Invention Con 2023 - Practical Advice for Inventors, Makers and Entrepreneurs from across the Pond

Author US Patent and Trademark Office Licence Standard YouTube Licence Source USPTP

Jane Lambert

An important difference between the United Kingdom and the United States lies in the public's appreciation of independent inventors. The life of an American inventor is not exactly a bed of roses as the story of the film Joy shows, but it is fair to say that independent inventors in the USA are encouraged in a way that British independent inventors are not.  One of the ways in which they are encouraged is an annual online conference called Invention-Con which I discussed in Invention-Con 2022: The US Patent and Trademark Office's Online Conference for Inventors, Makers and Entrepreneurs on 22 July 2022.

It will be obvious from the video clip above that another Invention Con has taken place since I wrote that article.   This time some of the proceedings have been recorded on YouTube.   They include:

• A welcome from Derrick Brent, Deputy Under Secretary of Commerce for Intellectual Property and Deputy Director of the United States Patent and Trademark Office; 
• A welcome from Vaishali Udupa Commissioner for Patents, 
• Licensing your intellectual property;
• Branding and trademark protection;
• Sean Wilkerson, Robyn James and Eric Peterson: Turning passion to profits; and 
• Understanding Manufacturing.

All those clips are well worth watching.  Much of the information and advice would apply here though it has to be remembered that the USA is a different country with different laws, different institutions and a very different business culture.

In my article, I wrote:

"There is no reason why other countries (including ours) should not stage similar conferences. We do stage events like the British Invention Show but there is nothing like Invention-Con. There is a great need for practical advice on patent, design and trade mark prosecution, grant, equity and loan funding, setting up businesses and scaling up which Invention-Con appears to deliver."

For the last 20 years, I have founded and chaired inventors' clubs, given talks, run IP clinics and given practical advice to independent inventors in this and my other publications.  I think the time has come to consolidate these activities in one place.  I am assembling my articles and case notes into a single pdf manual which will be free to download.   I shall continue to canvass support for a British equivalent to Invention-Con.

Anyone wishing to discuss this article may call me on 020 7404 5252 during office hours or send me a message through my contact form,

I have invented something - What happens next?

By William Heath Robinson - From the Book: William Heath Robinson Inventions,
Public Domain, https://commons.wikimedia.org/w/index.php?curid=39256622

 

Jane Lambert

If you work for a company, university or some other employer in a capacity in which an invention might reasonably be expected from the performance of your duties or you had a special obligation to further your employer's business, any invention you may create in the course of your duties may be claimed by your employer pursuant to s.39 of the Patents Act 1977.  Your reward will be your salary and any perks or  benefits that go with your appointment unless your invention is of outstanding benefit to your employer in which case you may be entitled to an extra reward under s.40,

The position will be different if you are a student and you invent something in the course of your research or studies.   Your university may be entitled to the invention pursuant to a clause in your contract for the right to research or study at your university but you will normally qualify for a share of any royalties or other payments that your university receives from the commercialization of your invention.   

If you made your invention in any other capacity it would be up to you to exploit it.  You can attempt to market it yourself or you can try to license it to a third party.  Neither is easy.  If you choose to make it yourself you have to acquire expertise and resources that inventors are no more likely to possess than anyone else.   If you try to license it you have to persuade a third party that your invention can earn or save that person's business money.   To get you started, here are two articles:

• How to make Money from your Invention - Starting your own Business 15 May 2019 NIPC Invention; and
• How to make Money from your Invention: Licensing 15  Sept 2017 NIPC Invention

You should try to learn from the experience of others.   A good place to find such experience is an inventors' club.  I was saddened to learn recently that one of the clubs that I founded nearly 20 years ago and chaired for many years suspended its meetings during the pandemic and has never revived them.  I consulted the "Inventor's Club" page of the Wessex Region of Technologists and Inventors (formerly the "Wessex Round Table of Inventors" or "WRTI") to see whether the same had happened to other clubs. There were some broken links but I found up-to-date websites for many of those clubs after consulting Google. I also wrote about the Bristol Innovation Group in Bristol Innovation Group: Street2Boardroom on 27 Aug 2020 in NIPC Severn and gave a webinar to Ffiws on 15 April 2020,  I have therefore been able to find inventors clubs in Anglesey with locations in Gwynedd, Birmingham, Bristol. Cambridge, Dudley, East London, Kent, Malvern, Oxford and Southampton,

If there isn't an inventor's club nearby or if the meetings of your local club do not live up to your expectations or needs I should be glad to help you set up a club.  I could draw up a simple constitution and suggest a few guest speakers free of charge.  Over the years I have met a lot of patent and trade mark attorneys, angel and private equity investors, specialist accountants, insurance brokers, product development consultants in all parts of the country.   I should even be happy to address any group you may set up or run a pro bono IP clinic myself.

Finally, two cardinal bits of advice.   The first is to ignore the small ads and spam emails from invention promoters offering to promote your invention for an eye-watering sum. Few have any connections with industry and most offer services that are already offered by your local Business or IP Centre or local enterprise partnership for free.   The second is to keep your invention under wraps until you have obtained optimum legal protection by applying for a patent or otherwise.

Anyone wishing to discuss this article can call me on +44 (0)20 7404 5252 during office hours or send me a message through my contact form. 

An IP Strategy for Private Inventors

Strategy Game

Author Julio Reis

Licence Creative Commons Attribution-Share Alike 2.6 Generic

Source: Wikipedia

Jane Lambert

An intellectual asset ("IA") is something that gives a business an advantage over its competitors. No matter how small it may be or how simple its business model, almost every successful business will have such assets.  An  IA may be the business's reputation, its customer list, a way of making or packaging things, a website or even its standard terms and conditions.

A business that possesses such an asset will want to hold on to it and, if possible, make money from it.  Its best chance of doing so is to devise a plan to

• identify assets likely to generate revenue or some other benefit for the company, 
• determine the best legal protection for the IA having regard to its value and available resources, 
• provide a means of enforcing such protection, and 
• manufacture, license or otherwise make money from the asset.

Such a plan is often called "an intellectual property" or "IP strategy".

Inventing is a business activity.  If an inventor is employed in a research and development capacity, his or her employer is likely to have an IP strategy.  If the inventor is not so employed, he or she would be well advised to develop such a strategy for him or herself.

The starting point for a private inventor must be his or her invention. Is anyone likely to buy it? If so, who will be its buyers and how many will they buy?  Developing, marketing and patenting an invention, not to say enforcing a patent, is likely to be costly.  Unless those costs are likely to be recouped, there is no sense in incurring them.  For many private inventors, this is a very difficult question. The technical elegance of their brainchild may blind them to commercial realities.  This is where membership of an inventors' club can help.  The members of such clubs are not a bad cross-section of the general public. If fellow inventors are unmoved by the invention or see snags their views should be considered seriously.

The next issue to address is putting the invention on the market.  That usually boils down to a choice between making and marketing the invention or licensing others to make and market it.  Some inventors already have their own manufacturing or retailing businesses but many do not.  If they want to make or market the invention for themselves they have to set themselves up in business. They will need to draw up business plans, find collaborators, raise funds, acquire premises, plant and staff and market their inventions to the public. They may subcontract production to a manufacturer in this country or abroad. If they do that, they must ensure that their invention is patented or otherwise protected in the country where the manufacturing is to take place and they will need a very tight written agreement with the sub-contractor.

Licensing is often regarded as an easy option but it is not.  A licensee will incur costs in tooling and marketing. A business will incur those costs only if persuaded that to do so would be worthwhile. Determining whether a licence is worth taking is a type of business planning that few potential licensees have the time or inclination to carry out.  It is therefore up to the inventor to persuade them that it is worthwhile.  Daunted by such difficulties many inventors resort to invention promotion companies or making unsolicited offers to manufacturers or retailers.  Such approaches rarely work and often lead to expenses for the inventor.

Patenting is expensive but may be necessary.   Ideally, the invention must be protected in the countries where it is to be sold and the countries where it can be made. However, such protection may cost many tens of thousands of pounds in filing, translation and renewal fees.  Another problem with a patent is that the inventor discloses his or her invention to the world in return for a monopoly in a single country.  If a patentee has a patent for his invention in the United Kingdom but not the United States there is nothing to stop an American from making and selling the invention in the USA or anywhere else where the invention is unprotected.  There may be other, cheaper forms of legal protection for the invention that are available to the inventor.  Simply keeping shtum about the invention is one option if the invention is a product that is hard to reverse engineer.  Relying on some other IP right such as unregistered design right in the shape or configuration of the product or copyright in any software that may control the device may be others.

An inventor must be able to resist applications for the revocation of his patent or a declaration of non-infringement as well as pursue infringers.  Even with costs caps and cost management civil litigation can be cripplingly expensive. The only way that most businesses can sustain such expense is by taking out adequate IP insurance and the premiums for such cover are not cheap.

An IP strategy can be drawn up at any time and it will be reviewed and updated continuously but the ideal time to devise one is when drawing up a business plan.  That is because the costs of prosecution, procurement, professional services, premiums and so on can be funded and balanced against other expenses.

Anyone wishing to discuss this article should call me during office hours on 020 7404 5252 during office hours or send me a message through my contact form.  

No Invention Left Behind - Making Money from an Invention

Author SimonTrew
Licence CC BY-SA 3.0 
Source Wikimedia Commons

Jane Lambert

If you are an independent inventor - that is to say, an inventor not employed in a capacity in which you are likely to create an invention - there are two ways by which you can profit from your  invention. One is by manufacturing and marketing the invention yourself as Percy Shaw did with cats' eyes (see Well at least a Yorkshireman invented Cats' Eyes 20 July 2014 IP Yorkshire). The other  is by licensinBIPCCase for Inventor Academies 27 Jan 2018.

As many of the inventors I see in my IP clinics or at local inventors' clubs are of a certain age  it should be noted that a lot of help is available for older people who wish to open businesses. The European Commission recognizes that senior citizens are increasingly interested in becoming entrepreneurs and is exploring how to benefit from the knowledge and skills of seniors, and how to ensure that they are able to go into business for themselves (see the Senior entrepreneurs page on its website). The Commission has published a Senior Entrepreneurship Good Practices Manual which presents 24 good practice examples from around the EU including the UK.  One of the more interesting initiatives mentioned in the manual is the Latvian Inventors Association's mentoring scheme.

Licensing or assigning an invention is often seen as an easier option than going into business but that is not always or perhaps even usually the case.  Someone with an established business has to be persuaded to set up a new production line and distribution channel for a product that he or she did not invent. Such a person will require a lot of persuasion especially if the inventor has no knowledge, experience or status in the industry. The established business owner will require the inventor to show the owner how the business will benefit from the invention which means that the inventor will often have to do much the same business planning and market research for a licensee as he or she would do for him or herself.

This is the third of a series of articles entitled "No Invention Left Behind". The others are The Case for an Inventor Academies and the WIPO's Inventor Assistance Programme. The next will be on the IP law that every inventor should know.  Should anybody wish to discuss this article or invention generally, he or she should call me on 020 7404 5252 or send me a message through my contact form.

How to make Money from your Invention: Licensing

Jane Lambert

In How to make Money from your Invention 13 Sept 2017, I introduced readers to the EPO's Inventors Handbook. Readers will recall that the Handbook advised that there are basically four ways of exploiting an invention:

• A licensing agreement with a company
• A business start-up: get your idea to market yourself
• A joint venture 
• Outright sale of the idea.

In this article, I shall consider the first of those ways, namely licensing the invention.

The Handbook explains that a licensing deal is one that allows a party known as a "licensee" to use the invention in return for a periodic payment known as a "royalty". It adds that 

"The exact terms of the licence must be negotiated in a process that can be lengthy (often many months) and complex. The licence is a binding legal document, so it is usually essential to involve patent attorneys and other legal professionals."

The Handbook continues:

"For many inventors, licensing is the best way to benefit from an invention. The main reasons are:

• The licensee bears the costs and risks of production and marketing.

• Only established companies may have the resources to exploit an idea with major potential.

• Licensing can provide the inventor with an income over many years for relatively little effort."

However, it also warns that "only the strongest forms of IP will interest potential licensees" which in most cases means a patent.  Licensing is often seen as a soft option compared to setting up a new business to market the invention, but, in many if not most cases, the reverse is true.

For a start, unless you are answering an express invitation from a company to submit your invention, you are likely to spend a lot of time and effort looking for a company that could make money from your invention. Finding a company that can make money from your invention is not the same as finding a company that makes a product like your invention. If, for example, your invention renders obsolete a technology in which a company has invested heavily or threatens an income stream such as the supply of consumables or replacement parts, such a company may be the last business on earth to be interested in your product.

Once you have found a potential licensee you have to persuade that company that it can make money from your invention.  Sometimes, nothing short of a detailed business plan will do. That is bound to be a bit hit and miss as you are unlikely to have access to the financial, marketing and technical information that is available to the company's managers.  Even companies like Procter and Gamble and Henkel that invite submissions from inventors require those inventors to show how the invention will fit into their product range. They usually impose strict legal and technical requirements.

Except for companies like P & G and Henkel, you will have to give some thought as to whom you will contact and how you will present your invention. As I said in Finding a Route to Market for Your Invention - Unsolicited Approaches are not usually a Good Idea 25 Feb 2012, you are unlikely to get anywhere with an unsolicited submission. Your best bet is to find out as much as you can about your potential licensee through industry events like trade shows and seminars.  The inventors who are best placed to license an invention are those already in an industry or academics in a relevant discipline. Members of the public with no special connection with the industry will find it hard to sell their ideas.

As a licensee would take a licence under a patent or other intellectual property right, your intellectual property strategy must be one that works for your licensee rather than you.  Your invention must be protected not just in the United Kingdom but in all the countries where the invention is likely to be sold as well as those in which it can be made. Unless you intend to grant an express licence to your licensee you will have to take proceedings against infringers and resist revocation applications in each and every one of those countries. That can be very expensive for a private inventor or small business.

Finally, do not expect your licensee's management to be particularly kind to you.  Their job is to look after their shareholders and not to look after you.  They are likely to drive a very hard bargain in the licensing negotiations. After the licence is granted they will construe it in a way that suits them. Once they have learned how to make your product and developed a market for it they may try to challenge clauses they don't like or seek reductions in the royalty or other payments. When negotiating the licence you should think about dispute resolution and choose a method and governing law that works for you.

In negotiating your licensing agreement you are likely to need the services of a patent strategist who could be a lawyer with experience of licensing or a patent or trade mark attorney, an accountant with expertise in licensing and tax incentives for new technologies as well as a patent attorney.  Should you wish to discuss this article further, call me on +44 (0)20 7404 5252 during office hours or send me a message through my contact form.

How to make Money from your Invention

Jane Lambert

So you've invented something. Congratulations!  That was the easy bit.  Your challenge is to make money from your invention without losing your shirt, your home, your marriage or even your mental health. I am not being flippant.  In all the years that I have been practising law, I have known far more inventors whose lives have been ruined by their inventions than those who have become rich from them.

The reason why bad things happen to inventors is that they allow themselves to become obsessed with their inventions. Obsession clouds judgment which leads to bad deals and bad decisions.  Often there is only so much that an inventor's spouse or partner can stand. That is what leads to family breakdowns. Money and relationship problems can lead to depression or worse.

In many cases, those misfortunes could have been avoided by seeking good advice at an early stage. Now intellectual property advice can be expensive but it does not have to be. There is a lot of good advice on the internet for free.  One of the best sources of advice is the Inventors Handbook on the European Patent Office website.

The opening words of the Handbook are as follows:

"The purpose of this Inventors' Handbook is to provide you with basic guidance on all the key stages of turning an invention into a commercial product. Or perhaps we should say the key stages of turning an idea into an enterprise, if we are to widen our definition of 'invention' to include novel processes, business methods, social interactions etc. Though invention has traditionally been associated with manufactured products, it is now better understood that new wealth has always been created primarily from new knowledge, or novel uses of existing knowledge."

I would invite readers to read the rest of the page which stresses the need to reduce risk and control costs and that is where someone like me can often be of assistance.

The next passage I should like you to read right now is Exploitation Routes. The page begins with the words:

"There are basically four ways of exploiting an invention:

• A licensing agreement with a company

• Business start-up: get your idea to market yourself

• A joint venture 

• Outright sale of your idea."

It also warns readers to take care when dealing with invention promotion companies.  Over the next few days, I shall be exploring each of the above options and explaining where you can get more help.

If you want to discuss this article, call me on +44 (0)20 7404 5252 or send me a message through my contact form.

So You've Invented a Mousetrap ....

House Mouse                                                                            Source Wikipedia

 ...... And you're waiting for the world's mousetrap manufacturers to beat a path to your door. Hate to mention it to you old chap but you may be in for a very long wait. You may have the best, cheapest, coolest mousetrap ever but that is not necessarily what the murine disposal industry is looking for.

What they are probably looking for are increased profits and your invention may not actually deliver that to them. In fact, it may reduce their profits - at least in the short term - as your product may require new tooling and a lot of marketing.  If customers are satisfied with an existing product it is not be in a manufacturer's interests to change it unless he is forced to do so to retain market share.

if you have invented a product that is likely to render everything else on the market obsolete then you may have to make (or have it made) and market it yourself as James Dyson did with his bagless cleaner. Despite its obvious advantages, no British manufacturer would take a licence for Dyson's invention because it would have undermined the market in replacement bags which was very profitable to the industry.

If for whatever reason self-manufacture and marketing is not an option, licensing your invention is not an easy option.  You have to sell not only your invention to your intended licensee but also the advantages of taking a licence from you as a business proposition.  And you can expect a "yes" only if the advantages of doing business with you clearly exceed all other available uses of the licensee's resources.  You are likely to do that only if you produce what is in effect a business plan for the licensing proposition backed up with the same sort of market research and financial forecasts that you would produce for your own start-up business.

If you do get a "yes" you have to negotiate and draft your licence agreement very carefully. Remember that the loyalties of your licensee's management lie not to you but to their shareholders who may often be themselves.  It is in their shareholders' interests to drive the hardest possible bargain with you and, if possible, cut you out altogether. You therefore need good professional advice from lawyers, patent attorneys and others in negotiating and drafting the licence agreement.  Make sure, for instance, that your intellectual property covers not just the technology but also (so far as possible) the business opportunity. Also negotiate clauses ensuring minimum royalties, regular information about costs, production, sales and marketing, cost-effective and speedy dispute resolution.  It is a sad fact of life that good professional advice does not come cheap.

Having set up and chaired inventors' clubs in Leeds, Liverpool and Sheffield, having run IP clinics throughout the North and having practised intellectual property law for many years I am very aware of the problems of licensing and how to avoid or mitigate them from the perspectives of both licensors and licensees.  If you want to discuss this article or any other issue relating to your invention or licensing give me a call during business hours on 020 7404 5252 or fill out my contact form.   You can also reach me on Facebook, G+, Linkedin, twitter and Xing,  Enjoy your weekend.

Kate Reid: Confidentiality and Licensing

Counsel are probably in the best position to judge whether a solicitor, patent or trade mark agent is any good because we are instructed by members of those professions. Since the 4 July 2004 barristers have been permitted to deal directly with the public. Public access has changed the way we are instructed but it has not changed the work that we do. If a case requires a solicitor we have a professional duty to advise our client to that effect.   As often as not, the first question from the client is "Can you recommend one?"  I usually make a number of suggestions depending on the nature of the work but it it involves litigation or licensing I nearly always include Kate Reid, principal of Pemberton Reid.

According to her web page, Kate qualified as a solicitor in 1995 and worked at both Hammonds and Lupton Fawcett in Leeds before setting up Pemberton Reid.  In addition to her LLB she holds a post-graduate diploma in Intellectual Property Law and Practice.   She has been instructed in some important cases:

"Antec International v AVS (patent infringement), Antec International v SWC (passing off), Scholes Windows v Magnet (design right infringement), Tyco European Metal Framing v Clewer & others (design right infringement ), 1-800 Flowers (objection to a trade mark application), Bentone v EOGB (trade mark invalidity proceedings)."

Her work now includes:

• advising on the existence and extent of intellectual property
• advising on infringements of intellectual property rights
• intellectual property agreements such as licences and assignments and confidentiality agreements
• intellectual property litigation in the High Court and Court of Appeal
• proceedings in the patent office regarding ownership and entitlement to patents
• prooeedings in the trade marks registry regarding opposition and invalidity of trade marks
• WIPO domain name dispute resolution actions 
• due diligence for purchasers and sellers of intellectual property
• distribution, supply and commercial agency agreements
• terms and conditions of trading
• advising on the Commercial Agents Regulations 1993
• litigation in relation to the Commercial Agents Regulations 1993.

Kate was guest speaker to the World Intellectual Property Day meeting of Leeds Inventors Group on 18 April 2012 (see "Kate Reid at the Leeds Inventors Group 18.4.12"  26 April 2012).  The title of her talk was "Confidentiality and Licensing"). On confidentiality she discussed

• why use a confidentiality agreement
• what is confidential information
• when is information not confidential
• how long will information be confidential, and
• what can it be used for.

On licensing she talked about the nature of a licence and the rights that can be granted, royalties and the usual terms with a few special words about trade marks.   

Immediately after her talk we had a presentation from FabLab Airedale which is now open for business (see

"FabLab Airedale: Introductory Offer and Visit" 2 May 2012 IP Yorkshire). The next meeting of the Leeds Inventors Group will be a visit to FabLab Airedale in Keighley on 16 May 2012 between 18:00 and 20:00 (see "16th May Leeds Inventors Group -visit to Fablab Airedale" 2 May 2012 Leeds Inventors Group blog).   Inventors from Sheffield are also invited and I am sure that those from elsewhere would be very welcome.   If you want to come please call Ged or Stef on  0113 247 8266.

Finally, a plug for Sheffield Inventors.   If you want investment to develop your invention come to Sheffield Central Library, Surrey Street, S1 1XZ at 18:00 sharp on 14 May 2012 to hear Mr. Russell Copley of Angels Den speak on  "Raising Business Growth Investment - Alternatives to Bank Finance". Angels Den is one of the largest angels networks in the UK.

Further Reading

Jane Lambert "All you need to know about confidentiality" 14 June 2006

Jane Lambert "Enforce a Confidentiality Agreement for as Little as £475" 21 Aug 2010

Jane Lambert Sample Confidentiality Agreement 21 Sep 2010