mjrippe said:
I didn't respond right away because I find it hard to be optimistic. That said I encourage invention and creativity so congratulations for seeing a problem and coming up with a solution.
I have an idea and a working prototype for a small audio related widget (mechanical, not electronic). I think there would be a market for it and others I have talked to seem to agree.
Accurately estimating the profit potential of a new widget depends on several factors, I have worked inside decent sized companies that grossly over-estimated sales for some new products, and underestimated others. The only truth is customers voting with their hard earned money.
However I am not interested in producing, marketing, and selling it myself. There are a few companies that I think would be interested as they make related items. My goal would be to sell the concept/rights/etc. for an agreeable sum.
Do not assume that they would be interested just because the products appears to fit their product line (in your opinion). I spent a couple years at my last real day job as the guy who reviewed outside idea submissions, perhaps a personal problem but I did not approve one idea to pursue further.
Companies are rarely sitting around without new product ideas, but typically too many to pursue, forcing them to prioritize their resources. It cost money to tool up a new product, it cost money to properly merchandise, etc. If the outside inventor expects a cut off the top (actually a cut off the top of the wholesale price). That means a higher market price point (or less profit) all else equal.
My questions are:
How do I go about approaching them with the product idea? Cold calling a global corporation seems ludicrous.
I have some experience with that... I grew frustrated by getting dropped to voice mailbox of some low level handler. The best way to get access to decisions makers is to know friends of friends who know the executives personally, and that only guarantees a hearing, not success.
Some advice I got from a friend recently that I haven't tried yet, is to approach a new company through the sales reps or top sales executives. They are more willing to talk, and more positively biased about new product ideas. If you get them enthusiastic, they may open some doors inside, but again just a foot in the door, nothing more.
Do I have to have a lawyer? I do not have a patent, but have documentation of the idea and development of the prototype. Do I need to do more to protect myself?
I am a strong advocate of using lawyers before problems occur not after. It is always a lot cheaper before the sh__ hits the fan. You definitely need legal representation before signing a deal with a company. (My better deals were all handshakes and letter contracts, but that was then not now).
IP protection is another poorly understood strategy. A patent can cost tens of thousands of dollars, and after securing a patent it only gives you the right to sue. IP lawsuits can cost $millions. (In a bizarre twist some IP lawsuits are now being prosecuted in China because even that is cheaper there. :
)
Peavey filed a patent infringement lawsuit against Behringer over my most successful patent while working at Peavey (FLS the LEDs above the EQ sliders that indicated feedback). Behringer won (by not losing in court), so I should pick my words carefully. Long story short, a patent and relatively deep pockets is not always enough to prevent competition, the big boys play hardball.
I know some of the folks here have designed commercial items, hold patents, and have maybe been down this road before. Any advice would be much appreciated.
Thanks,
Mike
If passionate about the product maybe make them yourself. I would lower expectations about getting compensated well for somebody else taking all the risk and doing most of the work. Over the decades I have had multiple associations with private companies as an outside consultant. The most successful partnerships were when the companies approached me to solve some problem or help design some product. My attempts to sell myself have failed miserably (perhaps Karma paying me back for rejecting so many outside ideas.)
From decades of designing products... we are living in a golden age for product development. Modern computer tools allow us to design 3D parts, with a PC and $100 software. Then these 3D models can be emailed to China to get tooling made for a fraction of US tooling costs. You can even set up a website on the cheap and sell them yourself. Maybe after you demonstrate that it is a viable product you can approach a partner with sales data and from a position of strength.
Of course there is a risk that somebody will rip you off, but being ripped off is the ultimate compliment. I've been complimented that way a couple times.
JR
