This is a perennial favorite: “I have no money, but have an idea that’s going to be great. How can I take steps to launch it on a shoestring?”
Q: I have a great diaper idea for the ”on the go mom” that I think is unique. I don’t have money for any startup to manufacture this product, but I have started creating a presentation explaining how the product works. If this product goes to market, I’m sure it would be profitable for myself and others involved. In addition, there would be a possible partnership with diaper manufacturers such as Luvs, Pampers and Huggies. If possible, would you be able to point me in the right direction on how to get started with getting a patent or trademark, potential investors and anything else I would need to possibly get this product to market?
A: One of the dangers of getting started on a shoestring with great ideas alone is that ideas are very easy to steal. In fact, unless you have been able to translate them into some form of intellectual property (like a patent, trademark or copyright), it’s very hard to protect ideas themselves. You could try to have your potential manufacturers, corporate partners and investors sign confidentiality and nondisclosure agreements, but often, major corporations won’t do that, as they may simultaneously be working on their own prototype in their R&D department and will not want to jeopardize their own efforts.
The Patent and Trademark Office has a lot of educational information on its website (http://www.uspto.gov/). That said, actually filing for a patent (or provisional patent) is not something you should attempt without the benefit of legal counsel. Doing it improperly or inaccurately could create long-term problems for protecting your prototype, which would make the product less attractive to investors. Where you may want to start is by consulting with an intellectual property attorney who knows this area and getting some ballpark figures on the costs for getting started on the right foot legally. You’ll also want to do some market research to get a clear handle on the potential market and costs for product manufacture to put into a business plan. Then you can make a more educated determination of whether you really do have the finances (or access to credit) to give your idea the solid footing it will need to move it forward.
This entry was posted on Friday, July 24th, 2009 at 5:10 am and is filed under Basic Training, Intellectual Property. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.4 Responses to “Basic Training: Great Ideas Need Protection, Too”
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July 26th, 2009 at 2:35 pm
Thanks for this article. As owner of a strategic marketing company, I advise my small business clients to take the time to protect their ideas. There are many people just don’t know where to start when it comes to intellectual property or believe hiring an attorney will be too expensive. The bottom line is, you can’t afford not to protect your ideas. It can save you a tremendous amount in the long-run.
July 26th, 2009 at 6:28 pm
Provisional patents can go a long way as well, but patents are not a ‘magic bullet’ – a solid team and commercialization plan are a much more tangible, and fundable, strategy. Patents are expensive and distracting to protect, which can halt a new entrepreneur in their tracks.
I agree with Nina that you idea can always be stolen. Is there anything else you can do to make sure that when it is replicated by another firm, you are still in a good place – without losing your entire investment?
I would also be very, very careful about diapers. The small amount of marginal profit generated is perceived as being tied directly to the packaging and scalable manufacturing – not the R&D. It is very doubtful a firm would find a better mousetrap appealing, especially if an inventor is demanding half of the already meager net profits.
Thanks for your answer, Nina, I found it helpful and insightful!
August 13th, 2009 at 2:30 pm
Good points, Genean. I’ve also encountered entrepreneurs who were so “hot to trot” to trademark every slogan they came up with that they ended up squandering a lot of money on ideas they never ended up pursuing.
August 13th, 2009 at 2:34 pm
Daniel, you raise an important consideration: often, the competitive edge is not found in being first to market and protecting that territory with a patent. It’s having excellent customer service, really fulfilling a need for your market niche, and delivering on it well. Also important to remember that patent protection is not perpetual — you have only about 20 years to keep the wolves at bay. Once the exclusion expires, you either need to have produced the “next great thing” or have given your product “branding roots” through a loyal following.