Protect your idea with a non-disclosure agreement (NDA). Additionally, licensing your idea can help you leverage the resources and expertise of a larger company or individual, which can help you take your idea to the next level. Spend very little money on those ideas, and submit each one to as many companies as you can. What Happens If You Dont Show Up for Small Claims Court? One approach is to get a provisional patent, where you'll pay a specific fee and complete a form. It also allows the licensor to focus on what they do best generating new ideas while leaving the commercialization to the licensee. This is the reason for applying for a patent. 4. Appraisal of a product cannot be avoided and requires the services of an industry expert. Not every idea is protectable under the law, and you should know exactly what you're trying to protect before you decide how to proceed. What are the Pros and Cons of Prisoners Being Granted the Right to Work? Visit the U.S. Patent and Trademark Office for help, 3. ", patenting my idea. 2. However, you still need to look beyond the first page. Frequently Asked Questions: Patents - WIPO Is it easy to sell or license your ideas and patents? - OC Patent Lawyer How to sell or license an idea? The thirtiethcompany on your list might bite. Is Your Product Idea Right for Licensing? How to Tell You can also get a court order in a situation where the information is to be used which does not benefit you. 5. Type in their name on Google followed by 'complaints' and 'lawsuits.' How to License an Idea Without a Patent | Inc.com This can include the payment structure, the duration of the license, and any other relevant details. However, not every idea can be protected by a patent. How Can I Sell an Idea for Profit? Unlocking the Idea-Invention Dichotomy Stephen Key If you feel the need to get some patent protection consider a provisional patent. Before I found your website, I felt confused and frustrated. Can I Sell A Product Without A Patent? - Read Now | TTC - TT CONSULTANTS 5. How to Sell an Idea Without a Patent | Legal Beagle In the world of innovation and entrepreneurship, ideas are the foundation of success. Frankly, licensing is being in the business of rejection. Companies that you want to license your idea would love for it to be patented. The basic strategy is to come up with an idea that you want to sell or license then offer it to someone. Persistence. 1. So how do I go about establishing perceived ownership? Thanks. Nearly always, the idea has been protected with a provisional patent application only. I highly recommenda one-page advertisement, also known as a sell sheet. Sell Your Ideas With or Without A Patent - amazon.com Having a strong position is preferred over having a weak position. 3. What's the predicted volume of sales each year? It helps to reduce the initial costs you would have incurred while funding the manufacturing, distribution and getting the patent on the idea. Intellectual property law is complicated and ever-changing. As such, you may need to get at least a patent application on file to pitch your idea. We do not share in any revenue from your invention or idea. Without patent protection, your idea may be . To put it simply, licensing is renting your idea to a company. If you want to succeed at licensing, focus on the following five things. What the price is compared to the competition. Let me explain. Fortunately, there are other options available for protecting ideas and inventions, including holding information as a trade secret. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. Why wouldn't they? That means formulating a misappropriation claim depends less on your own states law and more on the facts of your specific case. Now you need to find a company or partner you can trust, hash out a fair licensing deal, and get your idea to the marketplace. How to Sell an Idea Without a Patent By Lisa Magloff A patent from the United States Patent and Trademark Office provides legal protection to inventors. A simple idea. "Very informative. To put it simply, licensing is renting your idea to a company. You should also include confidentiality and non-disclosure agreements in your licensing agreement to further protect your idea. Patents and prototypes are not required to license improvements to existing products. Can I License an Idea Without a Prototype? - YouTube A simple idea is a small improvement or a modification to an existing product. Distinctive designs, phrases, slogans or names that are used as brands in conjunction with goods or services become trademarks, under US law. We coach and mentor so that you can license your idea to a company. 2. All trademarks are registered trademarks of their respective companies. Do your research and ensure your idea is unique and marketable. You dont have to file any documents or pay any money to acquire trade secret protection. Before you begin approaching potential licensees, make sure your idea is a good fit. X The inventRight newsletter provides weekly expert tips, advice, and industry news from Stephen Key, our expert coaching staff, and industry insiders! They want to be able to prevent competitors from infringing as much as you do! If the patent isnt granted, I tell the company it will only have to pay me a 1 percent royalty rate for my efforts. I feel 2 steps ahead of the guy on the phone wanting to assist me on, "This really gave me the step-by-step process and how-to I was looking for. Then I use that year to find a licensee. So heres how I sell them on my idea. It can also allow you to focus on the creative aspects of your idea, rather than the legal and technical aspects of patenting. Study the company's product line closely and read its mission statement. Licenses are of various forms depending on where they are to be used. As helpful as a patent is, applying to get one usually costs a lot of money and takes a lot of time, often years before they are given to the interested party. Others aren't. confidence to proceed, I unfortunately recognized that I was recently misinformed and seemingly shrugged off by a business adviser. Unlike patents, copyright ownership is free and automatic, but does not protect the ideas, systems, methods or discoveries disclosed. A simple idea. Want High Quality, Transparent, and Affordable Legal Services? Should You License or Manufacture Your Invention? | Nolo We do not market your invention or idea on your behalf. The most well-known example of a trade secret is Coca-Colas formula. This can include provisions for royalties, exclusivity, and termination rights. Establish a mutually beneficial relationship with your competitors. For one, it can be a faster and more cost-effective way to bring your idea to market. Was this document helpful? The provisional patent lasts for 12 months, after which time you must apply for a non-provisional patent or a conversion to a non-provisional patent. They can include formulas, patterns, compilations, programs, devices, methods, techniques, and processes. If you're considering licensing an idea, be sober. This agreement should also include provisions for confidentiality and non-disclosure to ensure that the idea remains protected. It's a number's game. Unfortunately, if you disclose the trade secret information without any protection in place, the other company can use that information, and may even apply for its own patent on that information. Increase your odds byexpanding your list of inventor-friendly companies. The answer to this is Yes! Stephen reveals what he has learned in his 30+ years in the product licensing business. If you do eventually file a formal application and there is any question as to the date of invention (if the examiner suspects someone else came up with the invention before you), the invention date will relate back to the provisional application, which may be as much as a year earlier. Frankly, licensing is being in the business of rejection. The patent application process often takes a long time (often several years). This agreement is used in a case where you have given details to an employee whom you require to be kept a secret. There are inventors groups in many states, as well as national groups. Hire the top business lawyers and save up to 60% on legal fees. In other words, licensing a big idea demands a completely different strategy than what I am outlining here. But thats actually a good thing. Don't spend a lot of money on any one of your ideas. There are multiple ways to keep your ideas safe while you wait for a patent to be issued. The answer is YES! Although this may lead to costs amounting to hundreds of dollars, it is quite easy to apply for it online. It takes years-easily as many as four-for an idea to work its way through the patent examination process. Because there's a proven market for it, and a good chance your concept can be manufactured using existing technologies. What is the size compared to the competition? You can still license your idea to someone else who has the means to bring it to life. Second, you must raise the money necessary to develop and protect your invention, such that it can be licensed in a complete form to a third party. This could be a company or an individual who has the expertise, resources, and market reach to commercialize your idea.