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May 11, 2004

SO YOU RECEIVED A PATENT - NOW WHERE IS THE DOUGH?

SO YOU RECEIVED A PATENT - NOW WHAT?


So, you received a patent and you can't wait for the royalty checks to roll in.  What you say?  You aren't receiving the checks in the mail?  Your patent attorney bill is looming?  What is an inventor to do?


Well, a small article in Fortune Small Business offers some suggestions:




    • Create a working model -- doesn't have to be pretty.
    • Research companies in the field of your invention -- target those companies that introduce new products.
    • Target the right people within the companies -- find the decision maker and approach them directly.  Alternatively, approaching a salesperson could result in a win/win -- you get your product noticed and the salesperson looks "good" within the company.
    • Negotiate in good faith and with reasonable expectations.

The last point is the one that most inventors have the most trouble with -- having a reasonable expectation.  Royalty rates are usually in the realm of 3-8% for a mechanical device and upfront payments are dependent upon the markets and the amount of risk involved.  Also, don't request a new Cadillac (actually happened) -- it will usually kill the deal. 


The issuance of the patent is only the beginning.  Now the fun begins.



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Posted by Douglas Sorocco at 10:13 PM.
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