How to convert your invention to money?
How can an inventor earn dividend from his invention? The inventor has no knowledge about how to proceed with the new idea. Some of the would-be-entrepreneurs think that someone will come at his doorstep with a fat check to purchase his innovative idea. The matter is not so easy. Inventor has to follow some guidelines to get monetary from his unique idea. If you follow the guidelines, you can end up with a fistful of money.
1. Getting Patent: Your preliminary task is to protect your idea from infringement. You have to apply for patent. The patent will give you the legal power to exclude others from making others using, selling or modifying your unique idea for 20 years. Patent will empower you to produce and market the invention or license others to do so. The filling of the patent form is complex task. You have to acquire the legal knowledge for it. Therefore, it would be better for you to take the professional assistance from a legal professional.
2. Market Evaluation: You have to evaluate the marketability of your idea perfectly. Marketability evaluation determines the financial success of the invention in the present and the future market. Only a very few patented inventions have a high marketing value. The basic factors of the marketing assessment are fulfillment of customer’s aspiration, realistic cost of manufacturing, easy availability of the product and maintenance of the quality. Nobody will be interested to license your invention if the product is not competitive with the same type of other products in the market. There is certain professional approach of deciding the objective market value. You have to hire professional invention assesses for this job. There are many invention promotion firms who offer assessment. Some of these firms are fraudulent and fake. Before hiring a consultant, you should verify the credential of the firm from the external sources. Some legitimate companies also include the patent search and marketing of the superior product in their service.
3. Licensing: After marketing assessment, you have to look for a company who will license your product. However, you can invest your fund for manufacturing the product from your idea. It requires a huge amount of money and labor. Most of the inventors cannot afford it and they do not have sufficient entrepreneur skill. There are two options of licensing. Some companies will want to license the inventor for onetime lump sum money. Another process is payment the running royalty against the sale of the product. If the onetime upfront payment is not generous, it is advisable to choose the running royalty option. Your patent lawyer may assist you in negotiation with the prospective companies. Do not try to submit your first invention to the large companies. The bureaucratic attitude of the big companies will look at your invention as unauthorized intrusions.
It requires a sustained effort to get others interested in your invention that gives you money. However, if you follow the right direction and hire the right people, you must get the license from the genuine company.
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