Posts Tagged: "independent inventors"

Several years ago I was speaking to an inventor group about carefully selecting who they work with so they work only with reputable companies. At the time one particular invention promotion company, as near as I could tell had a remarkably low success rate. This company reported their successes all-time and reported the number of clients over 5 years, making it impossible to know what the success rate actually was. At best the success rate was approximately 1 in 2,700, but likely was much worse. I asked the room full of inventors this simple question: If I told you that only 1 in 2,700 inventors would ever succeed how many of you would be convinced that you would be the 1 and not the other 2,699? Virtually everyone raised their hand. That eternal optimism is wonderful, but it also contributes to getting taken advantage of by those who make money by telling you your invention is wonderful when that really isn’t the case.

Starting January 15, 2014, some EFS-Web and Private PAIR users experienced issues when authenticating to the system… The Supreme Court will hear oral arguments in Alice Corp. v. CLS Bank on March 31, 2014.  This case is being briefed on the merits right now, and Trading Technologies is looking for parties interested in sighing onto their brief in support of software patents… South Florida Inventor Expo – This annual event will include programming that will help inventors learn how others promote their products… Ray Millien joins GE Healthcare as Senior IP Counsel.

It is absolutely critical to understand that a reference, such as an issued patent or published patent application, does not need to be identical to an invention in order for the reference to qualify as prior art. A reference can be used as prior art for whatever the reference explains. For example, if you design 5-wheel transportation device you are going to have to distinguish all other wheeled transportation devices, regardless of whether they are identical. So if a patent examiner finds a 4-wheeled transportation device that will be used against you as prior art. It will be up to you to explain why your 5-wheel device is not obvious in light of the 4-wheel device. The critical question will be this: Why wouldn’t it have simply been obvious to simply add another wheel?

Just because getting a confidentiality agreement is difficult doesn’t mean that you shouldn’t try. There are those out there that are used to signing confidentiality agreements, such as manufacturers and engineers who you might need to work with to create engineering drawings or a prototype. Whenever you are showing your invention to someone within your industry or to those who would have the technical knowledge and ability to move forward with your invention without you, a confidentiality agreement is both essential and more likely to be obtained. Just don’t expect investors or potential licensees to be all that interested in signing a confidentiality agreement , at least at first. However, if they like what they hear it is not unheard of that at some point they might be willing to sign a confidentiality agreement. So there is many times a delicate dance where you show a little to entice the reluctant signer of the confidentiality agreement. As interest builds they may become more willing to sign.

As any viewer of “Shark Tank” can attest, the variety of financial arrangements which are negotiated between inventor entrepreneurs and investors is broad. A final agreement is always the result of negotiation between the two parties. Unfortunately, many inventors go into the gunfight with a knife, so to speak, over-matched and under-prepared.

As the girl in the fairy tale ruefully remarked, “You have to kiss a lot of toads to find a prince!” Raising capital is not much different and is often a difficult, tedious, and frustrating process. You might find it helpful to approach family, friends or even patent monetization entities. Patent monetization entities, derogatorily referred to as “patent trolls,” are companies whose business is the ownership of intellectual properties and the aggressive enforcement of their rights against those who infringe upon their patents and copyrights. A PME is similar to an investment manager who owns a portfolio of market securities, a real estate investor who owns apartment houses and commercial buildings, or the estate of Michael Jackson who purchased a 50% stake in more than 750,000 copyrights including 251 songs that John Lennon and Paul McCartney wrote for The Beatles.

To raise money to get your product to market, you must be able to logically show that it will generate sales volume in the short-term and survive competitor reactions to a new market entrant. A marketing plan is a critical component of your business plan and illustrates to investors that you are a practical businessperson who understands that a good, even superior product is only the first, and not necessarily the most important, component of a successful product launch.

To review, the law recognizes that with many, if not most, inventions there will be three steps to the invention process. The idea comes first, followed by the game plan, followed by the reduction to practice. When dealing with some inventions the idea, game plan and reduction happen rapidly. With other inventions there is some time between these steps. As you go along the way your invention will take shape and become more tangible and identifiable. As that happens you very well may have an invention that could be patented. At some point you will need to do a patent search. I am a fan of inventors doing their own preliminary searches, not because you are likely to find the best prior art but rather to educate yourself and learn. The more you understand the better inventor you will become.

There are many different reasons why building a better mouse-trap is only the first of many steps on the road to financial freedom. First, there is no guarantee of financial success given by any patent office in the world. This is true even if you have a strong patent that covers a great product that enjoys robust consumer demand. Unfortunately, many inventors operate under the misunderstanding that getting a patent is like owning Boardwalk and Park Place in the popular board game MONOPOLY. The truth is that turning an invention into cash is much more complicated than simply placing hotels on Boardwalk and Park Place. Yes, a patent is an essential ingredient because without one you have no right to exclude competitors from engaging in competitive activities, but you must treat inventing as a business if you want to truly be successful.

It is possible to succeed even starting with a limited budget, but you really do need to plan ahead and develop a strategy that makes sense within your resources and one that doesn’t invest unnecessarily or recklessly. This conserves resources in a responsible way, while still laying the ground work for obtaining the benefits and protections offered by the patent laws. The nightmare scenario you need to avoid is spending to much on any one invention that winds up going nowhere. If this happens you not only lose what you invested, but you also potentially lose valuable funds that could be used to pursue the next great idea you have. Over the years as I have worked with inventors and musicians what I have learned is that creative people are rarely, if ever, only going to create once.