ffI get questions from inventors all the time.  The most common sounds like this: “I’d like to move several ideas I have forward.  Any suggestions?”

While this is way to broad for a specific plan, here are some generalities I can suggest.  I have another article entitled “Everyone’s Marketing Plan” which is a follow up to this. Want a copy of this? Just write your request - on a twenty dollar bill - and send to Jeff Dobkin, P.O. Box 100, Merion Station PA  19066.  OK, just kidding.  Make that a Ten.

What?  Hey, I gotta eat too.  And I have kids - they get hungry 8 or 10 times a day — or at least it seems like it.  If this is too much money for you, send a note from your accountant and I’ll send it for free.

1. First: Inventors beware.  A lot of bad guys are out there.  If a firm says your idea is the greatest thing since sliced bread and wants to market it, make sure you ask how many inventors they have “helped” and have actually brought in more in sales and more $$$ to them than they have charged the inventor.  Get the exact, specific percentage and number.  If they fudge, or don't answer - don't call back - they’re one of the bad guys. 

Invention companies seem reputable because they don’t want your idea, and they tell you that. "Oh, don't tell me your idea - wait till I send you a non-disclosure form, they you can tell me!" It’s true, they don’t want your idea.  They just want your money.  But, they don’t tell you that.

In fact, here are the questions the American Inventor’s Protection Act of 1999 (public Law 106-113) states you should ask and the invention promoter must answer:

(1) the total number of inventions evaluated by the invention promoter for commercial potential  in the past 5 years, as well as the number of those inventions that received positive evaluations, and the number of those inventions that received negative evaluations;

(2) the total number of customers who have contracted with the invention promoter in the past 5 years, not including customers who have purchased trade show services, research, advertising, or other nonmarketing services from the invention promoter, or who have defaulted in their payment to the invention promoter;

(3) the total number of customers known by the invention promoter to have received a net financial profit as a direct result of the invention promotion services provided by such invention promoter;

(4) the total number of customers known by the invention promoter to have received license agreements for their inventions as a direct result of the invention promotion services provided by such invention promoter; and

(5) the names and addresses of all previous invention promotion companies with which the invention promoter or its officers have collectively or individually been affiliated in the previous 10 years.

This is for YOUR protection.  Here is the specific bill:

This subtitle may be cited as the ‘‘Inventors’ Rights
Act of 1999’’.

SEC. 4102. INTEGRITY IN INVENTION PROMOTION SERVICES.
(a) IN GENERAL
Chapter 29 of title 35, United States Code, is amended by adding at the end the following new section: §297. Improper and deceptive invention promotion
(a) IN GENERAL
—An invention promoter shall have a duty to disclose the following information to a customer in writing, prior to entering into a contract for invention promotion services:
‘‘(1) the total number of inventions evaluated by the invention promoter for commercial potential in the past 5 years, as well as the number of those inventions that received positive evaluations, and the number of those inventions that received negative evaluations;
‘‘(2) the total number of customers who have contracted with the invention promoter in the past 5 years, not including customers who have purchased trade show services, research, advertising, or other nonmarketing services from the invention promoter, or who have defaulted in their payment to the invention promoter;
‘‘(3) the total number of customers known by the invention promoter to have received a net financial profit as a direct result of the invention promotion services provided by such invention promoter;
‘‘(4) the total number of customers known by the invention promoter to have received license agreements for their inventions as a direct result of the invention promotion services provided by such invention promoter; and ‘‘(5) the names and addresses of all previous invention promotion companies with which the invention promoter or its officers have collectively or individually been affiliated in the previous 10 years.
‘‘(b) CIVIL ACTION
(1) Any customer who enters into a contract with an invention promoter and who is found by a court to have been injured by any material false or fraudulent  statement or representation, or any omission of material fact, by that invention promoter (or  any agent, employee, director, officer, partner, or independent contractor of such invention promoter), or by the failure of that invention promoter to disclose such information as required under subsection (a), may recover in a civil action against the invention promoter (or the officers, directors, or partners of such invention promoter),
in addition to reasonable costs and attorneys’ fees—

‘‘(A) the amount of actual damages incurred by the customer; or
‘‘(B) at the election of the customer at any time before final judgment is rendered, statutory damages in a sum of not more than $5,000, as the court considers just.
‘‘(2) Notwithstanding paragraph (1), in a case where the customer sustains the burden of proof, and the court finds, that the invention promoter intentionally misrepresented or omitted a material fact to such customer, or will fully failed to disclose such information as required under subsection (a), with the purpose of deceiving that customer, the court may increase damages to not more than three times the amount awarded, taking into account past complaints made against the invention promoter that resulted in regulatory sanctions or other corrective actions based on those records compiled by the Commissioner of Patents under subsection (d)

2. Good news: you can go to the USPTO.gov (Patent) site and look at all the patents.  Bad news - your ideas are probably already out there, patented, with prior art (“prior art” is lawyer-speak meaning it’s covered by an old patent and therefore not patentable.)  Another possibility: you can only get a weak patent that will not be defensible in court. 

You probably don't need a patent unless you have a lot of money.  A patent doesn't protect you, a patent only gives you the right to protect yourself.  Big difference between these two statements.  Big, big difference.  Let me repeat: A patent doesn't protect you, a patent only gives you the right to protect yourself.  Are you willing to go out to Montana and sue someone if they infringe on your claims?  Because that’s what it may take.

3. Figure out which idea you have that is the most "commercially feasible".  Commercially feasible means you can sell it and make money on the sale.  Many great, great ideas are not able to be sold at a profit.  This has little to do with how great an idea is, only with it's ability to be sold at a profit.  There are lots of reasons for this: can’t make it within budget; can’t sell it at a reasonable cost; can’t sell enough of them, someone’s marketing a similar product at a lower price, high entrance barriers to enter industry, can’t find a readily identifiable market segment that you can reach at a realistic cost.  These are just for a start.

4. OK, here’s what to do: Move your one big idea with the most potential for commercial success forward.  Put the rest on hold.

5. Get all the industry magazines, and association newsletters.  Go to the library and look up the trade magazines in the magazine directories such as Bacon's Magazine Directory or Oxbridge Communications Directory of Periodicals or the SRDS Magazine Source.  Get magazines free by calling the publisher and asking for a “media kit” and sample copies.  Read them, study them.

6. Make prototype.  Make sure it works.

7. Make better looking prototype.

8. Find manufactures in the Thomas' Register of Manufacturers at the library.  Get pricing from someone who makes similar products - get pricing for runs for 100, 1,000 and 10,000 manufactured.

9. Make better looking prototype.

10. Here’s the ONLY way to know if your product will sell: Show prototype to stranger. After all the “Wow - this is great!” talk is over, tell him you have one in the car and ask if he'd like to buy it and give him a price. If he takes out his wallet -- you have a good product that is commercially feasible (if you can manufacture it and sell it at a profit for the price you quoted him.)  Keep in mind if he just keeps saying how great it is, you didn't make the sale.

Keep in mind if you are going to sell through retailers, they will want to double the amount they paid you for the product.  If there is a distributor involved he will want to make 33% mark up on his cost.  If you are going through a catalog - they usually mark a product up 3 to 5 times.  Sometimes more. 

Yes, you read that right.  So if you are manufacturing it for $5 and selling it for $10 to friends, by the time this goes through regular distribution channels the price will be: Your costs: $5, sell for $10, distributor buys for $10, sells for $13.33, Retailer buys for $13.33 sells for $27.95.  Catalog house buys from you for $7.50 (they buy a lot to get this price as they act as distributor, retailer and advertiser, and sell for $27.95, almost a 4x markup.

11. Get the National Directory of Mail Order Catalogs (GreyHouse Publishing).  Send inquiry letter to appropriate catalogs asking how to get your product in their catalog.  Before any catalogs purchase, they’ll need to see a sample.  Never send to “New Product Committee”.  Always get a name so you can follow up. 

For all the above, you don’t need a patent.  It’s amazing how many people tell me they can’t sell something that isn’t patented. You can.  Quit asking.

12. If you are trying to license your idea, then it might need to be patented - and that’s to get the strongest deal.  Go to the Department of Energy website - DOE.gov - and get the booklet, “Making the Licensing Decision.”  It's free.  Read it.  Not as easy as you thought, is it?

12. If successful, send me a bottle of champagne. If real successful, just send money.

13. Buy my books.  They will demonstrate the longer version of this process.  Order from me (610-642-1000-v, 610-642-6832-f)and I’ll send you some articles on invention marketing.  Don’t forget, you owe me twenty bucks.

Hope this is helpful.  Jeff Dobkin  www.dobkin.com

Jeff Dobkin  www.dobkin.com.  Jeff has written 5 books on marketing and one on humor.  To order call 800-234-IDEA.  Questions?  610-642-1000 rings on his desk.  Write to him at the Danielle Adams Publishing Company, Box 100, Merion Station PA  19066.

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