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Selling Your Invention
If you
decide
to
sell
your
invention,
you will
completely
give up
the
rights
that you
have on
your
patent,
and in
return
receive
one
payment.
On the
other
hand, if
you
decide
to
license
your
invention,
you
still
own it,
but you
allow
one or
more
entities
to make
use of
it, and
you
receive
royalties
in
exchange.
The
disadvantage
to
licensing
your
invention
is that
you may
not ever
see any
royalty
fees if
should
your
product
not
sell.
Once you
sign you
can
start
enjoying
the
financial
benefits
of your
invention.
Selling
Ownership
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.
So what should your
very first action be:
-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.
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