Being fully prepared for submitting an invention to companies with potential interest for marketing it or to directly launch a marketing campaign for an invention is very important. The two main areas of importance are protecting an invention and thoroughly researching costs involved in developing an invention for retail sale readiness. These are essential factors needed for new product marketing.
Patent Protection
The U.S. Patent & Trademark Office (USPTO) warns that not obtaining a patent pending status for an invention within one year of public disclosure can result in denial of a patent application. It is highly recommended that an invention not be disclosed publicly by an inventor before patent protection is in place. While some inventors desire to first see if there is public interest for their product-invention before going the expense of a patent pending, it is very risky business to test-market without one.
Provisional Patent Program
One cost-effective route for protecting an invention that has been made available by the USPTO is the “Provisional Patent Program." Once an inventor has conducted a thorough patent search on their own or through a patenting agent or attorney, it can then be submitted for a 1-year provisional patent. The cost for small entities (individuals and companies with 500 employees or less) is only $110.00, as of the year 2009. The patent can be allowed to lapse after the initial term with no further obligation or an inventor can resubmit the invention for a full-term patent of 14 years. This gives an inventor time to develop and test market his product-invention before he invests in further patent expenses.
Manufacturing Costs
Having a new product idea can be exciting, especially if the product-invention is unique and will genuinely solve a problem or offer a needed-convenience to consumers who will purchase it. Even if an inventor does not directly sell an invention, having accurate costs figured to manufacture a shelf-ready product with the best possible accuracy is essential.
This is so all levels of markup at the following levels can be calculated as accurately as possible:
- Distributor price
- Wholesale price
- Sales rep commissions
- Final retail
(Note: Some manufacturers choose not to sell to distributors or pay sales rep commissions but strictly sell at a single wholesale price to retailers.)
This will let the inventor know how competitive a finished, packaged product will be on the market and is information potential licensees also require (whether researched by them or the inventor) in order to seriously consider marketing an invention under a royalty agreement with a licensor (one offering rights to an invention).
Competitive Final Retail
If the final retail of a new product is undesirable to the consumer, this can override their recognition of how useful the product would be to them because of non-affordability or lack of cost-effectiveness.
Costs may need to be cut back in the following areas to keep the final retail competitive:
- Manufacturing process
- Materials
- Packaging
(Inventors who market their own inventions must also consider promotional and advertising costs.)
This may require research to find the most cost effective sources and resources to obtain best possible prices while retaining a necessary quality and attractiveness for a product-invention. Having these costs in place can help an inventor go much further when submitting an invention to potential licensees, potential investors and even potential retail store outlets and chains.
Article Sources:
U.S. Patent & Trademark Office
PATENTWIZARD - Patent Application Software
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