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Business Plan for New Product Licensing Coop
Work Flow:
From Filing Patent Applications To Licensing
Steps Simplified
1. Patent
Applications Filed
2. Further
Improvements. Market researchers, engineers and others researchers make
comments to the new products. Comments include: 1. suggested improvements; 2.
reviewing other new products in similar product categories.
3. Publicize
New products: Press releases; targeting manufacturers by email, mail and
phone; investor groups, web blogs; help wanted ads; networking; etc.
4. License New
products
Above Steps
In More Detail:
Patent Applications Filed
1.
Inventions Conceived
2.
Inventor conducts patent searches checking if another party develop product idea
before.
3.
Patent applications filed to achieve patent pending status.
4.
Invention packet forwarded for commentary.
Invention Packet:
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Shown to the non-technical associates on the licensing team, for further
improvements.
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Invention’s brief description, followed by details. Variations of the
invention are explored. Policy is to only accept improvements and inventions
from associates who have pre-signed profit sharing agreements. Other
inventions are to be actively registered with the patent office before.
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We’re highly focused on
broadening our patent applications by including many related but different
products, making it harder for a competitor to copy us by making variant.
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Marketing Info: Various trademarks for the inventions. Why a licensee
would want the new product. Marketing ideas.
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Keywords for invention to search web for related ideas that can improve
invention.
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The portion of the otherwise confidential patent application you receive can be
from one half to several pages. The non-divulged parts of the application can
include “layers” of related product ideas.
New Product Licensing
Contact Manufacturers:
Manufacturers with related product lines contacted via:
email, postal mail, and phone. The licensing manufacturer is offered free
upcoming publicity about the license in upcoming press releases. Exposure can
reach 10,000 periodicals and related trade associations worldwide.
Press Releases:
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Email opt-in lists of writers and editors seeking newsworthy information.
One page letter describes the new product for license, plus interesting
information about the organization to catch media attention. Links to
website for more information. Detailed electronic product descriptions are
reachable via the link provided in the letter.
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Later translate above promotional material into:
Japanese, Mandarin, German and maybe Korean. Other countries normally receive
the information in English.
Potential Licensees Call
If desired calls can be answered by the associate, or by our
virtual
receptionist. Serious prospective licensees forwarded to the owner or other
person.
New Products Licensed:
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New product licensing rights are assigned to the licensee (electronic
manufacturer or investor).
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Licensee completes the patent application process at their expense. Costs are
$1,000 – $20,000, and usually under $100,000. They must meet a
step-by-step time guideline; otherwise the full new product licensing rights and
any work they did, revert fully back to the active licensing associates who
worked on the invention before the licensee came aboard. Another licensee
can be sought (perhaps another prospective party, that appeared to be the second
best licensee earlier).
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Licensee can start paying royalties from the time the patent is issued.
Sometimes they may offer an upfront fee as well.
Electronic Product Manufactured and Sold
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Manufacturing can start while invention remains patent pending, or after the
patent is issued.
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Royalties of maybe 4 to 8% of the manufacturer’s sales price are received.
Patents normally last 20 years from the day the first patent application was
filed. Royalties are sent to each active associate.
New Product Development Timing:
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Quickly work on the inventions after they get to you in the development chain.
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New products for license
come down the invention factory line. A limited number are promoted at any one
time.
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It can take a month to over
a year, for manufacturers to make their first payment to us.
Simplified Flow Chart For Each New Product Cycle:
Patent pending invention comes from Inventor ->
Engineers improve invention -> License Promoted -> New product manufactured
and sold -> Licensee sends us royalty payments for up to 20 years -> Profits
shared between associates.
Share The Excitement & Profits
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