April Newsletter 2024
April 2024 Whether you’re an experienced inventor or a newbie who just came up with your first big idea, the Inventor Smart Monthly Newsletter is
November 2023
Whether you’re an experienced inventor or a newbie who just came up with your first big idea, the Inventor Smart Monthly Newsletter is for you!
You’ll find valuable tips, useful resources, and words of wisdom that can help move your invention ideas forward!
Understanding The Licensing Agreement
If the company you pitched to is interested in your invention, you will then sign a licensing contract, which will outline the agreement between you (the licensor) and your partner (the licensee).
Your licensing contract will also explain in detail the way in which you will earn your royalties, or the percentage of revenue that will be paid to you after your item is sold.
Some other common items that may be covered in your licensing agreement could be exclusivity, territories covered, guarantees of minimum sales, advances against your royalties, and more specific terms of the agreement itself.
Based on the conditions of your licensing agreement, you may have additional responsibilities to uphold, such as your responsibility to protect your intellectual property, in order to maintain the relationship between yourself and your licensee, but this will vary on a case-by-case basis. Read more here:
https://inventorsmart.com/how-to-license-your-invention-and-earn-royalties/
How Does Royalty Payments Work?
Royalty payments, which are a percentage of the wholesale cost. So for example, the licensee produces the product and it costs $1 to make, then they sell wholesale to a retailer for $3.00, then the retailer sells the product for $6, and your royalty payment would be based on the $3.00. So, if your negotiated royalty rate is 5%, on the $3.00, your royalty payment would be $.15 per unit sold. Remember, if you’re licensing, you will want to find a licensee that has strong distribution channels and does mass volume. Understanding where your potential licensee partner sells can determine sales expectations. If you are considering an As Seen On TV direct response marketer, a home shopping channel, like QVC, or a company that sells directly to the consumer, you are eliminating the wholesale rate so there is a higher margin from product production cost to retail sale. Most likely your royalty rate may be adjusted to include marketing and other ancillary expenses. You’ll be surprised how those royalty payments add up and enjoy reaping the rewards from quarterly royalty checks. Remember it may take some time for your licensee to modify some of your design, create new prototypes, and work with the buyers when your product is delivered to the retailer, then the product finally shows up on the shelf.
Source: https://inventorsmart.com/how-to-license-your-invention-and-earn-royalties/
Question: What does it mean to “license a patent” and why is it done?
Answer: Licensing a patent simply means that the patent owner grants permission to another individual/organization to make, use, sell etc. his/her patented invention. This takes place according to agreed terms and conditions (for example, defining the amount and type of payment to be made by the licensee to the licensor), for a defined purpose, in a defined territory, and for an agreed period of time. A patent owner may grant a license to a third party for many reasons. The patent owner may not have the necessary manufacturing facilities, for example, and therefore opts to allow others to make and sell his/her patented invention in return for “royalty” payments. Alternatively, a patent owner may have manufacturing facilities, but they may not be large enough to cover market demand. In this case, he/she may be interested in licensing the patent to another manufacturer in order to benefit from another income stream. Another possible situation is one in which the patent owner wishes to concentrate on one geographic market; therefore the patent owner may choose to grant a license to another individual/organization, with interests in other geographical markets. Entering into a licensing agreement can help to build a mutually-beneficial business relationship. Unlike selling or transferring a patent to another party, the licensor continues to have property rights over the patented invention. Source: https://www.wipo.int/patents/en/faq_patents.html
National Inventor Club hosted Chelsea Cohen from SoStocked, an Amazon Inventory Management Software for Amazon Sellers. If you’re an inventor with an idea and the goal of selling your invention as a product on Amazon.com one day, we discussed why Amazon.com is a great launchpad and selling platform. We also covered what you need to do to set up an account, how to manage it, and how to excel in generating sales. While many inventors may not have a product ready for Amazon yet, understanding the platform’s potential is crucial. Our expert guest, Chelsea Cohen, a major resource for Amazon sellers, shed light on how inventors can leverage Amazon.com from the initial stages of an idea to managing a successful product listing. Chelsea’s extensive background in e-commerce ensures that attendees receive practical, actionable advice. Her guidance is rooted in real-world experience, making it invaluable for both budding and seasoned inventors.
We also had the opportunity to hear from several distinguished speakers during the event. Pierre Laspinasse, a Business Advisor from SBDC (America’s SBDC) discussed how SBDC can assist inventors and entrepreneurs in identifying effective strategies for selling their products and successfully bringing them to the market. Additionally, Reynaldo D. Vasquez from the USPTO regional office in Texas shared insights into how USPTO offices can support inventors with IP education and provide valuable resources for understanding their offerings. John Rizvi, renowned as The Patent Professor, provided valuable information about how he can assist inventors with their patent-related challenges and concerns. We were also joined by Samantha St. Raymond, the VP of Membership at Inventor Smart Community, and Bonnie D. Graham, also known as Radio Red, who introduced us to the upcoming program under the Inventor Smart Community called Inventor Smart TV. Furthermore, Frank Falco from America’s Beauty Show shared details about the upcoming 2024 Prospectus – What’s NEXT event, focusing on cosmetic products and business.
National Inventor Club is one of the largest and most active communities for inventors, innovation, and service providers that support invention and continues to provide a nationwide platform for great guest speakers, networking, and connections founded and moderated by Brian Fried, who has been running inventors clubs for over 15 years.
To become a member, please join us at National Inventor Club: https://nationalinventorclub.com/join or download the Inventor Smart Community app https: inventorsmart.app Available on Apple App Store or Google Play.
Catch the Replay: Kathi Vidal, Under Secretary of Commerce for Intellectual Property Insightful Session at the National Inventor Club Event! We recently hosted an enlightening live-streaming event at the National Inventor Club featuring a special guest, Kathi Vidal, the Under Secretary of Commerce for Intellectual Property and Director of the US Patent and Trademark Office. If you missed the live event, don’t worry! You can easily catch up by watching the replay. Highlights from Kathi Vidal’s Session:
Explore the rich history and facts about the USPTO.
Learn about recent developments and initiatives at the USPTO that are shaping innovation.
Discover valuable resources for inventors, including pro bono programs and the Inventor Assistance Center.
Understand upcoming enhancements for inventors, outreach efforts, and key changes.
Delve into the goals and plans of the USPTO to support independent inventors.
How to Watch the Replay: There are several convenient ways for you to replay this event:
In the Inventor Smart App: Log in and watch the replay directly – Watch on Inventor Smart App
NIC Section in the App: Visit the National Inventors Club section and click over to “Past Meetings” – View in App
YouTube Replay: Enjoy the session on our YouTube channel – Watch on YouTube
This session offers valuable insights and guidance for anyone passionate about invention and intellectual property. Make sure to check it out!
The Got Invention Show
The Got Invention Show features a 30-minute interview where an inventor promotes an invention, seeks a licensing deal, or looks for distribution opportunities. Host Brian Fried focuses on his guest’s challenges and solutions. He asks about their journey, where they are right now, and what will come next. He invites guests to offer words of wisdom to viewers and listeners.In the latest episodes of the Got Invention Show, we had a chance to dive into the captivating journey of Joe Farco, an intellectual property attorney and the inventor of the building block system called “Connecto”. The Connecto™ System originated in the 1980s when the inventor, as a young boy, sought a better way to play with action figures, building blocks, and bendable toys. The journey began with Farco-Proto 1, a prototype that used patent-protected technology but was inefficient and wasted materials. It confirmed that there was a gap in the market for a solution. Farco-Proto 2 attempted to optimize movement but faced challenges with set screws. Finally, on November 16, 2021, Farco-Proto 3, now known as the Farco Connecto™, was born. This prototype successfully combined elements of various toy types, using innovative engineering and injection molding. It is a U.S. and foreign patent-pending technology designed to bridge the gap between action figures, building blocks, and bendable toys.
Would you like to be our guest on the Got Invention Show? Schedule your interview today to promote your prototype or product now available for sale to now reaching 100 million households!
You and Host Brian will do a 28 minute interview and once the interview is completed, you can use it for your website and social media and we air on Amazon Fire, Roku TV, YouTube TV and next month we will be on Apple TV!! The podcast audio version of your interview is played on Spotify, iHeartRadio, Google and Apple Podcasts and Amazon Music! Small fee, great promotion for you and your invention!!
USPTO PATENT POLICY
The United States Patent and Trademark Office (USPTO) provides policy leadership, advocacy, and technical and trade expertise in domestic and international patent and patent-related intellectual property (IP) rights. This includes regular representation of the U.S. government in bilateral and multilateral intellectual property and trade negotiations including representation at the World Intellectual Property Organization – WIPO the five IP offices (IP5), the Industrial Design Forum (ID5), and the International Union for the Protection of New Varieties of Plants (UPOV).
Patent and patent-related policy encompasses a number of areas that are critical to responding to the many patent-related domestic and international issues that face U.S. rights holders. These include:
Domestic patent and patent-related policy issues as they relate to international obligations, foreign law and practice, as well as the development of U.S. practice and jurisprudence.
Treaty negotiation and monitoring the enforcement of patent-related international treaty provisions.
U.S. implementation of and adherence with international treaty obligations relating to patents, industrial designs, plant and plant varieties, and trade secret and regulatory data protection.
Technical assistance and training on patent-related matters for both U.S. and foreign officials.
Some of the key patent and patent-related international agreements the USPTO helped develop, negotiate, and continues to monitor and advance include the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), the Patent Cooperation Treaty (PCT), Patent Law Treaty (PLT), and the Hague Agreement Concerning the International Registration of Industrial Designs. For further information on these treaties and related issues, please visit the link https://www.uspto.gov/ip-policy/patent-policy
“It takes perseverance. You have to have that if you want to invent something. I always say ideas are like rear ends. Everybody has one. But, you have to, it’s taking it to market. That’s the thing, you can have a prototype and everything, but if you can’t sell it, it’s like gold in the ground. You have to get it out. It’s all about marketing. And that’s where we’re at now. Take it to a company that has manufacturing and marketing abilities. You have to have a goal. And I have goals and I plan to keep inventing. So, stop living is to stop inventing. ”
Do you have this great idea for an invention in your head? Are you ready to learn how to make money with that invention?
● This book is about taking action so you can take that great idea out of your head and make smart decisions to help you make money. Here’s how it works:
● We’re going to walk through the steps of getting started with your big idea.
● We’ll also explore how to turn your idea into a real prototype.
● We’ll discover resources to protect your ideas and, of course, help plan your future.
So why did I write this book? I want to provide the opportunity for more inventors to learn the process it takes to experience the invention brought to life. Not only to make your invention a reality, but to learn how to earn from your inventions.
A shop for Inventors, innovators and patent holders - Check out InventorMart.com!
This is a shop for you! You’ve worked hard on your invention, now you can wear DESIGNS & MERCH made with you in mind! Find shirts, hoodies, sweatshirts, hats, stickers, blankets and over 1,000 unique items to show that you are proud to be an inventor. check out InventorMart.com
About Brian Fried
Inventor. Speaker. Coach. Author. Radio & TV Host. Founder.
Brian Fried, known as “The Inventor Coach,” is a highly accomplished innovator, author, and speaker. With 15 patents to his name, he has successfully licensed and manufactured his own inventions, gaining recognition through QVC, infomercials, catalogs, and major retailers. For over 18 years, Brian has been working closely with inventors, providing one-on-one coaching as an invention licensing agent and guiding inventors in commercializing their ideas into tangible products.
As an expert speaker, Brian captivates audiences with his engaging talks on innovation and invention. He has authored three books, offering practical advice and strategies for aspiring inventors. In addition to his speaking and writing endeavors, Brian hosts the “Got Invention Show,” a platform that showcases inventors and their creations, providing them with valuable exposure.
Brian is the founder of the National Inventor Club, a community that supports and connects inventors, fostering collaboration and networking opportunities. He serves as the Chief Invention Officer of Inventor Smart, an invention consultancy that assists inventors in bringing their ideas to fruition.
In August 2023, Brian is set to officially launch the Inventor Smart Community app, an innovative social media and resource center exclusively designed for inventors. The app, now available for download on Google Play and the Apple App Store, aims to create a vibrant community where inventors can connect, share ideas, and access valuable resources.
With his extensive experience, resourcefulness, and commitment to helping inventors succeed, Brian Fried has become a trusted figure in the invention industry. Inventors and aspiring innovators can rely on his expertise and guidance to navigate the complexities of the invention process and turn their ideas into reality.
brianfried.com
inventorsmart.app
brian@inventorsmart.com
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Inventively Yours,
Brian and the Inventor Smart Team
Past Newsletters
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November Newsletter 2023
November 2023 Whether you’re an experienced inventor or a newbie who just came up with your first big idea, the Inventor Smart Monthly Newsletter is
