Musings at the intersection of business and life

For inventors, getting to market requires persistence

Starting a Business
October 24, 2010 by Kathleen Allen

Inventors are interesting people. I know a few and what I can say for sure is they’re definitely eccentric. I don’t mean that in a bad way—if they were normal, they wouldn’t have the vision to connect things that don’t generally go together to come up with something new. Let’s face it, they see the world very differently from most of us, and it’s for that reason that not all the inventions they come up with are practical. In fact, the vast majority of inventions that receive patents never make it to the market at all. 

Why? Because they fall into the category of “ridiculous ideas,” such as the beerbrella (pictured). There’s no need in the market. But that’s not the only reason they don’t make it to market – after all, I’ve seen dumber things than the beerbrella on infomercials. The other big reason is that inventors know how to come up with ideas and maybe even a primitive prototype, but they typically don’t know how to build a commercial product let alone market and distribute it; and that fact leaves them open to being taken advantage of by invention promotion scams.

Gene Quinn is the president and founder of IP Watchdog, and he has offered a list of red flags that inventors should look out for.
 
  1. If it sounds too good to be true—it is! Enough said.
  2. They suck you in with low fees and a money-back guarantee (no reputable attorney would give a blanket guarantee for anything). Once they hook you, they’ll ask for upwards of $12,000.
  3. They promise to “submit” your invention but they don’t talk about what happens once it’s submitted. Securing a patent is an iterative process that requires some back and forth with the Patent Office. What they won’t tell you is that you’ll likely get turned down on the first pass. Trouble is, they only committed to submitting, not     continuing to try to secure a patent. You might also want to look at the Federal Trade Commission site “Spotting Sweet-Sounding Promises of Fraudulent Invention Promotion Firms.”
 
A lot of big companies have changed their tune for the good about working with independent inventors. Sarah Needleman of the Wall Street Journal just wrote about some of the new programs from companies like General Electric and Clorox designed to tap into the inventor market. General Electric partnered with several venture capital firms to put out a call for a next generation power grid. They received about 3,000 submissions. GE will choose 5 winners who will each receive $100,000 to fund their work. If that’s not up your alley, AllStar Products Group in New York (best known for marketing that laughable sleeved blanket—the Snuggie) does about 75 to 100 licensing deals with inventors every year. They start with infomercials and then you eventually see the products in Target, Bed, Bath and Beyond, and Wal-Mart. Remember the Topsy Turvy, the upside down tomato growing device? Bill Felknor, the Tennessee inventor, signed a deal with AllStar that has produced the sale of more than 11 million units. 
 
Stu Berger’s posture pillow, the Side Sleeper Pro, will go on sale at Bed, Bath and Beyond at the end of the month. After 50 inventions, he finally hit the big one, but it will still take a huge volume of sales for him to quit his day job and live on the 2% to 5% royalties from wholesale sales.
 
Lesson Learned: It took persistence to create the invention; it will take even more persistence to turn it into a money machine.
 

Related tags: Federal Trade Commission, invention, Sarah Needleman

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