About: Product
Royalty
Royalties are payments
made by one party (the
"licensee") to another
(the "licensor") for
ongoing usage of an
asset, usually an
intellectual property
(IP) right. The royalty
for a given case is
determined by many
factors including:
market drivers and
demand structure,
territorial of rights,
exclusivity of rights,
inherent risk, strategic
need, fundability, deal
structure, level of
innovation, stage of
development,
sustainability of the
product, and
availability of similar
technologies.
Navigating through the
royalty terms is
important. You commonly
have both an advance
royalty, which is a flat
fee paid upfront, and
ongoing royalties, which
are paid as a percentage
of every sale you make.
The advance
royalty is
basically a
guarantee
that the
licensor will
get some money even if
your product does not
sell. Then, if and when
your
product
sells, the
licensor will get a
percentage of the
sale on average, about
5 percent of the
wholesale price of each
product sold.
The licensor usually
decides what the
royalties will be, and
those rates are pretty
firmly set. So make sure
you understand what they
are and that they are
spelled out in your
licensing agreement to
avoid any surprises
later. In fact, that
agreement is crucial in
determining not only
what the licensor
receives, but also what
rights you get.
Interest
in obtaining a License for your Invention?
The purpose of a
license
is to grant another
individual,
company or
corporation the right to
use your
intellectual
property for a specific
amount of time and for a
specific purpose. The
specifics are outlined
in the terms of the
agreement.
A licensor may grant
license under
"intellectual property"
to do something (such as
copy software or use a
patented invention)
without fear of a claim
of
intellectual property
infringement brought by
the
licensor.
A license under
intellectual property
usually has several
parts including a term,
territory, renewal, as
well as other
limitations deemed vital
to the
licensor and
licensee.
Many licenses are valid
for a particular length
of time protecting the
licensor should the
value of the
license
increase, or market
conditions change.
About: Market Your Invention
It is crucial to your
product presentation that you provide a quality Marketing Invention Analysis of your
design concept for maximum impact. Knowledge about your
market demographic, market trends and other information can greatly increase the value of your
presentation enabling you to maximize you potential for sales or licensing your product idea.
Simply follow the step by step
marketing guide to create your Marketing Invention
Analysis directly from your dashboard. You will create a simple concise set of marketing details to show others that your design is exciting and has market potential. Lastly, if you have problems simply contact your
project manager who can answer any questions you may have.
About:
Advertising Your Invention
Advertising
is a type of communication that commonly attempts to
persuade potential customers to purchase more of a
particular brands product or
service. Many advertisements are designed to
generate increased consumption of those products and
services by creating and reinforcing of brand
image and brand
loyalty. Advertising
sometimes has a persuasive message combined with factual
information. Major mediums used to deliver these
messages include television, radio, cinema, magazines,
newspapers, video games, the Internet and billboards.
Advertising is often placed by
advertising agencies on behalf of a
companies or other
organizations.
Advertising is seen on
the seats of
shopping carts, on the walls of an
airport walkway, on the sides of buses, in telephone
messages and in-store public address systems.
Advertising is often placed where audiences can easily
and frequently
access
visual,
audio and
printed information.
Some organizations spend large sums of money on advertising that
sells what is not, strictly speaking, a
product or
service include
political parties,
interest groups,
religious organizations, and
military recruiters.
Non-profit organizations are not typical advertising
clients, and may rely on free modes of persuasion, such
as
public service announcements.
About:
Selling
Ownership
of Your Invention
The
purpose
of a
selling
your
invention
or the
rights
to your
"intellectual
property"
is
usually
for
financial
gain.
The
specifics
are
outlined
in the
terms of
the
agreement.
-Getting a patent, perhaps?
-Going on a fact-finding mission to manufacturers in China?
-Calling QVC?
While all these steps may be appropriate down the line, it's critically important that you first take action by shifting your thought process. I know what you're thinking. Thinking doesn't seem very actionable, does it? Maybe not, but over the years, countless inventors make devastating mistakes based on false beliefs and inaccurate assumptions.
For this reason debunking some common myths associated with inventing is important. Myths and misperceptions can be debilitating to your progress and costly to your pocket book. Although it may not seem very "actionable," it's vital to begin the inventing process with a realistic understanding of some of the basics for bringing an idea to market.
The following are
among the most common myths:
Myth #1: The
first thing an
inventor should do is get
a
patent.
Truth: It's understandable why this is such a commonly held belief. The topic of getting a patent is so pervasive among the inventing literature, conferences, websites and tv commercials, it's no wonder that many people feel they can't move forward without getting a patent first. Many inventors spend 80 -100% of their initial effort and money on obtaining a patent because that is the myth that's been sold and supported by those who stand to profit from it. Certainly a patent can be a valuable tool later in the process, but you should first determine the viability of your invention as a business before moving forward. Remember that filing a patent has little impact on a successful product launch & cost $10,000 or more-so unless getting a patent for its own sake is your end goal, it doesn't usually make good business sense to apply for a patent first thing off the bat. Most importantly- if you file a patent first, then encounter overwhelming obstacles later on, you may have invested in a patent for nothing.
Myth #2: If I tell people my idea, they'll steal it.
Truth: The theft of a new invention idea is actually very rare. A lot of sweat equity goes into developing an invention and this is a big barrier to most potential "thieves." That doesn't mean ideas are never stolen. Keep in mind, copying and competition are facts in any business. However, once you have an understanding of how much work goes into taking an idea to market, you'll understand why most ideas are stolen only after a product's proven successful. It's like betting on a horse. You're more likely to win by betting on a horse with a winning record than you are by backing an unproven long shot. That being said, don't be careless.
Myth #3: My idea is worth a million dollars!
Truth: Earning a million dollars with an invention is less likely than making slightly lesser amount depending on the depth of your invention. Study the process, set realistic expectations, take action, work hard and you can find success, especially if you have more than one marketable idea.
