May 2009
Ken Rainbolt’s display of his award-winning Segway lock sparked a general discussion of how to profit from a good invention. Inventors who want to focus on inventing rather than on running a business often license (rent) their inventions to one or more companies. Let a company make and sell the product of your invention, and in exchange, the company typically gives you 3-5% of its wholesale profit from your invention. How do you find an interested company? Start by looking for products similar to yours in stores, on the internet, and at trade shows. Learn about the companies that sell those products, using the library or internet, and focus on companies that look most promising to you. Ron Jackson especially recommends a company whose net sales are less than $50 million per year, because you may be able to meet with the CEO. Find out where your invention fits into the market (do market research), and what your production costs will be (get estimates from manufacturers), so you c