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Royaties for Tool Inventions??

HardtailHack

HardtailHack

used an iron once
Jan 20, 2009
6,721
5,604
Howdy people,

I was wondering if anyone knows of any companies pay royalties to tool inventors/designers?
I have Googled like crazy to see if anyone else has the same idea as me, luckily nothing came up. I am not looking to get patents on my idea as I can't afford it and I'm not interested in starting a company.

Cheers,

James.
 
Austin Bike

Austin Bike

Turbo Monkey
Jan 26, 2003
1,558
0
Duh, Austin
You don't have to start a company to get a patent. A patent protects you. Royalties are fine until someone comes up with something "like" your product, then you are screwed.

If it is good enough to receive royalties, then patent it and get licensing fees instead.
 
dirtvictim

dirtvictim

Chimp
Aug 22, 2009
93
0
A patent will cost you about 300 if you do it yourself. Well worth it if it's a good idea. You will need to do a very detailed drawing and description so that the patent office could actually build and use one in theory.
You can do a design or use patent. I found all the info on www.uspto.gov/
you need to do this first before taking it to someone like park or pedro or risk losing it. Also on the .gov site you can do searches for like items it could be there and you just haven't seen it yet. I have found that it is very likely that someone else is thinking up the same thing same time as you so act fast. Do the cheap copyright and send the idea to yourself certified mail do not open leave sealed, it only matters if you follow through with the rest of the process and has no legal merit, I have 20 myself and have only patented one.
Good luck and hope to hear about your success
 
Wingnut

Wingnut

Turbo Monkey
Nov 12, 2003
1,664
179
Sorry, I'm Canadian ..sorry...
Isn't that the story of the Robertson screwdriver. It's all over Canada, but other countries did not care to pay royalties. Thus the continuing existence of the STUPID "standard, blade type" screw....
 
HardtailHack

HardtailHack

used an iron once
Jan 20, 2009
6,721
5,604
Wow I was expecting a tell me what it is and I'll help you sort of answer.
I am about to make a proto which won't be too hard to do and I'm guessing a company could sell said item for around $15 US.

I remember buying a product that had a lable on the back mentioning tool designers/inventors but I can't remember who it was(possibly ABW).

If I email the design with pics to a big company are they allowed to use my design without paying royalties? I guess they would because it would be easy for them to say they have been designing a similar product for some time and just steal my ideas.
 
Austin Bike

Austin Bike

Turbo Monkey
Jan 26, 2003
1,558
0
Duh, Austin
You can email it to a big company. They can use your design and not pay royalties. You can sue them. They will have more lawyers. They will win.

You have too options: patent it or give it away free. Those are the only two choices. If you are too lazy to not take the steps to patent it, then you are not worthy of receiving compensation for it. Sorry.
 
Polandspring88

Polandspring88

Superman
Mar 31, 2004
3,066
7
Broomfield, CO
If it is an automotive product, I believe Lisle will offer to put your tool into production if they deem it a good idea. Not sure what they pay in terms of royalties, but I always flip over the package on the tap sockets and read the story of the guy who sent them that idea.
 
chuffer

chuffer

Turbo Monkey
Sep 2, 2004
1,547
888
McMinnville, OR
As I understand it, even with a patent you aren't really safe from a large company taking your design. Unless you actively pursue any company that infringes on your patent, you are consenting to them the right to use your patent. You as the patent holder are responsible for collecting royalties, arranging the contracts and pursuing legal action in case of disputes. There are enough (armchair and real) lawyers on here, that someone will correct me if the above is false.
 
jonKranked

jonKranked

Detective Dookie
Nov 10, 2005
85,855
24,445
media blackout
Patents are tricky, especially when it comes to wording and the level of detail used. If you write the description too vague, it can be viewed as not being "unique" enough to deserve a patent. Write it too detailed, and competitors will be able to find a way around your patent.


If you talk to any companies about your idea prior to it being patented, make them sign an NDA, and a few other documents along with it. I have worked at companies in the past that have done this. Basically, the documents state that if a designer agrees to disclose their idea to a company, and the company chooses to move forward with development - ultimately leading to marketing and selling it - then as the originator of the idea, you are guaranteed royalties from the sales (whether or not it is a fair amount is a different story). However, it also states that if you, as the designer, agree to disclose your idea to the company, and they chose not to move forward with development of it, then you are free to pursue business relations with other companies in regards to the idea you disclosed. At this point, the company - having passed on your design - cannot pursue development on your design/concept any further (without potential legal repercussions). Bear in mind, this is assuming that the company operates on ethical grounds.
 
dirtvictim

dirtvictim

Chimp
Aug 22, 2009
93
0
jonKranked said:
Patents are tricky, especially when it comes to wording and the level of detail used. If you write the description too vague, it can be viewed as not being "unique" enough to deserve a patent. Write it too detailed, and competitors will be able to find a way around your patent.


If you talk to any companies about your idea prior to it being patented, make them sign an NDA, and a few other documents along with it. I have worked at companies in the past that have done this. Basically, the documents state that if a designer agrees to disclose their idea to a company, and the company chooses to move forward with development - ultimately leading to marketing and selling it - then as the originator of the idea, you are guaranteed royalties from the sales (whether or not it is a fair amount is a different story). However, it also states that if you, as the designer, agree to disclose your idea to the company, and they chose not to move forward with development of it, then you are free to pursue business relations with other companies in regards to the idea you disclosed. At this point, the company - having passed on your design - cannot pursue development on your design/concept any further (without potential legal repercussions). Bear in mind, this is assuming that the company operates on ethical grounds.
Click to expand...
Yea good points. Makes sense to do Non Disclosure Agreement with anyone you tell or show the idea to. Do not forget that you don't put the idea on the NDA papers and it is still best to send the idea to yourself certified. Make up a code that you can write on the cert letter envelope that will pertain to the contents and use the code on the NDA. A simple one (idea #1) It will establish a timeline if someone you contact tried to claim rights after the NDA.
Any paperwork should be stored in a saftey deposit box and never sign anything if you are unsure.
 
jebfour

jebfour

Turbo Monkey
Jun 19, 2003
2,065
1,411
CLT, NC
Austin Bike said:
You can email it to a big company. They can use your design and not pay royalties. You can sue them. They will have more lawyers. They will win.

You have too options: patent it or give it away free. Those are the only two choices. If you are too lazy to not take the steps to patent it, then you are not worthy of receiving compensation for it. Sorry.
Click to expand...
Lots of truth here...

If it is worth it, patent it.
 
HardtailHack

HardtailHack

used an iron once
Jan 20, 2009
6,721
5,604
Ahh yes it was Lisle, ad a quick look at their site and they do an Inventors Program.

Check this out, straight from the site-

1. Fill out the online form by clicking here and we will send you an Idea Disclosure Agreement.

2. Once it arrives in the mail, sign and return the Idea Disclosure Agreement to us along with a description of your tool idea. If you have a working model, sketch, or drawing of your idea, it is helpful to include these with agreement. Please note, all disclosures are made on a non-confidential basis.

3. We will promptly evaluate your idea. We will notify you whether or not we will offer an award or royalty. The awards are based on many factors including: date of submission, identification of the problem, precise solution to the problem, status of patent protection, originality of idea, utility of idea , and uniqueness of idea. The decision on awards is solely at the discretion of Lisle Corporation and is final.



Why don't they just say we will steal your idea and give you nothing?

Also the Chinese don't seem to give a toss about patents, how many patents need to be lodged to give worldwide protection, or is this impossible?
Thanks a lot for the help guys this is all very helpful.
 
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Austin Bike

Austin Bike

Turbo Monkey
Jan 26, 2003
1,558
0
Duh, Austin
dirtvictim said:
Yea good points. Makes sense to do Non Disclosure Agreement with anyone you tell or show the idea to. Do not forget that you don't put the idea on the NDA papers and it is still best to send the idea to yourself certified. Make up a code that you can write on the cert letter envelope that will pertain to the contents and use the code on the NDA. A simple one (idea #1) It will establish a timeline if someone you contact tried to claim rights after the NDA.
Any paperwork should be stored in a saftey deposit box and never sign anything if you are unsure.
Click to expand...
Non-disclosure agreements are worth a LOT less than a patent. The real problem is that you will approach a company with an NDA and they will say, "we already have one, please sign ours."

Now you are screwed. You have to get a lawyer to review each one for each company you talk to. That becomes more work for you, you would have been better off filing the patent.

True, the patent is not foolproof, as listed above, but it is even harder to defend without one. Even if you have a solid patent, someone could rip you off; it just means you have a stronger case when you do end up in court.

The reality is that you have several options, in order of strength:

1. Patent
2. NDA
3. Poor man's patent (send the details to yourself in a letter that is postmarked, don't open it, put it in a safe place
4. Trust
 
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