Has anyone Licensed an invention?

[Denim Chicken]

Has anyone here licensed an invention before?

I'm trying to do a forum search but I keep getting this error:
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I just thought of something and started doing some sketches and designs on an idea I came up with. As far as I can tell, this doesn't exist yet and it will be a differentiation and better solution to what exists out there for a specific niche. It solves a problem I ran into when working myself.

The prototype wouldn't be very hard to design and make, and I'm fairly certain it will work.

I don't know if I would want to necessarily go into manufacturing and selling them as the competition in this niche is very competitive. These are big box store items. But what I thought of isn't being produced or sold.

My knowledge of licensing is limited to watching all the shark tank episodes ha!

Questions I have would be:
What happens if you license your product and they decide not to produce it?
Do you have any control over how they market or sell your product?
Without sales and just merely a good idea and patents, how would you get a licensing deal? Or do most licensing deals all start off with selling on your own?
On a few Shark Tank deals there are licensing plays for businesses that have no inventory but merely a good idea and working prototypes.

 

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[TedM]

look up stephen key . there is a thread here. go to his youtube site and read all his books.

it's doable. very doable.

i've gotten close, using his method. my ideas kind of suck, but his approach is spot on.

 

[Vigilante]

Get the book One Simple Idea.

Every question you asked is answered in the book.

One Simple Idea, Revised and Expanded Edition: Turn Your Dreams into a Licensing Goldmine While Letting Others Do the Work (Business Books) One Simple Idea, Revised and Expanded Edition: Turn Your Dreams into a Licensing Goldmine While Letting Others Do the Work (Business Books): Stephen Key: 9781259589676: Amazon.com: Books

 

[Denim Chicken]

Thanks. I'll check those out. I read Lori Grenier's book and she goes into a general overview of launching a unique product but not the patent process. She does touch on how she gets market surveys done before so she doesn't waste money especially when starting. I'll have to look into it more.

 

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[OldFaithful]

Have you read...GOLD - The Licensing Game

 

[oldirty]

+1 for One Simple Idea. The path outlined in his book is one I have been following but yet to have success, not because the path is wrong (it's gold).

Just beware Stephen Key sets you up for a few action fakes, such as creating a business name and doing general businessy things prior to contacting potential liscensers.

If your serious about licensing your idea definitely read his book. But I'll paraphrase his path to liscensing.

1. Begin by searching for similar products. Don't just look at Amazon for things close to what you want. Go to the us patent office website USPTO.gov, conduct a patent search using key words. Then narrow it down by classification. If you need help with this let me know.
2. If you can't find a similar product then prototype your idea as close to the actual product as possible without dumping lots of money into it. Make sure it will actually work.
3. Apply for a provisional patent. This is $65 and not actually a patent but it gives you one year from the date you apply to get a full patent.
4. Market your idea to potential producers. He recommends cold calling then emailing a sell sheet after making contact.
5. Make a deal if the producers are interested. Usually you include a minimum annual amount so even if they don't produce your product you still get paid.

Before you go crazy ask yourself, can than this product be made? Is there a company who makes something similar that can make this product? If your idea is totally unique it may be difficult to find a business who would want to invest in new manufacturing process. In this case it may be better to produce and sell yourself.

 

[jlwilliams]

I've done it. Short answers to your questions.
1- it depends. If they license but don't produce, you won't get royalties but if you negotiated an up-front you have that. Also you may (or may not) be able to license it to someone else. Depends on the deal you negotiate.
2- usually not.
3- I did it by having credibility in the field and by approaching the owner of my target company directly. It was hard but it worked.
4- Again, maybe or maybe not. Some times sales are proof, other times it hinders the company's ability to add claims because it "discloses" the invention. That's a bigger deal in an assignment than in a license, but it still needs to be contemplated.

I can get into better detail and answer more questions later (hopefully not on this device). I'm glad to answer publicly or if you want to pm we can make time to get on the phone.

 

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