Invention Marketing and Licensing for the Inventor
Below is a MRR and PLR article in category Internet Business -> subcategory Internet Marketing.
Invention Marketing and Licensing for Inventors
Introduction
Selling or licensing an invention to manufacturing companies can be a complex yet rewarding process. It's essential for inventors to navigate this journey with care and preparation to achieve success. This guide provides insights and steps to effectively market your invention.
Getting Started: Preliminary Steps
Conduct a Preliminary Patent Search
Before you start marketing your invention, perform a preliminary patent search. This can help you determine the uniqueness of your invention and avoid potential legal issues. You can hire a patent lawyer or conduct a free search through the United States Patent and Trademark Office's website at [http://www.uspto.gov/](http://www.uspto.gov/).
File a Patent Application
Avoid publicly disclosing your invention before filing a patent application, as it may jeopardize your chances of obtaining a valid patent. Many companies will only engage in discussions after you have filed an application.
Create an Information Package
Prepare a comprehensive information package that includes details about you, your invention, and its market potential. This package should feature color photographs of the invention and a one-page executive summary.
Develop a Prototype
A prototype can significantly enhance your ability to sell your invention by allowing potential buyers to see, touch, and experience it. If a working prototype is not feasible, consider creating a professional mock-up.
Secure Financing
Building prototypes and filing patents require funding. Consider forming partnerships or establishing an incorporated company to pool resources and gain financial backing. Investors contribute funds in exchange for company shares, which can be tailored to meet project needs.
Steps to Sell Your Invention
1. Identify Potential Buyers
Finding a company interested in your invention is challenging but crucial. Start by compiling a list of potential buyers from business directories, which categorize companies by the products they manufacture and include contact information.
2. Contact Potential Buyers
Reach out to each company on your list to gauge their interest in receiving information about your invention. Acquire the details of the appropriate contact person within the company.
3. Present Your Invention
Once you have a refined list, submit your information package to each company. Include a cover letter and a brief synopsis of your invention, complete with a picture. Ensure all materials are professional, clear, and concise to make a positive impression.
4. Follow Up
Be patient, as decision-making can take months. Periodically follow up with the companies without being intrusive. Remember, these professionals are likely handling numerous projects, so persistence should be balanced with respect.
5. Negotiate Terms
When a company expresses interest, be prepared to negotiate the terms of the sale. Be realistic in your expectations; aim for a favorable return on investment rather than holding out for an unrealistic payoff. Request a reasonable signing fee along with modest royalties.
6. Determine Royalty Arrangements
Deciding on the royalty rate can be complex. Consider structuring it with an initial signing payment and annual royalties. A typical range is 1% to 5% of the net sales, or a fixed amount per unit sold, balancing your return with the manufacturer’s ability to profit.
Conclusion
Selling your invention to a manufacturer is possible but requires a strategic approach. Success is more likely when inventors manage the process themselves, combined with persistence, knowledge, and a willingness to take calculated risks.
You can find the original non-AI version of this article here: Invention Marketing and Licensing for the Inventor.
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