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Thread: Patent sale

  1. #1
    just me duncan drennan's Avatar
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    Patent sale

    I recently received a phone call from someone who is looking to sell a patent. I'm really not too sure what the options are in this regard - are there patent brokers? Would a business broker be interested in this sort of thing?

    The patent is for a cable guide system for electric mowers called ezYmo. Apparently the system works really well and people like it, he just doesn't have the finances to do the advertising that he feels is necessary to make the product successful.

    Does anyone have some ideas of who he could speak to? Any thoughts on what his options might be?
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    Site Caretaker Dave A's Avatar
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    To me the main trick is mow away from the power source.

    If it's just the marketing budget that's a problem, try Verimark. They're into this gadgety stuff.

    Another option is to find someone interested in producing it and just collect the royalties.
    The trouble with opportunity is it normally comes dressed up as work.

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    Platinum Member Marq's Avatar
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    Don't know much about this area but I would say that one should keep the patent, but sell the idea and a limited type rights to say a lawnmower outfit. And then as Dave says collect the royalties.
    The cost of living hasn't affected its popularity.
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    just me duncan drennan's Avatar
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    Quote Originally Posted by Dave A View Post
    If it's just the marketing budget that's a problem, try Verimark. They're into this gadgety stuff.
    I'll suggest that, it seems like a good idea.

    Quote Originally Posted by Dave A View Post
    Another option is to find someone interested in producing it and just collect the royalties.
    Quote Originally Posted by Marq View Post
    Don't know much about this area but I would say that one should keep the patent, but sell the idea and a limited type rights to say a lawnmower outfit. And then as Dave says collect the royalties.
    The challenge is actually finding someone interested in licensing/buying the idea - where do you look for buyers? Are there people who specialise in matching up interested parties?

    What I found quite interesting is that the lawnmower companies are not really interested because they are more interested developing their petrol mower sales (because they require more after sale servicing....)
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    It is not easy to "sell" a patent. It is easier (but still difficult) to license a patent. Since he has no money, I suggest that he approaches potential licensees and negotiates a license using the free licensing tool available at http://www.ideanav.co.za/wp-content/...t_nov_2011.pdf.

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    I have the same problem...

    I have an excellent patented product with semi paid injection mould tooling with some ex-stock as well. The problem has been the advertising of the product but the few I have sold to small outlets and one big manufacturer went extremely quickly. I have since patented another two products that complement the first product but find it extremely difficult without proper finance to get into the market as I would've liked to.

    Builders Warehouse wanted my product but fell apart when I couldn't come up with a plan (finance related obviously) to market the product in there countrywide stores...

    I am now considering throwing in the towel and selling everything at a loss...
    An investor would be a better option but it would have to be a sufficient amount for investment to really get the product out there on a massive scale. It just seems that certain companies out there are intent on stumping me as my product is superior to what is currently out there and the fact is who am I coming to their market with a patent?

    I find it a shame as people would really benefit from the product. I have honestly been let down big time and very disappointed with how business is run in this country when a nobody comes along with a patent to protect their ideas in a market that is filled with "Big Fish" who will just gobble you up if you get in their way!

    Sad, very very sad...

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    Silver Member Greig Whitton's Avatar
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    Quote Originally Posted by Gfacius View Post
    I have an excellent patented product with semi paid injection mould tooling with some ex-stock as well. The problem has been the advertising of the product but the few I have sold to small outlets and one big manufacturer went extremely quickly. I have since patented another two products that complement the first product but find it extremely difficult without proper finance to get into the market as I would've liked to.
    Which financing options have you considered? It sounds like the sort of venture that would be too risky for banks (without a lot of personal collateral). Depending on the financing needed to market effectively, it might be worth approaching SEDA. An alternative would be enterprise development funding.

    Quote Originally Posted by Gfacius View Post
    I have honestly been let down big time and very disappointed with how business is run in this country when a nobody comes along with a patent to protect their ideas in a market that is filled with "Big Fish" who will just gobble you up if you get in their way!
    What, exactly, did you expect those "big fish" to do? Welcome you with open arms while you capture their market share with a superior product? Hostile commercial competition is par for the course anywhere in the world.

    Founder of Evergrow - Helping South African business owners grow their business without the growing pains

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    Diamond Member Justloadit's Avatar
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    This is the nature of any product/business.
    The cost of development is small when you start to compare it to the cost of marketing the item, and selling it.

    All businesses started small at some point in their life, and persistence is what made it successful.

    With my past experience in this realm, and having some success in the past, I have also have lots of products which would be good sellers if I only marketed them, but am in a similar situation.

    The secret here is to take one product, and keep at it all the time. Start selling it to the small guys, forget the big fish, in time they will come to you. Get the regular 10 and 20 orders, this will grow into the thousands.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
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    Quote Originally Posted by Justloadit View Post
    The secret here is to take one product, and keep at it all the time. Start selling it to the small guys, forget the big fish, in time they will come to you. Get the regular 10 and 20 orders, this will grow into the thousands.
    Not so sure I'd call it a secret , but this is certainly my view too. Start small first. If your whole model relies on some big chain store selling your product by the thousands, then you're on thin ice.

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    Diamond Member adrianh's Avatar
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    A patent means absolutely nothing to a small business. Let's say you hold a patent on a YoYo and I produce one that is slightly different....what will you do?
    Let's say I have money and a lawyer that knows how to waste time, what will you then do?
    Ok, let's say I send my slightly modified version of your YoYo to China and get my buddy to bring in a sheetload of them and flood the market, what will you do?

    You see, it means diddly squat because it is up to the patent holder to take me to court and prove that his patent has been infringed. Let's say you win in court...I've got no money, the product was copied in China and a third party brought it in and already flooded the market.

    I agree with Justloadit, start slow and don't draw too much attention to yourself. Built a customer base and a reputation and keep developing your products. You may just one day have the cash to flood the market with your superior product.
    How easily someone is offended is directly proportional to how stupid they are.
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