I have an Invention idea, how can I
protect it?
O.K. What's the first step?
How much does Patent Protection Cost?
What does Patent Pending Mean?
Do I really need a Patent?
What is Licensing?
How much is a Royalty?
Do I need a Prototype?
What are some examples of Computer
Modeled Renderings?
There are
different forms of idea protection, these
are known as 'Intellectual Property
Protection'. They include the following
categories:
- Provisional Patent
Protection: Short term (one year) protection for a
'product' or functional item. Often used to reduce short
term costs considerably.
- Utility Patent
Protection: Long term patent protection (twenty
years) for a product or functional item. Included in
this category could be manufacturing process, business
processes or system.
- Industrial Design
Patent: Protection specifically for the 'esthetic'
of an item. Often used for uniquely designed furniture,
vase or french doors.
- Trade Mark:
Protection for unique names, logos or symbols. Common
Trade Marks include Velcro, Coca-Cola or the Nike
'Swoosh'.
- Copyright:
Protects works of art of a various nature, including for
example: poems, drawings and paintings, photographs,
books, game or assembly instructions etc.
It's very
important to ensure that an invention idea
has not already been protected.
Approximately 50% of ideas that are searched
turn up as already patented. Visit our
section on 'Patent
Search' to perform your own
search online or go directly to the Unites
States Patent & Trade Mark Office at
www.uspto.gov.
Patents will
vary depending on the complexity of the
invention concept and the extent of other
relevant patents uncovered in the
Patent Search.
The costs to achieve Patent Pending Status
range from $3,000 to $15,000. However, many
of the costs related to Patenting can be
postponed. This is very useful in freeing up
resources for other areas of the idea
development.
The Patenting Process
consists of applying for Patent Protection in the countries
of ones choice. Once an application is sent into a Patent
Office, the application is stamped 'Received On ______' and
this will be the 'File Date' and the application is
considered 'Pending'. This date is significant since Patent
Offices all over the world will consider it to be your
official date of invention so to speak. The application will
likely sit in Pending status for a year or more, before the
Patent Office finally has one of its Examiners review the
application. Even though the Patent is not officially
Granted, an inventor can feel free to manufacture, disclose,
market, sell or license the idea in the market place. What's
most important is to file quickly and obtain Pending Status.
Also, it is important to file a Patent Application within
one year of publicly disclosing an idea. If the application
is not made within the one year period, the inventor may
lose his/her rights to Patent.
Patenting is
a strategy and works well, depending on
where you want to go with your idea. Some
inventors and companies choose to make and
sell the product as quickly as possible,
make their profits and expect that
competition will enter the market sooner or
later. All without Patent Protection.
Alternatively, Patenting
allows the inventor the option to license or sell the idea
to a bigger company for royalties or an out-right sale. Of
course Patent Protection helps the inventor or company
maintain a monopoly in the market place. Some business
people realize that by Patenting the door is left open to
create 'Strategic Alliances' with other companies (perhaps
in other territories) down the road.
Licensing is
the process of 'selling' an idea to a larger
company for royalties or upfront fees. The
is the most common method of development and
profit used by inventors. The attraction to
Licensing is the low costs. The main cost of
Licensing is the Patent Protection which is
critical to the Licensing Process. Other
considerations include prototyping,
presentation and contacting companies who
might be able to produce and sell the
product in large quantities.
Royalty rates
are calculated based on a number of factors
including: industry specific royalty rates,
manufacturer profit margins, distributor
profit margins, volume expectations and
discounts, and, value of product development
to date by the inventor. Innovative
Licensing & Promotion, Inc. performs royalty
evaluations for new products based both on
industry standard, royalty rates and its own
methods of negotiating higher than standard
royalties.
If you wish to License your
invention idea to a larger company and receive royalties, a
Prototype can be very useful. Prototypes are an effective
method of demonstrating a new product concept. However, it
is not the only way. Prototyping, depending on the concept,
can become cost prohibitive. Computer model techniques such
as CAD, Solid Works or E Drawings can create a
'Photo-Realistic rendering of the product. These methods
create a 3 dimensional/360 degree view of the anticipated
final product.
Here are a few examples of
Computer Modeling:
All-In-One Wire Stripper
Cargo Walls
Compact-A-Can
