Tip 22 – “One on the Hook”
Blog By IP Team
From the moment you first had your idea, you dreamed of seeing it on store shelves. You patented your invention, and you’ve been marketing to manufacturers and other companies attempting to secure a licensing agreement. And now it’s paying off as companies are responding. That’s great! But what do you do now?
First, stay calm. If you’re like most people it can be a bit intimidating when a product development representative from a major corporation contacts you regarding your invention. Take a deep breath, let it out and remember one thing; they called you, they’re interested. Most likely they’ll be friendly, as everyone knows it’s easier to negotiate with a friend than it is a business, keep that in mind. You should be polite, professional and most importantly prepared to answer questions about your invention.
You should be anticipating these type of contacts, and you should have a plan in place before you ever receive the first call. Ensure you can briefly explain your product in a very appealing way; the elevator pitch. It’s your product so there is no one better qualified to briefly explain what it is, its benefits, and what you want from a licensing company. The data from your market research will be extremely beneficial in allowing you to converse intelligently and professionally. This will put you miles ahead of most independent inventors and make you and your product more appealing to potential licensees.
It’s not unusual for interested companies to request more detailed information on your invention so they can conduct an in-depth review. You’ll want to share with them your market research and an overview of your patent application. We strongly recommend not sharing the actual patent until a Non-Disclosure & Non-Compete Agreement is signed by you and an authorized company representative. The information you provide will help the company decide if they want to move forward so ensure it is accurate, informative and appealing.
After the company reviews your product they may be ready to negotiate. Be prepared because during negotiations there is no room for a shortcut or a lack of knowledge, and a minor oversight could potentially cost you millions. We strongly recommend independent inventors use experienced product negotiators at this point.
Receiving responses from interested companies is exciting but you still have to close the deal. Be prepared with your product information and exactly what you want. And please remember the professionals at Inventor Process, Inc. are here to help!
We hope you enjoyed Tip 22. Please consider sharing this information as it may benefit an inventor you know. If you have questions don’t hesitate to contact us.