One Simple Idea - Stephen Key

[StephenKey]

So I could just fill for the US PPA myself and then when it is issued I can start making my calls to companies, It's That simple?

Yes, once you file your PPA, you can say "Patent Pending" and start calling companies.

 

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[StephenKey]

Stephen! This is so awesome because I just finished your book, looked this thread up and found it was outdated so never bothered posting. So I am ecstatic right now to see you are back. So I have an idea for licensing and I looked into the PPA but the problem is from my understanding what I would need is a design patent and not a utility patent which you cannot provisionally apply for. My idea is for a toy and very similar to your wall ball in that you just added graphics and did not change the function. Should I forgo the PPA and still follow your process as explained in the book? Thanks, I can't wait to hear from you!

Design patents are very affordable. I'd file nothing or a design patent then. Make sure to talk to a patent attorney to see if you are right about not being able to file a PPA though.

 

[Eskil]

Design patents are very affordable.

Stephen; What ballpark are we talking here - as compared to the more expensive utility patents?

 

[StephenKey]

Cost of design patent

Stephen; What ballpark are we talking here - as compared to the more expensive utility patents?

The filing fee due to the USPTO for a small entity is $265 plus a 15% surcharge, which makes the cost about $305.

 

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[TedM]

Stephen,
Many thanks for sharing your time and expertise here - it's a wonderful contribution.

So, here's my question. I am about to submit a PPA for a coffee storage device. It fits your principles, in that there are existing products on the market; it can be produced well in line with costs for existing [inferior, of course since they lack my amazing innovation ] products in the market.

Mfg cost FOB China is estimated at about $1.25 per unit in reasonable volumes (10K at least).
Retail price for similar items in the US is $15 - 25.

I guess there are two primary paths here. One - to contact a manufacturer/distributor and do a pure license deal. The other is to contact a distributor/chain and manufacture for them (and a corollary of that is to just do it completely on my own, but i'm really not interested in making this a time consuming business...)

Mfg route:
Let's say I contact Rubbermaid and tell them I've got this great patent that fits right into their existing lines, etc.... And they say - OK! We're interested.

Now what?

1. What kind of terms can I reasonably ask for, based on the costs
2. How do I protect myself and know that they'll actually *do something* - i.e., produce it and get it to market in a short time? I worked for a startup many years ago that got some money from a strategic investor - who then lost interest. The startup had their hands tied and then died a slow sad death.

distributor/chain route:
Substitute "Target" for "Rubbermaid" from the above - but the questions are the same.

(BTW, I'm waiting for your book to arrive...I live in Israel, so its a bit longer w/Amazon...)

Thanks!

 

[TedM]

Stephen,
Another question - crass and impolitic as it may be: What percentage of your students, who apply themselves and your teachings, make over $100K/year from their licensing work?

 

[Cosmicgirl]

I am awaiting delivery of this book, can't wait to read it

 

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[LibertyForMe]

Bump.

I ordered the book, and it is in the mail on the way to my house right now!

In the meantime I have a quick question: I thought of a product that would be using a movie character. I know that I have to communicate with the movie company to get permission to use the character; but since it really isn't an invention (more just a rebranding of something that already exists), do I still need to file a provisional patent? The provisional patent is only for new ideas that don't currently exist, not for rebranding using a movie character, right?

 

[CommonCents]

What level of scrutiny does utility provisional patent get from the PTO?? Is it just a placeholder or is there some level of prelim scrutiny by PTO to give me a little validation?

I was told a law firm did an extensive search and is considering investing as well. but I was wondering if the PTO does any prelim investigation, which would help me handicap the opportunity's worth and chances of getting a final utility patent approval.

Thanks!

 

[LeftBench]

I read this book just prior to reading the Millionaire Fastlane .

Great book, Stephen. It got me working hard and thinking out of the box. Reading your book and then the Millionaire Fastlane back to back was a huge blessing.

 

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[PeteLife]

Just ordered your book!!!

 

[Lacey C]

How do you approach re-purposing products? I want to suggest another use for several different products and make a profit that way but what's going to stop the company and owners of the brand from just using my idea? Can you file a PPA for some that? Like your Wall Ball, didn't Michael Jordan already patent himself?

A more specific situation of mine goes like this: I live in Alaska where the market is pretty isolated and the tourism industry is fantastic. There's this clothing brand that does really well for itself and I think they should add another product to their line. I also have a connection with a supplier who'd be willing to ship to Alaska for a decent price. What I'd like to do is put their logo on my product and sell it in their stores. How would you approach this?

Thanks!
P.S. I'd also be super interested to hear the answer to TedM's question!

 

[StephenKey]

Stephen,
Many thanks for sharing your time and expertise here - it's a wonderful contribution.

So, here's my question. I am about to submit a PPA for a coffee storage device. It fits your principles, in that there are existing products on the market; it can be produced well in line with costs for existing [inferior, of course since they lack my amazing innovation ] products in the market.

Mfg cost FOB China is estimated at about $1.25 per unit in reasonable volumes (10K at least).
Retail price for similar items in the US is $15 - 25.

I guess there are two primary paths here. One - to contact a manufacturer/distributor and do a pure license deal. The other is to contact a distributor/chain and manufacture for them (and a corollary of that is to just do it completely on my own, but i'm really not interested in making this a time consuming business...)

Mfg route:
Let's say I contact Rubbermaid and tell them I've got this great patent that fits right into their existing lines, etc.... And they say - OK! We're interested.

Now what?

1. What kind of terms can I reasonably ask for, based on the costs
2. How do I protect myself and know that they'll actually *do something* - i.e., produce it and get it to market in a short time? I worked for a startup many years ago that got some money from a strategic investor - who then lost interest. The startup had their hands tied and then died a slow sad death.

distributor/chain route:
Substitute "Target" for "Rubbermaid" from the above - but the questions are the same.

(BTW, I'm waiting for your book to arrive...I live in Israel, so its a bit longer w/Amazon...)

Thanks!

Usually a 5% royalty is acceptable to most companies in most situations. I have to say that Rubbermaid is not the easiest company to license to. Make sure you pitch to 5 to 20 companies if you can.

 

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[StephenKey]

How do you approach re-purposing products? I want to suggest another use for several different products and make a profit that way but what's going to stop the company and owners of the brand from just using my idea? Can you file a PPA for some that? Like your Wall Ball, didn't Michael Jordan already patent himself?

A more specific situation of mine goes like this: I live in Alaska where the market is pretty isolated and the tourism industry is fantastic. There's this clothing brand that does really well for itself and I think they should add another product to their line. I also have a connection with a supplier who'd be willing to ship to Alaska for a decent price. What I'd like to do is put their logo on my product and sell it in their stores. How would you approach this?

Thanks!
P.S. I'd also be super interested to hear the answer to TedM's question!

It all depends. If you make an improvement, you might be able to patent something. Most ideas are actually improvements. On second question... what your talking about is brand licensing. Yes, you can pay them a royalty for that if they agree.

 

[StephenKey]

I read this book just prior to reading the Millionaire Fastlane .

Great book, Stephen. It got me working hard and thinking out of the box. Reading your book and then the Millionaire Fastlane back to back was a huge blessing.

Thanks for the kind words. Keep inventing!

 

[StephenKey]

What level of scrutiny does utility provisional patent get from the PTO?? Is it just a placeholder or is there some level of prelim scrutiny by PTO to give me a little validation?

I was told a law firm did an extensive search and is considering investing as well. but I was wondering if the PTO does any prelim investigation, which would help me handicap the opportunity's worth and chances of getting a final utility patent approval.

Thanks!

The patent office doesn't review PPA's. They just file them. There is no protection if you don't file a full patent within a year. This gives you a year to see if there is any interest. What a great tool !

 

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[StephenKey]

Bump.

I ordered the book, and it is in the mail on the way to my house right now!

In the meantime I have a quick question: I thought of a product that would be using a movie character. I know that I have to communicate with the movie company to get permission to use the character; but since it really isn't an invention (more just a rebranding of something that already exists), do I still need to file a provisional patent? The provisional patent is only for new ideas that don't currently exist, not for rebranding using a movie character, right?

Yeah, i don't see how you can patent a re-branded movie character. Maybe copyright in someway though.

 

[StephenKey]

Stephen,
Another question - crass and impolitic as it may be: What percentage of your students, who apply themselves and your teachings, make over $100K/year from their licensing work?

All our students who apply themselves learn how to work on licensing their ideas. This is a skill they can use throughout their life. After, they leave us, they don't need us anymore. This is the goal of any good coach/mentor/teacher and it's the biggest goal Andrew Krauss and I have for our students. Students are only with us for a year of coaching in most cases, so i don't know how much each of my students are making after they leave us. I've had many students come back to us after many years telling us about all the deals they've done on their own. There is nothing that makes me more proud than that. Others we never hear form again. Some have quit their day jobs and gone full time while others continue with their business or job and continue to always work on one project on the side. I don't sell the get rich quick thing. Yes, we have students making over 100k a year. To be honest, i don't ask them exactly what they are making. We don't use that kind of sales pitch in our marketing. You can make a lot of money licensing new product ideas, however it's rare to see someone make a million dollars in one year of one product. However, it's not rare to see royalties stream in over time and from several products you've licensed. That may be 50k a year, 100k or much more. Also, all products don't sell forever, so don't expect to earn money off something you've licensed for your lifetime. You need to license more products to keep the money coming in.

 

[StephenKey]

I am awaiting delivery of this book, can't wait to read it

Great!

 

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[TedM]

All our students who apply themselves learn how to work on licensing their ideas. This is a skill they can use throughout their life. After, they leave us, they don't need us anymore. This is the goal of any good coach/mentor/teacher and it's the biggest goal Andrew Krauss and I have for our students.

Stephen,
Nice of you to come back to the thread, and thank you for your very honest replies. Once my current project takes off, I'm signing up with your coaching program.

 

[StephenKey]

Stephen,
Nice of you to come back to the thread, and thank you for your very honest replies. Once my current project takes off, I'm signing up with your coaching program.

Andrew Krauss and i have been coaching and mentoring people with new product ideas for 11 years. We'll be here if you ever need our help. We both love what we do. It's great to help people like you who are so passionate about their ideas.

 

[KLaw]

Mr. Key,

Thanks for being a part of this forum. I really appreciate your genuine participation. I'd like to get your advice as well as others to the following question. I am going to buy one of your two books for my nook tonight. Is one better then the other? I'd hate to buy the second book and miss some of the good stuff in the first book. Is everything in the first book carried over to the second book? 1st book being: One-Simple-Idea-Licensing-Goldmine. 2nd book being: One-Simple-Idea-Startups-Entrepreneurs. What are the key differences between the two books? Opinions please. I can't wait to start digging in!!! Thanks again.

 

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[crockbar]

I think it depends. Do you want to license or manufacture a product?

 

[KLaw]

I was concerned that my question was too general. I want to learn more about licensing but manufacturing is in my blood - it's what I know. So, to answer your question... I don't know. Thanks for replying. I could always buy both but I don't want to wade through regurgitated info (if that is the case).

 

[TedM]

just get both. you won't lose - if it's redundant, it will be a review.

 

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[StephenKey]

Mr. Key,

Thanks for being a part of this forum. I really appreciate your genuine participation. I'd like to get your advice as well as others to the following question. I am going to buy one of your two books for my nook tonight. Is one better then the other? I'd hate to buy the second book and miss some of the good stuff in the first book. Is everything in the first book carried over to the second book? 1st book being: One-Simple-Idea-Licensing-Goldmine. 2nd book being: One-Simple-Idea-Startups-Entrepreneurs. What are the key differences between the two books? Opinions please. I can't wait to start digging in!!! Thanks again.

I'd be happy to answer that question.

The first book "One Simple Idea" is for you if you want to license and sell your ideas for royalties without starting a company.

The second book "One Simple Ideas For Startups & Entrepreneurs" shows you how to start up your own company and sell your ideas yourself.

 

[StephenKey]

I think it depends. Do you want to license or manufacture a product?

Correct!

 

[KLaw]

I'd be happy to answer that question.

The first book like if imple Idea" is for you if you want to license and sell your ideas for royalties without starting a company.

The second book "One Simple Ideas For Startups & Entrepreneurs" shows you how to start up your own company and sell your ideas yourself.

Thanks for the reply. Looks like I will be purchasing both. Thanks again. And I have to give props to likwid for recommending your book.

 

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[StephenKey]

Thanks for the reply. Looks like I will be purchasing both. Thanks again. And I have to give props to likwid for recommending your book.

Yes... Thanks likwid for recommending my book!

 

[StephenKey]

Hello everyone.

We just did a free webinar that anyone can watch. I think you guys will really enjoy it. Lot's of good info.

It's up on our YouTube channel.