Bear Russ

Bear Russ

Inventor Q&A: Should I manufacture my invention or license it for royalties?

“I have a new invention that I’ve been working on. I’m just not sure how to actually go about producing and marketing my invention.  Do I need to arrange for manufacturing on my own, which seems like a challenging process in itself, or are there other options that I can explore for producing and marketing my invention?” 

 

Ultimately, after securing a patent (or patent-pending) every inventor reaches a crossroads where they need to decide how to proceed with commercializing their invention.  Do they develop, manufacture and market the product on their own?  Or do they explore partnering/licensing with a company who will then bear much of the financial risks of proceeding?  Whatever the case, after the idea has been protected with a patent, the inventor must weigh these options and decide which one is the right choice for his or her specific situation.   

If you are new to the business of inventing or are not really sure how an inventor actually makes money from an invention, consider the following options. 

 Licensing the invention for royalties:

 Assigning or Selling the Invention:

When the inventor assigns his rights, he is permanently transferring or selling ownership in the invention/patent.  The inventor may receive a lump sum payment or a series of payments.  The difference between a “license” and “assignment” is in the transfer of rights.  With a license, the inventor can retain patent rights (like “renting” the patent), and with an assignment they transfer their rights (i.e., sell it). 

Developing & Manufacturing the Invention:

1. Manufacturing and marketing an invention can be an exciting and rewarding approach for some inventors but the process should be looked at more as a business venture, as it requires the inventor to have substantial capital and a well thought out plan on how to develop, manufacture and market their idea. Manufacturing is very different than finding a company to license the invention, and should not be jumped into without examining the risks and carefully planning the best route for success. 

If you choose the path of developing and manufacturing your invention on your own, you maintain far more control of your invention.  But you also assume the various risks and costs associated, such as: research, engineering, tooling, molds, inventory, warehousing, freight expense, distribution, etc.  You also assume the investment of your own time, which for many inventors who hold full-time jobs, is difficult.  

Now that you have a better understanding of the options for commercializing your invention, it is easier to see why it’s important to think through the options and determine what makes sense for your situation.  It doesn’t make sense to select one approach such as manufacturing your invention when licensing may have been a better solution for your situation.  

It is important to remember that while neither licensing nor manufacturing is a guaranteed success, taking the time to understand the options for taking your invention to market and thinking through what your goals are prior to leaping into either option will help you take the path that’s right for you and your invention as you continue along the road of inventing. 

About the Author

Russell Williams cofounded InventionHome.com and MatchProduct.com to assist inventors and entrepreneurs through the patent and invention development and marketing process. He's been asked nearly every invention-related question in the book, and shares his wisdom in an article series, "Inventor Q&A".

If you have a new product idea and need assistance patenting, developing or marketing your idea, request a free information package from InventionHome.com - http://www.inventionhome.com/info/index.asp?referred=article

If you have an innovative product that is already developed and manufactured and you need help finding retailers or wholesalers to purchase or license your product, list it FREE at www.matchproduct.com.

Russ Berrie Bears From The Past(i can't find a teddy bear i had as a child)?

I have looked for years for a teddy bear and a raccoon and dog. I am mainly looking for the bear i believe its a Russ Berrie Bear. Maybe one of the (From The Past) bears il leave a link of one that looks about the same. The one i'm looking for has plaid on its feet and i think a ribbon abound its neck the same it says old fashion teddy on one of its feet i think its left foot i had this bear in the 80s and think it may have been new then. my mother sold all 3 of these for a quarter each at a garage sale when i was a kid and i loved them and wanted to get them for my little girl shes coming up on 2 and i think she would love them to. If you need any more info il try my best

http://www.tableandhome.com/prodijhdd

I would check flea markets in your area. You can often find old toys there.

Giselle the Ballerina Dancing Bear by Russ Berrie at OrangeOnions