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Patents for Poets
Ways of Monetizing Patents
When Google isn't enough
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 Newsletter - August  2012
  This newsletter is for the benefit of: our customers both current and past, our workers , board members and friends including those of you we haven't talked to recently. Please feel free to forward to others who might be interested in our activities.   Please realize that this newsletter contains only our opinions on patent matters.  We are not authorized to give legal advice.  If you are seeking such advice please contact an attorney.

Patents for Poets

 

What's a patent and Why do I need one?

The pizza story

 

When I was in the university there were courses in the sciences that liberal arts majors would take to satisfy their requirements for graduation.  The students at these courses were unwilling attendees trying to get by with the minimum of effort.  Usually they found science courses confusing in the least and often they were actually hostile to the subject.  These courses acquired names that told more about the students than the courses.  One of them was termed "Physics for Poets [POP]".

 

Sometimes the lecturer surprised the students and made POP so interesting and engaging that they actually enjoyed it.  Its doubtful that many switched their majors to the sciences but at least they were no longer hostile and could make much better decisions when science was in some way involved in what they were doing later in life.

 

Patents are a subject that can appear every bit as arcane to a layman as a college Physics course to a liberal arts major.  While most people in high tech fields become familiar with patents, people in other business activities mostly ignore the subject even when it would be in their interest and sometimes essential  to understand the subject better.

 

Most people understand that a patent is needed to protect an invention you make.   What is often overlooked is you also need to be aware of the inventions owned by others when you are running a business.  

 

 Lets say you are running a very routine business like for example a Pizza parlor.  No one is likely to  sue you for making a pepperoni pizza using the known standard methods,  but suppose you do something different.  

 

You create a new pizza using what you think are clever tricks  and come up with something that really catches on. The idea of patenting your new process never even occurs to you.

 

 Then to your dismay,  someone hears about your success and one day you receive a letter from an attorney threatening suit  and ordering you to "cease and desist" making your new pizzas because you are  infringing someone's patent on the pizza making process that you thought  YOU had invented. 

 

It doesn't have to be this way.  If when you realized there was something outside of the ordinary about your new pizza process you had contacted a knowledgeable patent practitioner such as Business  Metamorphosis for a "freedom to use search".  That would tell you what patents already existed like your Pizza making process.

 

 If the search found nothing to worry about you still could patent your new pizza process or if you chose not to, you could publish your invention.  That way , no attorney  could ever stop you from making your delicious pizza with a court order. Even if the search did find something you would have the opportunity to license the original invention from its owner,  that would give you a patent protected product and it would likely be much less expensive to pay for the license than to go to court.

 

To learn more about the patent process and make use of all the free resources we offer  check us out at www.alacartepatents.com , write us at rblazey@businessmetamorphosis.com or  give us a call at       (585) 520-3539  

 

 

 

 

 

ITTr Logo
Pawn Stars and ROTH Scoring

 

If you don't know the value you can't make a sale

 

The TV Show Pawn Stars is a very good illustration of what you need to do to make money in a brokerage business and what you can't do.   The Pawn Stars know the market value of everything that comes through their doors even if they have never seen it before.  If they are unfamiliar with the object they bring in an expert.  Once they establish a retail price they offer the seller half of it. They are then assured of making a 50% commission on everything they sell if they have accurately valued the object.  Note the key to their success is  knowing the value of what they are selling (and who is likely to buy it).

 

Patents are harder to value than antiques.  Often we don't know the value of the patents we are selling.  Some could be worth a lot, some could be worth nothing.  There are complex formulas for valuing patents ,  I don't think they are worth much.  They are mainly of academic and sometimes legal value.  What determines the value of a patent is what a buyer believes he/she can earn from it. After they have spent the money needed to commercialize it.  Hence the more time and money it takes to commercialize a patent the less it is worth.

 

 In fact no buyer will spend the money needed to commercialize a patent unless they believe there is a market for it sufficient for them to recover their investment including what they pay the patent owner and brokers like ITTr and make a profit too. 

 

The reason ITTr created the ROTH analysis tool was to determine how close a patent is to being commercialized. At present its our best way of answering that question.  

 

At ITTr we have now decided to value every patent in our portfolio using ROTH.   If the ROTH indicates  its not worth it for someone to commercialize it its not worth                           ITTr's time  to sell it. 

 

So when we ask you to fill in a ROTH table, please understand why we do it.  It doesn't take long and its very important.

 

To learn more about ROTH and the valuation of patents contact us at ITTr.      .

 

Email : rblazey@ittrifecta.com

Phone: (585) 520-3539 

www.ITTrifecta.com

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        Inventorying your Opportunities     

The second module in OA's Opportunity Portfolio  process is about inventorying opportunities. Every business has opportunities it doesn't exploit. Sometimes they are just ideas that pass quickly through someone's head and other times they are complex concepts which have been thoroughly studied and then for some reason or another end up on the shelf gathering dust.  

 These proposals  are almost never considered together and  compared to one another .  The resources needed to implement them are not calculated nor is  the effect on the company or   the opportunity's  potential to supply needed  growth estimated.

  

Mostly these ideas are considered  indifferently if at all (outside the product development organizations that produce them) .  In one simulation of daily operations  I attended a large company spent a short interval at budget time considering R&D proposals, evaluating them only on their cost (benefits being too uncertain)  , discarding most as too expensive, and then went back to business as usual.

  

Those ideas  that are advanced move forward at the behest of powerful champions who can cut through the usual  red tape.  These folks are few and far between, and it is also difficult to connect them with the ideas that they might support .  I have a friend whose whole business was built around getting ideas to these champions.

  

The first step we recommend is to inventory those opportunities.  Then we build them out with additional ideas. An individual can do this work  but a group strategy session is preferable to get the benefits of multiple points of view.

 

The next step after the initial inventory is to compare the alternative projects on a common basis. Then  choose deliberately which projects will move on to  build action plans in Module III to implement the selected opportunities.

 

 Typical concerns covered in Module II include the potential benefits (revenues) the costs of implementation, the risks and the alignment of the project with the available corporate resources.

 

  Some companies may have existing processes in place for this activity, others will have to create something new.  We use an Exell spreadsheet to list the opportunities and select the fields for comparison with our client.

 

 The result of this phase is a proposed allocation of resources which is likely to be quite different than what you started with. This activity should be separate from the regular budget process.

            .

The Opportunity Portfolio process is described in a Video on our YouTube channel.  Click to watch.

 

To learn more , just  contact us at our website Opportunity-Associates or send an email to info@opportunity-associates.com

We appreciate your responses to our newsletters.  Please send us your comments.  We are always interested in what you want to know.
 
Sincerely,
 

Richard Blazey
Business Metamorphosis LLC

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