"Whenever I consult an inventor who just developed a new product, almost always, they think that their next step is to file for patent protection.  Patenting or developing an intellectual property strategy is certainly a step in the process.  However from an investment or entrepreneurship perspective, since the patent can be the most expensive part of the process, I believe filing before having the product evaluated for commercial or licensing feasibility is simply illogical.  I liken it to an entrepreneur who has an idea for a product or service and decides that the first thing he needs is a location for his business.  As a result, he gets a loan and purchases a four-story office building before even researching if there is a market for his product/service or evaluating if his business can operate profitably.

Inventors must consider this as they craft their strategy in moving forward after conceiving a new product.  Evaluation is a critical step to the eventual success in commercializing or licensing your invention and if it is ignored or done half-heartedly the product is doomed to fail.  The reason is obvious; if you do not know what you have it is impossible to capitalize on it.  That is, without understanding the competitive landscape, similar patents that may have issued, industry or market niche’ trends, major players, consumer demand, appealing product features, etc., you will lack the knowledge that will enable you to succeed."

By: Trevor Lambert

From Chapter 2 of Invent Secrets

 "If I were to compare this to golf, licensing your product is like a very long par-five hole with a dog-leg left.  Thus far all of your preparation in the past chapters represents your initial drive and long iron shot that puts you in striking distance to the green.  The actual contact with a new company is the approach shot, and negotiations, which we will cover in the following chapter, is like putting.  In your approach shot, if you don’t consider the hazards, pin location and slope of the green, you will create much more work for yourself.  In the same way, detailed consideration is needed when approaching, qualifying and making a license pitch to a company.  Miscalculate and you will be in a sand trap; come in too strong and you will find yourself in the back fringe; and if you come in too weak you won’t reach the green at all."

By: Trevor Lambert

From Chapter 6 of Invent Secrets

"The “Executive Summary Proposal” is simply business-speak for a shortened list of major terms and conditions of an agreement that can be easily reviewed prior to formulating the more extensive and lengthy contract.  Sometimes this can be referred to as the “List of Terms” or “Terms Sheet”, but it is basically the same thing.

The reason that its use is so effective is because it lays out the main elements of the agreement as a collective whole in a short workable form, both of which are very important.  Having the terms as a collective whole prevents a company from negotiating the agreement terms separately, which usually will result in a worse deal for you.  It is important for the company that you are working with to understand that the terms are interrelated and if they want a worldwide exclusive license that will have an effect on performance requirements, minimums, royalty rate and various other terms.  Additionally, having the terms in a short workable form allows for convenient review of the terms by executives that is not time-consuming or confusing.  By making it simple you increase your odds that the proposal will be reviewed and acted upon by the executives of a company in a timely manner.  Furthermore, coming to a consensus (in principle) on the major terms during the proposal phase will make constructing and executing the contract much swifter."

By: Trevor Lambert

From Chapter 7 of Invent Secrets

By: Trevor Lambert

From Chapter 7 of Invent Secrets