When developing a new product it is important to understand the dynamics of the inventing process. We see many inventors who may not understand the proper steps or path to follow to give their product the best chance for success. It is important to keep realistic goal! It is important to know exactly where you are at in development and what can be achieved in each step, and know how much traction you can gain towards your end goal of production.
It is important not to get ahead of yourself or the stage of development you are in, this can lead to mistakes and wasted resources. One common error new inventors make often is the expectation of a license deal early in development; this is extremely rare! I know there are companies that will contact you after you file for a patent; they sell you on the idea that they will secure a deal for your concept, that there are tons of companies they can market your product to that will take your idea do all the work, pay for everything, and all you have to do is collect a check.
This simply is not true; it is one in a million. It has been our experience that a product has to be brought through many stages of development before a company will even take a look at giving a licensing deal. Usually proven product sales are needed in order for this to happen; meaning you have spent money on the proper steps to get there, by then it may or may not be beneficial for you to take a licensing deal. You only get a small percentage of the sales.
Definition of LICENSING: Licensing means renting or leasing of an intangible asset. It is a process of creating and managing contracts between the owner of a brand and a company or individual who wants to use the brand in association with a product, for an agreed period of time, within an agreed territory.
Your best option may be manufacturing it yourself – do you really want someone else profiting on your idea? Don’t be a victim of low-cost licensing deals. It may be the biggest mistake of your inventing career.
