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So you have an idea for an invention? What do you do now? The
most successful hair accessory in history, the TopsyTail, made
100 million dollars. This did not happen by miracle or chance.
The key was a well-conceived and executed plan. Following an
informed approach will help you turn your invention into a
bonanza of extra income.
Getting Started:
The Ideabook
Keep a bound ideabook of your invention idea. Date your entries.
Draw it. State what it is, how it's done and for whose use?
Examine possible variations. Add and define over time.
Get it Notarized
If your idea still seems brilliant after a month or two, get it
officially confirmed that you conceived your invention idea on a
particular date, and have your notes notarized. This may help if
you, at some point, need to prove that you were 'first to
invent' that idea.
Seek and Search
Do your own patent search to ascertain if your invention is
original and prospectively patentable. Go on the internet to
uspto.gov and study all patents in the product category of your
invention to see if something like yours already exists. Better
yet, use a professional patent searcher who will do a thorough
search and may advise the patentability of your invention. Go to
an inventor's association, books on inventing, or websites such
as patentsearchinternational.com, to find resources.
Create the Initial Prototype
Use simple materials to rig it up, to see if it works. Some of
the most successful consumer inventions today started as pipe
cleaner, coat hanger wire or foam rubber embryos.
Get Educated
Educate yourself on the inventing process. Go to a bookstore or
inventorhelp.com and review the plethora of books written on the
subject. From Patent to Profit by Bob De Matteis is particularly
informative.
The Non-Disclosure Form
This is an Agreement signed between you and anyone you reveal
your invention to. It states that the information and materials
belong to you and cannot be used without your written
permission. It allows you to show your invention to parties who
might be helpful in bringing your product to market such as
prototypers, product evaluation services, manufacturers,
packaging designers, licensing agents and marketers. Variations
of the Non-Disclosure form are easily accessible in invention
books and on the web.
Moving Ahead
Analyze Costs to Produce
Ascertain what the costs will be. Research domestic and foreign
resources. Add up all costs to manufacture a unit of your
product. Include molds, packaging, naming and trademarking,
promotion, marketing, distribution and mark-up. Seek sources
through the Thomas Register, libraries, the yellow pages, the
web, Chambers of Commerce, foreign trade bureaus and referrals.
The Evaluation Process
Analyze the benefits and features, strengths and weaknesses of
your invention.
Can it have longevity in the marketplace?
Is its timing aligned with market trends?
Research the size of the potential market.
Identify your competition. Question why a retailer would buy
your product if they can do business with experienced,
multi-product, well financed suppliers, who may take back unsold
products and replace them with ongoing new items? Visit the
marketplace and talk with managers and consumers. If your
product represents a significant improvement or simplification
in the way that something is currently done, you have a better
chance of breaking through to success.
Get a Professional Prototype
Have professional prototypes made, the quality of which can be
shown to potential retail buyers. For sourcing suggestions, see
'Analyze Costs to Produce'.
Protect Your Idea
Apply for a provisional patent yourself. This can be done by
downloading the application from the patent office website:
uspto.gov. The provisional patent will secure patent pending
status for the invention for one year during which time you must
apply for a non-provisional patent, if desired, or lose the
option to get the invention patented. Using a patent attorney to
make the application for the provisional patent secures more
complete specifications of the invention and lays the groundwork
for an effective non-provisional patent application.
The Non-Provisional Patent
Your patent attorney files your non-provisional patent
application. If the patent is rejected on examination by the
patent office, as most are, the attorney will respond with
revisions. This may reoccur several times before your patent is
finally granted or rejected. This process can take up to two
years. If a patent is issued it becomes your personal asset for
twenty years. Like other assets, you can lease or sell it to
earn income.
To Market, But How?
Licensing
The inventor has the choice to license the invention to a
manufacturer in exchange for a royalty percentage in sales.
Typically, an inventor can expect to receive royalties of
between 3 to 7 percent of net sales. The most efficient way to
secure a licensing agreement is to hire a licensing agent with
expertise in the field of your invention. The licensing agent is
conversant in the language and varieties of licensing
agreements, can advise you on options and help negotiate the
agreement. Licensing agents ordinarily charge between one-third
and one-half of your royalty fees. Royalties are an excellent
way to create supplementary income.
Manufacturing
Manufacturing and distributing your invention entails higher
financial risk but can reap greater profits. If you have the
time, financing, manufacturing connections, a storage and
distribution point, bookkeeping and legal skills or assistance,
sales and marketing channels and mainly the desire to be your
own boss; this may be the route for you.
Teaming with specialists and hiring outside salesrepresentatives
to grow your business can create economies of scale. Successful
manufacturing and distribution of a protected product can
provide you with active income.
About the author:
Joan Lefkowitz, the marketer of TOPSYTAIL tm, is president of
ACCESSORY BRAINSTORMS, NYC, a licensing agent, consultant and
sales-representative for hair and cosmetic accessory and
lifestyle inventions. She writes and gives seminars on 'How to
Market Your Invention' and can be reached at 212-971-7300 or on
the web at http://www.accessorybr
ainstorms.com
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