Provisional vs Patent Application:
(Fees listed may change with time. Please verify fees at www.uspto.gov )
The inventor is very tempted to keep costs to a minimum so the $75 fee for the Provisional Application and one year of patent pending status would appear to be the less expensive of the two choices. But is it really? First, consider the difference between the two applications: COST, CLAIMS, and PROTECTION. Starting fees: $75 verses $370. The most significant difference between the two: a patent application requires that claims belonging to your invention are made defining the unique properties not previously known or utilized as shown by a thorough patent search. The provisional application does not require any claims. Finally, intellectual property protection (IPP) ends within one year of filing the provisional unless a you file a patent application anyway. If approved, a utility patent provides up to 20 years IPP from the date of filing of either the provisional, if filed first, or the patent application itself. So, for anyone who is convinced he or she has the next best thing to hit the market, what sounds like the more secure approach to take?
This comparison does not take into account attorney fees and additional USPTO fees that are assessed at different stages of the patent process and over the life of the patent. For more details, go to WWW.USPTO.GOV.
How to Get Started Writing a Business Plan, A QUICK TIP:
Frustrated or intimidated about writing a business plan? You're not alone. People hate to have to commit to something in writing for fear of revealing how little they really know about their 'product market'. Try this: Sit down with a friend and tape recorder. Start by giving your friend a brief, concise 'sales pitch'. Then talk through the different topics of what it is you are selling, who you plan to sell to and why there is a need for your product, how you plan to manufacture, finance and market it for a profit, and who is going to make up your team to get this all done. When you get through, put your words down on paper. Never loose sight of the fact that BUSINESS PLANS are maps of a work in progress. Expect it change.
Expectations of Inventors and Manufacturers Often Don't Mix
It's a common story. Inventors wonder why manufacturers do not take more interest in them. Experienced manufacturers tend to keep inventors at a distance. The plain truth may be hard to swallow but it needs to be understood . . . by both sides of the equation.
Inventors are a suspicious lot. They are worried about someone stealing their idea or their money. Independent inventors typically work off very tight budgets and try to accomplish as much as they can on their own. Just navigating the treacherous reefs of invention scams en route to intellectual property protection sends up flags of caution and resistance. Horror stories abound about sacrifices in time, money and even family relationships. Dark clouds appear ever present on the horizon. Unrealistic or undefined expectations eventually turn into mythological sirens luring the innovative navigator to shipwreck on the perilous jagged edged reef of product development.
Time is money and no one appreciates this more than a manufacturer. Inventors eat up time. In their minds, their idea is the next best thing to apple pie and the American dream of achieving riches. Inventors think everyone should feel the same way about their idea. Manufacturers know from the school of hard knocks it takes a whole lot more than a good idea to generate a great product. Doing business means making profits. Realistic expectations and novice inventor expectations tend to follow different paths.
If a good relationship is going to develop between the two parties, it is imperative that each party is up front and crystal clear on all the issues before proceeding. A 'start to finish' plan . . . a map, if you will, of what each party can expect in the process of developing and manufacturing the product will serve well. This includes a timeline of what will done within a reasonable time frame, expectations of expenses and when payments are due, the possibilities of setbacks and how they can be addressed, the fact that developing new ideas into products often entails breaking new ground or calling upon ingenuity to overcome obstacles. It is after all a process requiring research and development.
Inventors expect the best possible duplication or representation of their idea in the ultimate product. Manufacturers expect to earn profits for employing their business, time, effort, and years of sweat equity in creating production molds and working with a ever changing selection of materials. Years of doing business should enable the manufacturer to earn a fair profit while still offering the inventor competitive pricing. Does this mean the inventor is being gouged when the manufacturer is able to benefit from lower prices on raw materials and does not reduce an agreed upon competitive cost per unit production price? Is the manufacturer expected to pass on any of these savings to the inventor?
Spell it out ahead of time. Know what to expect. Generate the means of resolving any differences before they arise. Include a mutually agreeable statement allowing for either party to register dissatisfaction or concerns about unexpected events affecting the bottom line or the timeline.
It is imperative for the inventor to research different tooling methods before settling on any one kind. Expect a manufacturer to encourage what they are experienced with. Inventors are so anxious to get the wheels turning that costly mistakes can lead to major delays or worse yet, failure. The final okay to begin tooling of molds should begin when one is secure with the design and function of the product. Tooling is an art that relies on the clarity of the inventor and the skill of the manufacturer, both being subject to human error. Being able to make necessary adjustments before committing to a major expense is good business.
It may be wise to consult a third party such as a professional engineer with expertise in the specific field of the invention. Carefully consider the benefits of CAD generated rapid prototyping or stereolithography. The benefits of seeing, touching, and testing the 'finished' product before investing in expensive molds far out weighs the costs of this process. Get it right then tool up. Yes, this may result in the manufacturer potentially giving away some business but think of the benefits of getting it right with the first tooling.
Inventors must remember manufacturers have nothing to gain by offering anything less than their best. They are expecting to benefit from their efforts by eventually adding another product to their line. A manufacturer who makes a genuine effort in researching and developing the essential design and process for production will be understandably upset by a demanding, unrealistic inventor who takes his or her business elsewhere in midstream.
On the other hand, manufacturers who take on inventors' projects are obligated to provide reasonable expectations in fulfilling the key ingredients. In summary fashion this includes selecting the method of tooling and production, the efficiency of design, the economy of the process, the anticipated start up volume and the capability to gear up to higher production levels . A manufacturer willing to spell out all of these steps for the inventor ahead of time will save frustrations and conflicts between parties.
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