An inventor called me the other day and said, “I’d like to move several ideas I have forward. Any suggestions?” “Sure” I said. “What’s your budget?” I asked. After a befuddled moment, he hung up. Apparently, I’m not supposed to ask what his budget was. If you don’t have a budget, don’t quit your day job just yet.
1. Inventors beware. A lot of bad guys are out there. If a firm says your idea is the greatest thing since sliced bread and wants to market it, make sure you ask how many inventors they have helped, and how many of their customers have actually made more money than they spent with them for their services. Get the exact, specific percentage and number. If they fudge, or don’t answer specifically (as required by law) hang up; and don’t call back. They don’t want your idea, or to help you — they just want your money.
The American Inventor’s Protection Act of 1999
Public Law 106-113 states you should ask and the invention promoter must answer:
(1) the total number of inventions evaluated by the invention promoter for commercial potential in the past 5 years, as well as the number of those inventions that received positive evaluations, and the number of those inventions that received negative evaluations;
(2) the total number of customers who have contracted with the invention promoter in the past 5 years, not including customers who have purchased trade show services, research, advertising, or other nonmarketing services from the invention promoter, or who have defaulted in their payment to the invention promoter;
(3) the total number of customers known by the invention promoter to have received a net financial profit as a direct result of the invention promotion services provided by such invention promoter;
(4) the total number of customers known by the invention promoter to have received license agreements for their inventions as a direct result of the invention promotion services provided by such invention promoter; and
(5) the names and addresses of all previous invention promotion companies with which the invention promoter or its officers have collectively or individually been affiliated in the previous 10 years.
This subtitle may be cited as the ‘‘Inventors’ Rights Act of 1999’’.
SEC. 4102. INTEGRITY IN INVENTION PROMOTION SERVICES.
(a) IN GENERAL (Chapter 29 of title 35, United States Code, is amended by adding at the end the following new section: §297.)
Improper and deceptive invention promotion
IN GENERAL
An invention promoter shall have a duty to disclose the following information to a customer in writing, prior to entering into a contract for invention promotion services:
‘‘(1) the total number of inventions evaluated by the invention promoter for commercial potential in the past 5 years, as well as the number of those inventions that received positive evaluations, and the number of those inventions that received negative evaluations;
‘‘(2) the total number of customers who have contracted with the invention promoter in the past 5 years, not including customers who have purchased trade show services, research, advertising, or other nonmarketing services from the invention promoter, or who have defaulted in their payment to the invention promoter;
‘‘(3) the total number of customers known by the invention promoter to have received a net financial profit as a direct result of the invention promotion services provided by such invention promoter;
‘‘(4) the total number of customers known by the invention promoter to have received license agreements for their inventions as a direct result of the invention promotion services provided by such invention promoter; and ‘‘(5) the names and addresses of all previous invention promotion companies with which the invention promoter or its officers have collectively or individually been affiliated in the previous 10 years.
CIVIL ACTION
(1) Any customer who enters into a contract with an invention promoter and who is found by a court to have been injured by any material false or fraudulent statement or representation, or any omission of material fact, by that invention promoter (or any agent, employee, director, officer, partner, or independent contractor of such invention promoter), or by the failure of that invention promoter to disclose such information as required under subsection (a), may recover in a civil action against the invention promoter (or the officers, directors, or partners of such invention promoter), in addition to reasonable costs and attorneys’ fees—
‘‘(A) the amount of actual damages incurred by the customer; or
‘‘(B) at the election of the customer at any time before final judgment is rendered, statutory damages in a sum of not more than $5,000, as the court considers just.
‘‘(2) Notwithstanding paragraph (1), in a case where the customer sustains the burden of proof, and the court finds, that the invention promoter intentionally misrepresented or omitted a material fact to such customer, or will fully failed to disclose such information as required under subsection (a), with the purpose of deceiving that customer, the court may increase damages to not more than three times the amount awarded, taking into account past complaints made against the invention promoter that resulted in regulatory sanctions or other corrective actions based on those records compiled by the Commissioner of Patents under subsection (d)
OK, enough governmental blah blah blah. At least they’re trying to help.
2. Good news: you can go to the USPTO.gov (Patent) site and look at all the patents. Bad news – your ideas are probably already out there, patented, with prior art (meaning covered by an old patent); or not patentable. Or, you can only get a weak patent that will be indefensible in court. (So, what good is that?)
“A patent doesn’t protect you, a patent only gives you the right to protect yourself.”
More good news: You probably don’t need a patent unless you have a lot of money. A patent doesn’t protect you, a patent only gives you the right to protect yourself. Are you willing to sue someone in Idaho if they infringe on your claims? (Idaho is just an example – so if you’re one of the 10 people who live in Idaho, please don’t write a complaint to me, I get enough complains from my wife.)
3. Figure out which idea you have that is the most “commercially feasible”. Many great, great ideas are not able to be sold at a profit. This has little to do with how great an idea is, only with it’s ability to be sold at a profit, to an identifiable market.
4. Move your one idea with the most potential for commercial success forward. Figure out if you want to manufacture and market it yourself, or license it to someone. These paths are very different.
5. Get all the industry magazines, and association newsletters. Go to the library and look up the trade magazines in the magazine directories such as Bacon’s Magazine Directory or Oxbridge Communications Directory of Periodicals. Get magazines free by calling the publisher and asking for a media kit and sample copies. Read them, study them. Find associations in Columbia House Directory of Associations. Get association newsletters. Study them, too.
6. Make prototype. Make sure it works.
7. Make better looking prototype. Yea, I’m talking to you…
8. Find manufactures in the Thomas’s Register of Manufacturers at the library. Get pricing for 100, 1,000 and 10,000.
9. Make still better looking prototype. Yes, I’m still talking to you.
10. Show prototype to stranger. Tell him you have one in the car and ask if he’d like to buy it. If he takes out his wallet you have a good product that is commercially feasible (if you can manufacture it and sell it for the price you quoted him.)
If he just keeps saying how great it is, no – you didn’t make the sale. Go back to drawing board.
11. Get the National Directory of Mail Order Catalogs (Grey House Publishing). Send inquiry letter to appropriate catalogs on how to get your product in their catalog. Before any catalogs purchase, they’ll need to see a sample. Never send to “New Product Committee”. Always get a name so you can follow up.
12. If you are trying to license your idea, it might need to be patented for the strongest deal. Go to the Department of Energy website – DOE.gov – and get the booklet, “Making the Licensing Decision.” It’s free. Read it. Not as easy as you thought, is it?
12. If successful, send me a bottle of champaign. If real successful, just send money.
13. Buy my books. They will demonstrate the longer version of this process. Order from me directly and mention “Invention Marketing” (610-642-1000-v, 610-642-6832-f) and I’ll send you some additional articles on invention marketing. Besides, I need the money…
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Hope this is helpful.