THE IDEA

Book Review

A Pocket Guide for Inventors

Written and Published by Bob Stonecypher

This is actually a booklet of 67 pages containing an Introduction plus 25 chapters. He does not waste words, but packs much useful information in a small volume. Since this a book review, only a fraction of the information found in the booklet is covered and in doing so, some facts stated in this review may be inadvertently out of context.

The author’s goal is to provide information to help inventors get their inventions to market, make money and have fun along the way. It contains wisdom gleaned from interviewing successful inventors, manufacturers, bank loan officers, venture capitalists, design engineers, patent attorneys, patent agents, marketing specialists, sales people and negotiators. He covers the entire field of specialists and professionals with whom the inventor will interact.

Bob concludes that the trait common to successful inventors is “Persistence and Patience.” He added lessons learned the hard way “as one whom an invention submission company has swindled. Every inventor must be skeptical of anyone requesting prepayment for a service that aids getting an invention to market.”

The topics covered in the booklet fall into roughly five areas: Inventing; Protecting and Developing Your Idea; The Patent Process; Marketing; and Licensing.

Right at the very beginning, a warning is issued to inventors. “If you are considering entering an agreement with an invention broker or an invention submission company, STOP! Insist on references of at least three people for whom the broker has successfully licensed or sold an invention. Do not accept excuses for refusing to supply the names because of a breach of confidence. ” This is just part of the warnings.

Regarding keeping records, “If the invention is not patented, the only proof of your invention is proper documentation. A log book (Inventor’s Log Book), signed and dated by two people is one form of proper documentation." The logbook will prove who was first to invent. He gives numerous tips on using a logbook. The “Post Office Patent” which is mailing yourself a description of the invention and keeping the unopened letter using the postmark to establish  a date is not credible proof in a court of law.

The patenting process includes a patent search to make sure there is no other patent unknown to you that covers your idea. It is good insurance, because if you file for a patent and the patent examiner finds an existing patent or description a description is a trade journal which is not significantly different from your idea, the patent application is rejected and your filing fee is not returned. Be sure your idea is patentable.

Patent searches can be done at a Patent and Trademark Depository Library (PTDL) or on-line. PDTLs have complete patent records.

Reviewer’s note: In Arizona, the PTDL is at the Noble Library on the Arizona State Univ. Campus in Tempe. There is another in Los Angeles as well. On-line patent searching is convenient, but presently, it is limited.

Drawings submitted with patents must meet PTO (Patent & Trademark Office) specifications. These include paper size, where the image is located, allowable margins, etc. Using whiteout to make corrections on drawings is not normally allowed.

The Provisional Application is not a patent application, but provides the inventor one year to test the market and continue development or acquire assistance without fear of theft. The provisional application is destroyed after one year, unless it is referenced in a non-provisional patent application. A provisional application filed with the PTO established who the inventor is, and the invention date, but does not start the patent examination. The author continues in grater detail in Chapter 7.

Other topics include the use of a disclosure document as evidence of the date of conception of an invention.

There are three types of patents: Utility, Design and Plant. Utility patents are what most inventors seek. A utility patent is granted to anyone who invents or discovers any new and useful process, machine, article of manufacturing, or composition of matter or any new useful improvement thereof. A design patent is much easier to get, but is limited to that particular design. Plant patents are for any distinct and new variety of plant.

The claims portion of an invention must be exactly written, describing the invention and reciting all essential features. Courts judge infringement on the claims in a patent. The basic idea is to make the claims as broad as possible.

This is a paragraph from Chapter 9, APLYING FOR A PATENT: “Plant and Utility patents are granted for a term which starts on the date of the grant and ends 20 years from the date the patent application was first filed. A holder of utility and plant patents loses exclusive rights of the invention when the term expires or when periodic maintenance fees are not paid. Design patents are granted for 14 years from date of grant. Maintenance fees are not required for design patents at this time.” Many other patent-related facts are presented in that chapter.

The author recommends networking with other inventors or joining an inventors’ group. He also lists valuable publications which are of benefit to inventors.

He also has a chapter on Confidential Disclosure Agreement. An example is included in the booklet.

Trademarks can be of great value. Trademarks can last indefinitely is the mark continues to perform a source indication function.

MARKETING and SALES PROCESS. “If presented in an right manner, there is a market for anything, but everything has its own niche. Find your niche and you will find your customers.” The author provides many ideas on how to present your product, what works and what to avoid. Persistence pays off.

Other topics mentioned include Prototypes, the Management Team, the Business Plan, Marketing Plan. In that chapter, the author asks, “How much will it cost to manufacture your product?” Each time the product changes hands, the price roughly doubles: manufacturing cost – factory price – wholesale/distributor price – retail price. Can your product be manufactured for 1/8 of the retail price? Can you reduce the number of times the product changes hands? The author lists sources for market analysis also.

Negotiating a contract must not be done without lots of groundwork. The author recommends soliciting the services of an experienced negotiator. “When starting to negotiate royalties, do not become impatient.” Royalties are based on the manufacturer’s sale price of the product and not the retail price and not including shipping costs. He gives a range of royalties from 1% - 2% for low profit and/or high volume products and 10% for high profit and/or low volume items. The average is about 3% to 5%. There are a number of other important considerations in these contracts that are mentioned.

Financing your invention is of importance to most inventors. The author lists several options.

The final chapter is a list of additional information from various sources. A strong warning is given: “Never imply or threaten anyone or a company for infringing a patent.” Leave that to your lawyer. If a infringer suspects you are about to file a suit against them, they will file a suit against you for infringement against them. You will have to successfully defend yourself before you can file a suit against them.”

All in all, it is easy to read, packed with abundant valuable information from many sources who know of what they speak.