$100,000 for simple concepts and
rises dramatically for more
complicated concepts.
What are they promising you?
Organizations such as invention
submission companies offer costly
services promising to develop your
concept for $5-$20,000 (a fraction
of what it really costs) while
delivering very little in return and
producing very poor success rates.
The Reality
Paying high prices to outside
companies to "develop" or "patent"
your product is often unnecessary if
you just want to license your
concept. Ultimately the distributor
incurs the real costs of development
and in return offers a licensing
contract. Your job is to present an
appealing product presentation and
deliver it to the right people!
The Solution - The Protomine
Process!
In a nutshell, the Protomine process
was created to help you create a
presentation which represents and
markets your design efficiently and
effectively. Our proprietary process
contains a complete checklist of
items companies want in order to
make informed decisions on whether
or not to carry your product design.
So forget about expensive invention
submission companies and everyone
else trying to take your money and
do-it-yourself.
Get your Invention idea to work - it's so easy
 Anyone Can Do It!
Have any Questions ?
Can't find the answers ?
Don't worry about it . . .
Call us for help at
1-877- 897- 8804 |
