I just checked back into my dashboard to find I now have two items going to IP review. I don’t think I could be more euphoric if I had found a new drug !!!
This is very likely no big deal to maost here. From what I have read there are many who have had inventions go much higher. As for me, it is great news in it’s self. Believe it or not, I have spent a lot if time trying not to think up some crazy idea or work in my shop on some outlandish thingy. All to no avail. A few days ago I came across this site, in reference to something else, and now I am bitten by the bug again. If nothing ever comes of anything I submit to this site, I will count the experience as profit.

Wow Shanamac!

First submission goes R8!! I’m very impressed, but not surprised! :-)

Harlan, you’re right. My Eggies submission cost me $25 to submit and I will never have to pay another penny. AND, I got a Thank-You!! :-)

I am so glad someone else ask these questions. I am not to swift on this sort of thing and couldn’t even form, what I thought was, a good line of questions. I may be totlally wrong or just dumb, but from where I stand almost anything I can gain from my ideas is gravey. With no more of an investment than the submission fee, I figure I come out ahead if I get a thank you. I am not saying all this to cheapen any works done by anyone else. I guess I am still kinda high about being here.

Thanks so much for answering my questions. I don’t know why I was under the impression that the word “licensing” was reserved for something special and different. But it seems there is licensing going on with every contract. I got an R8 with Fisher-Price on my first submission, Betsy. So my head was spinning with questions right from the start. I thought if FP chose my idea, they would “own” it and I would get royalties. For some reason, I thought “licensing” was reserved for special circumstances. I’m not questioning the fairness of these arrangements; I’m really just confused on language. I think this line from EN’s website made me think that licensing was reserved for already-patented ideas or something:

“As a bonus, if you are an Insider and your idea has patent protection, you will be automatically entered into our Insider Licensing Program.” This line made me think, “Oh, I don’t have a patent; so I guess if my idea is chosen, the arrangement would not be a ‘licensing’ contract but (some-other-word-I-don’t-know) kind of contract.”

Betsy, you are right. Earlier I read through old Inventors Digest Roger Brown articles, which taught me that patents and licensing do not have to be interconnected. This helped a lot. Thanks again!

Shana, think of the term ASOTV like the name Drug store. There are many different drug stores, and MANY different ASOTV companies. There is Allstar, Telebrands, SAS, Hampton Direct, etc…. The Allstar Product Group chose Eggies. They own it. They have all the manufacturing, shipping, marketing costs. I will get money from Royalties, Licensing and Branding. EN and I will have a 50/50 split.

It’s all laid out in the contract and innovator’s agreement. You are a lot more inquisitive than I was when I submitted Eggies. I never dreamed an idea of mine would be chosen. Anyway, for my original $25 dollar submission, I’ve got no complaints. EN provides me with a detailed report each month. Very fair and straight forward deal. Maybe Roger Brown can answer some of your many questions. He enters into many deals. This is a first for me, so I am still on the learning curve! And happy to be there! :-)

Shana,

I am definitely no expert in licensing. But my understanding is below.

1.) Lets say you submit to the Innovation Fund and EN decided to manufacture your product themselves. You would then be going into a direct licensing deal with EN in which you would earn “royalties” on each product sold. If the agreed royalty rate is 7.5%, then you would receive the full 7.5% of the manufacturing cost on each product sold.

2.) Lets say you entered a submission through the Brica Live product search. If you reach G8, Brica has chosen your product. EN will then more than likely file for a patent for your product, in your name, in which you will immediately assign the right to EN. EN will then go into a licensing agreement with Brica for an agreed royalty rate. Lets say the agreed rate is 7.5%. According to the contract, you will split the royalties with EN 50/50. So you would get 3.75% and EN would also receive 3.75%

And yes I would say Licensing and Royalties go hand in hand. When you are licensing to a company, you are basically giving them the exclusive rights (sometimes non-exclusive) to manufacture and get your product to market. In exchange, they will pay you an agreed upon royalty rate. Most of the time this is in the 2% to 7% range and is on the manufacturing cost. Some people elect to sell their patents outright or get a designer fee. This would be one agreed upon lump sum and no royalties would be collected.

Thanks, Chris. So if I were to go G8 with Brica, would it be correct to say I would be in a licensing agreement with Brica? I think I’m struggling with the definition of the licensing. If EN decided to take an idea of mine to market thru their open search, would I say I’m in a licensing agreement with EN? When wouldn’t you say licensing? Do the words licensing and royalties go hand and hand? If the company “buys out” the idea, there is not a licensing agreement, but rather a “buy-out?”

What made me confused was reading the language used around the Sure-fit “win” and Eggies, I noticed the word licensing with the former but not the latter. And then I know there’s a category for ideas for licensing. Someone on the forums said their idea was turned over to the licensing department. So I’m confused. Thanks for your input, very helpful!

Hello Shana,

Betsy can definitely answer this better than I, but as far as I know she does have a licensing deal with All Star Marketing. The ASOTV searches are presented to multiple sponsors (ASOTV companies) that have a chance to select your idea and market it through a licensing deal. The top ASOTV companies handle manufacturing as well as the infomercial production.

As far as the current BB&B search, it is part of the “Made in America searches” EN had. From my understanding there’s an agreement between EN, BB&B, and a third organization (name escapes me) that oversees manufacturing companies located in the U.S. So I do think you would be licensing to BB&B and they would be using one of the US Manufacturers.

From what I have read EN’s list of sponsors continue to grow as the company earns more respect.