How to Get Your Consumer Invention to Market
By Joan Lefkowitz
So you have an idea for an invention? What do you do now? The
most successful hair accessory in history, the TopsyTail, made
100 million dollars. This did not happen by miracle or chance.
The key was a well-conceived and executed plan. Following an informed
approach will help you turn your invention into a bonanza of extra
income.
Getting Started:
The Ideabook
Keep a bound ideabook of your invention idea. Date your entries.
Draw it. State what it is, how it’s done and for whose use? Examine
possible variations. Add and define over time.
Get it Notarized
If your idea still seems brilliant after a month or two, get
it officially confirmed that you conceived your invention idea
on a particular date, and have your notes notarized. This may
help if you, at some point, need to prove that you were ‘first
to invent’ that idea.
Seek and Search
Do your own patent search to ascertain if your invention is original
and prospectively patentable. Go on the Internet to uspto.gov and study all patents in the product category of your invention
to see if something like yours already exists. Better yet, use
a professional patent searcher who will do a thorough search and
may advise the patentability of your invention. Go to an inventor’s
association, books on inventing, or websites such as patentsearchinternational.com,
to find resources.
Create the Initial Prototype
Use simple materials to rig it up, to see if it works. Some of
the most successful consumer inventions today started as pipe
cleaner, coat hanger wire or foam rubber embryos.
Get Educated
Educate yourself on the inventing process. Go to a bookstore
or inventorhelp.com and review the plethora of books written on
the subject. From Patent to Profit by Bob De Matteis is particularly
informative.
The Non-Disclosure Form
This is an Agreement signed between you and anyone you reveal
your invention to. It states that the information and materials
belong to you and cannot be used without your written permission.
It allows you to show your invention to parties who might be helpful
in bringing your product to market such as prototypers, product
evaluation services, manufacturers, packaging designers, licensing
agents and marketers. Variations of the Non-Disclosure form are
easily accessible in invention books and on the web.
Moving Ahead
Analyze Costs to Produce
Ascertain what the costs will be. Research domestic and foreign
resources. Add up all costs to manufacture a unit of your product.
Include molds, packaging, naming and trademarking, promotion,
marketing, distribution and mark-up. Seek sources through the
Thomas Register, libraries, the yellow pages, the web, Chambers
of Commerce, foreign trade bureaus and referrals.
The Evaluation Process
Analyze the benefits and features, strengths and weaknesses of
your invention. Can it have longevity in the marketplace?
Is its timing aligned with market trends?
Research the size of the potential market.
Identify your competition. Question why a retailer would buy
your product if they can do business with experienced, multi-product,
well financed suppliers, who may take back unsold products and
replace them with ongoing new items? Visit the marketplace and
talk with managers and consumers. If your product represents a
significant improvement or simplification in the way that something
is currently done, you have a better chance of breaking through
to success.
Get a Professional Prototype
Have professional prototypes made, the quality of which can be
shown to potential retail buyers. For sourcing suggestions, see ‘Analyze
Costs to Produce’.
Protect Your Idea
Apply for a provisional patent yourself. This can be done by
downloading the application from the patent office website: uspto.gov.
The provisional patent will secure patent pending status for the
invention for one year during which time you must apply for a
non-provisional patent, if desired, or lose the option to get
the invention patented. Using a patent attorney to make the application
for the provisional patent secures more complete specifications
of the invention and lays the groundwork for an effective non-provisional
patent application.
The Non-Provisional Patent
Your patent attorney files your non-provisional patent application.
If the patent is rejected on examination by the patent office,
as most are, the attorney will respond with revisions. This may
reoccur several times before your patent is finally granted or
rejected. This process can take up to two years. If a patent is
issued it becomes your personal asset for twenty years. Like other
assets, you can lease or sell it to earn income.
To Market, But How?
Licensing
The inventor has the choice to license the invention to a manufacturer
in exchange for a royalty percentage in sales. Typically, an inventor
can expect to receive royalties of between 3 to 7 percent of net
sales. The most efficient way to secure a licensing agreement
is to hire a licensing agent with expertise in the field of your
invention. The licensing agent is conversant in the language and
varieties of licensing agreements, can advise you on options and
help negotiate the agreement. Licensing agents ordinarily charge
between one-third and one-half of your royalty fees. Royalties
are an excellent way to create supplementary income.
Manufacturing
Manufacturing and distributing your invention entails higher
financial risk but can reap greater profits. If you have the time,
financing, manufacturing connections, a storage and distribution
point, bookkeeping and legal skills or assistance, sales and marketing
channels and mainly the desire to be your own boss; this may be
the route for you.
Teaming with specialists and hiring outside sales representatives
to grow your business can create economies of scale. Successful
manufacturing and distribution of a protected product can provide
you with active income. •
© 2006 Joan Lefkowitz
About the Author
Joan Lefkowitz, the marketer of TOPSYTAIL tm, is president of ACCESSORY BRAINSTORMS,
NYC, a licensing agent, consultant and sales-representative for hair and
cosmetic accessory and lifestyle
inventions. She writes and gives seminars on 'How to Market Your
Invention' and can be reached at 212-971-7300 or on the web at
www.accessorybrainstorms.com
01/23/06
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