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First Steps
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New Ideas To Market: The Five Critical Steps
Most of us have a good new product idea every once in a while, but the vast majority of us never take steps to own or sell our ideas. However, every year thousands of ideas are acted upon by their creators. Some develop into financially successful products. What does it take to get a new idea going? How does one protect the idea while in the process of finding out what to do, how much it will cost and what the chances of success are? Many schemes and procedures are found in the literature from authors of various backgrounds. We have found that the invention process is well represented by a five-step procedure. In this process a new idea is brought from the concept stage to a "business ready" stage where the inventor is prepared to seek venture partners, financial backers or licensees. Let's take a look at these individual process steps. Step 1 establishes the legal date of conception. An idea in your head is protected only by the fact that no one else can read your mind. Once you disclose the details to others, they may be tempted to claim that the idea, or a modification of it, actually originated with them. This is prevented by disclosing the details of your idea on paper, signing and dating this document as the "inventor," and then having it witnessed. The result is a legal document which is remarkably strong in protecting the inventor's rights as originator of the idea. Our patent laws protect the rights of the first to invent. Step 2 involves evaluating the marketability of a commercially viable product based on your idea. This is done by identifying products or services that meet the same human needs that your product would. This is a very important step and is frequently glossed-over, by the eager inventor, without adequate discovery. To be successful in the marketplace a new product must have a strong benefit that some human beings would naturally seek. It is important to be thorough in evaluating all of the current competitive products. For new consumer ideas, competitive products are all around you in the retail stores. For industrial goods such as tools and such, competitive products are described in technical sheets available from manufacturers listed in references such as the Thomas register in any library. Step 3 calls for a patentability search in order to see if the idea is protectable and also, if it might infringe the patent rights of others. Some non-patentable ideas like the "pet rock" have generated large revenues for their creators. Most products that are not protected under U.S. patent, do not do well for the small entity independent inventor because just when sales of the new product are growing fastest, strong outside interests are attracted to compete. It is possible to lose a fast growing market, in only a few weeks. A preliminary patent search may be carried out using the internet or one of the many depository libraries located in major cities around the country. A professional search with patentability opinion is always a good idea if your initial search proves positive. Step 4 is reduction to practice. This means building a prototype to prove to yourself, and others, that the idea really works or is as appealing as you first thought. A prototype may not be a practical possibility or may be unnecessary, but If it is feasible, it should always be considered. Rarely can potential backers, licensees or venture people convince their management to invest in your product without seeing it, holding it and working it. If step two shows that the market is strong for a product such as yours, and if your patentability search results are positive now is the time to file for patent protection. It is highly recommended that both a prototype be made and a patent application be filed before commercial efforts begin. The new Provisional Patent Application may be written and drawn informally by the inventor, without legal help, and requires a filing fee of only $80. Step 5 is to formulate a business plan. There are two basic ways to make money with your idea. Licensing, the first way, requires filing a strong and broad-based patent application on your idea and then trading protection under your potential patent(s) for a royalty against sales by the licensee. Venture, the second way, generally involves your personal involvement in the business of taking the product to market. If you have experience with manufacturing, marketing, finance or business management, you may be functional in your own venture. Alternately, you may be a silent partner providing the intellectual property protection but not becoming active in the venture. Whether licensing or venture, you will need to prepare a business plan about what and how you will proceed. When properly executed these critical five steps produce three important results. First, a raw inventive idea is converted into a definable "intellectual property" protected under law. Second, the inventor quickly, and inexpensively, develops an understanding of the true practical value of the idea. Third, the inventor assumes an "expert" position with real negotiating strengths. The inventor moves quickly and assuredly, converting a new idea into an income stream, or alternately, learning that his best strategy is to drop the matter before investing major time or money in it. Either way, it's a win-win situation. Click here for additional information |
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