New Product Licensing

Marketing Tips

Create excitement!

An electronic invention often has diverse applications in different markets. Multiple exclusive licenses can be  given for  each market. Look for new ways to rephrase the product’s uses, thereby opening new markets.

Large manufacturers have muscle to get new products successfully to market.  However consider the reasons to pursue small to medium sized electronic manufacturers (with sales of $10 - 100 million).

• Small manufacturers rely more on electronic patent licensing, as they may have smaller R&D departments.

• Huge companies may try harder to get around competing electronic patent rights. Our patent applications can have well over twenty “outer layers” of related variations designed to prevent this. How many other electronic patent applications can boast this?

• Easier to contact decision makers.

• Less bureaucracy means faster decisions.

The reality is, isolated electronic inventors, working independently often are perceived as eccentric loners, with little knowledge of the business world. For this reason, electronic licensees generally prefer working with established licensing organizations. Establish credibility from the beginning.  Suggestions include:

• Mention the companies you’re associated with.

• Sound upbeat, confident and professional.

• Explain some of the research you or others have conducted on the new electronic product for license, such having found a lack of similar published electronic patent filings.

• Business or academic background if related to your role in licensing the electronic product in some way.

Those who know what they’re doing, often don’t need manufacturers to sign confidentiality agreements. 

The European Patent Office receives patent applications for the European Union Countries.  One checks off the EU countries where patent protection is sought. A series of procedures follow.  Four EU countries comprise about 65% of their economy.  They are Germany, UK, France and Spain. Licensing efforts might focus more on these countries. Richest country’s gross development product http://mrdowling.com/800gdp.html

Avoid unscrupulous electronic licensees at all costs!  Carefully check their backgrounds before giving away licensing rights.

Endorse any reasonably good idea from the electronic manufacturer. Have them feel the new electronic product is partly their idea. For example, alter it’s new product description, taking into account what they may have said, or suggested as a trademark. Show how it complements their great product line.

If the product gets rejected, learn exactly why, and know how to overcome it next time. If you’re stuck, contact the office.

First Calls To Potential Licensees

In big companies, first ask for marketing, then for who decides on new products.  In small to medium organizations, try contacting the president, owner, or head of marketing.  When you reach them by phone, ask if they’re the correct person for making licensing decisions.

Potential Licensee Reactions and Your Possible Responses

Statement: “I don’t handle this invention” (There might be a better person in the co. Or you’ve reached a marketing company, instead of a manufacturer.)

Reply: “Please connect me to the person who does.”  Or “Can you recommend which companies to contact?”

Statement: “We require you sign a disclosure agreement” (Companies, like us, are afraid to take someone’s idea and get sued.  The agreement hold them harmless if they were already working on a similar invention, or if they are unscrupulous in hoping to copy it.)

Reply:  “It’s patent pending” (Make sure it is.  If so, this can satisfy the manufacturer’s requirement.)

Statement:  “Tell me more”

Replies:

Keep the inception date confidential at this time, as it’s proprietary. It won’t often be asked for. Ask them for any market information about your new electronic product:

• Are packaging, features or price the driving force for this type of electronic product?

• Their “very rough estimate” on potential sales volume. Maybe 1,000 or 10,000,000 units?

• Will it fit your electronic product line?

• Will it improve your company’s overall market share?

• The market’s stability, and causes for its fluctuation.

• Do you market overseas?  Where is the main foreign competition coming from?

• How long to get your new product to market?

• Do you license electronic products, if so how? What’s been your experience?

• What are your strengths in:  Marketing, Production, Electronic Engineering.

• Has the manufacturer been successful introducing new products?  If so, how many and how often?

• What’s the manufacturer’s experience with electronic patent licensing?

• When did the company start?  Has it been under the same management?

• Which people or departments might need influencing to license the new product? Might one area need more attention?

When Getting Production Cost Estimates From Manufacturers, Ask About Their Capabilities:

• Their abilities with engineering, manufacturing, and quality control.

• Related products they manufactured.  Where?

• What might the customer be charged for the new electronic product?

Share Excitement & Profits!