New Invention Development Process – Licensing New Product Ideas Patents
When developing and creating a new product, the best feeling isusually seeing your idea come to life through the development process and watching people appreciate the invention in the end. There are many stages new products must through before the product is complete and ready for licensing. This includes product research, blue print prototype development, description copy, marketing content, packaging and everything in between. Most new product licensing generally occurs with the assistance of invention companies that have existing relationships with big box retailers such as Wal-Mart and Home Depot. Most people may not realize there are tons of products designed by everyday inventors.
Once a new productprototype is ready, the invention companywill focus on presenting the product to the large retail corporations with the intent of securing an invention license agreement.There are several ways that inventors can be compensated for the use of their idea.If a company licenses a product, it is common business practice for the arrangement to be listed in a document that all parties can sign and retain. This document is normally a license agreement that by definition is a written understanding between two or more parties concerning the new product idea.A license agreement provides a clear understanding of the obligations of each party and it also serves as proof of what is owed to each of the parties. Once all parties agree to the terms and sign the agreement, each party receives a copy of the agreement for their records. If at any time there is a dispute between the parties, they may rely upon the license agreement as a statement of their rights and obligations.
Most license agreements include various terms and conditions such as:parties to be included in agreement (licensee and licensor),description of idea, obligations of licensee, termination, payments, financial statements (books and records), territory rights, obligations of licensor, independent parties,indemnification, confidentiality, notices, sub-licenses, assignments, intellectual property rights, grants, etc. It’s common practice in the invention industry that you protect yourself and your idea by consulting a lawyer. Without a license agreement in place, serious issues could arise after negotiations. A simple handshake is no longer sufficient to seal a business deal. By dealing invention companies, they can offer considerable knowledge and experience to help successfully negotiate license agreements.
If your goal is to have your idea prepared and presented to a corporation in the hope of getting a license agreement, it’s recommended that you seek out the help of an experienced invention company.
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