By: Benjamin LehbergerNov
Intellectual property protection is an important consideration for most startups. Obtaining intellectual property protection, such as patents, can minimize competition and act as a defensive mechanism against infringement claims from others. Intellectual property also can attract or solidify funding and partnerships. In formulating an intellectual property strategy for your startup, consider the following
File early, and keep quiet
Your time to file for patent protection is limited and patents should be contemplated early on in development. In the United States, an inventor has a one-year “grace period” from first publicizing an invention to filing for patent protection, after which it is too late. However, you should not wait even that long. In 2013, the U.S. patent system switched from a first-to-invent to a first-inventor-to-file system. This subtle difference in terminology could mean dire consequences for those who delay seeking patent protection.
Under the old first-to-invent system, you could be the first to conceive of an invention and still obtain patent rights over an earlier filer by showing that you conceived first and continued to diligently work on your invention. Today, it is a race to the patent office. Regardless of who conceived of the invention first, the first one to file their patent application “wins.”
Also, it is important to note that the one-year “grace period” to file a patent application is not available in most countries outside of the United States. If you plan to seek patent protection abroad, publicizing your invention at any time before filing a patent application could put your foreign intellectual property rights in jeopardy. Therefore, file early and keep quiet until you do.
File again as the invention evolves
As your startup continues to develop its product or products, consider each new feature as a possibility for patent protection. Startups that file one early patent application and stop may find that, once the patent issues, the product has moved far beyond what was in the original patent application. The product may end up being under-protected or not even covered by the patent at all.
It is important to reevaluate patent protection on a regular basis and consider filing on new features of the invention when applicable. If the product is evolving quickly, consider filing a provisional patent application or a series of provisional patent applications within a year before filing a utility patent application.
Do not wait for your patent to issue
Patents take time. While there are avenues available to expedite examination, on average it takes more than two years for a patent to be granted by the U.S. Patent Office. About 30 percent of patent applications do not make it through at all.
Having an issued patent may help to get funding for your startup and secure your place in your market. But, do not wait until your patent issues to commercialize your invention. Keep your startup moving forward and keep developing. Chances are, you will solve additional problems along the way, which may lead to even more important inventions. In the meantime, you will be building your brand, reputation and revenue.
Consider design patents
When discussing patents, the focus is often on utility patents, but design patents should also be considered as part of a well-rounded intellectual property strategy. In general, a utility patent protects the way a product is used and works, while a design patent protects the way the product looks. By the end of 2015, the U.S. Patent Office had issued more than 9.2 million utility patents, but only about 746,000 design patents.
Design patents can provide significant value as a supplement to utility patents or as a replacement when utility patent protection is unavailable. Software utility patents are still available in the United States. But, following the U.S. Supreme Court’s decision in Alice v. CLS Bank, obtaining utility patent protection for software-related inventions has become more difficult and less predictable. Design patents provide a viable option to protect certain features of software-related inventions, particularly the graphical user interfaces.
The term of a design patent is slightly less, 15 years from grant for a design patent versus 20 years from filing for a utility patent, but so is the cost. Also, design patents often can be obtained much quicker than utility patents.
Read More >> https://techcrunch.com/2016/10/31/intellectual-property-strategies-for-startups/
Saturday, March 31, 2018
Tuesday, March 27, 2018
Startup Entrepreneurs: Why Your Startup Needs a Patent Attorney
By: Michael J Foycik Jr.
November 1, 2017
The author is a patent attorney who helps clients with startups on crowdfunding sites, including the startup which set a fundraising record on Kickstarter. The author has over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Why need a patent attorney for a crowdfunding effort? Would entrepreneurs benefit? Will it help you raise funds? Good questions!
I learned answers to those and other questions while helping a record-setting startup raise funds on a crowdfunding site. It seems to matter to investors, donors, and others. Let's see why.
The public – donors, investors, and early adopters – may have concerns: can they be sure your product or service does not infringe any patents? Can they be sure you're protected and that no competitor can take away your rights? Only a patent attorney can help with that. Having a patent attorney's help – and listing the patent attorney on your web site as an advisor – can impress investors and donors.
The above points do not even mention patentability, which can be very important. The investing public will wonder if your startup is taking steps to protect its patent rights, both in the US and in foreign countries. Having a patent attorney as an advisor can be reassuring to the investing public, and helps them feel confident your startup is properly advised on these points.
Other key questions: do the entrepreneurs need a Utility patent application or a Design patent application? Would a trademark help? What about international (foreign) patent applications? Is having a right-to-use study beneficial? Will trade secret protection work, and if so how can it be secured?
Read More >> http://internationalpatentservice.com/Why-Your-Startup-Needs-a-Patent-Attorney.html
November 1, 2017
The author is a patent attorney who helps clients with startups on crowdfunding sites, including the startup which set a fundraising record on Kickstarter. The author has over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Why need a patent attorney for a crowdfunding effort? Would entrepreneurs benefit? Will it help you raise funds? Good questions!
I learned answers to those and other questions while helping a record-setting startup raise funds on a crowdfunding site. It seems to matter to investors, donors, and others. Let's see why.
The public – donors, investors, and early adopters – may have concerns: can they be sure your product or service does not infringe any patents? Can they be sure you're protected and that no competitor can take away your rights? Only a patent attorney can help with that. Having a patent attorney's help – and listing the patent attorney on your web site as an advisor – can impress investors and donors.
The above points do not even mention patentability, which can be very important. The investing public will wonder if your startup is taking steps to protect its patent rights, both in the US and in foreign countries. Having a patent attorney as an advisor can be reassuring to the investing public, and helps them feel confident your startup is properly advised on these points.
Other key questions: do the entrepreneurs need a Utility patent application or a Design patent application? Would a trademark help? What about international (foreign) patent applications? Is having a right-to-use study beneficial? Will trade secret protection work, and if so how can it be secured?
Read More >> http://internationalpatentservice.com/Why-Your-Startup-Needs-a-Patent-Attorney.html
Monday, March 26, 2018
Why Your Startup Needs A Patent Lawyer
By: tpladmin at
Patents can be expensive. The cost of obtaining a patent can run into thousands of dollars. Since startups operate on a low budget, they are tempted to cut corners in their patent strategy. Instead of hiring a patent lawyer or agent, they draft the application and file for patents by themselves. There is no regulation prohibiting you from filing for patents on your own, but is it a good idea?
For most startups, patents are an important asset. They add value to the business, can create a competitive advantage, and potentially open up profitable avenues. The process of obtaining patents is a complex one that involves various legal formalities. To increase your success rate, consider hiring a patent lawyer or agent in Canada. Here are all the reasons why your startup needs a patent lawyer or agent:
Ensure Long-Term Success
Mistakes made are often irreversible. This is especially true for the patent process. Your patents are are often critical to your startup’s success. Cutting corners today to save some dollars can lead to costly consequences in the future. When filing for patents by themselves, many entrepreneurs make errors that can lead to rejection. They fail to conduct a thorough search or make shallow claims in their application. Even if you successfully tread through the process, errors like vague claims can make it difficult to enforce your rights in the future. A patent lawyer or agent can help you prevent these issues.
Make Good Use Of Your Time
As a startup owner, you already have your plate full with several responsibilities. You may be your business’ founder, accountant, as well as the administration manager, all at the same time. When you take on the additional work of filing a patent application, there are chances you will have little time left for other things. Any legal work, including patent filing, needs to be exercised with caution and requires addressing various formalities. Those unfamiliar with the process, laws, rules and case law related to patents are more likely to make an error during drafting. Be smart and hire a patent lawyer or agent to make efficient use of your time.
Attract Funding
Investors understand the role intellectual property plays in a business’ success. Before funding your company, they will want to evaluate your patent strategy. They will want evidence that your patents are viable and competent enough to face challenges. When you have a patent lawyer or agent by your side, investors may be more likely to believe that your intellectual property are in good hands. An investor may feel that you are serious about your business and may be more likely to invest in your and your business.
Meet All Important Deadlines
The patent process is governed by various deadlines. Many early-stage ventures obtain an early filing date to prevent their idea from being misused against them. But, unless you file a complete application, the procedure won’t move forward. There is a strict deadline of 12 months within which you must file your second, complete application. If your startup requires international patents, there are many more deadlines to address. In the midst of all your responsibilities, these deadlines can be missed. Hiring a patent lawyer or agent can save you because they will track these deadlines on your behalf.
Hiring a patent lawyer or agent in Canada will add to your costs. But, this cost is more of an investment that will benefit you in the future. If your startup needs help with patents, then get in touch with our patent lawyers and agents at Prowse Chowne LLP.
Source >> http://trademarkspatentslawyer.com/why-your-startup-needs-a-patent-lawyer/
Patents can be expensive. The cost of obtaining a patent can run into thousands of dollars. Since startups operate on a low budget, they are tempted to cut corners in their patent strategy. Instead of hiring a patent lawyer or agent, they draft the application and file for patents by themselves. There is no regulation prohibiting you from filing for patents on your own, but is it a good idea?
For most startups, patents are an important asset. They add value to the business, can create a competitive advantage, and potentially open up profitable avenues. The process of obtaining patents is a complex one that involves various legal formalities. To increase your success rate, consider hiring a patent lawyer or agent in Canada. Here are all the reasons why your startup needs a patent lawyer or agent:
Ensure Long-Term Success
Mistakes made are often irreversible. This is especially true for the patent process. Your patents are are often critical to your startup’s success. Cutting corners today to save some dollars can lead to costly consequences in the future. When filing for patents by themselves, many entrepreneurs make errors that can lead to rejection. They fail to conduct a thorough search or make shallow claims in their application. Even if you successfully tread through the process, errors like vague claims can make it difficult to enforce your rights in the future. A patent lawyer or agent can help you prevent these issues.
Make Good Use Of Your Time
As a startup owner, you already have your plate full with several responsibilities. You may be your business’ founder, accountant, as well as the administration manager, all at the same time. When you take on the additional work of filing a patent application, there are chances you will have little time left for other things. Any legal work, including patent filing, needs to be exercised with caution and requires addressing various formalities. Those unfamiliar with the process, laws, rules and case law related to patents are more likely to make an error during drafting. Be smart and hire a patent lawyer or agent to make efficient use of your time.
Attract Funding
Investors understand the role intellectual property plays in a business’ success. Before funding your company, they will want to evaluate your patent strategy. They will want evidence that your patents are viable and competent enough to face challenges. When you have a patent lawyer or agent by your side, investors may be more likely to believe that your intellectual property are in good hands. An investor may feel that you are serious about your business and may be more likely to invest in your and your business.
Meet All Important Deadlines
The patent process is governed by various deadlines. Many early-stage ventures obtain an early filing date to prevent their idea from being misused against them. But, unless you file a complete application, the procedure won’t move forward. There is a strict deadline of 12 months within which you must file your second, complete application. If your startup requires international patents, there are many more deadlines to address. In the midst of all your responsibilities, these deadlines can be missed. Hiring a patent lawyer or agent can save you because they will track these deadlines on your behalf.
Hiring a patent lawyer or agent in Canada will add to your costs. But, this cost is more of an investment that will benefit you in the future. If your startup needs help with patents, then get in touch with our patent lawyers and agents at Prowse Chowne LLP.
Source >> http://trademarkspatentslawyer.com/why-your-startup-needs-a-patent-lawyer/
Sunday, March 25, 2018
Startup Business: A Checklist
By: Michael J Foycik Jr.
June 22, 2016
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Starting a new business is exciting! Here's a checklist you'll want to consider.
>> Trademark application or registered trademark. Everyone needs this.
>> Pending patent application of any type: design, utility, or provisional (PPA).
>> Funding, which can include crowd funding services like Kickstarter or Indiegogo.
>> Copyright rights. This includes your web site and promotional materials.
>> Publicity, if using crowd funding sites or if needed to attract investors.
Read More >> http://internationalpatentservice.com/Startup-Business.html
June 22, 2016
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Starting a new business is exciting! Here's a checklist you'll want to consider.
>> Trademark application or registered trademark. Everyone needs this.
>> Pending patent application of any type: design, utility, or provisional (PPA).
>> Funding, which can include crowd funding services like Kickstarter or Indiegogo.
>> Copyright rights. This includes your web site and promotional materials.
>> Publicity, if using crowd funding sites or if needed to attract investors.
Read More >> http://internationalpatentservice.com/Startup-Business.html
Saturday, March 24, 2018
Startups Need to Protect Intellectual Property from the Start
By: Richard Neff
These days, many startups focus on creating apps for Apple’s App Store as well as the Android platform. Others are ecommerce sites. At any rate, most inventions, or apps and software, are best protected by patent or copyright, or both. Unfortunately, cash-strapped startups often defer protecting their putative crown jewels. They are always focused on the corporate structure and investor documents, but rarely on the need to protect their intellectual property right away.
Patents. If the startup is based on an invention, an early attempt should be made to apply for patent protection, even though applying and prosecuting the patent may cost $10,000 to $20,000 or more. Patents have become harder to obtain for a variety of reasons, including the higher threshold applied to business method patent protection because of several US Supreme Court decisions, first Bilski v. Kappos in 2010, and then Alice Corp. v. CLS Bank Int’l in 2014, the latest high court decision to hold that “abstract ideas” are not eligible for patent protection. Patent protection gives a temporary monopoly of 20 years from applying, to enable the patent holder to build value in the invention and protect it from copycats. If a startup cannot afford the cost of a patent application at the outset, a provisional patent application serves as a placeholder provided that the patent is applied for within 12 months.
Copyright. Apps and software typically are protected by copyright, as is most content. It is easy to secure copyright protection for apps or websites or other content with an inexpensive filing (as little as $35 for online filing) with the U.S. Copyright Office. For a “work” (software, app, video or video game) created in the U.S., while copyright exists upon creation, failure to register the copyright with the Copyright Office means the owner cannot pursue an infringement claim in the U.S. if someone infringes the copyright, nor obtain statutory damages, which avoids the difficulty of proving actual copyright damages. Given the low cost of a copyright registration, and the significant benefits registering works, this should be early on a startup’s to-do list.
User-generated content. There is one more, perhaps obscure, protection granted by the Copyright Office that may apply to startups. If the enterprise will be an online service that accepts and hosts content from third parties, the startup should use the Office’s online registration systems to complete its “Designation of Agent to Receive Notification of Claimed Infringement” for a basic fee of $6. This registration as an online service provider immunizes the startup from copyright liability for hosting third-party content, provided that if an infringement notification is received, the takedown (and counter-notification) procedures set down in the Section 512 of the Digital Millennium Copyright Act are followed. This is a huge benefit for companies posting third-party content, as copyright liability derived from infringing third-party content can be large.
Domain names. Not every startup company has something to patent or copyright. But every company is focused on its domain name. Almost invariably, startup entrepreneurs will try to find a domain they can register which can also serve as their brand or company name. Once they secure the domain, they believe that they’re home free. It is seldom so easy: Trademark rights trump rights in domain names. Companies may quickly find themselves as the target of a cease and desist letter from a trademark owner who believes a domain name is confusingly similar to its mark.
Trademarks. Therefore, companies must coordinate a trademark strategy with domain names and brand names. Trademark, which distinguishes goods and services in commerce, is a country-by-country process (with some ability to register marks in multiple countries, e.g., Community Trade Marks in the European Union or filing under the Madrid Protocol). Trademark filing fees in the U.S. are $275 per mark per class (i.e., sector of use). A company may have one or two marks to register, perhaps in one or two classes, and which can add up quickly to about $1000 per mark per class for all legal work and filing fees, excluding the cost of engaging a third-party trademark search service. Registration gives companies nationwide rights to use a mark and puts others on notice of the marks. No doubt startups wish to build brand value, so it is essential from the outset to have rights to the brand names.
Rights assignment. At an early point in the evolution of a startup, the company may engage a website developer or an app developer. To minimize legal expense, the founders may figure they can review the service provider contracts on their own. This may be a mistake if the contracts do not ensure assignment of all rights, particularly copyright, in any website design or app development to the startup (and at least perpetual license rights to any deliverables owned by the developer). The company must obtain all such rights, so this assignment of rights must be clarified in service provider contracts.
Terms of use and privacy policy. Websites need to set the terms of use/service and state a privacy policy. These must be written accurately, and the company must adhere to both. Just copying another website’s privacy policy can be dangerous. These policies are contracts with the public. Increasingly, privacy policies are to some extent governed by the most stringent global regulation, probably European Union legislation, which restrict personal data transfers to US companies (except for those that have been certified under Privacy Shield). Beginning in May 2018, the EU's GDPR (General Data Protection Regulation) will also apply to your company if you plan to do business with European residents. Few US companies are in compliance at this point.
Nondisclosure. Startup ideas are usually exciting, and entrepreneurs want to share them with potential investors, partners and other third parties. The first document needed is a nondisclosure agreement (sometimes called confidentiality agreement), which ideally will be signed by third parties before the company shares its concept with third parties. This prevents the third party from disclosing confidential information to others, or using the confidential information for its own purposes. Some companies will not want to sign the agreement, and it’s a cost-benefit decision to make on proceeding to hold discussions with such a company or individual.
If startups follow these intellectual property protection concepts, they will be well ahead of the game in building value.
Source >> https://www.execrank.com/board-of-directors-articles/startups-need-to-protect-intellectual-property-from-the-start
These days, many startups focus on creating apps for Apple’s App Store as well as the Android platform. Others are ecommerce sites. At any rate, most inventions, or apps and software, are best protected by patent or copyright, or both. Unfortunately, cash-strapped startups often defer protecting their putative crown jewels. They are always focused on the corporate structure and investor documents, but rarely on the need to protect their intellectual property right away.
Patents. If the startup is based on an invention, an early attempt should be made to apply for patent protection, even though applying and prosecuting the patent may cost $10,000 to $20,000 or more. Patents have become harder to obtain for a variety of reasons, including the higher threshold applied to business method patent protection because of several US Supreme Court decisions, first Bilski v. Kappos in 2010, and then Alice Corp. v. CLS Bank Int’l in 2014, the latest high court decision to hold that “abstract ideas” are not eligible for patent protection. Patent protection gives a temporary monopoly of 20 years from applying, to enable the patent holder to build value in the invention and protect it from copycats. If a startup cannot afford the cost of a patent application at the outset, a provisional patent application serves as a placeholder provided that the patent is applied for within 12 months.
Copyright. Apps and software typically are protected by copyright, as is most content. It is easy to secure copyright protection for apps or websites or other content with an inexpensive filing (as little as $35 for online filing) with the U.S. Copyright Office. For a “work” (software, app, video or video game) created in the U.S., while copyright exists upon creation, failure to register the copyright with the Copyright Office means the owner cannot pursue an infringement claim in the U.S. if someone infringes the copyright, nor obtain statutory damages, which avoids the difficulty of proving actual copyright damages. Given the low cost of a copyright registration, and the significant benefits registering works, this should be early on a startup’s to-do list.
User-generated content. There is one more, perhaps obscure, protection granted by the Copyright Office that may apply to startups. If the enterprise will be an online service that accepts and hosts content from third parties, the startup should use the Office’s online registration systems to complete its “Designation of Agent to Receive Notification of Claimed Infringement” for a basic fee of $6. This registration as an online service provider immunizes the startup from copyright liability for hosting third-party content, provided that if an infringement notification is received, the takedown (and counter-notification) procedures set down in the Section 512 of the Digital Millennium Copyright Act are followed. This is a huge benefit for companies posting third-party content, as copyright liability derived from infringing third-party content can be large.
Domain names. Not every startup company has something to patent or copyright. But every company is focused on its domain name. Almost invariably, startup entrepreneurs will try to find a domain they can register which can also serve as their brand or company name. Once they secure the domain, they believe that they’re home free. It is seldom so easy: Trademark rights trump rights in domain names. Companies may quickly find themselves as the target of a cease and desist letter from a trademark owner who believes a domain name is confusingly similar to its mark.
Trademarks. Therefore, companies must coordinate a trademark strategy with domain names and brand names. Trademark, which distinguishes goods and services in commerce, is a country-by-country process (with some ability to register marks in multiple countries, e.g., Community Trade Marks in the European Union or filing under the Madrid Protocol). Trademark filing fees in the U.S. are $275 per mark per class (i.e., sector of use). A company may have one or two marks to register, perhaps in one or two classes, and which can add up quickly to about $1000 per mark per class for all legal work and filing fees, excluding the cost of engaging a third-party trademark search service. Registration gives companies nationwide rights to use a mark and puts others on notice of the marks. No doubt startups wish to build brand value, so it is essential from the outset to have rights to the brand names.
Rights assignment. At an early point in the evolution of a startup, the company may engage a website developer or an app developer. To minimize legal expense, the founders may figure they can review the service provider contracts on their own. This may be a mistake if the contracts do not ensure assignment of all rights, particularly copyright, in any website design or app development to the startup (and at least perpetual license rights to any deliverables owned by the developer). The company must obtain all such rights, so this assignment of rights must be clarified in service provider contracts.
Terms of use and privacy policy. Websites need to set the terms of use/service and state a privacy policy. These must be written accurately, and the company must adhere to both. Just copying another website’s privacy policy can be dangerous. These policies are contracts with the public. Increasingly, privacy policies are to some extent governed by the most stringent global regulation, probably European Union legislation, which restrict personal data transfers to US companies (except for those that have been certified under Privacy Shield). Beginning in May 2018, the EU's GDPR (General Data Protection Regulation) will also apply to your company if you plan to do business with European residents. Few US companies are in compliance at this point.
Nondisclosure. Startup ideas are usually exciting, and entrepreneurs want to share them with potential investors, partners and other third parties. The first document needed is a nondisclosure agreement (sometimes called confidentiality agreement), which ideally will be signed by third parties before the company shares its concept with third parties. This prevents the third party from disclosing confidential information to others, or using the confidential information for its own purposes. Some companies will not want to sign the agreement, and it’s a cost-benefit decision to make on proceeding to hold discussions with such a company or individual.
If startups follow these intellectual property protection concepts, they will be well ahead of the game in building value.
Source >> https://www.execrank.com/board-of-directors-articles/startups-need-to-protect-intellectual-property-from-the-start
Thursday, March 22, 2018
The Role of the Patent Attorney for Startups and Entrepreneurs
By: Michael J Foycik Jr.
November 1, 2017
The author is a patent attorney who helps clients with startups on crowdfunding sites, including the startup which set a fundraising record on Kickstarter. The author has over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Your startup ready to launch. That means there are questions: can I lose my rights by mistake? Are my rights secured? What rights do I need to protect? Those are things your patent attorney will be able to help with.
Are you infringing? And, do you have a right-to-use? Your patent attorney can help with that.
What if your startup's new product or service is not patentable: how can you be protected against unscrupulous engineers, designers, artists, and any others needed to help you develop your invention? The protection needed there is called “trade secret” protection. Your patent attorney can help you secure your trade secret rights.
Do you need a Design patent application, or do you need a Utility patent application? And, which is which? Again, the patent attorney can help.
Did you make a sale or publish the invention already? Foreign rights may already have been lost in many important foreign countries. US rights can still be secured if within one year of the date of the first sale or publication.
Read More >> http://internationalpatentservice.com/The-Role-of-the-Patent-Attorney-for-Startups-and-Entrepreneurs.html
November 1, 2017
The author is a patent attorney who helps clients with startups on crowdfunding sites, including the startup which set a fundraising record on Kickstarter. The author has over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Your startup ready to launch. That means there are questions: can I lose my rights by mistake? Are my rights secured? What rights do I need to protect? Those are things your patent attorney will be able to help with.
Are you infringing? And, do you have a right-to-use? Your patent attorney can help with that.
What if your startup's new product or service is not patentable: how can you be protected against unscrupulous engineers, designers, artists, and any others needed to help you develop your invention? The protection needed there is called “trade secret” protection. Your patent attorney can help you secure your trade secret rights.
Do you need a Design patent application, or do you need a Utility patent application? And, which is which? Again, the patent attorney can help.
Did you make a sale or publish the invention already? Foreign rights may already have been lost in many important foreign countries. US rights can still be secured if within one year of the date of the first sale or publication.
Read More >> http://internationalpatentservice.com/The-Role-of-the-Patent-Attorney-for-Startups-and-Entrepreneurs.html
Wednesday, March 21, 2018
A Practical Guide to Startup Funding
By: Irwin Stein & Gene Quinn
You have done everything right. You’ve invented a new, exciting and potentially revolutionary technology. You’ve responsibly filed patent applications on your innovations along the way, securing early priority dates with solid, thorough, comprehensive filings. Now you are at the edge of success – if only you can acquire the funding you need.
This is where venture capital comes into play, at least in theory. But technology VCs can be fickle (to put it politely). What is hot one minute is not the next. Today some are predicting that many tech companies will soon choose to relocate to China, which in 2016 saw as much venture capital investment as in the United States (approximately $50 billion according to Silicon Valley Bank), and where VCs are far more willing to fund an array of projects largely due to the massive commercial marketplace.
What if your startup is a university startup based on university developed and patented technology? The goal is not only to create a domestic corporation, but also to create a local corporation that leverages university technology. While there will be many trials and tribulations, if successful that university startup will benefit the entire region, bring high paying jobs to the community, return capital to the university to further research efforts, and continue to allow professors to teach and students to learn on the cutting edge of technological innovation.
Moving to China isn’t an option for a university startup, regardless of the technology and likelihood of attracting funding from venture capitalists. Similarly, many other technology companies simply can’t, or won’t, make the choice to chase money to China. Still with investment for Internet of Things (Iot) softening and hardware companies finding themselves largely out of options, many tech startups must become more creative.
Equity Crowdfunding
Fortunately it is not as difficult to find investors as you may think. Equity crowdfunding is on the path to surpass venture capital as the preferred way for startups and small businesses to raise capital.
In a nutshell, equity crowdfunding is the sale of equity (or debt) in your business directly to investors using an online platform instead of a stock brokerage firm. It is also less expensive than hiring a brokerage firm. Although direct to investor funding over the Internet has been around almost a generation, it became much more feasible (and popular) with the JOBS Act of 2012.
The JOBS Act provides for three regulations that govern distinct types of offerings. The offerings differ by how much money you can raise and from what type of investor you can raise it from. First, Regulation A (Reg. A) permits offerings of up to $50 million dollars from any investor. Second, Regulation Crowdfunding (Reg. CF) allows companies to raise up to $1,070,000 per year directly from the general public. Finally, Regulation D. (Reg. D) allows companies to advertise and solicit investments from accredited investors (i.e., those whose income is over $200,000 a year or possess over $1 million in assets outside of their primary residence). Reg. D has become the primary vehicle for companies seeking to use crowdfunding.
Read More >> http://www.ipwatchdog.com/2018/02/05/practical-guide-startup-funding/id=93257/
You have done everything right. You’ve invented a new, exciting and potentially revolutionary technology. You’ve responsibly filed patent applications on your innovations along the way, securing early priority dates with solid, thorough, comprehensive filings. Now you are at the edge of success – if only you can acquire the funding you need.
This is where venture capital comes into play, at least in theory. But technology VCs can be fickle (to put it politely). What is hot one minute is not the next. Today some are predicting that many tech companies will soon choose to relocate to China, which in 2016 saw as much venture capital investment as in the United States (approximately $50 billion according to Silicon Valley Bank), and where VCs are far more willing to fund an array of projects largely due to the massive commercial marketplace.
What if your startup is a university startup based on university developed and patented technology? The goal is not only to create a domestic corporation, but also to create a local corporation that leverages university technology. While there will be many trials and tribulations, if successful that university startup will benefit the entire region, bring high paying jobs to the community, return capital to the university to further research efforts, and continue to allow professors to teach and students to learn on the cutting edge of technological innovation.
Moving to China isn’t an option for a university startup, regardless of the technology and likelihood of attracting funding from venture capitalists. Similarly, many other technology companies simply can’t, or won’t, make the choice to chase money to China. Still with investment for Internet of Things (Iot) softening and hardware companies finding themselves largely out of options, many tech startups must become more creative.
Equity Crowdfunding
Fortunately it is not as difficult to find investors as you may think. Equity crowdfunding is on the path to surpass venture capital as the preferred way for startups and small businesses to raise capital.
In a nutshell, equity crowdfunding is the sale of equity (or debt) in your business directly to investors using an online platform instead of a stock brokerage firm. It is also less expensive than hiring a brokerage firm. Although direct to investor funding over the Internet has been around almost a generation, it became much more feasible (and popular) with the JOBS Act of 2012.
The JOBS Act provides for three regulations that govern distinct types of offerings. The offerings differ by how much money you can raise and from what type of investor you can raise it from. First, Regulation A (Reg. A) permits offerings of up to $50 million dollars from any investor. Second, Regulation Crowdfunding (Reg. CF) allows companies to raise up to $1,070,000 per year directly from the general public. Finally, Regulation D. (Reg. D) allows companies to advertise and solicit investments from accredited investors (i.e., those whose income is over $200,000 a year or possess over $1 million in assets outside of their primary residence). Reg. D has become the primary vehicle for companies seeking to use crowdfunding.
Read More >> http://www.ipwatchdog.com/2018/02/05/practical-guide-startup-funding/id=93257/
Tuesday, March 20, 2018
Some Kickstarter Success Tips
By: Michael J Foycik Jr.
August 6, 2014
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
If you're planning a Kickstarter campaign or other enterprise funding site, then these tips may help.
Have IP protection. What's that? It is intellectual property. It is not necessary to have an issued patent, but for success raising capital it is important to have at least patent pending protection. Trademark protection can help too. Don't neglect copyright protection and trade secret protection, if those are appropriate for your enterprise.
Get publicity. Use an inexpensive service that does e-press releases. Such a service can even help you write the press releases, for a small additional fee. And, try giving interviews to journals and magazines that might review your product or service.
Line up your tech resources ahead of time, to list on the site. These services would include affordable software technical services. Your product will need technical support services, so it may be a good idea to list such a company on your site. Other software services are important, as you're well aware already: sales support software, inventory management software, and employee management software, among others.
Read More >> http://internationalpatentservice.com/Some-Kickstarter-Success-Tips.html
August 6, 2014
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
If you're planning a Kickstarter campaign or other enterprise funding site, then these tips may help.
Have IP protection. What's that? It is intellectual property. It is not necessary to have an issued patent, but for success raising capital it is important to have at least patent pending protection. Trademark protection can help too. Don't neglect copyright protection and trade secret protection, if those are appropriate for your enterprise.
Get publicity. Use an inexpensive service that does e-press releases. Such a service can even help you write the press releases, for a small additional fee. And, try giving interviews to journals and magazines that might review your product or service.
Line up your tech resources ahead of time, to list on the site. These services would include affordable software technical services. Your product will need technical support services, so it may be a good idea to list such a company on your site. Other software services are important, as you're well aware already: sales support software, inventory management software, and employee management software, among others.
Read More >> http://internationalpatentservice.com/Some-Kickstarter-Success-Tips.html
Monday, March 19, 2018
HOW TO PROTECT YOUR INTELLECTUAL PROPERTY FROM INVENTIONS TO OTHER PROJECTS
By: FREE LEGAL SERVICES
Patent laws have been in place within the United States for over 200 years. In 1790, the first law was enacted for this purpose. By 2016, the United States Patent and Trademark Office had issued 303,051 patents. It may not be surprising to learn that the most international patent applications that were submitted during 2016 were for digital communication and computer technology.
The Different Types of Patents
You are most-likely aware that there are different types of patents. The United States Patent and Trademark Office has defined these three different patent categories:
> Utility patents
> Design patents
> Plant patents
More utility patents are issued within the United States than any other type of patents. According to the United States Patent and Trademark Office, approximately 90% of the patent documents they have issued are for utility patents.
How to Protect Your Patent
If you have invented something in the category of digital communication and computer technology, for example, you will need to meet various criteria in order to have it patented. For your invention to receive a patent, it must meet these three basic criteria:
> Usefulness
> Novelty
> Non-obviousness
Information on Patent Expiration
It’s important to note that patents do have an expiration date. If a utility or plant patent was issued after June 8, 1995, for instance, it would expire 20 years from the date of the original application and maintenance fee payment. Design patents, however, will expire 14 years after the date they were originally issued.
How to Protect Your Intellectual Property
When you have dedicated your time, energy, creativity, and other resources to developing intellectual property, it’s important to protect it from being infringed upon. In addition to protecting your intellectual property by applying for a patent, there are three other methods to accomplish this goal:
> Trademarks
> Copyrights
> Trade secrets
Source >> http://myfreelegalservices.com/how-to-protect-your-intellectual-property-from-inventions-to-other-projects/
Patent laws have been in place within the United States for over 200 years. In 1790, the first law was enacted for this purpose. By 2016, the United States Patent and Trademark Office had issued 303,051 patents. It may not be surprising to learn that the most international patent applications that were submitted during 2016 were for digital communication and computer technology.
The Different Types of Patents
You are most-likely aware that there are different types of patents. The United States Patent and Trademark Office has defined these three different patent categories:
> Utility patents
> Design patents
> Plant patents
More utility patents are issued within the United States than any other type of patents. According to the United States Patent and Trademark Office, approximately 90% of the patent documents they have issued are for utility patents.
How to Protect Your Patent
If you have invented something in the category of digital communication and computer technology, for example, you will need to meet various criteria in order to have it patented. For your invention to receive a patent, it must meet these three basic criteria:
> Usefulness
> Novelty
> Non-obviousness
Information on Patent Expiration
It’s important to note that patents do have an expiration date. If a utility or plant patent was issued after June 8, 1995, for instance, it would expire 20 years from the date of the original application and maintenance fee payment. Design patents, however, will expire 14 years after the date they were originally issued.
How to Protect Your Intellectual Property
When you have dedicated your time, energy, creativity, and other resources to developing intellectual property, it’s important to protect it from being infringed upon. In addition to protecting your intellectual property by applying for a patent, there are three other methods to accomplish this goal:
> Trademarks
> Copyrights
> Trade secrets
Source >> http://myfreelegalservices.com/how-to-protect-your-intellectual-property-from-inventions-to-other-projects/
Sunday, March 18, 2018
Quit Worrying About Competitors, And Start Making Money
By: Michael J Foycik Jr.
February 20, 2014
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Stop worrying! Many inventors and businesses become paralyzed by worry when trying to advance a new idea.
What if competitors import cheap knock-offs? What if they steal your idea? What if it isn't protectable as a patent?
Here are some factors to put your mind at ease.
First, competitors won't spend money to copy a product unless they are sure it will make money. For anything that is new, how can they know? Probably only by seeing if you make money. That gives you a big head start. If your product is good, you can saturate the market before the first knock-off arrives. Also, this gives you time to establish your trademark or trade name, so that people asking for it by name will always get your product.
Second, until your idea is made public, it can be protected as a trade secret, assuming you have marked everything confidential and avoided any non-confidential disclosures. Again, this provides a real head start, with the benefits noted above.
Third, suppose your idea is so good that competitors want to immediately steal/misappropriate your idea. That can be a very good problem to have! Why? Because it means that your rights could have great value to a legitimate company, one that has power to enforce those rights for you against infringers. You see it in the news all the time: big companies investing in small companies, buying a percentage of the ownership. Big companies know how to protect their investments, and their rights.
Fourth, your US patent application gives you one year's worth of priority, for filing of PCT or foreign applications. Can't afford foreign patent applications? See the above paragraph; if your invention is good and/or successful, it can attract investment by those with enough money to pay to get foreign rights.
Raed More >> http://internationalpatentservice.com/Quit-Worrying-About-Competitors-And-Start-Making-Money.html
February 20, 2014
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Stop worrying! Many inventors and businesses become paralyzed by worry when trying to advance a new idea.
What if competitors import cheap knock-offs? What if they steal your idea? What if it isn't protectable as a patent?
Here are some factors to put your mind at ease.
First, competitors won't spend money to copy a product unless they are sure it will make money. For anything that is new, how can they know? Probably only by seeing if you make money. That gives you a big head start. If your product is good, you can saturate the market before the first knock-off arrives. Also, this gives you time to establish your trademark or trade name, so that people asking for it by name will always get your product.
Second, until your idea is made public, it can be protected as a trade secret, assuming you have marked everything confidential and avoided any non-confidential disclosures. Again, this provides a real head start, with the benefits noted above.
Third, suppose your idea is so good that competitors want to immediately steal/misappropriate your idea. That can be a very good problem to have! Why? Because it means that your rights could have great value to a legitimate company, one that has power to enforce those rights for you against infringers. You see it in the news all the time: big companies investing in small companies, buying a percentage of the ownership. Big companies know how to protect their investments, and their rights.
Fourth, your US patent application gives you one year's worth of priority, for filing of PCT or foreign applications. Can't afford foreign patent applications? See the above paragraph; if your invention is good and/or successful, it can attract investment by those with enough money to pay to get foreign rights.
Raed More >> http://internationalpatentservice.com/Quit-Worrying-About-Competitors-And-Start-Making-Money.html
Saturday, March 17, 2018
Startup Patent Licensing: Beating the Long Odds
By: Jackie Hutter
March 16, 2018
Achieving meaningful revenue through licensing by startup entrepreneurs can be for all intents and purposes a “unicorn event:” much discussed, but rarely achieved. Notwithstanding this reality, a significant number of startup entrepreneurs who seek to engage me for IP Strategy and patent development consulting assert confidently that their necessity for a patent is based on a business strategy of licensing (or selling) their protected product or technology to an established company.
This is not surprising because it is embedded in the DNA of much of society that “if you build a better mousetrap, the world will beat a path to your door.” Late night infomercials featuring famous people and entrepreneur “hero stories” in the press also bolster this conviction. It is certainly heartwarming and inspiring to believe that an “Average Josephine” can become rich solely on the basis of their patented idea. But, the truth is that few established companies license (or buy) patents from the general public.
And, why should they? Established companies maintain internal R&D and marketing organizations with the singular responsibility to develop successful new products that are desired by customers. Acquiring innovations from outside of the company means that employees, who are trained, credentialed, and paid for their technical, product, and market expertise, could not adequately do their jobs. In short, the decision to acquire externally developed technology could inherently mean that internal development efforts failed at that company.
As an example of this premise, I consulted for entrepreneurs with patented technology that provided an immediate savings of $1,000,000 a year to a manufacturing operation at an established company. Notwithstanding this unambiguous value proposition, which was being enthusiastically pushed by business team, the technology was rejected virtually out of hand by the R&D manager as “too risky.” The R&D manager held decision rights to approve the technology, and he was able to prevent an otherwise profitable idea from being implemented in the company. Unfortunately, I was brought into the project only after the R&D manager had “poisoned” the idea in the company, and I was unable to help the client execute a patent license. Since this was a technology with a very small manufacturer base, the entrepreneurs were left with an unlicensable patent in which they had invested more than $10,000. This example illustrates that the decision makers at many established companies are often, in economic parlance, dis-incentivized to go outside their facilities to acquire new products.
Certainly, some companies in recent years have expressed interest in acquiring ideas from the general public in the “Open Innovation” context. I spent considerable time several years ago as a consultant and author in this space. The premise of Open Innovation was exciting to me, at least because the framework purported to realign the incentives to motivate employees to look outside their organizations to identify externally developed ideas that could be brought in to help meet corporate goals. Notably, it was expected by many of us that Open Innovation could result in successful corporate product development without the typical cost and effort needed to bring an idea to commercial fruition solely through traditional “Closed Innovation” models. Unfortunately, I found that few have been able to successfully execute on this business model at a corporate level, notwithstanding the initial hype that Open Innovation could be a cure-all for companies seeking to identify and deliver profitable innovations to their customers.
One reason for this failure is the inability of established companies to properly incentivize risk taking. Placing big bets on new innovations developed outside the company necessarily requires a few people to stick their necks out as the advocates of this unproven technology. This small group will necessarily have high visibility and, if the project fails, they will be easily identified as the reason, a fact which could be perceived as being harmful to their careers. In contrast, when internally developed innovation projects do not achieve the projected results, the failure will typically be spread throughout the organization, with the failure effectively resulting from “group effort,” which will likely not harm the career of a specific individual on that basis alone.
Moreover, if someone passes on an external developed innovation opportunity, but a competitor successfully implements the technology, it is highly doubtful that the first person will ever be held accountable for passing. Thus, corporate realities can make it more beneficial not to take a risk if one’s career might be at stake for bringing the technology inside, whereas little career risk exists if a person does not take the risk.
Besides the inherent obstacles posed by organizational constructs, most ideas submitted from the general public, while often quite creative, are flawed in some way that makes them unacceptable for implementation from the outset. For example, a product embodying a patented idea may require purchase of new capital equipment to manufacture or it may not fit into existing shipping containers. Recently, a client’s breakthrough polymer innovation was rejected by a multi-national vertically integrated company because implementation of the technology would cause the revenues of another part of the company to decline because internal supply chains would be disrupted. Ideas that do not align with the existing business models of established companies will likely be rejected from the outset. In short, even good product ideas will be passed on if they do not fit perfectly with the company’s needs, supply chains, distribution channels, and customers in the form they are presented at an early stage.
But there is a way for startup entrepreneurs to beat the odds and be successful in licensing patents protecting products or technology into established companies. This can happen in two primary ways: 1) the startup company develops the idea into a product that shows promise in that customers exist today and will continue to exist in increasingly larger numbers in the future (i.e., the startup has validated a business model); and 2) there is an existing customer/market where revenues can be enhanced by integration of the startup’s innovation into the established company’s products.
The first situation will occur if the startup entrepreneur does the hard (and expensive) work of developing the idea into a product and successfully brings the product to market, at least at an early stage. A license could then result if an established company seeks acquire that validated customer or market where the patent protection is necessary to gain access to that customer. Typically, the licensee company will see that the startup’s customers can be scaled in a way that will generate a desirable revenue stream at a much lower cost than building a competitive product. When the customer value proposition, and not just the product delivered to customers, is broadly protected by the startup’s patents, the established company will license the patent (or acquire the startup outright) to generate revenue (or an exit) for the startup entrepreneur.
The second situation will occur when an established company with existing customers and market expertise seeks to satisfy an unmet need in their portfolio by acquiring an innovation that fills a gap or that enhances their product offerings. In one example of the latter situation, I represent an imaging company that streamlines the matching of a medical device to a patient who needs a therapeutic treatment applied by the device. The medical device itself is a commodity product sold by a number of companies. My client’s protected imaging technology will provide a proprietary advantage to any medical device company that licenses the patents and know-how by enhancing the ability to select the correct size of medical device for an individual patient. Indeed, my client has already executed one license with a medical device company for a considerable sum. The overall value of my client’s technology in the market is shown by the fact that the license is non-exclusive, and license negotiations with other companies are now underway. Notably, this client has been developing and validating the imaging technology for the 2 plus years, and the current patent filings from which licensing revenue is being generated was only identified after a substantial pivot from the original business idea. This pivot necessitated additional patent applications to protect the insights developed from ongoing technology and customer validation efforts, and the first patent application we filed is likely of little value today. Put simply, if the client had relied on her original patent protected idea as a revenue generation model, she would have no value today, but with her 2 plus years of effort, she now has a very valuable business.
For each of these two scenarios, is it not an idea that is licensed. In a crucial distinction, the licensee is buying access to a new product or innovation that aligns with a validated business model for which there are profitable customers. In other words, it is the business model that is protected by a patent that generates value for the entrepreneur, not the patent itself. When broken down into this framework, it should be fairly clear why licensing does not occur as often as conventional thought would make it appear.
Because of the lack of correlation between patent acquisition cost and business value generation, I do not take on any startup clients for IP Strategy and patent drafting consulting unless they can first demonstrate to me that they have identified a business model that is enhanced by patent protection. If “bare patent licensing” is their business goal, I try to convince them that there are likely better ways to spend their money. Certainly, they should not cash out their 401(K) or spend their inheritance on patents, as I have sadly seen all-too-frequently. So, if someone is determined to get a patent absent a validatable business model, I cannot stop them. There are plenty of patent folks who will take on a matter for a client regardless of whether the client may be able to generate revenue from the patent. Some may even generate a very competent patent, albeit one that will likely be worthless to the client from a business perspective. This is a tough reality for startup entrepreneurs to accept, but going into the patenting process with open eyes is a lot better than the alternative. At a minimum, startup entrepreneurs seeking patents for the purpose of licensing to established companies would be well-served by asking their patent attorneys how many of their clients have been successful in doing so in the past. They might be surprised by the answer they receive.
Source >> http://ipassetmaximizerblog.com/startup-entrepreneurs-patent-licensing-beating-long-odds/
March 16, 2018
Achieving meaningful revenue through licensing by startup entrepreneurs can be for all intents and purposes a “unicorn event:” much discussed, but rarely achieved. Notwithstanding this reality, a significant number of startup entrepreneurs who seek to engage me for IP Strategy and patent development consulting assert confidently that their necessity for a patent is based on a business strategy of licensing (or selling) their protected product or technology to an established company.
This is not surprising because it is embedded in the DNA of much of society that “if you build a better mousetrap, the world will beat a path to your door.” Late night infomercials featuring famous people and entrepreneur “hero stories” in the press also bolster this conviction. It is certainly heartwarming and inspiring to believe that an “Average Josephine” can become rich solely on the basis of their patented idea. But, the truth is that few established companies license (or buy) patents from the general public.
And, why should they? Established companies maintain internal R&D and marketing organizations with the singular responsibility to develop successful new products that are desired by customers. Acquiring innovations from outside of the company means that employees, who are trained, credentialed, and paid for their technical, product, and market expertise, could not adequately do their jobs. In short, the decision to acquire externally developed technology could inherently mean that internal development efforts failed at that company.
As an example of this premise, I consulted for entrepreneurs with patented technology that provided an immediate savings of $1,000,000 a year to a manufacturing operation at an established company. Notwithstanding this unambiguous value proposition, which was being enthusiastically pushed by business team, the technology was rejected virtually out of hand by the R&D manager as “too risky.” The R&D manager held decision rights to approve the technology, and he was able to prevent an otherwise profitable idea from being implemented in the company. Unfortunately, I was brought into the project only after the R&D manager had “poisoned” the idea in the company, and I was unable to help the client execute a patent license. Since this was a technology with a very small manufacturer base, the entrepreneurs were left with an unlicensable patent in which they had invested more than $10,000. This example illustrates that the decision makers at many established companies are often, in economic parlance, dis-incentivized to go outside their facilities to acquire new products.
Certainly, some companies in recent years have expressed interest in acquiring ideas from the general public in the “Open Innovation” context. I spent considerable time several years ago as a consultant and author in this space. The premise of Open Innovation was exciting to me, at least because the framework purported to realign the incentives to motivate employees to look outside their organizations to identify externally developed ideas that could be brought in to help meet corporate goals. Notably, it was expected by many of us that Open Innovation could result in successful corporate product development without the typical cost and effort needed to bring an idea to commercial fruition solely through traditional “Closed Innovation” models. Unfortunately, I found that few have been able to successfully execute on this business model at a corporate level, notwithstanding the initial hype that Open Innovation could be a cure-all for companies seeking to identify and deliver profitable innovations to their customers.
One reason for this failure is the inability of established companies to properly incentivize risk taking. Placing big bets on new innovations developed outside the company necessarily requires a few people to stick their necks out as the advocates of this unproven technology. This small group will necessarily have high visibility and, if the project fails, they will be easily identified as the reason, a fact which could be perceived as being harmful to their careers. In contrast, when internally developed innovation projects do not achieve the projected results, the failure will typically be spread throughout the organization, with the failure effectively resulting from “group effort,” which will likely not harm the career of a specific individual on that basis alone.
Moreover, if someone passes on an external developed innovation opportunity, but a competitor successfully implements the technology, it is highly doubtful that the first person will ever be held accountable for passing. Thus, corporate realities can make it more beneficial not to take a risk if one’s career might be at stake for bringing the technology inside, whereas little career risk exists if a person does not take the risk.
Besides the inherent obstacles posed by organizational constructs, most ideas submitted from the general public, while often quite creative, are flawed in some way that makes them unacceptable for implementation from the outset. For example, a product embodying a patented idea may require purchase of new capital equipment to manufacture or it may not fit into existing shipping containers. Recently, a client’s breakthrough polymer innovation was rejected by a multi-national vertically integrated company because implementation of the technology would cause the revenues of another part of the company to decline because internal supply chains would be disrupted. Ideas that do not align with the existing business models of established companies will likely be rejected from the outset. In short, even good product ideas will be passed on if they do not fit perfectly with the company’s needs, supply chains, distribution channels, and customers in the form they are presented at an early stage.
But there is a way for startup entrepreneurs to beat the odds and be successful in licensing patents protecting products or technology into established companies. This can happen in two primary ways: 1) the startup company develops the idea into a product that shows promise in that customers exist today and will continue to exist in increasingly larger numbers in the future (i.e., the startup has validated a business model); and 2) there is an existing customer/market where revenues can be enhanced by integration of the startup’s innovation into the established company’s products.
The first situation will occur if the startup entrepreneur does the hard (and expensive) work of developing the idea into a product and successfully brings the product to market, at least at an early stage. A license could then result if an established company seeks acquire that validated customer or market where the patent protection is necessary to gain access to that customer. Typically, the licensee company will see that the startup’s customers can be scaled in a way that will generate a desirable revenue stream at a much lower cost than building a competitive product. When the customer value proposition, and not just the product delivered to customers, is broadly protected by the startup’s patents, the established company will license the patent (or acquire the startup outright) to generate revenue (or an exit) for the startup entrepreneur.
The second situation will occur when an established company with existing customers and market expertise seeks to satisfy an unmet need in their portfolio by acquiring an innovation that fills a gap or that enhances their product offerings. In one example of the latter situation, I represent an imaging company that streamlines the matching of a medical device to a patient who needs a therapeutic treatment applied by the device. The medical device itself is a commodity product sold by a number of companies. My client’s protected imaging technology will provide a proprietary advantage to any medical device company that licenses the patents and know-how by enhancing the ability to select the correct size of medical device for an individual patient. Indeed, my client has already executed one license with a medical device company for a considerable sum. The overall value of my client’s technology in the market is shown by the fact that the license is non-exclusive, and license negotiations with other companies are now underway. Notably, this client has been developing and validating the imaging technology for the 2 plus years, and the current patent filings from which licensing revenue is being generated was only identified after a substantial pivot from the original business idea. This pivot necessitated additional patent applications to protect the insights developed from ongoing technology and customer validation efforts, and the first patent application we filed is likely of little value today. Put simply, if the client had relied on her original patent protected idea as a revenue generation model, she would have no value today, but with her 2 plus years of effort, she now has a very valuable business.
For each of these two scenarios, is it not an idea that is licensed. In a crucial distinction, the licensee is buying access to a new product or innovation that aligns with a validated business model for which there are profitable customers. In other words, it is the business model that is protected by a patent that generates value for the entrepreneur, not the patent itself. When broken down into this framework, it should be fairly clear why licensing does not occur as often as conventional thought would make it appear.
Because of the lack of correlation between patent acquisition cost and business value generation, I do not take on any startup clients for IP Strategy and patent drafting consulting unless they can first demonstrate to me that they have identified a business model that is enhanced by patent protection. If “bare patent licensing” is their business goal, I try to convince them that there are likely better ways to spend their money. Certainly, they should not cash out their 401(K) or spend their inheritance on patents, as I have sadly seen all-too-frequently. So, if someone is determined to get a patent absent a validatable business model, I cannot stop them. There are plenty of patent folks who will take on a matter for a client regardless of whether the client may be able to generate revenue from the patent. Some may even generate a very competent patent, albeit one that will likely be worthless to the client from a business perspective. This is a tough reality for startup entrepreneurs to accept, but going into the patenting process with open eyes is a lot better than the alternative. At a minimum, startup entrepreneurs seeking patents for the purpose of licensing to established companies would be well-served by asking their patent attorneys how many of their clients have been successful in doing so in the past. They might be surprised by the answer they receive.
Source >> http://ipassetmaximizerblog.com/startup-entrepreneurs-patent-licensing-beating-long-odds/
Thursday, March 15, 2018
Surprisingly Good Ways Of Stopping Foreign Imports Using Your US Patent
By: Michael J Foycik Jr.
January 9, 2014
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
The number one concern of many companies with new products is how to stop foreign copies from entering the US. The good news, this is easy for US Patent owners, and there are two ways this can operate.
The most surprising way is using the US Customs Service to block suspected infringers. To do this, you will need an order from the Customs Service. Once you have that, Customs does the real work. The catch here is, the US company will have to prove it makes the goods itself in the US. So, two foreign companies cannot easily avail themselves of this privilege.
Customs can confiscate infringing goods, and may even turn over those goods to the US patent owner. If specific infringers can be pointed out to Customs, which is often the case, those infringers can be targeted by Customs.
The second way is more obvious: using the US Patent rights. There is an easy way to do this, and a harder way. The easier way is sending a copy of the US Patent to retailers and other companies selling the infringing product; most will quickly deal with the situation, usually by simply removing the infringing products. After all, retailers do not want trouble, and can avoid it by fleeing from patent disputes. The author has seen this several times, and it is surprisingly effective.
The aforementioned harder way is the filing of a patent infringement suit. This can be cost effective, assuming the infringer offers a quick settlement. An infringer might do this to avoid the legal expense and legal risk of defending. However, if the health of an infringing company depends on that infringing product, a quick settlement may still occur but there is also a chance of a big legal fight.
Read More >> http://internationalpatentservice.com/Surprisingly-Good-Ways-Of-Stopping-Foreign-Imports-Using-Your-US-Patent.html
January 9, 2014
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
The number one concern of many companies with new products is how to stop foreign copies from entering the US. The good news, this is easy for US Patent owners, and there are two ways this can operate.
The most surprising way is using the US Customs Service to block suspected infringers. To do this, you will need an order from the Customs Service. Once you have that, Customs does the real work. The catch here is, the US company will have to prove it makes the goods itself in the US. So, two foreign companies cannot easily avail themselves of this privilege.
Customs can confiscate infringing goods, and may even turn over those goods to the US patent owner. If specific infringers can be pointed out to Customs, which is often the case, those infringers can be targeted by Customs.
The second way is more obvious: using the US Patent rights. There is an easy way to do this, and a harder way. The easier way is sending a copy of the US Patent to retailers and other companies selling the infringing product; most will quickly deal with the situation, usually by simply removing the infringing products. After all, retailers do not want trouble, and can avoid it by fleeing from patent disputes. The author has seen this several times, and it is surprisingly effective.
The aforementioned harder way is the filing of a patent infringement suit. This can be cost effective, assuming the infringer offers a quick settlement. An infringer might do this to avoid the legal expense and legal risk of defending. However, if the health of an infringing company depends on that infringing product, a quick settlement may still occur but there is also a chance of a big legal fight.
Read More >> http://internationalpatentservice.com/Surprisingly-Good-Ways-Of-Stopping-Foreign-Imports-Using-Your-US-Patent.html
Wednesday, March 14, 2018
This Tech Startup’s Youngest Founder Is 75
By: Srrah McBride
On paper, Infosci looks like a lot of startups whose founders travel Sand Hill Road in search of venture capital. It has the dropout, the ex-CIA guy, the experienced startup seller—and they say they have a way to protect against a key type of cyberattack. But when the three arrive for meetings with potential investors, they aren’t wearing hoodies and flip-flops. The main founders are all 75 to 80, and they’re motivated sellers.
“If we were all 40 years old, we’d be going out, raising a couple million dollars, building a company, taking on RSA,” says John Ellingson, the startup seller, referring to the well-known encryption system. “Since the youngest of us is 75, we have to have a different exit plan.”
John Kittelberger, 75, is the dropout (high school). He’s also the businessman, the former owner of a plumbing business in the suburbs of Washington, D.C. Phil Dean, 80, spent 30 years handling technical operations at the CIA, was one of the original members of the agency’s Counterterrorism Center, and likes to travel by unicycle. Ellingson, also 75, is a lawyer specializing in identity theft who two decades ago cashed in on a fraud detection system he’d invented. “We call ourselves the plumber, the spy, and the nerd,” Ellingson says. Company meetings are often held at various Panera Bread Co. franchises.
The Infosci founders have been working on a software design they say would protect against hacks such as the one that breached the U.S. Office of Personnel Management in 2014. That attack exposed the personal information of 22.1 million Americans, including identifying information such as Social Security numbers and background-check files on people who’d done business with or worked for the government. Ellingson says he and Dean numbered among those who had personal data stolen.
What made the OPM hack so effective was that the attackers fooled the agency’s network into accepting them as trusted contractors by using shared secret codes of the kind that typically undergird the most secure systems. Because these codes usually don’t change, the hackers were able to pull off the deception for more than a year. Infosci has designed security software that changes such codes as often as 1,000 times a second, so that cracking a given code won’t do anyone much good.
Although this idea may sound familiar to cybersecurity wonks, usually this type of security measure has at least one certificate or some such that can’t change because it’s the piece of data that identifies a given user. Infosci’s software design doesn’t leave that component unchanged. “The truth is, you can’t keep any secrets,” Ellingson says, so the company is taking long-term secrets out of the equation.
“Since the youngest of us is 75, we have to have a different exit plan”
Alex Doll, managing partner at TenEleven Ventures, says Infosci has picked an especially competitive part of the security field. Even in youth-hungry Silicon Valley, however, years marinating in government security operations are an asset, says Dan Conde, an analyst at researcher Enterprise Strategy Group. “If they are bona fide good-scientist types, they have a lot of things spring chickens won’t be able to do,” he says. “They’ve been exposed to the nastiest stuff for literally decades. They know the darkest, weirdest things that could happen.”
The founders say their age helped them get to the front of the line at the U.S. Patent and Trademark Office, which they expect to award them a patent on Aug. 1. (There’s a fast track at the patent office for inventors over 65.) For now, the three-person company is running on $650,000 of funding from family, friends, and IT contractor Nuvitek LLC. An early version of the product is running on Amazon Web Services Inc., and Infosci says it’s ready to start licensing the technology.
But forget about spending years honing their business. This group wants to get just far enough to attract a buyer such as Dell Technologies Inc. or Alphabet Inc., or perhaps a private equity company. Ellingson says he hopes to start soliciting bids as early as possible. In a twist on the typical Silicon Valley ethos, the Infosci team is looking to move fast and hit the golf course. That doesn’t mean they’ll sell cheap. Ellingson says he’s learned a thing or two since selling his last invention for $2 million. “We weren’t so smart back then.”
Source >> https://www.bloomberg.com/news/articles/2017-07-27/this-tech-startup-s-youngest-founder-is-75
On paper, Infosci looks like a lot of startups whose founders travel Sand Hill Road in search of venture capital. It has the dropout, the ex-CIA guy, the experienced startup seller—and they say they have a way to protect against a key type of cyberattack. But when the three arrive for meetings with potential investors, they aren’t wearing hoodies and flip-flops. The main founders are all 75 to 80, and they’re motivated sellers.
“If we were all 40 years old, we’d be going out, raising a couple million dollars, building a company, taking on RSA,” says John Ellingson, the startup seller, referring to the well-known encryption system. “Since the youngest of us is 75, we have to have a different exit plan.”
John Kittelberger, 75, is the dropout (high school). He’s also the businessman, the former owner of a plumbing business in the suburbs of Washington, D.C. Phil Dean, 80, spent 30 years handling technical operations at the CIA, was one of the original members of the agency’s Counterterrorism Center, and likes to travel by unicycle. Ellingson, also 75, is a lawyer specializing in identity theft who two decades ago cashed in on a fraud detection system he’d invented. “We call ourselves the plumber, the spy, and the nerd,” Ellingson says. Company meetings are often held at various Panera Bread Co. franchises.
The Infosci founders have been working on a software design they say would protect against hacks such as the one that breached the U.S. Office of Personnel Management in 2014. That attack exposed the personal information of 22.1 million Americans, including identifying information such as Social Security numbers and background-check files on people who’d done business with or worked for the government. Ellingson says he and Dean numbered among those who had personal data stolen.
What made the OPM hack so effective was that the attackers fooled the agency’s network into accepting them as trusted contractors by using shared secret codes of the kind that typically undergird the most secure systems. Because these codes usually don’t change, the hackers were able to pull off the deception for more than a year. Infosci has designed security software that changes such codes as often as 1,000 times a second, so that cracking a given code won’t do anyone much good.
Although this idea may sound familiar to cybersecurity wonks, usually this type of security measure has at least one certificate or some such that can’t change because it’s the piece of data that identifies a given user. Infosci’s software design doesn’t leave that component unchanged. “The truth is, you can’t keep any secrets,” Ellingson says, so the company is taking long-term secrets out of the equation.
“Since the youngest of us is 75, we have to have a different exit plan”
Alex Doll, managing partner at TenEleven Ventures, says Infosci has picked an especially competitive part of the security field. Even in youth-hungry Silicon Valley, however, years marinating in government security operations are an asset, says Dan Conde, an analyst at researcher Enterprise Strategy Group. “If they are bona fide good-scientist types, they have a lot of things spring chickens won’t be able to do,” he says. “They’ve been exposed to the nastiest stuff for literally decades. They know the darkest, weirdest things that could happen.”
The founders say their age helped them get to the front of the line at the U.S. Patent and Trademark Office, which they expect to award them a patent on Aug. 1. (There’s a fast track at the patent office for inventors over 65.) For now, the three-person company is running on $650,000 of funding from family, friends, and IT contractor Nuvitek LLC. An early version of the product is running on Amazon Web Services Inc., and Infosci says it’s ready to start licensing the technology.
But forget about spending years honing their business. This group wants to get just far enough to attract a buyer such as Dell Technologies Inc. or Alphabet Inc., or perhaps a private equity company. Ellingson says he hopes to start soliciting bids as early as possible. In a twist on the typical Silicon Valley ethos, the Infosci team is looking to move fast and hit the golf course. That doesn’t mean they’ll sell cheap. Ellingson says he’s learned a thing or two since selling his last invention for $2 million. “We weren’t so smart back then.”
Source >> https://www.bloomberg.com/news/articles/2017-07-27/this-tech-startup-s-youngest-founder-is-75
Tuesday, March 13, 2018
Right Or Wrong Patent Attorney - Why Your Invention Matters
By: Michael J Foycik Jr.
January 3, 2014
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Is there a good way to tell when you have the wrong patent attorney? There are factors worth considering.
Does your patent attorney not seem to listen? Or, not seem to care about your objections and concerns? Does your patent attorney make themselves available to answer questions? These are red flags, especially if things are not going well otherwise.
Does the patent attorney's first draft make sense for your invention? Most inventors rightfully expect to see writing that is as good as or better than their own. Do you have to explain things several times? Are you uncomfortable with how the claims sound? These too can be red flags, when other things are not going well either.
Has your patent attorney filed continuation after continuation without making progress? Or, have they filed RCE (“Request for Continuing Examination”) after RCE without making progress? Or, have they filed about Appeal after Appeal, without success? These could be red flags too.
This is not to say “good” or “bad” - rather it is to say “right skills for the right job.” Even a very good and reputable patent attorney may sometimes find themselves out of their element, and look bad as a result. That shouldn't matter though – good results should matter. A different attorney, better suited for a particular effort, may well get different results.
While the above-noted issues can be bad signs, they might not tell the whole story. Even though the above situations exist, can that patent attorney really still be the “right” one for that job? Possibly so – if it is just a case of simple bad luck, pursuit of a weak invention, sure. Or, it could be part of a strategy to maintain patent pending status for strategic reasons despite a weak invention.
Read More >> http://internationalpatentservice.com/Right-Or-Wrong-Patent-Attorney-Why-Your-Invention-Matters.htmla
January 3, 2014
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Is there a good way to tell when you have the wrong patent attorney? There are factors worth considering.
Does your patent attorney not seem to listen? Or, not seem to care about your objections and concerns? Does your patent attorney make themselves available to answer questions? These are red flags, especially if things are not going well otherwise.
Does the patent attorney's first draft make sense for your invention? Most inventors rightfully expect to see writing that is as good as or better than their own. Do you have to explain things several times? Are you uncomfortable with how the claims sound? These too can be red flags, when other things are not going well either.
Has your patent attorney filed continuation after continuation without making progress? Or, have they filed RCE (“Request for Continuing Examination”) after RCE without making progress? Or, have they filed about Appeal after Appeal, without success? These could be red flags too.
This is not to say “good” or “bad” - rather it is to say “right skills for the right job.” Even a very good and reputable patent attorney may sometimes find themselves out of their element, and look bad as a result. That shouldn't matter though – good results should matter. A different attorney, better suited for a particular effort, may well get different results.
While the above-noted issues can be bad signs, they might not tell the whole story. Even though the above situations exist, can that patent attorney really still be the “right” one for that job? Possibly so – if it is just a case of simple bad luck, pursuit of a weak invention, sure. Or, it could be part of a strategy to maintain patent pending status for strategic reasons despite a weak invention.
Read More >> http://internationalpatentservice.com/Right-Or-Wrong-Patent-Attorney-Why-Your-Invention-Matters.htmla
Monday, March 12, 2018
Microsoft foldable tablet patent has an interesting twist
By: JC Torres
There is no shortage of patents for foldable device, be it a phone that transforms into a tablet (or vice versa) or a phone that unfolds into an even longer phone. You may think you’ve seen them all, especially when they all start looking alike. Microsoft, however, may have something that’s slightly different yet not at all new. It has a patent that takes a foldable tablet that can slot into a keyboard dock, basically like a Surface Book but using a foldable “Clipboard” instead.
The idea isn’t exactly revolutionary and practically combines what Microsoft has been working on for the past years. Sans the foldable display, of course. Docking a tablet-like device into a keyboard is, to be fair, not even a Microsoft exclusive, and fortunately, no one has yet exercised patent claims over that feature.
Many patents do arise from the combination of existing things rather than starting from scratch. What’s new here is the idea of using a foldable tablet instead of a regular one. That would definitely put this device under the “serious computing device” category instead of just a consumption device.
That said, one might be a bit puzzled by the need for a keyboard at all. The tablet, after all, folds into a laptop form, with the lower half acting as an onscreen keyboard. There could be various reasons for this feature. Not everyone will be able to type at the same speeds on a virtual keyboard, and the folded tablet might be too small for comfortable typing. Instead, the presence of an onscreen keyboard might be more for an on-the-spot emergency input rather than long-term use.
Of course, a patent is a patent and we might never even see such a device come from Microsoft. Just like the Andromeda Surface device that so many fans are dying to see. Given how Microsoft’s mobile device strategy seems to be all over the place, anything’s possible at this point.
Source >> https://www.slashgear.com/microsoft-foldable-tablet-patent-has-an-interesting-twist-05522005/
There is no shortage of patents for foldable device, be it a phone that transforms into a tablet (or vice versa) or a phone that unfolds into an even longer phone. You may think you’ve seen them all, especially when they all start looking alike. Microsoft, however, may have something that’s slightly different yet not at all new. It has a patent that takes a foldable tablet that can slot into a keyboard dock, basically like a Surface Book but using a foldable “Clipboard” instead.
The idea isn’t exactly revolutionary and practically combines what Microsoft has been working on for the past years. Sans the foldable display, of course. Docking a tablet-like device into a keyboard is, to be fair, not even a Microsoft exclusive, and fortunately, no one has yet exercised patent claims over that feature.
Many patents do arise from the combination of existing things rather than starting from scratch. What’s new here is the idea of using a foldable tablet instead of a regular one. That would definitely put this device under the “serious computing device” category instead of just a consumption device.
That said, one might be a bit puzzled by the need for a keyboard at all. The tablet, after all, folds into a laptop form, with the lower half acting as an onscreen keyboard. There could be various reasons for this feature. Not everyone will be able to type at the same speeds on a virtual keyboard, and the folded tablet might be too small for comfortable typing. Instead, the presence of an onscreen keyboard might be more for an on-the-spot emergency input rather than long-term use.
Of course, a patent is a patent and we might never even see such a device come from Microsoft. Just like the Andromeda Surface device that so many fans are dying to see. Given how Microsoft’s mobile device strategy seems to be all over the place, anything’s possible at this point.
Source >> https://www.slashgear.com/microsoft-foldable-tablet-patent-has-an-interesting-twist-05522005/
Sunday, March 11, 2018
Tips for Highly Effective Invention Promoting and Marketing for Inventors
By: Michael J Foycik Jr.
December 20, 2013
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
If you're an inventor, then you have seen ads for invention marketing companies. Here are a few tips for a highly effective strategy that is also cost-effective.
Tip 1: Do the patent part separately from the marketing part. The patent costs can be quite affordable, especially is you shop around. You are more likely to get the personal service and advice you really need, and that can lead to a better patent product.
Tip 2: Focus on companies most likely to need your invention. Avoid broadcast invention submissions to large companies, because that can be costly in time and effort. There will be too many corporate forms for the inventor to sign before those companies will even accept the submission, and some of those forms do not protect the inventor's rights. Large companies like to buy rights to products that are already on the shelves somewhere, to make sure no one looks bad when buying the invention rights.
Tip 3: Marketing isn't just to companies – it is also to investors. Really, isn't that what selling an invention is all about? A company buying an invention is very much like an investor. Let investors know about your invention; they have money and often also have expertise and contacts. Investors may well wish to use their contacts and expertise to help you succeed – they are betting on you.
Read More >> http://internationalpatentservice.com/Tips-for-Highly-Effective-Invention-Promoting-and-Marketing-for-Inventors.html
December 20, 2013
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
If you're an inventor, then you have seen ads for invention marketing companies. Here are a few tips for a highly effective strategy that is also cost-effective.
Tip 1: Do the patent part separately from the marketing part. The patent costs can be quite affordable, especially is you shop around. You are more likely to get the personal service and advice you really need, and that can lead to a better patent product.
Tip 2: Focus on companies most likely to need your invention. Avoid broadcast invention submissions to large companies, because that can be costly in time and effort. There will be too many corporate forms for the inventor to sign before those companies will even accept the submission, and some of those forms do not protect the inventor's rights. Large companies like to buy rights to products that are already on the shelves somewhere, to make sure no one looks bad when buying the invention rights.
Tip 3: Marketing isn't just to companies – it is also to investors. Really, isn't that what selling an invention is all about? A company buying an invention is very much like an investor. Let investors know about your invention; they have money and often also have expertise and contacts. Investors may well wish to use their contacts and expertise to help you succeed – they are betting on you.
Read More >> http://internationalpatentservice.com/Tips-for-Highly-Effective-Invention-Promoting-and-Marketing-for-Inventors.html
When, why and how to launch your startup in secret
By: James McGrath
When you’re building your startup, the first step is to tell everybody about it, right?
While there are thousands of startups out there trying to get the attention of the press and prospective customers, there are those that deliberately avoid the limelight.
Businesses like Domo and Rev have gone the unusual route of making people sign non-disclosure agreements before letting prospective customers and funders have a play around with their products.
It’s unusual for a company to launch in complete stealth mode, and with an interconnected ecosystem it’s kind of hard to do things in complete silence these days. So why would you want to keep your startup under wraps?
The main benefits
The benefits of launching in stealth mode can be broadly sorted into three categories:
1. It gives you the focus to work on version 1.0 of your product without distraction
2. It helps build an air of mystique around your company, especially if the founders are well known
3. It keeps IP and the industry problem you’re targeting away from the prying eyes of potential competitors
It basically allows you the time and space to work on your product with a select group of potential clients and collaborators to keep the feedback loop really tight.
It also allows you to launch with a fully realised product which surprises and delights rather than doesn’t meet the expectations of hype.
Of course, this approach has its down side…
READ: What is a startup, seriously?
The drawbacks
Then again, trying to keep a lid on things could present these three problems:
1. You can’t build early brand momentum if you don’t tell anybody about it
2. It limits the number of investors, potential customers and other parties who can provide valuable feedback on early builds
3. People may see your insistence that people sign non-disclosure agreements (NDAs) as a sign of unearned paranoia
In a world where there are thousands of startups vying for attention, keeping silent about yours can seem like cutting off your nose to spite your face.
But some startups swear by the benefits of launching in secret — so what’s the best way to do it?
The tools you’ll need
Some startups that choose to launch in secret do so because they’re afraid of someone stealing their idea — which isn’t always unfounded.
But IP lawyer (and Pulse contributor) Blake Knowles told The Pulse that the simplest way to avert this fear is to file a patent, which if granted, gives you exclusivity in the market you filed the patent in.
Of course, that could potentially tip off a rival if they’re savvy enough to be looking at patent applications in their area.
Meanwhile, a standard NDA could prohibit third parties talking about your idea to help protect it — but again, it’s quite limiting.
From an IP protection perspective, any activity that exposes your product is generally incompatible with protection of the IP in the product itself, unless a patent application has been filed, or disclosures are carefully made subject to confidentiality agreements,” said Knowles.
“However, NDAs can limit the momentum of the product, and not all products or services are patentable. Spending money on patent filings needs to be strategic.
“Unfortunately, there are no other real ‘tools’ available to entrepreneurs to protect rights in the product itself, if they want to start generating interest in the market.”
Read More >> https://www.myob.com/au/blog/when-why-and-how-to-launch-your-startup-in-secret/
When you’re building your startup, the first step is to tell everybody about it, right?
While there are thousands of startups out there trying to get the attention of the press and prospective customers, there are those that deliberately avoid the limelight.
Businesses like Domo and Rev have gone the unusual route of making people sign non-disclosure agreements before letting prospective customers and funders have a play around with their products.
It’s unusual for a company to launch in complete stealth mode, and with an interconnected ecosystem it’s kind of hard to do things in complete silence these days. So why would you want to keep your startup under wraps?
The main benefits
The benefits of launching in stealth mode can be broadly sorted into three categories:
1. It gives you the focus to work on version 1.0 of your product without distraction
2. It helps build an air of mystique around your company, especially if the founders are well known
3. It keeps IP and the industry problem you’re targeting away from the prying eyes of potential competitors
It basically allows you the time and space to work on your product with a select group of potential clients and collaborators to keep the feedback loop really tight.
It also allows you to launch with a fully realised product which surprises and delights rather than doesn’t meet the expectations of hype.
Of course, this approach has its down side…
READ: What is a startup, seriously?
The drawbacks
Then again, trying to keep a lid on things could present these three problems:
1. You can’t build early brand momentum if you don’t tell anybody about it
2. It limits the number of investors, potential customers and other parties who can provide valuable feedback on early builds
3. People may see your insistence that people sign non-disclosure agreements (NDAs) as a sign of unearned paranoia
In a world where there are thousands of startups vying for attention, keeping silent about yours can seem like cutting off your nose to spite your face.
But some startups swear by the benefits of launching in secret — so what’s the best way to do it?
The tools you’ll need
Some startups that choose to launch in secret do so because they’re afraid of someone stealing their idea — which isn’t always unfounded.
But IP lawyer (and Pulse contributor) Blake Knowles told The Pulse that the simplest way to avert this fear is to file a patent, which if granted, gives you exclusivity in the market you filed the patent in.
Of course, that could potentially tip off a rival if they’re savvy enough to be looking at patent applications in their area.
Meanwhile, a standard NDA could prohibit third parties talking about your idea to help protect it — but again, it’s quite limiting.
From an IP protection perspective, any activity that exposes your product is generally incompatible with protection of the IP in the product itself, unless a patent application has been filed, or disclosures are carefully made subject to confidentiality agreements,” said Knowles.
“However, NDAs can limit the momentum of the product, and not all products or services are patentable. Spending money on patent filings needs to be strategic.
“Unfortunately, there are no other real ‘tools’ available to entrepreneurs to protect rights in the product itself, if they want to start generating interest in the market.”
Read More >> https://www.myob.com/au/blog/when-why-and-how-to-launch-your-startup-in-secret/
Thursday, March 8, 2018
Responding to a Rejection in a Patent Application
By: Michael J Foycik Jr.
November 15, 2013
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Rejected? Want to know more about what to do? Read on!
When a utility patent application is filed, examination on the merits follows in due course. The examination process involves a search of the prior art, and a decision by the patent examiner on allowability. The first such decision is supplied to the applicant by an official first Office Action on the merits. The great majority of first Office Actions involve a rejection of some or all of the claims.
But, this is not the end of the process, but the beginning! A Response should be filed.
What should go into the Response? The applicant, along with their patent attorney's help, should define what is different over the applied prior art reference(s). Then, suitable claim amendments should be made to clarify and/or emphasize those differences.
And, suitable remarks should be provided in the Response which explain the differences over the applied prior art reference. The remarks ideally will also point out how the amendments to the claims clarify and emphasize those differences.
Read More >> http://internationalpatentservice.com/Responding-to-a-Rejection-in-a-Patent-Application.html
November 15, 2013
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Rejected? Want to know more about what to do? Read on!
When a utility patent application is filed, examination on the merits follows in due course. The examination process involves a search of the prior art, and a decision by the patent examiner on allowability. The first such decision is supplied to the applicant by an official first Office Action on the merits. The great majority of first Office Actions involve a rejection of some or all of the claims.
But, this is not the end of the process, but the beginning! A Response should be filed.
What should go into the Response? The applicant, along with their patent attorney's help, should define what is different over the applied prior art reference(s). Then, suitable claim amendments should be made to clarify and/or emphasize those differences.
And, suitable remarks should be provided in the Response which explain the differences over the applied prior art reference. The remarks ideally will also point out how the amendments to the claims clarify and emphasize those differences.
Read More >> http://internationalpatentservice.com/Responding-to-a-Rejection-in-a-Patent-Application.html
Wednesday, March 7, 2018
What you should know about Intellectual Property when exporting to Latin America
By: GABRIELA
There are so many things to think about when exporting to Latin America: customs, duties, visiting, distances, logistics, language, currency, partners, culture… and that’s even before you start selling! And now I’m adding Intellectual Property (IP) to the pile – should we really pay attention to this aspect of doing business in Latin America?
The answer is “absolutely”. Again and again, I am confronted with businesses that either haven’t thought about it too much or, worse, those who assume that everything’s been taken care of, but are actually not protected.
On the other extreme, I’ve heard from UK companies that are hesitant about exporting to Latin America because of IP issues so… can we be too relaxed or too cautious?
Probably, so I decided to ring up the Intellectual Property Office’s attaché for Brazil and Latin America, Angelica Garcia, based at the British Consulate in Sao Paulo, to understand why we should take Intellectual Property into account in the region (always remembering that there are 20 countries in Latin America with different IP legislation).
Why should UK companies pay attention to IP issues?
“Intellectual Property is increasingly important as a tool to enable UK growth through trade and investment in leading overseas markets and emerging economies. However, IP is a technically complex issue with vocal and disparate interest groups”, Angelica explains.
“Intellectual Property is one of the most valuable assets of a company. Protecting IP rights like patent, trademarks, copyrights and designs not only helps companies to prevent third parties from copying their creation, but also helps business and people to exploit their products commercially and to reward innovators so they continue creating.”
What support can UK companies get when exploring and entering Latin American markets?
“To ensure that UK IP policy is effectively communicated and to give businesses a focal point through which to address their IP interests, the UK has set up an IP attaché programme that covers four main trade markets: South East Asia, China, Brazil & LATAM and India”, explains Angelica, and adds: “there is an actual IP attaché in Brazil”
She also explains that the role of attaches is to:
- work with host Governments to strengthen national IP and enforcement regimes
- work with DIT (Department for International Trade) to support UK businesses entering these markets
- build relationships with the host governments on international as well as domestic IP issues
- gather intelligence about the markets to inform business decision making.
You can also check out the IPO country guide on Brazil
Many UK companies are concerned about IP in Latin America, particularly in Brazil. Is there a good reason for this? What’s your advice regarding IP matters in Brazil and the rest of Latin America?
“It is true that there are some challenges in Brazil, especially regarding backlog and enforcement. But it is also true that the Brazilian Patent Office has been taking actions to tackle the backlog, build capacity and raise awareness of the importance to respect and protect IP. I strongly advise that every company that wants to export or to settle in Latin America take action to protect their Intellectual Property rights be it patents, trademarks, design, etc. As they should definitely do in any other country where they want to trade. The IP strategy has to be inside the company´s business planning!”
What progress has been made?
“In Brazil in particular, during JETCO (Joint Economic and Trade Committee), the UK Intellectual Property Office (IPO) and the Brazilian National Institute for Intellectual Property (INPI) have renewed their MoU, which is underpinned by a work plan setting out a firm commitment to cooperate across a wide range of IP issues such as sharing best practice in IP office management and patent and trademarks examination methods. Also, in recent years, the Brazilian Patent Office (INPI) has experienced significant advances in the automation of operational processes. Brazil has been working in solutions to tackle the backlog, like hiring more examiners, and implementing fast-tracks processes with some countries.”
Source >> http://sunnyskysolutions.co.uk/ipo2017/
There are so many things to think about when exporting to Latin America: customs, duties, visiting, distances, logistics, language, currency, partners, culture… and that’s even before you start selling! And now I’m adding Intellectual Property (IP) to the pile – should we really pay attention to this aspect of doing business in Latin America?
The answer is “absolutely”. Again and again, I am confronted with businesses that either haven’t thought about it too much or, worse, those who assume that everything’s been taken care of, but are actually not protected.
On the other extreme, I’ve heard from UK companies that are hesitant about exporting to Latin America because of IP issues so… can we be too relaxed or too cautious?
Probably, so I decided to ring up the Intellectual Property Office’s attaché for Brazil and Latin America, Angelica Garcia, based at the British Consulate in Sao Paulo, to understand why we should take Intellectual Property into account in the region (always remembering that there are 20 countries in Latin America with different IP legislation).
Why should UK companies pay attention to IP issues?
“Intellectual Property is increasingly important as a tool to enable UK growth through trade and investment in leading overseas markets and emerging economies. However, IP is a technically complex issue with vocal and disparate interest groups”, Angelica explains.
“Intellectual Property is one of the most valuable assets of a company. Protecting IP rights like patent, trademarks, copyrights and designs not only helps companies to prevent third parties from copying their creation, but also helps business and people to exploit their products commercially and to reward innovators so they continue creating.”
What support can UK companies get when exploring and entering Latin American markets?
“To ensure that UK IP policy is effectively communicated and to give businesses a focal point through which to address their IP interests, the UK has set up an IP attaché programme that covers four main trade markets: South East Asia, China, Brazil & LATAM and India”, explains Angelica, and adds: “there is an actual IP attaché in Brazil”
She also explains that the role of attaches is to:
- work with host Governments to strengthen national IP and enforcement regimes
- work with DIT (Department for International Trade) to support UK businesses entering these markets
- build relationships with the host governments on international as well as domestic IP issues
- gather intelligence about the markets to inform business decision making.
You can also check out the IPO country guide on Brazil
Many UK companies are concerned about IP in Latin America, particularly in Brazil. Is there a good reason for this? What’s your advice regarding IP matters in Brazil and the rest of Latin America?
“It is true that there are some challenges in Brazil, especially regarding backlog and enforcement. But it is also true that the Brazilian Patent Office has been taking actions to tackle the backlog, build capacity and raise awareness of the importance to respect and protect IP. I strongly advise that every company that wants to export or to settle in Latin America take action to protect their Intellectual Property rights be it patents, trademarks, design, etc. As they should definitely do in any other country where they want to trade. The IP strategy has to be inside the company´s business planning!”
What progress has been made?
“In Brazil in particular, during JETCO (Joint Economic and Trade Committee), the UK Intellectual Property Office (IPO) and the Brazilian National Institute for Intellectual Property (INPI) have renewed their MoU, which is underpinned by a work plan setting out a firm commitment to cooperate across a wide range of IP issues such as sharing best practice in IP office management and patent and trademarks examination methods. Also, in recent years, the Brazilian Patent Office (INPI) has experienced significant advances in the automation of operational processes. Brazil has been working in solutions to tackle the backlog, like hiring more examiners, and implementing fast-tracks processes with some countries.”
Source >> http://sunnyskysolutions.co.uk/ipo2017/
Tuesday, March 6, 2018
New Lower Official Patent Fees Coming January 1, 2014 - Great News For Inventors
By: Michael J Foycik Jr.
October 24, 2013
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
inally some very good news for inventors about government patent fees. Some of the new lower fees have been put into place. Other impressive fee reductions are on the way.
The micro entity fee schedule has already been implemented. For example, filing a new Utility patent application costs as low as $400. A Provisional Patent Application, or PPA, costs as little as $65. The previous fees, in effect earlier this year, were much higher.
Other fee reductions are even more impressive, and are scheduled to go into effect beginning on January 1, 2014. These include the Utility patent issue fee, reduced from the small entity fee of $980 currently to just $480 (small entity) or $240 (micro entity). Assignments will be recorded at no charge in that new fee schedule; currently the government fee is $40.
Read More >> http://internationalpatentservice.com/Great-News-For-Inventors.html
October 24, 2013
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
inally some very good news for inventors about government patent fees. Some of the new lower fees have been put into place. Other impressive fee reductions are on the way.
The micro entity fee schedule has already been implemented. For example, filing a new Utility patent application costs as low as $400. A Provisional Patent Application, or PPA, costs as little as $65. The previous fees, in effect earlier this year, were much higher.
Other fee reductions are even more impressive, and are scheduled to go into effect beginning on January 1, 2014. These include the Utility patent issue fee, reduced from the small entity fee of $980 currently to just $480 (small entity) or $240 (micro entity). Assignments will be recorded at no charge in that new fee schedule; currently the government fee is $40.
Read More >> http://internationalpatentservice.com/Great-News-For-Inventors.html
Monday, March 5, 2018
10 Absurd Trademark Claims
By: User
March 4, 2018
The United States Patents and Trademark Office defines a trademark as “any word, name, symbol, device, or any combination, used or intended to be used to identify and distinguish the goods/services of one seller or provider from those of others, and to indicate the source of the goods/services.” Perhaps the vagueness of the language is to blame, or because the American legal system was birthed in a Monty Python sketch, but it seems anything can be trademarked and/or be open to a lawsuit. And people have demonstrated great aplomb in the utterly absurd lengths they will go to make a buck. Here are ten trademarks in particular which raise the question, “what planet is this?”
Apple is best known for its only slightly non-redundant product releases. It is also known for kindergarten-friendly interfaces, so much so that the company maintains intellectual property rights on the basic shapes we learned during our time there. Their right to ownership is defined as “[T]he design of a portable and handheld digital electronic media device comprised of a rectangular casing displaying circular and rectangular shapes therein arranged in an aesthetically pleasing manner.”
As it turns out, Apple also owns a patent on the concept of a ‘round-edge rectangle,’ in connection with the iPad. Anyone who has ever furnished a credit card in order to purchase an Apple product, or has ever owned an Etch-a-Sketch, or eaten off of a lunch tray may wonder why Apple believes it was the first to conceive the shape.
9
The Color Orange
Reese’s
Ever had a huge craving for some orange? Not the fruit, the color. If so, the only person authorized to sell it to you—one particular shade that is—is Reese’s. And fans of their much-coveted peanut butter cups well attest, their orange tastes the best.
As it turns out, Reese’s has challenged Dove’s Chocolate Peanut Butter Promises, on the grounds of its use of orange and packaging being too similar. Upon actual comparison—and without the suspected underlying motive of trying to shut down a rival’s product (which uses way better chocolate)—there is clearly no confusion about which is which. And whose ‘orange’ is whose.
8
“Let’s Get Ready…”
Michael Buffe
Michael Buffer doesn’t need to work anymore. Even while fighting throat cancer (which Buffer victoriously overcame), the sports announcer who coined the boxing ring staple “Let’s get ready to rumble,” was reaping the benefits of its utterance. Buffer, who had the phrase trademarked, earns obscene royalties (about $400 million in total) for its casual use in T.V. shows, movies, video games, merchandise, etc.
The fact that Buffer has become the immediately-recognizable voice of boxing, and that those five words have become so necessarily-intertwined with the sport itself, means that Buffer will continue finding gainful employment as a sports announcer, even with his mouth closed.
Read More >> http://www.newsreet.com/2018/03/04/10-absurd-trademark-claims/
March 4, 2018
The United States Patents and Trademark Office defines a trademark as “any word, name, symbol, device, or any combination, used or intended to be used to identify and distinguish the goods/services of one seller or provider from those of others, and to indicate the source of the goods/services.” Perhaps the vagueness of the language is to blame, or because the American legal system was birthed in a Monty Python sketch, but it seems anything can be trademarked and/or be open to a lawsuit. And people have demonstrated great aplomb in the utterly absurd lengths they will go to make a buck. Here are ten trademarks in particular which raise the question, “what planet is this?”
Apple is best known for its only slightly non-redundant product releases. It is also known for kindergarten-friendly interfaces, so much so that the company maintains intellectual property rights on the basic shapes we learned during our time there. Their right to ownership is defined as “[T]he design of a portable and handheld digital electronic media device comprised of a rectangular casing displaying circular and rectangular shapes therein arranged in an aesthetically pleasing manner.”
As it turns out, Apple also owns a patent on the concept of a ‘round-edge rectangle,’ in connection with the iPad. Anyone who has ever furnished a credit card in order to purchase an Apple product, or has ever owned an Etch-a-Sketch, or eaten off of a lunch tray may wonder why Apple believes it was the first to conceive the shape.
9
The Color Orange
Reese’s
Ever had a huge craving for some orange? Not the fruit, the color. If so, the only person authorized to sell it to you—one particular shade that is—is Reese’s. And fans of their much-coveted peanut butter cups well attest, their orange tastes the best.
As it turns out, Reese’s has challenged Dove’s Chocolate Peanut Butter Promises, on the grounds of its use of orange and packaging being too similar. Upon actual comparison—and without the suspected underlying motive of trying to shut down a rival’s product (which uses way better chocolate)—there is clearly no confusion about which is which. And whose ‘orange’ is whose.
8
“Let’s Get Ready…”
Michael Buffe
Michael Buffer doesn’t need to work anymore. Even while fighting throat cancer (which Buffer victoriously overcame), the sports announcer who coined the boxing ring staple “Let’s get ready to rumble,” was reaping the benefits of its utterance. Buffer, who had the phrase trademarked, earns obscene royalties (about $400 million in total) for its casual use in T.V. shows, movies, video games, merchandise, etc.
The fact that Buffer has become the immediately-recognizable voice of boxing, and that those five words have become so necessarily-intertwined with the sport itself, means that Buffer will continue finding gainful employment as a sports announcer, even with his mouth closed.
Read More >> http://www.newsreet.com/2018/03/04/10-absurd-trademark-claims/
Sunday, March 4, 2018
Worry - Free Foreign Patent Rights - Things You Should Know
By: Michael J Foycik Jr.
October 11, 2013
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Foreign filing – it may be one of the biggest choices facing anyone with an invention or a pending patent application. What if your invention is so successful that foreign copying becomes a problem? Here are some things you should know.
First, the right to file in foreign countries – that is, foreign priority rights – can be valuable. And not just to you, but to anyone wanting to purchase/license those rights.
Second, foreign filing is expensive. It is so expensive, many companies have to target selected countries. It would be best to file for patent protection in countries where the product is doing well.
Third, there's a way to delay your foreign filing. A US utility patent application provides a one year grace period for PCT filing (Patent Cooperation Treaty filing) as well as in most countries.
Fourth, a PCT application provides typically 30 to 32 months additional time in which to designate individual countries. Thus, the PCT application is very useful even though by itself it cannot confer specific patent rights in specific countries.
Read More >> http://internationalpatentservice.com/Worry-Free-Foreign-Patent-Rights.html
October 11, 2013
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Foreign filing – it may be one of the biggest choices facing anyone with an invention or a pending patent application. What if your invention is so successful that foreign copying becomes a problem? Here are some things you should know.
First, the right to file in foreign countries – that is, foreign priority rights – can be valuable. And not just to you, but to anyone wanting to purchase/license those rights.
Second, foreign filing is expensive. It is so expensive, many companies have to target selected countries. It would be best to file for patent protection in countries where the product is doing well.
Third, there's a way to delay your foreign filing. A US utility patent application provides a one year grace period for PCT filing (Patent Cooperation Treaty filing) as well as in most countries.
Fourth, a PCT application provides typically 30 to 32 months additional time in which to designate individual countries. Thus, the PCT application is very useful even though by itself it cannot confer specific patent rights in specific countries.
Read More >> http://internationalpatentservice.com/Worry-Free-Foreign-Patent-Rights.html
Saturday, March 3, 2018
Using Your Intellectual Property to Escape the 9-to-5
By: Carel Smit
If you're reading this article, then I assume you're sick of the 9-to-5, you've read The 4-Hour Work Week, and you're planning your escape from the cubicle. You've gone to every startup seminar and information session, dreamed up a slick-sounding name, read The Secret (in case you need it) and stuck some of Richard Branson's inspirational quotes on the wall behind your computer.
Related: 3 Ways to Slay the Risk of Bringing a New Product to Market
But, you're still not sure about one thing: What is that crucial first step when starting up?
In my experience, the thing stopping you from launching your product is that you're most likely scared to tell someone about your idea, thinking that it's going to get stolen, corrupted or plagiarized by every Tom, Dick and Sally. Or, you're worried that you're re-inventing the wheel, which is not only mildly embarrassing, but costly.
I know the feeling; I've lived though it myself as an entrepreneur, and I've seen it play out in the excitement that I dealt with in a previous life as a patent lawyer working with startup clients. But, here's the deal -- your own paranoia could be keeping you in that cubicle. Fortunately, there's a way to get over this while also setting your new venture up for success.
The field of idea protection, loosely termed intellectual property (IP), isn't just for gadgets any longer -- it's now a mainstay of how business is done and the sooner you come to realize that, the sooner you can create your own enterprise that uses these IP rights optimally to protect, launch and profit from your ideas.
These IP rights are typically patents for technical inventions (called "utility patents" in the U.S.), trademarks for brands, copyright for artistic creations and design patents for new industrial designs.
Related: What Are They? Domain Names, Business Entity Names, Trademarks.
So, how do you manage these conflicting agendas -- keeping your concept secret while disclosing it to a select few who also have the power to steal your idea from you? Even if you get past that stage, how do you then attract funders, position yourself as a market leader, while throwing shade and making your competitors look as fresh as last Thursday's burrito?
It's seldom that you can find a magic bullet that can hit all of these at once. But, the good news is that, if used and communicated in the right way, IP is a massively powerful business tool that can help you set up your business to not only hit those buttons but also help you create generational wealth.
Sara Blakely famously did this with her Spanx shape-forming undergarments. She'd crafted a rough prototype by cutting the toes off her usual stockings, and realized she had a winning idea. To protect her idea and make her product look more "technical," she filed a patent application for her concept, before securing the help of a manufacturer. This catalyzed her launch into Nordstrom and became the first steps toward building her multibillion-dollar enterprise.
So, what are the easiest ways for you to use your early stage IP to overcome your paranoia, position yourself in the market and set yourself up for success?
Read More >> https://www.entrepreneur.com/article/302701
If you're reading this article, then I assume you're sick of the 9-to-5, you've read The 4-Hour Work Week, and you're planning your escape from the cubicle. You've gone to every startup seminar and information session, dreamed up a slick-sounding name, read The Secret (in case you need it) and stuck some of Richard Branson's inspirational quotes on the wall behind your computer.
Related: 3 Ways to Slay the Risk of Bringing a New Product to Market
But, you're still not sure about one thing: What is that crucial first step when starting up?
In my experience, the thing stopping you from launching your product is that you're most likely scared to tell someone about your idea, thinking that it's going to get stolen, corrupted or plagiarized by every Tom, Dick and Sally. Or, you're worried that you're re-inventing the wheel, which is not only mildly embarrassing, but costly.
I know the feeling; I've lived though it myself as an entrepreneur, and I've seen it play out in the excitement that I dealt with in a previous life as a patent lawyer working with startup clients. But, here's the deal -- your own paranoia could be keeping you in that cubicle. Fortunately, there's a way to get over this while also setting your new venture up for success.
The field of idea protection, loosely termed intellectual property (IP), isn't just for gadgets any longer -- it's now a mainstay of how business is done and the sooner you come to realize that, the sooner you can create your own enterprise that uses these IP rights optimally to protect, launch and profit from your ideas.
These IP rights are typically patents for technical inventions (called "utility patents" in the U.S.), trademarks for brands, copyright for artistic creations and design patents for new industrial designs.
Related: What Are They? Domain Names, Business Entity Names, Trademarks.
So, how do you manage these conflicting agendas -- keeping your concept secret while disclosing it to a select few who also have the power to steal your idea from you? Even if you get past that stage, how do you then attract funders, position yourself as a market leader, while throwing shade and making your competitors look as fresh as last Thursday's burrito?
It's seldom that you can find a magic bullet that can hit all of these at once. But, the good news is that, if used and communicated in the right way, IP is a massively powerful business tool that can help you set up your business to not only hit those buttons but also help you create generational wealth.
Sara Blakely famously did this with her Spanx shape-forming undergarments. She'd crafted a rough prototype by cutting the toes off her usual stockings, and realized she had a winning idea. To protect her idea and make her product look more "technical," she filed a patent application for her concept, before securing the help of a manufacturer. This catalyzed her launch into Nordstrom and became the first steps toward building her multibillion-dollar enterprise.
So, what are the easiest ways for you to use your early stage IP to overcome your paranoia, position yourself in the market and set yourself up for success?
Read More >> https://www.entrepreneur.com/article/302701
Thursday, March 1, 2018
Selling Your Patent – How Much You Can Expect
By: Michael J Foycik Jr.
Septemper 25, 2013
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Many inventors have profited from selling their patents. So how much do they get? The answers are surprising, or at least they surprised me.
Having talked with many inventors, and also having talked with many corporate patent departments, I've heard many examples. Let me give you a few general examples, based on published accounts and interviews with public speakers.
Assuming the inventor has an issued patent for an article and has sold that article through at least one retail store, there will almost certainly be corporate interest. Vendors often report new products they see when visiting retail stores, which accounts for the corporate interest. If the corporation makes an offer, it will typically be anywhere from $50 thousand to $8 million, and can be higher.
On the other hand, an inventor trying to simply market an issued patent to corporations, is likely to get anywhere from $5,000 to $35,000. This does not take into account the likelihood of a corporation making an offer. Some inventors hire a marketing service to try to interest companies; such marketing companies usually keep statistics on their success rate, which varies. I recommend that anyone considering such companies first check out their success rates.
Or, if going through a television marketing company, the numbers are different. If that company is of the type that develops and makes the products based on your patent, they may prefer to license the patent rather than buy it. The royalty rate in such a case might be $2 million per year guaranteed plus a bonus based on sales. Such agreements may be for two years, and can be longer. This all varies, of course, depending on the specific company and the nature of the product.
Read More >> http://internationalpatentservice.com/Selling-Your-Patent-How-Much-You-Can-Expect.html
Septemper 25, 2013
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at IP1lwyr@gmail.com, or call at 877-654-3336.
Many inventors have profited from selling their patents. So how much do they get? The answers are surprising, or at least they surprised me.
Having talked with many inventors, and also having talked with many corporate patent departments, I've heard many examples. Let me give you a few general examples, based on published accounts and interviews with public speakers.
Assuming the inventor has an issued patent for an article and has sold that article through at least one retail store, there will almost certainly be corporate interest. Vendors often report new products they see when visiting retail stores, which accounts for the corporate interest. If the corporation makes an offer, it will typically be anywhere from $50 thousand to $8 million, and can be higher.
On the other hand, an inventor trying to simply market an issued patent to corporations, is likely to get anywhere from $5,000 to $35,000. This does not take into account the likelihood of a corporation making an offer. Some inventors hire a marketing service to try to interest companies; such marketing companies usually keep statistics on their success rate, which varies. I recommend that anyone considering such companies first check out their success rates.
Or, if going through a television marketing company, the numbers are different. If that company is of the type that develops and makes the products based on your patent, they may prefer to license the patent rather than buy it. The royalty rate in such a case might be $2 million per year guaranteed plus a bonus based on sales. Such agreements may be for two years, and can be longer. This all varies, of course, depending on the specific company and the nature of the product.
Read More >> http://internationalpatentservice.com/Selling-Your-Patent-How-Much-You-Can-Expect.html
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