This summer, the United States Patent & Trademark Office issued patent number 10 million with great fanfare. But most of those patents are worthless, I’m afraid. Few patented inventions recoup the cost of filing and maintaining patent protection. There isn’t a single definitive figure. But it’s safe to say probably fewer than 10% do.
The question of why so many patented inventions never make it to market is one I’ve been asking myself for years.
Don’t get me wrong. I’m a big supporter of patents. The twenty patents in my name are proudly displayed on a wall in my home office. I went to federal court to defend my portfolio. Ultimately, my IP enabled me to license my technology and support my family with royalties.
I am one of the lucky ones. Obtaining and maintaining patent protection is extremely expensive. My portfolio cost close to half a million dollars. Fortunately, my licensee agreed to cover the cost of intellectual property in exchange for exclusive access to my innovation.
Whether you’re an independent inventor or a startup, your resources are extremely valuable when you’re starting out. Use them wisely.
Here’s how to avoid filing a non-provisional patent application that never amounts to much.
1. Don’t be motivated by fear. Fear that someone is going to steal or come up with a similar idea if you do not protect your idea with a patent. On Shark Tank you hear it all the time: “Do you have a patent?” Your friends and family will ask you the same question.
Here’s the reality. If you let fear be your guide, you will rush to file a patent. Spend some time educating yourself first instead. What are your options for getting to market? Knowledge is an antidote to fear.
Before you invest in a patent, study the marketplace to see if your product idea is truly unique. How does it compare to similar products on the market? Do you have a point of difference that people will actually pay for? Assessing the marketability of your product idea is very important. You may think it’s brilliant, but that’s far from enough. Most startups fail because there is simply no need for the product.
2. Understand the conflict with patent attorneys. The job of a patent attorney is to protect your creativity, your inventions. It’s not to tell you whether you have a marketable product idea. Most patent attorneys don’t care. That’s not their area of expertise and they’re not responsible for sending you on your way to test the market first. They’re great at doing exactly what you want, which is attempting to protect your invention regardless of whether it’s marketable. And therein lies the conflict.
Nearly two decades ago, I received the best possible advice from my patent attorney. He said, “Steve, protection is easy. Selling is hard. Sell it first!”
Here’s your red flag. If your patent attorney or agent advises you to file a patent — and not a provisional patent application — at the very beginning of your invention journey, run! There is no justification for this.
3. Figure out how your invention can be manufactured. Most patents I have read don’t include anything about manufacturing. They are strictly concept-only. Delivery is extremely relevant to bring any invention to market. So, can your invention be manufactured and distributed at a price point the market will accept? This is an incredibly important question.
You can gather this kind of information by visiting manufacturing facilities, watching how-to YouTube videos, going to trade shows, and getting quotes from contract manufacturers.
4. Test your product idea to see if it’s marketable. The traditional way to bring an invention to market stresses prototyping and patenting — aka starting a company — which means raising money, writing a business plan, hiring employees, and so on. This is extremely risky; most startups fail. In my opinion, you must find ways of testing the market before all of that. Waiting until after you’ve filed a patent and built a prototype is too late. Gauge interest level in your invention early. You could try licensing, crowdfunding, or use survey tools, for example.
5. Respect the value of business experience. Lack of knowledge is fatal. Most inventors think it’s lack of money that holds them back, but it’s actually lack of experience. It takes so much more than a patent and a wad of cash to bring an invention to life. That’s why teams of founders are often behind successful startups. If you’re going that route, make sure someone on your team has brought products to market before.
In some cases, because of your lack of experience, I highly encourage licensing to a company already in business. Expecting to sell tons on Amazon? Without a marketing plan, you could end up with a garage full of unwanted product.
6. Don’t get sold on hope. Ever since the Wright brothers, there have been companies that promise to do all of the work of commercialization for you. In my experience, this never works. You have to put in the hard work yourself and be in control of your own destiny. The bottom line is, this takes real work, and no one is going to work harder than you will.
I cannot stress this enough. If you have an idea/invention that you believe is marketable, try to gauge how interested consumers are before you spend your hard-earned money on a patent that turns out to be worthless. File a provisional patent application first, which gives you one year to investigate if your idea is indeed marketable. You can also use this year to make improvements to your invention.
Do your homework! Test the market before you file a patent. Resist giving in to fear.
This article was originally published on Forbes.com.
