Do you feel like you have worked so hard to move your invention along, and now you are just stuck? Do you just need some guidance as to where to go from here?

This newsletter series will help you to understand the normal progression of the invention process, while helping you figure out where you are and what you need to do in order to move forward.
The steps are going to be broken down into four phases:

Phase One: Research

Phase Two: Development & Realization

Phase Three: Presentation Material

Phase Four: Pitching to Companies

Each week our newsletter will cover another phase in this process, explaining each step and what should be completed before you move on to the next step. Last week’s newsletter covered development and realization of your product. This week will explain creating professional material and generating interest in your patent.
Time and/or money spent on each step will also be explained, so you know what to expect. In some cases, you may be able to do things on your own, but you should expect it to take more time because you are saving money. When paying for services, you are paying other people to do them for you, so your time spent should be significantly decreased.

Phase Two: Steps 8-9

Step Eight: Creation of Professional Presentation

Time: 40-60 Hours

Money: $1,600-$10,500
It doesn’t matter how great your product is, a professional presentation of the product is necessary. The following documents are not recommendations; they are a must if you are looking to license or sell your product. Preparing the documents in advance will keep you from losing credibility through either explaining that you don’t have material to send or by saying “oh sure” and throwing something together at the last minute. The materials need to be well written, factually based, and organized in a logical manner.
The following documents should express your products value, your professionalism, and your credibility.

• Pitch Letter
  • • How you came up with the invention.
    • How successful you think it will be.
    • What your friend Joe thinks about your product.
    • Anything regarding money. (How much you have spent so far, how much you think it is worth, how much you are asking for it.)
    • A full explanation of the product and its history.
    • Your reason for contacting the company.
    • Your product’s name and purpose.
    • Your contact information.
    • Credibility factors

  A pitch letter is intended to help you make contact with someone. It should be short and to the point. This is simply an introduction to you and your product. You are trying to find out if the company has any interest, and essentially lure them in to ask for more information about your product.
  Exclude information such as:
  Include information such as:

• Briefing Document
  • • Remind the person of when they heard from you, or when they asked for more information.
    • Explain your objective. What are you looking to do with your patent? Leave out specific numbers at this point.
    • Include only pertinent details.
    • Briefly explain your product’s history. Where is your product currently? Are you already in production? Are you currently selling? How are you selling it? How many units have you sold in the past year?
    • Your contact information should be included.

  A briefing document is exactly what it sounds like… a brief explanation of your product. It should be no longer than a page, and should be sent to someone asking for more information about your product after receiving the pitch letter, or hearing about your product.

• Pitchbook
  • • Product Profile
      • Include product description, benefits, features, and design.
    • Target Audience
      • From your market research, explain the ideal person who would purchase your product.
    • Competition
      • This will be a direct write-up from your market research.
    • Manufacturing Quotes & Drawings
      • After working with an engineer, you should know how much it will cost to manufacture your product, and also have manufacturing ready drawings to show interested parties.
    • Contact Information
      • Phone number, Mailing Address, Email, Website

  The majority of this information will be found in your market research. In the Pitchbook, you will take information that you learned through market research and explain how it affects the potential success of your product.

• PPT
  A PowerPoint presentation will be extremely valuable to have on hand. Most business people prefer to start conversations via email, and you want to have material in a digital format that is ready to be sent. The presentation should be a maximum of 15 slides. Use bullet point sentences to express the information in your Pitchbook.
• Press Release
  A press release is written with the intention of getting an editor at a publication to write a story based on your press release. In order to get your story published, it needs to be professional, and in the exact way that the publication wants to receive it. If published, the final story is a great way to show potential investors, buyer, and licensors that the public is interested in your product.
  Contact the publication and find out how they prefer to receive your press release.
• Website
  Having a website for people to use as a reference is not a requirement, but it should be a goal. Through having a website, if someone looses your material or doesn’t have it available, they are always able to access information about your product.

Step Nine: Create Business Proposal
Time: 20-40 Hours

Money: $1,000-$2,500
A business proposal is essential to securing a sales or licensing agreement. It is unwise and unrealistic to expect a company or individual to come up with an offer when you are contacting them. For example, would you try to put your house on the market with no asking price and simply ask potential buyers to make you an offer? Most likely, you would not. Doing so would only prolong the process and would turn many potential buyers away. People like to validate a price, they do not care to come up with one. It is easier to qualify a price than to establish one.
Take the time to create a proper business proposal. The proposal should include each of the following elements:

1. Licensing Stipulations (Exclusivity, Non-Exclusivity, Term, Renewal)
2. Royalty % and basis you are proposing
3. Down Payment Request

Your business proposal should be based on your market research and justifiable given the products profit margins, potential sales, and any comparable deals.
Next week’s newsletter will cover contacting companies and signing a deal.
For more information about phase three, please feel free to email me at: Lindsey@IdeaBuyer.com

Recommended Service Providers and Resources for Phase Three:

• Product Development Co - Professional Presentation Material
• IdeaBuyer.com - Patent Promotion to Companies

Recommended Service Providers and Resources for Phase Two:

• VallMar Studios LLC – Engineering, Prototypes, CAD
• Legal Zoom – Provisional Patents, Trademarks & Copyrights
• Patent Help Now Articles: “Choosing a Patent Attorney”

Recommended Service Providers and Resources for Phase One:

• Product Development Co – Market Research & Product Design
• Patent Help Now Articles – “Searching for Issued Patents”

Lindsey Yeauger is the Product Marketing Director for Idea Buyer LLC, a new product development company that owns and operates IdeaBuyer.com- The Online Marketplace for Intellectual Property. The site gives inventors the opportunity to showcase their intellectual property to consumer product companies, entrepreneurs, retailers, and manufacturers. You can email her at Lindsey@IdeaBuyer.com.

Do you feel like you have worked so hard to move your invention along, and now you are just stuck? Do you just need some guidance as to where to go from here?

This newsletter series will help you to understand the normal progression of the invention process, while helping you figure out where you are and what you need to do in order to move forward.

The steps are going to be broken down into four phases:

Phase One: Research

Phase Two: Development & Realization

Phase Three: Presentation Material

Phase Four: Pitching to Companies

Each week our newsletter will cover another phase in this process, explaining each step and what should be completed before you move on to the next step. Last week’s newsletter covered necessary research. This week will discuss the steps to make your product real.

Time and/or money spent on each step will also be explained, so you know what to expect. In some cases, you may be able to do things on your own, but you should expect it to take more time because you are saving money. When paying for services, you are paying other people to do them for you, so your time spent should be significantly decreased.

Phase Two: Steps 4-7

Step Four: Engineered Drawings

Time: 60-150 Hours

Money: $3,000-$12,500

Unless you have the qualifications necessary to create these yourself, I would strongly recommend hiring a professional to help you. With high-quality engineered drawings, your patent will be crystal clear, reducing the chances of someone being able to profit from your idea.

Along with strengthening your patent, an engineer, familiar with developing new products, could help you to make your idea better than what you originally though it could be. By adding a switch here or coming up with a way to make it not need a switch at all, your product could be more successful because you had help from an engineer when developing your product.

Not only do they have experience with new products moving to market and knowing how to make a product market-ready, but experienced engineers know the manufacturing process and can help you to create a product that will be profitable. They have the ability to let you know which materials would be good to use because they cost less, or which design is best because it requires less complex machinery to make it.

The drawings that you receive from an engineer should be manufacturing ready. They are also able to tell you how much it is going to cost to manufacture your product based on the drawings. It is important to make sure that you see examples of their previous work. For around $5,500 you should receive manufacturing ready drawings with detailed images of the product and all of its components.

*Depending on the complexity of your product, your price for drawings will go up, and the opposite may be true for more simplistic products.

Step Five: Determine Manufacturing Costs

Time: 20-50 Hours

Money: $1,000-$5,500

Whether you choose to contact several manufacturers for this information or you have an engineer run the numbers, it is extremely important to know how much it going to cost to make your product real. For those of you who will work with an engineer, make sure to work with someone who will provide you with manufacturing costs based on the drawings.

In order to do this step yourself it will require that you have already worked with an engineer to some capacity and can explain to a manufacturer a detailed description of your materials, machinery necessary, and product components. You will start by contacting small manufacturers that are willing to do custom projects. Provide engineered drawings in order to receive a quick and accurate quote. When they do quote you, ask for the lowest quantity they would produce at a time for you. Also, find out how the costs change as the quantity increases.

Another very important question to ask is what their terms are. You should look for a manufacturer who is willing to provide you with 60-90 day payment terms upon receipt of your product. This will become very important if you decide to sell your product on your own as many retailers pay on 90 day terms. Not having terms lined up with your manufacturer to match your receivables could cause a cash crunch.

* If you feel uncomfortable contacting manufacturers and describing every last detail of your product, then you should work with an engineer. Most new product development engineers will willingly sign an NDA, and your idea will be protected. It is okay to ask manufacturers to sign an NDA, but be prepared that most of them will not.

*Depending on the complexity of your product, your costs for services will go up, and the opposite may be true for more simplistic products.

Step Six: Build Prototype

Time: 10-200 Hours

Money: $500-$15,000

It is crucial that you have a way for people to visually understand how your product works and what it is. This can be accomplished in several ways:

• You can create a working prototype yourself.

  Should you decide to do this, it needs to be done well. The prototype should look and work exactly like the product will, once it is manufactured. Use the same materials. Equip the product with the same components that it will have after production.

  It is important that your prototype is an EXACT replica of the product. During a meeting with a potential buyer, you don’t want to be explaining how the product will be different later.

• An engineer can provide you with 3-D prototype drawings.

  This is a great route to go if you are looking for a professional presentation, but are unable to spend the possible thousands it may cost for a prototype. It is especially a good idea if your product is complex. If you already have engineered drawings, 3-D prototyping is the next step.

• Have a professional build a prototype.

  It is certainly the best way to approach a visual demonstration of your product. The biggest benefit is that it shows an audience that your product CAN be produced, and WILL work. Typically people are more apt to prefer a professionally produced, production-quality prototype that they can hold and utilize.

*For example, think about telling a child about a really neat new toy, and everything that it can do. They may agree, but they will most likely forget about it immediately after the conversation. If you tell the child about the toy while he is playing with it, the chances of him remembering the product will increase significantly.

Step Seven: File for Protection

Time: 20-40 Hours

Money: $400- $12,000

This step is a commitment. If you have gotten this far and still believe after all of your research and development that your idea will be successful and profitable, and then it is time to patent it. The reason that this step is a commitment is because you have already spent a lot of time and money to get this far and it will take more time and more money to get the product to market.

If you do not feel able to make this commitment, or you are questioning some of the reasons to move forward, then wait.

In order to file a patent, you should seek help from a patent attorney who will help you to include everything necessary to make your patent strong. An alternative to filing a full patent is a provisional patent. With a provisional, it is important to work with the patent attorney on the dates. Once you have “patent pending” status you are committing to filing a full patent in 12 months or risk losing your patent rights.

Either route you choose to go, when you file for your patent, you need to have the drive, ambition and resources to run with it.

Once you have completed phases one and two, you will have much better insight if this invention is going to be not only successful, but profitable.

For more information about phase two, please feel free to email me at: Lindsey@IdeaBuyer.com

Recommended Service Providers and Resources for Phase Two:

• VallMar Studios LLC – Engineering, Prototypes, CAD
• Legal Zoom – Provisional Patents, Trademarks & Copyrights
• Patent Help Now Articles: “Choosing a Patent Attorney”

Recommended Service Providers and Resources for Phase One:

• Product Development Co – Market Research & Product Design
• Patent Help Now Articles – “Searching for Issued Patents”

Lindsey Yeauger is the Product Marketing Director for Idea Buyer LLC, a new product development company that owns and operates IdeaBuyer.com- The Online Marketplace for Intellectual Property. The site gives inventors the opportunity to showcase their intellectual property to consumer product companies, entrepreneurs, retailers, and manufacturers. You can email her at Lindsey@IdeaBuyer.com.

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Need prototyping? 3-D Engineering? Manufacturing Quotes? - Visit http://www.ProductDevelopmentCo.com - The #1 Product Development Company in the Mid West!

Have a question? ASK US!! http://www.ideabuyer.com/askus.php

Do you feel like you have worked so hard to move your invention along, and now you are just stuck? Do you just need some guidance as to where to go from here?

This newsletter series will help you to understand the normal progression of the invention process, while helping you figure out where you are and what you need to do in order to move forward.

The steps are going to be broken down into four phases:

Phase One: Research

Phase Two: Development & Realization

Phase Three: Presentation Material

Phase Four: Pitching to Companies

Each week our newsletter will cover another phase in this process, explaining each step and what should be completed before you move on to the next step. Time and/or money spent on each step will also be explained, so you know what to expect. In some cases, you may be able to do things on your own, but you should expect it to take more time because you are saving money. When paying for services, you are paying other people to do them for you, so your time spent should be significantly decreased.
Phase One

Step One: “Aha!”

You have a great invention. You THINK it will be wildly successful. Before you do anything else, you must conduct research in order to substantiate your feelings with fact.

Step Two: Conduct Research

Time: 30-100 Hours

Money: $750-$6,500

This phase should come almost immediately after the “Aha” moment. While research can seem like a time consuming task, you need to be conducting a very vast amount of research that may seem broad to your product idea. If you feel that you already know everything that you need to know, I ensure you, you do not. Consider it like studying for a midterm, isn’t it always better to be over-prepared and do well, then be under-prepared, fail and wish that you would have done more in the beginning?

* Patent Search-

Start with conducting a patent search. It may seem like no one else has thought of this idea because it’s not on the market, but there may be a patent for the same idea and for several reasons, it never made it to market. Starting with a patent search is going to save you time, money and hassle later.

When searching for a patent, do not specify your idea. Use broad terms related to your idea that will bring you to anything closely related.

* Industry/ Market Research-

Once you have determined whether or not your idea is truly original, determine the best industry for your product to go into. The best way to decide on your industry is to compare it to similar products. Begin with researching the industry in broad terms, getting to be more specific. Your research should leave you with a good understanding of your industry, its major companies, and past, present and anticipated changes.

Example:

“AHA! I have got it! This will change the world! Heated windshield wipers! No one will ever have to worry about their windshield wipers being frozen to their car during the winter again!”

My research will begin with the automotive industry, and then become more specific to automotive accessories.

List of Industry/ Market Research:

+ What is the environment surrounding your product like? How will these things affect your product?

• Economy

• Government

• Technology

+ What is the market defined as? How small/large is it compared to othermarkets?
+ Which companies are controlling the market?
+ What has happened to this industry in the past? Present? Future?

* Competitor Research-

Competition for your product can be direct or indirect. Existing products that consumers are using as a solution to the problem that your product solves will be direct competition. Make sure to be knowledgeable of extensive details for each of your products competitors. Including, ownership, target audience, price points, manufacturers, distributors, and contact information of company executives.

It is also necessary to be well-informed of indirect competition. These products will not necessarily have the same target audience, or may not even solve the same problem. However, a consumer may choose to purchase this product instead of yours.

For example, you have invented a travel toothbrush capable of compacting to an inch tall. Direct competition would be other travel toothbrushes, and indirect competition would be basic toothbrushes. While your toothbrush is convenient, some consumers may choose to just stick with buying a basic toothbrush and toting it around.

* Consumer Research-

There are many things that will affect the way in which a consumer decides whether or not to purchase a product. However, you should be able to anticipate what obstacles your product will face. Know the demographics of the “typical” consumer in your market, along with buying motivations and expectations.

* Product Research-

In order to understand if your product will make money, more research is necessary. A guesstimate of manufacturing costs can be made by figuring out the materials needed to make your product and roughly how much they cost (you should get a detailed estimate of manufacturing costs later).

Based on direct and indirect competition currently on the market, you should be able to determine roughly what your product would sell for. After some math, it should be evident whether or not the product would make a profit.

*If your product uses complicated materials and manufacturing techniques, it will be especially important that you contact an engineer for drawings and cost estimates.

Know which methods your product would be sold best through, a detailed description of who would buy it, and information on manufacturers and retailers that would be a good fit for your product.

Step Three: Evaluate Research

Time: 10-20 Hours

Money: $150-$400

It is extremely important to evaluate your research before you speed on. Many inventors become overly excited about their idea, and run to patent their idea without considering the results of the research. The reason that research is so important is because it will tell you whether or not you should move forward with your idea.

Reasons you should NOT move forward:

o The idea is already patented by someone else.
o The industry is not profitable and is not anticipated to become profitable.
o The sole company involved in your industry, is already selling a product like idea.
o Your product will cost more to make then people are willing to spend to buy it.
o The problem your idea is a solution for, is not a problem most people care about.

Reasons you SHOULD move forward:

o There are few patents related to your idea.
o The industry has grown rapidly and is expected to continue to grow.
o The leading companies in your industry are actively researching and developing new products.
o Manufacturing costs are estimated to be 10% or less of what similar products are selling for.
o Many people have the problem your idea solves. Or, if only some people have the problem, it is a large obstacle that they would greatly spend money on.

Once you have completed step one, you will know if this is the right invention to take to Phase Two.

Next week’s newsletter will cover development and realization of your idea.

For more information or questions about phase one, please feel free to email me at: Lindsey@IdeaBuyer.com

Recommended Service Providers and Resources for Phase One:

- Product Development Co – Market Research & Product Design

- Patent Help Now Articles - “Searching for Issued Patents”

Lindsey Yeauger is the Product Marketing Director for Idea Buyer LLC, a new product development company that owns and operates IdeaBuyer.com- The Online Marketplace for Intellectual Property. The site gives inventors the opportunity to showcase their intellectual property to consumer product companies, entrepreneurs, retailers, and manufacturers. You can email her at Lindsey@IdeaBuyer.com.

The following video features a new process for creating stem cell contact lenses that have cured 3 cases of blindness so far in less than a month. This is an inspirational innovation in the medical field that focuses on solving a very large and very serious problem.

If you have a new medical invention that you are looking to commercialize, please contact us via email at Contact@IdeaBuyer.com.

Featured Products

This is a simple product that puts a twist on self tanning and is poised for multi-million dollar international sales. You will likely see it being used and on store shelves at CVS and Walgreens soon.

You have seen it on TV. You may have even purchased one. This inventor solved a common problem that almost every pet owner has dealt with. A creative solution in a quickly growing market has turned into a multi-million dollar production with growing international sales. Please contact us directly with any pet products.

The original patented snoring prevention system that you may have bought to keep your spouse from waking you up. If you’re still having restless nights - check it out. The inventor will be thankful. If you are an inventor with a sleep aid product please contact us.

The steam buddy is a quick way to have your clothes looking sharp. It is a handheld solution to a common problem. This is a perfect example of a convenience product with marketability to a large group of consumers.

Most green thumbs out there are familiar with this product. The at home garden market is a large and growing market. If you are an inventor with a garden product that can be manufactured cheaply please contact us directly.

In the quest to bring your invention to market, your ability to talk to decision makers will have a huge impact on your success or failure. Many inventors have trouble knowing how to identify decision makers and have an even harder time carrying on a worthwhile and intriguing conversation with them if they do get in touch. To help you out, I have created a simple guide on how to talk to anyone.

The guide is setup in three parts;
1. How to identify decision makers
2. How to engage them in conversation
3. How to get commitments

I. How to Identify Decision Makers

A. Research (Website, publications)

B. Manta.com, Linkedin.com

II. How to Engage Them

A. Create a compelling argument

B. Credibility

C. Appeal to their self interest

III. How to Get Commitments

A. Discuss win-win situations

B. Persistent follow-up without ‘nagging’

C. Positive Reinforcement

Identifying decision makers can be a daunting task for some. Many people tend to shoot lower than they should and thus miss the very people who can get things done on their behalf. On the contrary, it is key not to aim too high and be labeled a pest. When it comes down to it, this step is all about research. You need to read through the company’s website, their news publications, and the “about us” section. If you can find specific staff positions, analyze which individuals should theoretically be the decision makers for helping you achieve your goal. For example, who determines which products get a formal review? It probably isn’t the Chief Financial Officer.

Your research can be aided by extremely useful sites like Manta.com and Linkedin.com. If you are not a member on LinkedIn.com, you should be. There is absolutely no excuse to not being – you can keep your profile private and it is free. Once you setup your account, try advanced search and look for individuals who work for certain companies in particular positions.

How to Engage Them
When you contact people, offer a compelling argument of why it is beneficial for you to talk. Why should they respond to your message? Your first priority is to prove credible to the contact. In a world where emails are sent like telemarketer calls were in the 90s, you need to separate yourself from the herd.

There are several things you can do to gain credibility. Here are a few of them.

1. Similar Contacts:
   If you know similar people, this is a big leg up as it is a validation of who you say you are if the contact is reliable. If possible, have them make an introduction even if it is an acquaintance.
2. Offer Personal Credibility:
   Have you had prior professional successes that you can point to via an online resume? Do you have references you can provide?
3. Offer Product Credibility:
   Has your product been tested? Has your product been featured in a magazine?

   After gaining credibility, appeal to their self interest. Do not ask for favors. Few people walk through the business world with a Red Cross badge on their arm and for good reason. This is a capitalist economy, not a socialist one. You are looking for what benefits you and should not expect others to just do favors for you. Talk to them about the potential this holds for them as an individual or to the company they work for. Do not be cheesy about it – offer sincere opportunities for win-win situations.

How to Get Commitments
After creating a compelling argument as to why they should talk to you, you should be able to get a commitment for a review of information you send, an introduction to someone else in the company who can help you, or a follow up call.

If you fail to get a response within a week, follow up with a phone call to the office and ask for the person by their first name. If they ask who is calling state your real name and your company name. If they ask what you are calling about, state that you are following up regarding your product evaluation.

Once you get them on the phone, with a smile on your face, introduce yourself and see if you can engage them over the phone regarding your product. Be empathetic to their situation – you most likely do not like getting random calls. Few people do. Be gentle, be compelling, appeal to their self interest. Be an interesting person to talk to.

Whenever someone tells you they will do something make sure you put a date on it. For example if someone tells you, “I will review it and get back to you”, respond with a, “Great. I’m going to be very busy through Thursday of next week with Meetings but I could talk Friday. Would 10 am work for you?” Adjust according to their response but get a time that they have approved you can call them back.

I hope this article has been of value to you. Feel free to email me if you have questions or need a little advice in your pursuit to sell or license your IP.

When you work with us, you get my personal cell phone number. We care about your success.

Eric Corl is the President of Idea Buyer LLC, a new product development company that owns and operates IdeaBuyer.com. You can email him at EricCorl@IdeaBuyer.com.

How to Value Your Patent

One of the most important tasks you will carry out as a patent holder is assigning a monetary value for it. This could become necessary for any number of reasons, such as:

• Selling the patent
• Licensing the patent
• Deciding how much equity to give to business partners investing or working with the patent

None of these decisions can be wisely made without first knowing, at least roughly, what your patent is worth. It is not always an easy task, as patent valuation is a somewhat inexact science. However, whether you have a provisional patent, a design patent, a utility patent, or a plant patent, some key principles should be observed.

You should value your patent with an eye toward the size of the market it could serve. If you own the patent to a new kind of baseball bat, you would want to determine the size of the baseball gear market. Consider this the starting point, for without knowing how much money is spent on similar existing products, you have no valid basis for assigning a worth to your own. After all, wouldn’t you agree that whether your market sees $1 million or $50 million in yearly sales, there would be an impact on how much your patent is worth?

One of the benefits of working with a patent attorney is that he or she will have access to comparables, or how much similar patents have been valued at or sold for. It could be that a new baseball bat was patented 10 years ago and valued at $500,000. Now, this does not necessarily mean that your patent is worth exactly that. Market forces change all the time, and the further back that similar patent was valued, the less it should influence that value you assign to yours. (Conversely, the more recently a similar patent was valued, the more that valuation should be heeded.)

Nevertheless, it pays to get a read on how similar patents are being valued rather than arbitrarily plucking an attractive number out of the air and assigning that as your patent’s value.

One major factor that needs to be considered when valuing anything is risk. In this context, a major risk is that someone who buys or licenses your patent will find that it does not hold up in court – that is, that the courts might decide the patent is invalid. How could this happen, you might ask? The website JournalOfAccountancy.com offers 2 possible scenarios:

“If it is discovered after a patent has been issued that the inventors didn’t meet the statutory requirements for obtaining it–for example, if they weren’t the inventors (35 USC section 102(f)), or had published information about the invention or offered it for sale more than one year before the date of application (35 USC section 102(b))–the patent is invalid and substantially worthless.”

Obviously, this is not desirable and any perceived risk of it happening will reduce what someone is willing to pay for your patent. The solution? Consult your patent attorney on ways to investigate the validity of your patent and convey this to prospective buyers. The more you can eliminate the perception of risk, the higher a value you can assign to your patent.

Part 3 of our “Patent Facts and Fiction” series says that a patent does not give you exclusive rights to make your invention, only to prevent others from doing so. But what if making your invention would infringe on someone else’s patent? This type of patent overlap is quite common and could lead to your patent being invalidated by the courts. Work with your patent attorney to investigate if any overlap exists and communicate to prospective buyers or licensees that this will not be an issue. Eliminating this risk will allow you to value your patent higher than if it was left unaddressed.

No matter what you value your patent at, anyone thinking of buying or licensing it will investigate their alternatives. They will look for the “next best thing” and try to figure out if that would be cheaper than your patent. Since they are going to do this anyway, you had might as well figure out in advance and incorporate it into your valuation. Doing so offers you a strategic advantage – namely that if the next best thing is expensive (or there is no next best thing) you can use this as justification for charging more. Of course, if the next best thing is inexpensive or close to what you are asking, this could suggest a need to lower your valuation.

You cannot value your patent in a vacuum, looking for the one, true, “right” value. Rather, you should assign a value by keeping your unique needs in mind. Why are you selling the patent? If you are just looking to cash out fast without a lot of meetings, delays, and deliberations, it might make sense to use a lower valuation. Money today is worth more than money tomorrow, and holding out for a trivially or even substantially higher price may not actually be worth it. Or, maybe it is – the point is that you need to make this decision consciously and not out of egotism or greed.

Keeping these 6 tips in mind will not instantly generate the “right” patent value for you, but it will ensure that whatever value you decide upon is far more realistic and valid than it would have otherwise been.

IdeaBuyer Favorite Inventions of 2008

Of the several patents filed in 2008, the following 10 are our favorites! Some because they have been recognized as having the most potential for changing the world and others because they are cool.

1. Diamond Kidney Dialysis

For people dealing with kidney failure, this new method of removing toxic chemicals from the blood could be a lifesaver. Most patients facing kidney failure have the option of organ transplantation or dialysis. Unfortunately, with a shortage of donors, and complications with current dialysis filters, treatments are severely limited.

This new method of filtration is claimed to more closely reproduce the filtration function of the kidney, in its ability to filter proteins. William Fissell at the Cleveland Clinic in Ohio, with help from colleagues at the University of Michigan, designed the filtration system to be potentially implanted within the body. Made from several layers of nanoporous diamonds, each layer will only filter a specific protein size, removing what needs to be removed and keeping what the body needs to keep.

2. Muskrat Feces Antibiotic – Weird!

An antibiotic with the capability of killing the Salmonella bacteria, the cause of most food poisoning cases, has been found in Muskrat faeces by Ki Keun Kim and colleagues at Pusan National University in South Korea. Found to also be effective against Staphylococcus (commonly referred to as a Staph infection) and termites, the compound is extracted through drying the faeces and using an organic solvent.

The gross factor doesn’t change the fact that it kills the bacteria that can kill us!

3. Hurricane Suppression through Supersonic Boom

From the University of Akron in Ohio, Arkadii Leonov has patented a method “sufficient to suppress, mitigate and/ or destroy a typical sized hurricane/typhoon”. The patent application claims, all that is needed are two F-4 jet fighters flying at Mach 1.5. The jets fly in concentric circles around the eye of the hurricane, calming the area the hurricane is rotating around.

4. Bionic Contacts

Scientists are currently working on the contact lens, everyone will want, even those without vision problems. A digital contact, capable of zooming on distant object and displaying information about the object, has become a reality. Engineers have been able to install an electronic circuit and lights on a regular contact lens, proving it possible to build a SAFE electronic lens.

For all of us that have dreamt about being terminator for a day… it’s not too far-fetched anymore!

5. Pollutant Killing Sidewalk

The latest weapon in the fight against pollution is TX Active, cement with a chemical composition capable of neutralizing pollutants. Sunlight activates the main ingredient, titanium dioxide, oxidizing any pollutants that come into contact with the cement. While it seems like a great idea, some scientists are not as optimistic about the products potential, explaining that this is not a cure for pollution.

6. Enhanced Fingerprints

A way to analyze fingerprints off a gun after it has been cleaned, discovered by English physicist, John Bond, is already being used by police to re-open some cases. Because sweat corrodes metal, a fingerprint pattern can be revealed when an electric charge and fine carbon powder are applied.

7. Flying Wind Power

Higher elevation, higher wind speed. But building a taller wind turbine to get to the stronger wind is no longer necessary. Sky Windpower, Laddermill and Magenn are all companies working toward flying the windmill! If these flying wind turbines can harvest just 1% of the jet streams wind power, demand for power in the US would be supplied.

8. The Touch-Sight Camera

Chueh Lee, while working for Samsung China, designed the world’s first camera for the blind. The easy-to-use digital camera does not have an LCD, rather a flexible Braille display sheet allowing the user to touch their photo. Not only does this camera display a 3D embossed image, it also records sound for three seconds after the shutter button is pressed. When reviewing previously taken pictures, users are able to reference the sound for a better understanding of their picture. Research concluded that for stability and accurate aim, the forehead was the best placement. All the user has to do is place the camera on his/her forehead and click!

9. New tools for Spies?

Michael Yu at John Hopkins University and colleagues have made a rubbery-plastic-based material that allows for piezoelectric devices (microphones and speakers) to be put in previously impractical places. Flexibility for piezoelectric devices used to be extremely difficult. Adding silicone to the rubber material solves this problem. The group is looking at applications such as wallpaper speakers, and foldable speakers.

10. Cost Efficient Solar Power!

Nanosolar has set the standard for cost efficient solar power with their thin-film solar panels. Bulky silicon panels are a thing of the past. The technology used in the manufacturing process of the thin-film is the crucial component that makes Nanosolar able to produce 100x thinner solar cells 100x faster.
Check out Idea Buyer’s latest product created specifically for inventors:

About the author of this article:

Lindsey Yeauger is the Product Marketing Director for Idea Buyer LLC, a new product development company that owns and operates IdeaBuyer.com- The Online Marketplace for Intellectual Property. The site gives inventors the opportunity to showcase their intellectual property to consumer product companies, entrepreneurs, retailers, and manufacturers. You can email her at Lindsey@IdeaBuyer.com.

Did you know? Fun Facts about some of History’s Greatest Inventions.

Superglue or Krazy Glue was originally rejected by its discoverer, Dr. Harry Coover, in 1942 for being “too sticky”. Coover realized the usefulness for the material in 1958.

Hippocrates, also known as the father of modern medicine, lived sometime between 460 B.C. and 377 B.C. and left behind historical records of treatments for relieving pain. He believed that a powder made from the bark and leaves of a willow tree could heal headaches, pain and fevers. Scientists later discovered that the compound salicin, found in willow plants, was the reason for the pain relief.

The first patent for a bar code, issued to Joseph Woodland and Bernard Silver in 1952, was intended as a solution for automatic reading of product information during checkout. The solution was a series of concentric circles, not the series of parallel lines we know today.

The bikini bathing suit was named after the site of atomic bomb testing, the Bikini Atoll in the Marshall Islands. Its inventors, Jacques Heim and Louis Reard referred to it as “The world’s smallest bathing suit.”

Ancient Greeks, Ancient Mayans, North American Indians, and American Settlers all had their own form of what we now know as chewing gum. William Finley Semple was the first to patent a chewing gum in 1869. In 1871, Thomas Adams patented a machine with the ability to manufacture the confection. Frank Henry Fleer was the first to invent “bubble gum” in 1906. He called it Blibber- Blubber, later to become Double Bubble.

Created by a pharmacist from Atlanta, Georgia, Dr. John Pemberton in 1886, the original formula Coca Cola contained extracts of cocaine and kola nut.

Marvin Stone patented a spiral winding process for manufacturing the first paper drinking straws, in 1888. Before paper straws, rye grass straws were used for drinking beverages.

Grammar school dropout, Chester Greenwood, invented earmuffs in 1873 at the age of 15. While testing a new pair of ice skates, he became irritated with trying to protect his ears from the cold using a scarf.

Barely visible marks left when contact was made between a person’s hand and a surface, known as fingerprints, were first observed in the 19th century. Letters by Henry Faulds and William James Herschel were published in the British scientific journal describing the uniqueness of fingerprints, in 1880.

In 1899, the first police car was used in Akron, Ohio. Police cars became the basis of police transportation in the 20th century.

Harry Wasylyk invented the green plastics garbage bag, made from polyethylene, in 1950. Originally intended for commercial use, Union Carbide manufactured the first green garbage bags for home use in the 1960’s, under the name Glad Garbage bags.

Albert J. Parkhouse created a coat hanger in 1903, inspired by a clothes hook patented in 1869 by O. A. North. Parkhouse bent a piece of wire into two ovals and twisted the ends together to form a hook. Thomas Jefferson invented the early wooden coat hanger.

Although it is not known who invented the first ice cube tray, John Gorrie, an American physician, built a refrigerator in 1844, to make ice in order to cool the air for his patients with yellow fever. It is speculated that Gorrie may have also created the ice cube tray because it has been documented that his patients received iced drinks.

In 1920, Joe Cartledge the Owner and founder of the Guelph Elastic Hosiery Company invented the first jock strap or athletic supporter. The jock strap was marketed under the name Protex.

While having a drink in a pub in England, post World War II, Craven Walker noticed a fascinating lamp made of a cocktail shaker. Walker purchased the lamp, determined to make a better version. With negative initial reactions from retail merchants, the “Psychedelic Movement” made the Lava Lamp’s popularity soar.

“…starts from nothing, grows possibly a little bit feminine, then a little bit masculine, then breaks up and has children. It’s a sexy thing.” - Craven Walker

After over 20 years in this industry, I know inventors are creative, ambitious people. They are the individuals who see a problem and envision a solution to that problem. Too often, however, they take a difficult pathway as they strive to bring their invention to the attention of potential buyers. Most inventions fail because the initial precious resources are misdirected and spent on inadequate prototypes and filings for full patents before the idea is developed into a viable business concept. An effective business planning process will address such issues as cost and potential return on investment, which should be 8 to10 times the direct cost of manufacturing. In today’s uncertain economy, a further goal must be to develop the idea in such a way as to minimize the risks to a licensing firm.

Without the services of an experienced product development and management (PDM) company, inventors may spend $15,000 or more on patenting and as much or more on ineffective prototyping of an invention that is not yet ready for commercialization, only to discover that the idea is impossible or too expensive to produce. Working with a PDM company, you can take the sketch you drew on a crumpled napkin and help develop it into a real product with potential readiness for the marketplace.

From crumpled napkin to tangible product, you will need to take the following steps: 1. Have your product evaluated 2. Assess the reception from the market and 3. Build support for your product.

Evaluation

Your invention will be developed by a product designer, or sculpted or modeled in 3D CAD. This step in the process enables the PDM Company to evaluate your idea for feasibility. The issue of feasibility has a number of dimensions: First, does the invention provide a clear-cut solution to a problem? You need to answer this question before spending large sums on prototyping and patenting fees. In addition, can the invention be manufactured? Perhaps most importantly, does your invention have “financial feasibility”? That is, is it likely to make an adequate return on your investment, and on the investment of the organization that buys or leases your invention from you?

An experienced PDM company will assign a Product Development Team with representatives from marketing, engineering, manufacturing, testing, quality, finance, intellectual property management and any other needed discipline to work with you. The team will address your invention’s entire life cycle, from development through production to support.

Market Receptivity

Don’t spend thousands on prototyping and patenting an idea that doesn’t have the potential to find a ready market. You have probably been thinking about your invention for years, and you’re sure that everyone will want one. That may be true, but it’s best to assess the market objectively. Are you sure your idea is unique? Someone else may have “gotten there” before you, with a similar invention, or with different approach that solves the same problem that inspired you.

A PDM company will use focus groups and market testing to help refine your product, differentiate it, and give it the edge it needs to reach its ultimate customers. This is the point at which your PDM Company will join forces with your patent attorney to work with you as strategic partners.

Product Support

A purchaser or licensee will require certain information before they can understand the benefit of your invention. They will want to know that you have developed a product forecast based on market feedback and engineering analysis. They will want to know that your product and its production processes have been validated, and that you have obtained all needed regulatory approvals and certifications.

Additional tools to support your product may include virtual prototyping and manufacturing analysis, selection of materials and technology, and development of direct cost to manufacture, focusing on development of a recommended end sales markup of 8 to 10 time the manufacturing cost. End-user documentation, operating manuals and maintenance instructions may also be required. Working with a PDM company is a cost-effective way to develop these tools and make the idea you once sketched on a napkin into a real product with value in the marketplace!

Vall Iliev is the president and CEO of Vallmar LLC, Stow, Ohio, www.vallmar.com, a product development and management company founded in 1984. Vallmar works with inventors to design, plan, develop, and validate ideas so they may be brought to market. Vallmar clients range from individual inventors to large manufacturers and nationwide retailers.