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New Innovator Guide |
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Starting Out |
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In this Section
When you truly understand the difference between and idea and an invention, you will have overcome one of the major impediments to the success of independent inventors. An idea is just a problem statement. An invention is a solution to that problem. Ideas aren't patentable. Inventions are. An Example: Assume that artificial Christmas trees didn't exist, and you've come up with the idea that an artificial Christmas tree might sell. People wouldn't have to go shopping for a new tree each year, they wouldn't have to keep it watered or clean up fallen needles, and they wouldn't have the problems of disposing of it. It would save trees and relieve landfill clogging, etc., etc. You feel this is a great idea but you're afraid someone will steal it. So you rush to a patent attorney, if you're lucky enough to miss the ubiquitous "Inventions Wanted" ads. The attorney, however, will inform you that you can't patent the idea of an artificial Christmas tree. You have to "reduce it to practice." What (and all) you can patent is an implementation of it; i.e., a design and construction that you work out. So you go back and play around with different designs (in real or on paper) and finally come up with something that looks and feels pretty good to you. You rush back to the attorney, he does a patent search and tells you it's "patentable." You tell him to go ahead, he gets a patent application filed, and you breathe a sigh of relief. Now you're "protected" and your fortunes made. Well, you have a surprise coming! It's almost certain you've blown the time and money you've invested. Paranoia got in the way of common sense, and in your fear of someone "stealing" your idea (and you, thereby, losing you your golden opportunity), you've taken actions (and adopted a mind set) that virtually guarantees your loss of that opportunity. You minimized some legal risk, but at the cost of maximizing your business risk. That's a bad tradeoff. A Better Approach? Recognize the difference between an invention and an idea, and quit trying to protect ideas. In the case of your artificial Christmas tree, it's not your idea that may be salable or licensable, it's your implementation of that idea. You need to come up with a "winning" design. Unless you're extraordinarily skilled (or lucky), you need outside input to have any chance of doing so. How do you find that input? Simply talk to potential customers about the idea and listen to what they have to say. But won't people steal your idea and go develop their own? Yes, there's a risk. But let's look at that risk in the harsh light of reality. First, most people won't share your enthusiasm for your idea even if it's a good one. People mentally resist change. They cling to the status quo. The overwhelming majority of people exposed to your idea will reject it out-of-hand. "It would ruin the spirit of Christmas," "I certainly wouldn't have one in my house," etc. More than likely, your problem will be finding anyone who'll take your idea seriously enough to offer the input you need. Second, the few people who may pick up on it and think it's a good idea are too busy to develop it themselves. There's a great deal of work required to go from an idea to a good design. They have their own priorities they're working on. Even if they think it's a promising idea and want to be involved, why would they go charging off to do it them self or hire it done, when they have you chomping at the bit to do it for free? To save a 5 percent royalty? I don't think so! Let's look at what you lost in your first approach of rushing off to the patent attorney and what you gain in this new approach. In your first approach, after your attorney told you you needed a design, you went home and designed something. You probably recognized that its "realism" was important. So you played around with materials for the trunk and branches and bristles and came up with something that looked pretty "real" and that's what you patented. In the new approach, hopefully some of your contacts will talk with you. Some of the first things you'll hear are: "This is a big, bulky item. How would you ship it? How would a store stock it? In fact, how would the user store it during the off-season?" Oops! Maybe it has to be collapsible. Back to the drawing board, and you work out a design in which the branches are removable, and the user has to do a little assembly. You may also work out some methods for making the assembly a little easier and a little more foolproof. And, you may have to change some of your materials; e.g., use a springier material in your bristles so they'll pop back into shape after being crushed in the box. Now that you've got an answer to that problem, back to your contacts. Even with a verbal description, they're not interested in how you did it -- only with the end result. Now you may hear questions like "Is it safe?" "Will it burn if there's an electrical short?" "How about a glass ornament that the sun shines through?" Wow! If I make this thing inflammable, I've really got something! Back to the drawing board, some material changes, back to the contacts. You get the idea. After you've cycled through your contacts (i.e., anyone who'll seriously listen) and satisfied their criticisms, or as many as you're able, that's the time you may want to talk with a patent attorney. And what do you want to talk to him about patenting? The features that provide the user benefits: The removable branches, the springy bristles, the inflammability, etc. Keep in mind that through this whole process, you haven't had to disclose how you did anything, only the end result. For example, the "idea" of removable branches is not patentable. How you made them removable without compromising ease of assembly, sturdiness, etc., may be patentable. Now, which of these two approaches is more likely to result in a salable or licensable product? If you've grasped the difference between an idea and an invention, you have the answer. Return to Table of Contents for this guide | Return to index of all guides | Return to the top of this page Think you have a great idea for a new product or service? You're not alone. Every year, tens of thousands of people try to develop their ideas and commercially market them. Some people try to sell their idea or invention to a manufacturer that would market it and pay royalties. But finding a company to do that can be overwhelming. As an alternative, others use the services of an invention or patent promotion firm. Indeed, many inventors pay thousands of dollars to firms that promise to evaluate, develop, patent, and market inventions... and then do little or nothing for their fees. Unscrupulous promoters take advantage of an inventor's enthusiasm for a new product or service. They not only urge inventors to patent their ideas or invention, but they also make false and exaggerated claims about the market potential of the invention. The facts are: few inventions ever make it to the marketplace; and getting a patent doesn't necessarily increase the chances of commercial success. There's great satisfaction in developing a new product or service and in getting a patent. But when it comes to determining market potential, inventors should proceed with caution as they try to avoid falling for the sweet-sounding promises of a fraudulent promotion firm. Using Patent or Invention Promotion Firms Advertisements for invention promotion firms are on television, radio and the Internet, and in newspapers and magazines. These ads target independent inventors with offers of free information on how to patent and market their inventions. Often, however, the information is about the promoter. If you respond to the ad(s) which may urge you to call a toll-free number(s) you may hear back from a salesperson who will ask for a sketch of the invention and information about your idea and you. As an inducement, a firm may offer to do a free preliminary review of your invention. Some invention promotion firms may claim to know or have special access to manufacturers who are likely to be interested in licensing your invention. In addition, some firms may claim to represent manufacturers on the lookout for new product ideas. Ask for proof before you sign a contract with any invention promotion firm that claims special relationships with manufacturers. After giving your invention a preliminary review, a firm might tell you it needs to do a market evaluation of your idea(s) for a fee that can be several hundred dollars. Many questionable firms don't do any genuine research or market evaluations. The "research" is bogus, and the "positive" reports are mass-produced in an effort to sell clients on additional invention promotion and marketing services. Fraudulent invention promotion firms don't offer an honest appraisal of the merit, technical feasibility, or market potential of an invention. Some invention promotion firms also may offer a contract in which they agree to help you market and license your invention to manufacturers. Unscrupulous promoters may require you to pay a fee of several thousand dollars in advance. Reputable licensing agents usually don't rely on large advance fees. Rather, they depend on royalties from the successful licensing of client inventions. How can they make money when so few inventions achieve commercial success? They're choosy about which ideas or inventions they pursue. If a firm is enthusiastic about the market potential of your idea(s) but charges you a fee in advance, take your business elsewhere. Heads Up If you're interested in working with an invention promotion firm, here's information that can help you avoid making a costly mistake. Many fraudulent invention promotion firms offer inventors two services in a two-step process: one involves a research report or market evaluation of your idea that can cost you hundreds of dollars. The other involves patenting or marketing and licensing services, which can cost you several thousand dollars. Early in your discussion with a promotion firm, ask for the total cost of its services, from the "research" about your invention through the marketing and licensing. Walk away if the salesperson hesitates to answer. Many fraudulent companies offer to provide invention assistance or marketing services in exchange for advance fees that can range from $5,000 to $10,000. Reputable licensing agents rarely rely on large upfront fees. Unscrupulous invention promotion firms tell all inventors that their ideas are among the relative few that have market potential. The truth is that most ideas don't make any money. Many questionable invention promotion firms claim to have a great record licensing their clients' inventions successfully. Ask the firm to disclose its success rate, as well as the names and telephone numbers of their recent clients. Success rates show the number of clients who made more money from their inventions than they paid to the firm. Check the references. In several states, disclosing the success rate is the law. Ask an invention promotion firm for its rejection rate & the percentage of all ideas or inventions that the invention promotion firm finds unacceptable. Legitimate firms generally have high rejection rates. Fraudulent invention promotion firms may promise to register your idea with the U.S. Patent and Trademark Office's Disclosure Document Program. Many scam artists charge high fees to do this. The cost of filing a disclosure document in the PTO is $10. The disclosure is accepted as evidence of the date of conception of the invention, but it doesn't offer patent protection. Unscrupulous firms often promise that they will exhibit your idea at tradeshows. Most invention promotion scam artists don't go to these tradeshows; much less market your idea effectively. Many unscrupulous firms agree in their contracts to identify manufacturers by coding your idea with the U.S. Bureau of Standard Industrial Code (SIC). Lists of manufacturers that come from classifying your idea with the SIC usually are of limited value. Common Sense Tips Contracting for the services of an invention promotion firm is no different from making many other major purchases. Apply the same common sense. Question claims and assurances that your invention will make money. No one can guarantee your invention's success. Investigate the company before you make any commitment. Call the Better Business Bureau, the consumer protection agency, and the Attorney General in your city or state, and in the city or state where the company is headquartered to find out if there are any unresolved consumer complaints about the firm. Make sure your contract contains all the terms you agreed to both verbal and written before you sign. If possible, ask an attorney to review the agreement. Remember that once a dishonest company has your money, it's likely you'll never get it back. For More Information The Patent and Trademark Office offers information about patents, trademarks, and copyrights. Write to the U.S. Department of Commerce, Patent and Trademark Office, Washington, D.C. 20231; call toll-free at 1-800-PTO-9199. For more information about the Disclosure Document Program, call 703-308-4357. In addition, every state has a Patent and Trademark Depository Library that maintains collections of current and previously issued patents and Patent and Trademark reference materials. The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint, or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the online complaint form . The FTC enters Internet, telemarketing, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies worldwide. Return to Table of Contents for this guide | Return to index of all guides | Return to the top of this page Beginning Steps for the Innovator As an individual in the early idea stages, are you experiencing excitement and frustration right now? On the one hand, are you seeing the rewards and potential of your idea while being simultaneously plagued by a multitude of confusing questions about how to start, who to go to, who to trust, how much it will cost, and whether your idea is even worth pursuing? If so, you're not alone. In more than a decade of guiding thousands of innovator's, we've found that most people with new ideas have little or no experience in commercializing a product and usually work at a full-time job. So it's very understandable that you may not have the knowledge, time or resources to develop and launch your new product. Our goal at DreamsToMarket.com, is to educate you about what you need to do, and to help increase the odds that your products will make it to market. Your First Priority Our belief is that education should be your first priority in developing your new idea. After all, do doctors simply decide to practice medicine and just "do it?" Do lawyers become lawyers overnight? Of course not. These are specialized fields that require years of study and practice and a high cost for the education. Most of us know that with specialization comes higher financial rewards. We believe that it's the same with innovating. Yet we've found that most people just jump right in, immediately go get a patent or build an expensive prototype, or invest into a firm they think will do it all for them. By the way, there's no such thing. Inventing is not a "get rich quick" business. Those who know this realize that only a small percentage of inventors even make it all the way through the process. We believe that this is because most people think that they'll be an overnight success and don't do first things first. As a result, they end up taking the wrong paths. We've heard sad stories of inventors who didn't do "first things first" and have spent thousands of dollars (average $3-10,000) on a patent, in addition to the costs of prototypes, molds, and manufacturing runs (average $20-100,000); only to realize, after the fact, that their product didn't have the expected market value or potential they initially thought it had. Many of these inventors have ended up stuck with unsold products in every nook and cranny of their garage, attic, or basement because even the liquidators (who normally pay pennies on the dollar) wouldn't buy their stock. Just as sad, we've spoken with many people with ideas who ended up with the scam companies who told them what they wanted to hear, took all their money and let their idea die, as well as killed the individual's spirit of inventing. The bottom line is that ultimately nobody can guarantee you success - even WITH enough education. There are just too many factors and variables involved in launching a new product. The marketplace will be the final judge for your product. We believe, however, that your odds of succeeding will greatly increase with a rock-solid foundation of knowledge upon which to build. With the educated path, the worst-case scenario (if you were to find out that your idea is a no-go) would be that you ended up spending only the necessary and minimum amount of money along with your sweat equity. We believe this isn't a loss, because you'll be able to utilize all these skills and knowledge with your next great idea...and the next...and the next. Return to Table of Contents for this guide | Return to index of all guides | Return to the top of this page The "Inventor's Tool Kit" is a set of four key documents that, when used properly, provides you with solid protection during the early stages of the invention process. The kit includes:
Let's take a closer look at these documents. The Disclosure Document (DD) establishes ownership because, under U. S. law, patent rights legally belong to the first inventor unless the idea is abandoned. To be effective, however, the DD must clearly teach how to make and use the invention, and it must be signed and witnessed. It should be in a permanently-bound book with numbered pages. And, it must be followed up with provable, diligent reduction to practice. The Confidentiality Agreement (CA) may be the most important document of all. Its use allows you to start the marketability and patentability discovery processes without opening the door to claims of public disclosure, which might bar patentability here or abroad. The CA must be referenced to the DD so that no misunderstanding can arise as to what the pledge of confidence is about. The CA should identify what the intended purpose of the confidential disclosure is, and it should state that the disclosed is released from the agreement in the following circumstances: if the invention comes into the public domain, if the invention is already known by disclosed, if the invention is already known by others, and if the invention has not, or is not, treated by the inventor as confidential material in dealings with others. The Work Agreement (WA) is important when you obtain outside help. Such help might be in reduction to practice, artistic design, improvements in concept or construction, etc. The WA is very important because, by law, ALL true inventors must be specified in your US patent application. If a contractor has contributed to the invention and you elect to legally claim his/her improvements in your patent application, the contractor must be treated as a co-inventor in your application. The WA allows the contractor to legally be bound to transfer his/her rights in the application to the inventor. Contractor compensation may be salary, fixed contract price or a percent of the first profits, but should not be a percent of ownership in the patents, which carry some of the contractor's inventive contribution. The WA legally binds the contractor to transfer his or her rights in any patents for the compensation paid for his or her work, even if the compensation occurs in the future, i.e., option rights, etc. Rights transferred are for US and foreign patents and any continuations, divisions, and reissues. The contractor is also obliged to help perfect your patents. The License Agreement (LA) may be the most complex agreement in law. Please don't try to negotiate such an agreement without professional help. The patent or pending patent should be clearly identified as well as the names, addresses and entity status of each of the parties. The LA gives rights of making, using, and/or selling for products protected under law by the patent grants or potential patent grants. Usually an "upfront" fee is stipulated, but in many agreements the licensee considers his investment of time and money in tooling and initial market rollout to be an adequate initial investment. In this case, the inventor must include controls in the LA that will enable him/her to back out of the agreement if certain actions are not taken on schedule. Considerations of exclusivity, duration, disputes, termination, assignability, sublicensing, patent right defense, improvements to the invention by the inventor or by the licensee, marking of products that are protected under the patents, trademark usage and control, foreign sales and patent protection, are just a few of the important issues to be negotiated. Having experience, so as to be able to assert knowledge of typical agreements in forcing contractual terms to meet your needs, is essential in striking a deal. Some of the more important issues are the royalty rate, minimum royalty amount, when it is to be paid and to whom it will be paid. The latter is important with respect to income tax considerations. The Inventor's Tool Kit provides the basic legal tools necessary to the maintenance of rights in bringing a new product idea to market. Familiarity with these four documents enables anyone to proceed with greater confidence in selecting professionals to help, and in making the important early decisions necessary for business success with inventive ideas. To purchase the inventor's tool kit click here. Return to Table of Contents for this guide | Return to index of all guides | Return to the top of this page Planning the Process of Invention Innovation cannot be thought of as a project or single development. Rather, it must be viewed as a critical and ongoing process within organizations. Today, every company has to continuously improve, extend and innovate. American businesses, with few exceptions, seem to believe that innovation is a "flash of genius," not a systematic, organized, rigorous discipline. But, without a well-conceived innovation strategy, we believe companies will lack direction and ultimately lose their competitiveness. The Innovation Process Starts With Planning The fact is that planning for the future is difficult, unpredictable, and more important than ever. Planning for the future is imperative because so much is changing so fast, and the future will look nothing like the present. Innovation Management Can Craft a Strategy for the Future Today, the innovations of many companies are propelled by management desires, internal capabilities or channel demands. These innovations sometimes succeed because they have vision and meet defined strategic goals -- and sometimes fail because they do not. For the future, building successful innovations will be even more demanding, with little room for compromise. New innovations must meet the needs of customers first while also satisfying management, providing a good business proposition for the company, and using feasible and affordable technology. The operating environment, yesterday and today: Yesterday
Today
What will tomorrow bring? More unknowns, but our site enables you to continuously adapt to change and surprise. This results in your ability to focus skills and capabilities to achieve sustainable value creation and competitive advantage. The Need for "Front-end" development Most companies focus on the "back-end" by improving time-to-market, time-to-profits, reducing development waste and increasing success rates. While this is important, we believe that focusing on "front-end" development creates winning, sustainable strategies. The DreamsToMarket.com site builds on: (1) anticipating customer needs, (2) identifying the best new opportunities, (3) focusing attention on differentiation, (4) getting ahead of new technologies, and (5) knowing when to create new product and technology platforms. Building a Defined Process Innovation Management can help by creating innovative strategies including:
Return to Table of Contents for this guide | Return to index of all guides | Return to the top of this page The Inventor's Journal/Log Book The "Inventors Log Book" is a very inexpensive process, YET POSSIBLY YOUR MOST VALUABLE TOOL IN THE PROTECTION OF YOUR NEW IDEA. Why? Because the patent system in the United States rewards the "first person" that invents a new product. Therefore, even if somebody else files a patent on the same idea before you do, if you can prove that you were the first person that invented the product and you have the proper records of your ongoing work, the patent would be awarded to you. The key is that you have to prove that you conceived and invented the product first. So, as soon as the "lightning" strikes, begin a daily journal, diary-style, to keep track of your idea(s). This will help you establish a date of "conception." If two inventors have been developing the same idea or if someone tries to take your idea, it will be the one who has the most dated and detailed notes and sketches who will almost always win the legal battle. To do this, you need dated records showing any and all corrections and revisions, receipts for purchases of any materials used to make sample prototypes, records of visits with patent attorneys or other professionals, etc. And, that's where the "log book" comes in. There's a special way to do this. Make sure your idea is well documented by following these easy guidelines. Type of Notebook You will need a stitched or bound notebook. "Official" invention logbooks cost between $10-30 because they're hardbound, larger, and include preprinted numbered pages with specially designed grids and lines for your notations and required signatures. They're the easiest to use, however. If you're on a budget, you can purchase a "Mead Composition"-type notebook, which costs under $5 and is available at most office supply stores. If you have an Office Depot or Staples office supply store near you, they usually sell a pack of two or three for under $4. If you purchase one of these types of notebooks, be sure to immediately number all of the pages on both the front and back of each page. An accountant's record keeping-type book can also be used, and they are available at office supply stores or even drug stores like Thrifty. Remember that the purpose of the logbook is to have a chronological record of all your work related to your invention. A stitched or bound notebook makes it impossible to tear out or add pages without detection, and is the only type of notebook that will work in court. Therefore, spiral notebooks will not work. 3-ring binders with loose-leaf sheets will not work either, nor tablets that are glued together; i.e. legal pads TIP: If you have more than one idea that you will be working on simultaneously, we recommend that you use one logbook per idea. What To Include The logbook is a very detailed diary of your progress. Write down everything you do, or think, that is related to your invention in your logbook - including any library research, supplies you buy to make a model or sample, improvements, design changes, any quotes from manufacturers, and even mentioning it to someone. When you test your idea, include both positive and negative results. Include diagrams and layouts, any special procedures, etc. Each time you write new or additional information in your logbook, it is considered an "entry." Each entry should a date and time. Each entry should be self-explanatory which means that anyone reading it should be able to understand it without any assistance or explanations. Staple or tape any receipts, bills, or paperwork to the pages. TIP: If you have had your idea for some time and have not been documenting any of your work to date, we recommend you backtrack as far back as you can remember and include when you got the idea, when you started working on it, what you have done to date and any specifics you can recall. Look at old check stubs and receipts to help you relate exact dates. For example, if you purchased any supplies for your invention, you'll easily recognize the receipt noting the date you purchased it as well as the store name. Then enter these details and receipts in your logbook as evidence. Format for Each Entry A good format to begin your logbook and initially describe your invention is to answer the following questions in sequential order:
Once you have described your invention, begin by answering the following questions about "future action steps:"
Then be sure to mark your calendar with these deadlines so that you can make sure you are continuously working on your invention and are conducting the "due-diligence" requirements of the patent office. Important Due-Diligence Requirements In order to be granted a patent, an invention must be worked on continuously and persistently. This is known as the requirement of "diligence in completing the invention" or "reduction to practice" under the US patent laws. If you stop working on your invention for several months or in some cases even weeks without any progress, you may jeopardize your rights to obtain a patent. After you have completed your action steps, answer the following question in your logbook: What action did I take since my last entry? Remember to be very detailed by also answering "When did I do it, where did I do it, why did I do it, who did I do it with? And list any results. Then, go back to "future action steps" questions listed above. It's a continual process of planning, taking action, following up and then repeating the process. Some Rules to Follow You might be tempted to use a pencil so you can erase and make corrections, but because the purpose of the logbook is for proof that the ideas are originally yours, be sure to use ink that can't be erased and modified by anyone. For this same reason, you're not supposed to cross out any mistakes. In the case of drawings, we recommend that you practice on scratch paper and transfer the corrected versions of sketches or drawings to the logbook - making detailed notations about what's different from the previous drawing. Be sure not to rip out or add any pages. It is probably best to start every new entry on a new page in order to make it neater and easier to find your entries later. Therefore if your entry ends in the middle of a page, draw a large "X" on any empty spaces or blank pages, and start your next entry on the next page. Be sure to always draw a large "X" on any empty spaces or blank pages. Witnesses At the end of each entry, sign and date the page. Also write in the following short paragraph: "I have witnessed and understand this idea. I agree to keep this disclosure confidential" and have two unrelated "witnesses" (who are not involved in the development of your invention) print their names, sign and date it. Official logbooks have this paragraph preprinted on every page. Notarize Your Entries Then have the entry "notarized." Find a notary public near you by looking in the phone book under the category of "Notary Public." These individuals serve as legal witnesses who will provide you with a special seal as evidence that they witnessed your documentation on the specific date. They will also keep a record on file. The price of each notarization may range from $10-20. You might check whether your bank still provides this service. Most banks used to have a public notary on hand as a convenience to their customers, but over the past decade many have eliminated this service. For economical reasons, you may want to notarize several entries in your logbook all at once approximately every three to four weeks instead of after every single entry. This will help you keep your costs down, and will also be less time consuming. Naturally, if you have specific questions on the legal aspects of any steps of this process, it may be wise to directly consult with a patent attorney for proper legal advice. TIP: If you're a real detailed individual and would like more extensive information about properly filling out an inventor's logbook, there is an entire book on this subject titled "Inventors Notebook" by Fred Grissom/David Pressman which is a complete guide to documenting your idea. It is available on our Products page. Return to Table of Contents for this guide | Return to index of all guides | Return to the top of this page You can digitally fingerprint, time stamp and register any size or type of digital file instantly online through a web site called Firstuse.com. By registering your records, you have developed a third party record proof of the date of idea conception - if you register at the time you develop new ideas. Since the United States is a "First To Invent" country, the earlier conception date of a new invention prevails over the earlier patent filing date. Firstuse.com's Registry is not just for recording inventions. Artists, musicians, writers, attorneys, technology managers and more use the registry to record (date/time stamp) important contracts, original works and other time-sensitive documents of any kind. Also, once a document has been registered, you can include the registration proof logo on any new copies of the document, alerting those who receive the document that it has been third party registered. Instant, Online Registry Keeping a solid, verifiable digital recording trail be a critical link to maintaining ownership or earlier-date positioning on intellectual property. You can register your intellectual property documents confidentially, 24 hours a day through their secure Internet connection. Use the Registry to record progress. Then, when you're ready, file your:
Your use of the Registry does not replace your requirement to file Patent, Trademark and/or Copyright applications with the United States Patent and Trademark Office, United States Copyright Office, or any applicable foreign patent, trademark or copyright offices in countries where you seek intellectual property protection. To protect your rights to your intellectual property, you must file the necessary applications with the Patent or Copyright Offices. How does the Digital Fingerprinting/Time Stamp Registry work? WHAT TO REGISTER:
Note: Firstuse.com registration enables you to create a tamperproof, time-sealed audit trail of your work to help strengthen Patent claims. It is NOT a substitute for a Patent. Storage To achieve true confidentiality and security, Firstuse.com receives a digital fingerprint of your file, not the file itself. However, to verify files in the future, you must have an unaltered copy of the registered file. You can store the file yourself or use a Firstuse.com's Authorized Storage Partner. IMPORTANT: Please Read, "How to Preserve Files" Before Registering Files! Verification Your registrations can be verified instantly, worldwide, by anyone who has the original file or an exact copy of the file you registered. Give out only the information you want to third parties. Enable an unlimited amount of third parties to verify. Complete simple one-step verification process in seconds. Each Firstuse.com Verification Contains:
Important steps to follow after registration You must keep an unchanged original or perfect copy of your file. Create a folder on your hard drive and drop the original file registered with firstuse.com into that folder. Do not open and "resave" a file after registration. Make changes to a working copy only. Back up important files frequently to a zip or floppy disk. Make all files registered with Firstuse.com "read only" to help prevent alteration. This may be accomplished by right clicking on a file, selecting "properties" and then selecting "read only". Consult your computer advisor for more information on preserving files in "read only" form. IMPORTANT: you must maintain the original file. Firstuse.com never sees your file One of the main benefits of using Firstuse.com is 100% confidentiality, guaranteed. Firstuse.com can help prove what you registered, when you registered it, and that the file has never been altered since registration, but they claim to never actually see your file. Instead, Firstuse.com remains neutral as a trusted third party by registering a time-stamped digital fingerprint of your file. Please also read their Legal Notices. The reason for special handling of a Registered File The byte structure (underlying digital arrangement) of a registered file must not change or it will not fingerprint the same as it did originally and, therefore, Firstuse.com will not be able to verify it. Following the rules above will help to preserve the file's byte structure. Firstuse.com is a confidential registry. The registry does not read nor does it see the file you are registering. Rather, through a technology known as "digital fingerprinting" or "hashing," Firstuse.com creates and stores a Digital Fingerprint (a random array of digits) of your file in its Registry Database. This Digital Fingerprint is a unique identifier for your file -- no two files can have the same digital fingerprint. Because Firstuse.com only stores a fingerprint of your file and not the file itself, you must keep an unchanged version of the file you registered in order for your registration to be meaningful. At any time you want to verify the file, you can use the Firstuse.com Online Registry to do so. The Registry will re-fingerprint the file. If the new fingerprint matches the fingerprint Firstuse.com has on file in its database, then the Registry can attest to the fact that the file your are verifying is the exact file that was originally registered and the precise time and date the file was registered. Preserving Your File for Future Verification Verifying a file is just as simple as registering a file. You'll simply visit the Registry again, browse your hard drive or floppy disk, and re-fingerprint the original or unaltered copy of the file you previously registered. If the new fingerprint matches the fingerprint Firstuse.com has in its database, then the Registry will display your registration certificate, attesting to who registered the file, the precise contents of the previously registered file, that the file was registered at a precise time and date and that the file has never been altered. IMPORTANT: Read, "How to Preserve Files" Before Registering Files! Registration You can instantly register a file simply by selecting the file from your computer. Register any size or type file (text, graphic, spreadsheet, database, audio, video, and scan). Complete simple two-step registration process in seconds. Each Firstuse.com Registration Includes:
Return to Table of Contents for this guide | Return to index of all guides | Return to the top of this page Nondisclosure (Confidentiality) Agreement The "Nondisclosure Agreement" sounds confusingly similar to the US Patent & Trademark Office's "Disclosure Document Program." Yet they are completely different and unrelated. A Nondisclosure Agreement (also known as a "Confidentiality Agreement") is used when someone with an UN-patented idea for an innovation shows it to another party and wants that party to maintain as confidential any information he or she learns about the product as a result of the meeting. The inventor draws up the nondisclosure agreement and has the other party sign that he/she will not disclose any of the information to anyone else, and will not market the idea or compete with you. In the very early stages, we advise against indiscriminately signing any Nondisclosure Agreements with any product development companies, service providers, investors, venture capitalists, licensees, etc. Keep the Details of your New Innovation Secret at First During the initial phases of working on your new idea, you will generally not need to reveal it to anyone. There is a way to talk to people about your innovation without telling them what it is or how it works! For example, let's say your idea is "a toothbrush with a long, curved handle which reaches further into the mouth to get at hard-to-reach spots, and extra long bristles made out of natural materials to stimulate the gums." Instead of revealing so much information, you can simply say that you have developed a "new type of toothbrush," or a "new teeth cleaning device" or an "oral hygiene tool." With these brief phrases, you have provided a "general" picture of what your product is, but it is so general and vague that you have not given away any secret details or features about your product or how it works. If someone asks you more in-depth questions after you have provided a short phrase such as the one above, just explain that you are not able to disclose any additional information about the product at this time. TIP: Keep the details of your new product secret until you have at least a patent pending, especially during the period when you are not protected and are shopping for services. USE THE NONDISCLOSURE (CONFIDENTIALITY) AGREEMENT SELECTIVELY WITH ESSENTIAL SERVICE PROVIDERS WITH WHICH YOU HAVE DECIDED TO WORK The Nondisclosure (Confidentiality) Agreement is recommended as a tool for you to use once you have progressed to the point where you have done everything you can do on your own, and absolutely need a professional to assist you with the next phase. For example, you may need to hire a professional prototype maker to help you develop a working model of your product. Yet, while you are in the initial phase of "shopping" for a prototype maker, you do not need to reveal all of the details about how your product works, nor is it necessary to have the prototype maker sign a Nondisclosure Agreement. In the shopping phase, you will want to find out what kind of experience the company has, what successful clients they have had, examples of their work, what their fees are, how they charge, what forms of payment they accept, how long a typical project takes and other questions along those lines. They do not need to know what your product is in order to answer these basic questions for you. Some of these companies may operate like a doctor's office where they initially provide you with a Nondisclosure Agreement to fill out while you wait in the lobby. In this case, fill out the basic contact information and explain to the receptionist that you cannot complete the entire form. In other cases, the company may say that they can't provide you with an accurate quote or estimate without knowing what the product is. This may be true, but you can still get a general idea of the price range for a product similar to yours - without revealing your product. Explain that you understand their concern, but that you are not ready to sign a Nondisclosure Agreement yet, and cannot reveal what your product is because you are in the early stages. In order to get a sample quote; provide them with a similar product that is already out on the market. For example, you can ask them to give you a quote on making a typical toothbrush prototype. This way, when you have quotes from several companies on the same product, you'll have a "general" idea of the costs and can compare their advice and pricing. In this way, if you have spoken with ten prototype companies, you haven't given away the full details of your product to all ten companies - when in fact you'll only be working with one. Once you have shopped and decided which company you are going to work with, naturally you must reveal the details of your idea and how it works in order for the company (for example, a prototype maker) to do its job. At this point, use the Nondisclosure Agreement to protect yourself before any work is started. In this way, you are using the Nondisclosure Agreement "selectively" throughout the period prior to applying for a patent. To recap, the Nondisclosure Agreement should be used after you have made the decision to work with a certain company or individual who absolutely needs to know how your product works in order to perform their special craft. Working this way, you'll narrow down the amount of people that know about your product, and you will greatly reduce the risk of someone stealing your idea. What If a Company Refuses to Sign a Nondisclosure Agreement? If a company you selected refuses to sign a Nondisclosure Agreement, you will have to make a personal decision about whether or not to work with the company. Since you do not have any patent protection yet, you'll need to assess whether you can take a risk to work with this company. If they won't sign a Nondisclosure Agreement, it isn't necessarily a sign that this company intends to steal your idea. There may be valid reasons for not signing Nondisclosure Agreements. For example, if you already have a patent, there's no need for a company to sign a Nondisclosure Agreement and most companies will refuse to sign them, but at this stage where you're patented, it's a valid refusal. The company may have had a previous bad experience where they signed a Nondisclosure Agreement and ended up being unfairly sued, so they developed a policy of not signing them in the future. If the company happens to be the best in the industry, it might be worth the risk to work with them anyway. On the other hand, it might not. Don't jump to conclusions one way or the other. Be sure to do your research and ask them the specific reasons why they won't sign one. So you need to take all the specific circumstances into consideration, and weigh the benefits as we |