Susan…that is a strange one…that they have an idea close to yours patented. The question is how close. You say it does the same thing but then yours solves another problem. A little unclear of your situation to judge.

I would tell them you plan on filing other patents or a CIP to “broaden your protection” You are obligated to show them your existing claims when you are close to a deal but I would try and keep “your hand” quiet as long as you can.

See, the problem with going to a company that has like products is sometimes the inventor can only hurt them. Sometimes though they will license or even buy your patent so you can’t hurt them. They pay you off and you go away. Or sign a license agreement and just sit on it…waste your time.

Ask yourself this with inventing. Do they really need to let you in on a partnership and pay you royalties? Does it make sense when they add up their gross income?

Many inventors make the GIANT mistake of going to the industry leader who is ALREADY the leader of the market share. What do they need you for???? They don’t care if your idea is better if they already are making tons of money and leading the market. Why would they need to all of a sudden let you in and give you 5% royalties which comes out to about 20% of the profit on the manufactured product (average)

So Susan, ask yourself, do they need your product or are they now going to play games with you. I don’t like how they say they have something very very similar.

As far as the lawyers in your face now in the top seat in your deal…I know …I hate that…but that is the way it is with bigger companies. It takes the enthusiasm and the smiles and handshakes right out of the project sometimes, but big companies MUST do that…they have too much at risk to make an incomplete deal that will cause problems later.

You could PM me if you want to give me private information so I can give you an opinion…but you are doing well…you know what you are doing.

It gets tricky…this is why most licensing deals get wrecked when the inventor tries to tackle themselves. The deals last a little while and then the whole project gets a mess after a few years and the inventor gets ripped off or a great product is laid to rest….that is why I am a fan of letting Edison Nation handle all….let them have the headaches…they asked for it….and they split the profit with you…..all for no money down.

Hi Ron

In the statement above yo said that a 5% royalty equals about 20% of the profit on the manufactured product.
How does it work out like that?
I invented a product and I am getting ready to start contacting companies like Allstar products ect.. to see if they are interested in my product. Any knowledge would be appreciated.

Thank
Andrew

YES – NEVER tell anyone details of your patent until you have an agreement. Not claims, not dates, not anything accept the basic premis. Even with an NDA you have to keep it close to the vest

Remember anything published is not bound by an NDA.

I would tell them you are in the process of filing a continuation. They will find out about it eventually (it will be publically available since its related to you already published application).
Perhaps keep the claims confidential by telling them you are still figuring that out. I would not piss them off by telling them its confidential and not sharing it with them. In any event, your license with them will most likely include rights to the continuation so its understandable why they would need to see this sooner rather than later.

Andrew – I believe Ron is referring to the “25% rule” which means that many patent holders argue for 25% of whatever profits are made with their patented invention. This typically comes out to be around 5% of total sales.

Thanks for your input!

The company that contacted me was started within the last three years and is still small. They only sell one line of products – the ones covered under their patent.

My impression of the situation is that they’ve invested a great deal of money in their company and patents, only to come across my patent application for a much better product. This is happening at a time when they just acquired some investors to help take them to the next level.

Ron – If you remember what my product design is, their version is basically what you’d find on your wall with a molded texture and a front surface sprayed with primer to make it paintable. My product was specifically designed so the paint is not applied to the front surface. This protects the paint from scratches and other damage.

I’ve told them that a Continuation in Part (CIP) has been filed. I won’t give them any other details.

Susan, I wish you the best with this company. Getting in on the ground floor with them can lead to other opportunities. I was curious why this company did not show up in a patent search if they are that close to your idea. Were you aware of this company prior to the lawyer contacting you?

http://www.rogerbrown.net

Sue, what I know to be true about your situation is this. Whatever, they hit you with remember they do not have the upper hand. They came to you, make SURE they know that it is better to join together, than to be each others rivals. You have most of the cards, put on your poker face.

Hi Sue, I would not sign or provide any information to a company which was selling a product that perform the same functions as mine. My guess is they have no interest in your product except to determine if it might be better or more marketable than theirs. I would look for a competitior of theirs with a simular product line and approach them if you want to license your idea.

Seek legal help before signing or presenting any information for someone to sign.

Just my two cents,

Kyle