// The art of invention marketing - a knol by Bouarfa MahiKnol DebatesNew! | Help  Search ToolkitManageRevisionsEditViewThe art of invention marketingFree tips for marketing your invention to potential licensees ContentsPrefaceIntroductionIntellectual PropertyStatus of the Product under Development 1Phases of the Development Process 2Canvassing and Sales ToolsCanvassing ToolsThe Introductory LetterThe Product/description File 3The Non-Disclosure AgreementSales ToolsThe Innova-bookThe Press-bookThe Practical Traininglessmore Print PrefaceConfronted with the daily realities of our society, have you discoveredoriginal solutions to either a technical problem or some other need?Are you now looking for a company to industrialize this invention? Inorder to help you in this procedure, I am offering you this guide. Itwill be useful if you are looking for an opportunity to review yourcurrent situation and discover your own possibilities for improvement.It will help you carry out your work as an innovator more efficientlyand show you how to shoulder your responsibilities so that you canovercome the difficulties that are inherent in launching new products. IntroductionIt is well known that selling a new idea for a product as anintellectual property, usually calls for the making of a prototypewhich is then presented to the interested manufacturer. However, thereis a paradox in this approach because it leads us to associate materialgoods with the sale of immaterial goods. The lack of a definition ofthe goods for sale brings this to the fore because there is no linedrawn between the task of the innovator and the task assigned to themanufacturer. At present, there is no method of operation which makesit possible to eliminate this problem from the sale of intellectualproperty.Research into the canvassing and sale of intellectual property,according to the marketing process, has led me to the conclusion thatthe pre-development of an idea is the essential working basis. Thisguide is the result of my research, and enables us to act efficientlyin the steps that we take as innovators. Intellectual PropertyIn relation to the invention or new product, an intellectual propertyis partly defined as a collection of information to which a patent or adesign patent or a non-disclosure agreement must be attached. Thesefirst two legal points give the innovator the property right. Fromthere this collection of information can be transmitted unequivocallyfrom the innovator (A) to the manufacturer (B), who will then considerbuying the intellectual property. Our marketing approach will provideinsight into the nature of this collection of information and will leadus into defining the canvassing and sales tools used by the innovator.First, it is clear that the meeting point between the innovator and themanufacturer is located during the development of the product. Inanalyzing the status of the product under development and the phases ofthe development process described in Les Techniques de l'Ingénieur inthe section on Conception of Industrial Products, it is easy to put theinnovator and the manufacturer into the regions (A) and (B),respectively. In order to create and transmit the collection ofinformation from A to B, the only way is to make a path defined by theproduct's pre-development (AB), so that the innovator can communicatewith the manufacturer.So the important collection of information is the pre-development ofthe product (AB), which defines in part the intellectual property.From another marketing standpoint - as we will see in the followingparagraphs - a great deal of importance will be attached to the packageof the intellectual property, in both content and formIn addition, with regards to the sale of the intellectual property, itis interesting to note that the cost of pre-development (AB)constitutes a cost price inferior to the market value of theintellectual property in terms of cash, since the Royalties are linkedto the product's launching (C).It is also necessary to define the canvassing and sales tools of theintellectual property starting from its pre-development. We haveobserved that the collection of information becomes clearer when wemove successively from the intellectual property to thepre-development, and then to the canvassing and sales tools.To sum up, our marketing strategy has enabled us to incorporate the complex notion of intellectual property characterized by: -pre-development -package -cost price -canvassing and sales toolsStatus of the Product under Development 1 1 Les Techniques de l'Ingénieur, section : Conception of Industrial Products.By courtesy of the Editor. Phases of the Development Process 2 2 Les Techniques de l'Ingénieur, section : Conception of Industrial Products.By courtesy of the Editor. I added the notes located in the lower right table. Canvassing and Sales ToolsCanvassing includes all activities with the goal of attractingpotential manufacturing partners and making contact with them, eitherby visiting them or having them visit you. In the first approach thatyou make, the canvassing tools consist of a classical introductoryletter, a product/description file and a non-disclosure agreement,which we will define later.Sales begin once this initial contact is established. Strictlyspeaking, there is no sale until you are in front of a potentialindustrial partner, whom you are trying to convince to buy theintellectual property or new product.As explained in the introduction, the greatest difficulty at this levelis knowing exactly what is being sold. Indeed, we are selling neither amanufactured good, nor a provision of a service, and not even research.Rather, we are selling intellectual property. So the pre-development ofthe product stands out as a collection of information which partlydefines the intellectual property.Starting from the pre-development, the innovator creates a group ofdocuments called the innova-book, presented in the form of a pro-book;also included is a communication dossier in the form of a press-book.So in your second approach, the sales tools consist of the innova-bookand the press-book, which we will define in greater detail later. Canvassing ToolsThe introductory letter announces the project's existence as well asits advancement, and asks the manufacturer about his or her interest indeveloping, manufacturing and marketing the product. It should beaddressed to the Vice-President of Marketing or, if that is notpossible, to the President. The product/description file positions theproduct on the market without revealing the invention.The non-disclosure agreement defines the legal framework in which theinformation exchanges are to be carried out, and precedes theco-operation agreement. The requirements of the non-disclosureagreement invite the manufacturer to commit him or herself morally andin return we are expected to provide a high-quality of information. The Introductory LetterDownload the introduction letter : letter, (file.doc). (click right and save)Dear Sir, As an independent inventor I have pre-developed a …product name … whichis designed for the … industrial applications …. At the present time Iam looking for potential partners who would be interested indeveloping, manufacturing and marketing this device for which we are inthe process of getting a patent. On your request, I will make apresentation with a non-disclosure agreement.Yours faithfully(Note: if you are addressing the letter to named person, sign Yours Sincerely) Enclosed: product/description file The Product/description File 3Download the product/description file : product/description, (file.doc). (click right and save)Product: Name the product according to its function.Industrial applications: Give the industrial sectors affected by the product.Principle: Present the physical or technical principle used, without revealing the invention.Competition: Set forth the competing technical and physical principles.Advantages: Cite the technical and economic advantages.Applications: Situate the product and its applications in relation to the intended market.Potential market: State any new features or applications and the renewal of any existing ones.Marketing context: When a device..., the system proposed is ideally adaptedLicensing agreement: Transfer or exclusive exploitation license,inventive value to cash and percentage to be discussed, possibletechnical assistance (on a real expense basis with daily indemnity).3 ANCE's Practical Guide , How to make the most of your ideas?JP. Quenderff. By courtesy of the Author.The Non-Disclosure AgreementDownload the non-disclosure agreement : NDA, (file.doc). (click right and save)NON - DISCLOSURE AGREEMENT This AGREEMENT, made on this _____________ day of ____________ 1998 betweenINVENTOR NAME, an independent inventor with address at ............., hereinafter referred to as "THE INVENTOR "andCOMPANY NAME., a company with offices at …address…, hereinafterreferred to as " COMPANY NAME ", both being hereinafter jointlyreferred to as " the Parties "PREAMBLEWhereas COMPANY NAME. is a United States company based in Town name,State name, which designs and manufactures …product name …for the…industrial applications… on a worldwide basis, and seeks opportunitiesto increase its activities in the world, either through cooperativeagreements or the purchase of patents or other proprietary rights,Whereas contacts were made between the Parties and the Parties now wishto consider working together on a particular project called " productname" which is in a pre development stage and for which a patent is inprocess;Whereas the Parties recognize the necessity of protecting theirrespective proprietary rights and trade secrets, the Parties havedecided first to enter in the present Non Disclosure Agreement to allowfor the exchange of necessary information before then considering theopportunity for a common venture in promoting the " product name "project.NOW THEREFORE IT IS UNDERSTOOD AND AGREED AS FOLLOWSArticle 1 - SECRECY 1.1. With due regard to the achievement of the objective set in theabove Preamble, the Parties hereto are willing to disclose to eachother, on a strict confidential and need to know basis, certaininformation, including information related to the situation of theirrespective customers and / or competitors .1.2 All such disclosed information is of a confidential nature,representing trade and business secrets and proprietary rights, and itshall be treated as strictly confidential and solely used to achievethe objective of the present Agreement.1.3 Consequently both Parties agree to have their respective personnel,and personnel acting on their behalf, respect the obligation of secrecyprotection relating to any information or material which they may haveaccess to or knowledge of, during the performance of their activitiesunder the present Agreement. Such personnel shall abstain fromcommunicating any such information or material, under any formwhatsoever, to a third party and from using it for any purpose otherthan that required for the due performance of that Party’s obligationshereunder. Such stipulation shall particularly concern any publicity ordisclosure to any media in any form whatsoever of the considered orintended cooperation .1.4 Unless a written consent in the form of a written amendment to thepresent agreement otherwise stipulates, both of the Parties heretoshall treat and protect the disclosed information in preventing itsrelease, in any form whatsoever, to any third party including theirrespective customers, except as follows ( i ) to the extent suchinformation is general or public knowledge, or which, after disclosurehereunder between the Parties, becomes general or public knowledgethrough no fault of either of the Parties hereto, or (i i ) to theextent such information can be shown by the concerned Party to havebeen legally in its possession prior to the receipt thereof hereunder,or ( i i i ) to the extent such information is received or purchasedfrom any third party for use or disclosure without any restrictiveobligation of use or disclosure to that third party.1.5 Notice by either Party that it is no longer interested in theproject upon the expiration of this Agreement, shall not relieve eitherparty of the obligation of secrecy to which it is committed hereunderregarding the information disclosed. In case such a notification wereto be served, all Confidential Information (including withoutlimitation, documents, drawings, manuals, models and designs) furnishedto COMPANY NAME by THE INVENTOR shall remain the property of THEINVENTOR and shall be returned to it promptly at its request, togetherwith any copies thereof; also COMPANY NAME agrees not to participatein, or deal in the development of similar or comparable projects for aduration of three ( 3 ) years from the date first written above,without first obtaining the prior written consent of THE INVENTOR whichconsent shall not be unreasonably refused.Article 2 - AGENDA AND ACTIONS CONSIDERED 2.1 The Parties hereto will take the following actions from the date ofcoming into force of the present Agreement : In a first step, they willexchange general information and prepare presentation - files to allowCOMPANY NAME to gauge the interest of potential customers. The targetobjective in terms of time with that regard is two ( 2 ) months afterthe date first written above. In a second step an Agenda of Actionswill be agreed upon between the Parties concerning the variousapproaches to be launched and followed, and the possibility of settinga cooperative arrangement .2.2 The Parties agree to regularly keep each other informed of anyresponse from potential customers and will try to collect any possibleadditional requests or observations as to their objectives, so as tohave all prepared documents amended accordingly and kept up to date.Article 3 - NO RESTRICTION OF SALE Any indication hereunder to the contrary notwithstanding, nothingcontained in the present Agreement is intended or implied to restrictor limit in any manner the sale or lease of the products to be issuedor derived from the project, within the EEC .Article 4 - NOTICESAll recommendations or requests, including approvals, comments orreasons and disagreements whether submitted by either Party, or servedto each other or form or to customers, shall be made in writing,together with, whenever appropriate, suggestions for changes ormodifications in order to allow and facilitate the ensuingnegotiations.Article 5 - NO WAIVER The failure by any Party hereto, at any time, to require theperformance by the other Party of any provision hereof whatsoever,shall in no way affect the right by such Party to require suchperformance at any time thereafter.Article 6 - ENTIRE UNDERSTANDINGThe terms and conditions of the present Agreement constitute the entireunderstanding of the Parties hereto, and supersede and replace allprevious commitments, whether written or not, in effect between themwith respect to the subject matter hereof.Article 7 - COMING INTO FORCE - CHANGES 7.1 The present Agreement has a duration of four ( 4 ) months from the date first written above.7.2 Neither any change, nor any modification to the present Agreementshall be binding on either Party unless set forth in a writtenamendment to be signed on their behalf by the accreditedrepresentatives of both Parties .Article 8 - LITIGATIONSAll disputes arising in connection with the instant Non DisclosureAgreement shall be finally settled in accordance with the law of thestate of State name.IN WITNESS WHEREOF the accredited representatives of the Partieshave caused the present Agreement to be executed as of the date firstwritten above. COMPANY NAME INVENTOR NAME By ____________ By_____________ VP. Marketing Independent Inventor Sales ToolsThe innova-book presents the progression of both the product's pre-development and its applications. Through numerous illustrations and a limited written description, the press-book conveys the product idea. The pro-book and the press-book should be well presented andbeautifully bound in order to enhance the value of the intellectualproperty. This package reflects the unfinished nature of thepre-development, so it would be worthwhile using illustrations,carefully chosen paper and fonts, and finally, technical sketchesrather than technical drawings.This natural and efficient presentation of the new project has the following consequences:-Both qualitatively and quantitatively, it develops the idea, while at the same time enhancing its value for sales. -It eliminates eventual objections on the part of the manufacturer -It separates the notion of intellectual property from the notion ofmaterial good because it does not present a prototype to themanufacturer. -It frees the manufacturer to use his or her imagination. -It allows the innovator to measure the degree of the manufacturer's interest -It leads the manufacturer to participate actively in the product'sdevelopment when creating the prototype-that being the logical stepafter the pre-development. -It enables the manufacturer to claim a part of the responsibility forthe product, so that he or she does not simply become the executant.-It brings professional credibility to the commercial approach. -The manufacturer has everything available to make a rapid decisionwithin the four-month maximum waiting period, without his or her havingmade the effort. -It is in agreement with requirements of the non-disclosure agreement. -It protects the idea by enhancing its value.In order to form sales tools, it is necessary to develop scientific,technical and commercial informational sources. It is worthwhile toconsult: The University Library, the City Library, the Chamber ofCommerce, potential manufacturers, distributors, suppliers (componentsand raw materials) and subcontractors.All this information is to be classified in the following manner:Scientific: Comprehensible Items, ... Technical: Components, manufacturing processes, ... Economic: Cost of components and subcontracting,... Commercial: Price of competing products, and markets, ... The Innova-bookThe Innova-Book contains the following presentation files:Presentation- Title - Features Idea - Preface - Technology & Marketing - Product/description file Concept- Principle and DesignSpecifications / Drawings- Engineering design - Schematic diagram of the device - Schematic diagram of the key element - Manufacturing processes - Estimated manufacturing cost - Using illustrations, validation of technology and materials - References - Patent search- Design drawing of the device in an exploded view - Applications - Design drawing of the device, first application.- Design drawing of the device, second application. - Further development- Resources for the product's development The Press-book The Press-Book contains the following presentation files:A type-written description : -Technology and Marketing- Product/Description File - Principle and design - Engineering design Drawings done by a designer : - Design drawing of the device in an exploded view - Design drawing of the device, first application. - Design drawing of the device, second application.Using illustrations, validation of the materials and technologies: - A color copy of a first device which functions in a comparable environment - A color copy of a second device which functions in a comparable environment - etc... - A color copy of the first piece of echnology used in a comparable environment- A color copy of the second piece of technology used in a comparable environment - A real sample of the third piece of technology if that technology does not exist in a comparable environment - etc... The purpose of the presentation files is to gradually move from the idea to the definition of prototype. The Practical Training The introductory letter and the product/description file should be sentto targeted companies. The targeted company should be one which enablesit to develop, manufacture and market the product. Those aspects are: Industrial sector Market Materials used Turnover Technologies used Investment in R & D Subsidiaries Avoid companies which use your proposition in order to requestinvention funding. The usual and desirable method of financing the newproduct's development is self-financing drawn from the company'severyday activity. In general, it is advised to contact those companieswith more than 80 and 250 employees respectively in the field of hightechnology and in more traditional sectors. Rather than contacting theleader, contact its competitors, which are more opportunist anddetermined. The search for manufacturers must be done in an efficientand well-organized manner; it must enable you to obtain a maximumamount of information in a minimum amount of time and cost. In a given sector of activity:First of all, look for a professional event, such as an exhibition,where corresponding manufacturers will display their products. Obtainthe exhibitor's guide, either by buying it or studying it at theChamber of Commerce.Read the specialized written press from the last twelve months and fillout the documentation request card. Use the internet by consultingmajor search engines, specialized directories such as Thomas Register, Kompass, and indicating key words related to your invention. Supplement this information by contacting product distributors.This first approach is carried out through the Vice-President ofMarketing, for he or she gives a marketing dimension to thepre-development of the new product that you are proposing. Theinformation that he or she gives you will be useful and reliable, andwill be a worthwhile supplement to the innova-book. Retain onlyqualitative information; quantitative information brings about a limit.Never contact the Director of Research and Development, who representsa technical continuation of your proposition. A meeting with him could,however, provide a small part of a solution which you had notpreviously considered.The introductory letter and the product/description file should be sentby fax and the internet. A web site brings these two prospecting toolstogether, and should be referenced on internet search engines. Inparticular, key words related to your invention should be referenced.Consider also the opportunity to place an advertisement on thespecialized written press where you can submit your ideas and roughdrawings. ___________________________________________________________________If a manufacturer contacts you, fax him or her the non-disclosureagreement, set up an appointment and send the US Patent and TrademarksOffice ( USPTO) a Disclosure Document of the Disclosure Document Program containing the innova-book's most important presentation files.Next, sign the non-disclosure agreement with the manufacturer and present him or her the press-book.The press-book should be compiled in Panodia's eureka style. The firstpage should provide a general explanation of the subject. Present theproduct with humility and comment in detail on the collection ofinformation within the press-book. Use the strength of silence to letthe manufacturer speak. This will allow you to gather reactions, whichwill give you an indication of the manufacturer's attitude towards theproject. Ask good and open questions in order to obtain informationconcerning the manufacturer's situation, problems, desires, knowledge,opinion, "vision" and needs. Examples of these questions would be:What characteristics do you expect from this product? What results to you expect from...? What solutions have you thought of? How do you plan to put the development program in place? How do you envision our future collaboration? How can I assist you? Listen actively and note down the responses carefully. Encourage theperson with whom you are speaking to take action. The invention's valueis measured by the perception of a change in the manufacturer'sbehaviour.If the manufacturer is interested, have him or her date and sign eachpage of a photocopy of the innova-book. You should keep thosephotocopies. You should then give him the innova-book and look over ittogether. The first page of the innova-book should contain thecompany's name as well as a colour logo. In order to enhance its value,the innova-book should be well-presented and well-bound such asPanodia's pro-book. At this point, it is too early to engage in a fulldiscussion of the contract's Cash and Royalty values.If after two months, the manufacturer shows no interest in the project,ask him or her to return the innova-book. If he or she is interested inthe project, request a confirmation by mail or fax. After an additionalwaiting period, sign a contract defined by both parties and written upby a patent attorney.___________________________________________________________________In general, negotiation concerns four terms linked to the intellectual property's sale:Cash Royalties Technical assistance Technology TransferTechnical assistance occurs during the product's development. Thetechnology transfer takes place afterward. At first, negotiateglobally, and then negotiate each of these terms separately. Thewriting up of the contract should be done by a patent attorney.Try to transfer the patent rather than concede an exploitation license.This will prevent you from having to pay all the charges associatedwith the patent.Share what you knowWrite a Knol Bouarfa MahiVerify NameCleantech technology Low Technology ModelisationMeylan, France Article rating:Your rating:Activity for this knolThis week:9pageviews Totals:555pageviews Closed collaborationOnly owners and authors may edit the knol Creative Commons Attribution 3.0 LicenseVersion: 7 Last edited: Jul 26, 2008 9:24 AM.ReviewsThere are no reviews for this knol.Review This KnolBouarfa Mahi also wrote Bouarfa MahiMicrowave water heaterHome Computer Repairgoogle_ad_client="pub-1123510410824614";google_ad_host="pub-1358271515413561";google_ad_width=200;google_ad_height=200;google_ad_format="200x200_as";google_ad_type="text_image";google_color_border="000000";google_color_bg="FFFFFF";google_color_link="0000FF";google_color_url="008000";google_color_text="000000"; Flag inappropriate contentCommentsWrite New Comment ▼Write New CommentSubmitSorry! 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