Posts Tagged: "inventor"

“Today, Congress is under another call to weaken patent protection. This time the alleged culprit is a so-called “patent troll” who, according to some reports, hijacks inventions and while providing no product and therefore no societal value, extorts billions of dollars from the economy. This story could not be further from the truth. The argument is based on highly questionable data. Some of the claims are that patents asserted by so-called “patent trolls” are much weaker than patents asserted by others, that these entities cause billions of dollars of unnecessary cost, and that the number of patent infringement lawsuits has risen dramatically due to the so-called “patent trolls.” All of these assertions are highly disputed.”

The question should not be whether you can get a patent, but rather whether any patent you are able to obtain is worth the investment. In other words, is the scope of protection meaningful? But to answer that question you really need to consider several business questions first… Wrapped up in what we have been discussing is a very simple question that many inventors fail to ask. It is this: is a market for your invention… The goal of this article has been to point out that there are a great number of things that need to be considered before you decide to move forward down the patent path. As with many complex systems in life there is no single correct way to move forward. The goal should be to move forward in a business responsible manner.

On January 27, 1880, Thomas Edison received U.S. Patent No. 223,898, which was simply titled “Electric Lamp.” Perhaps Edison’s most famous inventions were the phonograph, motion pictures and the light-bulb. Truth be told, however, Edison didn’t really “invent” the lightbulb, but rather he improved upon the technology by developing a light-bulb that used a lower current electricity, a small carbonized filament, and an improved vacuum inside the globe. Edison’s invention lead to a reliable, long-lasting source of light. Prior to Edison’s invention lightbulbs lasted only a few hours and now they could last 50 to 60 days, making them practical. So it is entirely fair to say that Thomas Edison invented the first commercially useful lightbulb.

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.