patent your invention

patent your invention
Let's say you have an idea for the next big thing. Where can I get from here? Based on many years of experience in the development of products for both large and small companies, I offer a" roadmap "of the main steps and important decisions faced by Inventor
Inventor of the largest benefits from their inventions if they are commercialized and patented. Inventor should have a patent to protect their invention.

Patenting is only the beginning of your work. You must decide how far to the idea. Their selection ranges from licensing the patent to start a company based on the idea. In general, the work you do, the less uncertainty your partner (for example, licensees or investors) face and the higher profit.

Its focus in the development of products should reduce the risk and the people to see the advantages of the invention.

There are several stages on the way to a product that can be sold commercially.
First, the "idea" are. The idea is, roughly defined. They want a "widget" is that some functions and has certain properties. The product works, "the" in "that" way.
Next is the "idea" stage, where the materials, specifications, all relevant data are quantified and modeled. Development often the CAD models or prototypes. With the documentation that is at this stage you can quote toolmaking, production and costs accurately. With prototypes, you can use your product concept (and to refine the rule).
Next is "prototypes or small series production," "will be. Are you looking for in the rule for the manufacture of problems. Before the large quantity and the cost of tools and latest development, it is conservative to protect your idea in small quantities. This allows other people to get your idea and propose changes. These also feature the tradeoffs between product, product cost, and product specifications.

At the end of this phase, you have a tested, be produced. You must decide whether they are a large company with your idea for the distribution and / or the production or the manufacture and sale of the product itself.

Last is the "product" will be. At this point, regulatory and legal issues. Specifications may be established. Product costs are known. The product can be manufactured and sold.

Next, you should draw your attention to sales and distribution issues. What is the best way to view this product on the market? Is it free on some existing products or processes? Is it better to view it alone or partner with established dealer? Who would use the product and why?

Risk versus reward

A typical product has 40-60% gross profit. If it sells for $ 10, it costs between $ 6 and $ 4 to make (material, labor, packaging and direct manufacturing overhead).
Why? Risk Reward! An invention starts as an idea, as we have added some new services. If the idea is "sold" or "license" to a large company as an idea, it is less valuable for the company. This is because it is "risky." The product may not work. It can be used to produce more cost than the end user is willing to pay for the benefits derived. The company must spend money to prototypes to test the idea, its effectiveness and the production problems. The product may, for example, to manufacture. If the inventor does not believe enough in his / her invention to invest their money, why should the company? 100 ideas, which a company can be worthy of development each year.

An idea is not worth much. A patented idea is worth 1-5% of net sales price.
One idea that has been patented and tested in small lots is equal to 5% of net selling price (in typical royalties).

A proven patented idea without much competition and a strong strategy for the market is worth 5-20% of net selling price (in typical royalties). The more is known and tested, the lower the risk for the Licensing Company. The lower the risk for manufacturers and distributors, the higher the reward for the inventor.

Problems of commercialization companies

"The idea Creep" is a common problem for an inventor of a new business licenses according to the invention. The product idea (probably patented) is in the engineering department of a company. The engineer will be some "improvements". The production will be "more minor improvements. " Marketing and sales are still some improvements. None of these improvements itself is huge, but the additive effect of improvements of non-product users can be a good idea in a bad product.

America enormous source of creativity. Many products come from small inventors working quietly in small businesses. The strong guiding hand of the inventor, the key feature of the invention during the development is very important to a finished product, the initial benefits of the invention.

The larger companies tend to excel on the distribution and refinement ( "line extensions") of existing products. Larger companies in Excel with the latest high-tech to their high quality products. A barrier to entry for small businesses is often that they can not afford to use the latest high-tech or can not be more advanced technologies.

Large companies do not want to disrupt their current successful products. You may want to an invention from the market. You have millions of dollars in tools and equipment used in the current products and production processes. They are usually not willing to bring to market a new product that is better is less profitable than their current products.

The best candidates for the development of large companies fit this profile:

1. Manufactured at its existing plant

2. New product cost is lower or much higher price than current products

3. New product is not disordered. For example, the new product message is similar to the current business communication.

4. New product is to existing products

5. High sales potential (HOME RUN PRODUCT)

For smaller, niche products, products using other technologies, products with different profit profile, it is often better to have self-production. If your invention is obvious, manufactured by contract manufacturers, your question is to develop a distribution network.

To summarize, the inventor should receive a patent, the idea into a product and
Select the best candidate companies, the concept for the distribution or decide to "go it alone". " Enjoy the journey from idea to product!

Craig Jacobson is a sales and marketing professional with experience in the development and commercialization of products. Craig experience ranges from start-up to product development, product management and marketing at Johnson & Johnson and Harte-Hanks. Available from craig.jacobson1 @ gmail.com or http://www.mouthwidgets.com