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In This Issue
The Patent Timeline
Segmenting Licenses
Resources for Entrepreneurial Quadrants
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 Newsletter - July 2013
  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.   

The Patent Timeline

 The life of a patent can be very long.  Up to 20 years if the patent goes to its full life, or its life can be cut short along the way by any number of circumstances,  some expected and some which come as surprises to most inventors.  To help inventors understand what they are getting into when the file for a patent we have developed a chart we call the The Patent Timeline.  Think of it as the map of a highway that has off ramps and on ramps.  And like a highway there are many tolls to be paid along the way. [Please note this timeline is for US patents only,  foreign patents are another story to be covered later]

 

At the beginning of the road there is the invention itself represented by the blue arrow.   Since we are assuming that the inventor decides to get a patent, the next step is a patent search.  One thing about this diagram is that all the call out blocks which identify events also represent potential stopping points.   The purpose of a patent search is to identify patents of others that may be cited by a patent examiner to deny the inventor a patent.  If on examining the search results the inventor and his/her attorney conclude the prior art is just too strong to beat,  the inventor may abandon patenting his invention.  More often the attorney will adjust the claims to best avoid the prior art likely to be cited by an examiner.

 

After the search there is a decision to make.  Assuming the inventor decides to file for a patent,  should it be a provisional or not?  Provisional patents are basically placeholders that give the inventor a year to commercialize his invention,  raise money etc.  without loosing his patent rights.   They are often much less expensive than a non-provisional patent application.  But they only last one year.   If a non-provisional application is not filed, the provisional is lost and it is as if it never existed.  When a non-provisional application is filed,  we get to the next step in about 18 months.  The patent application is published on the USPTO's web site.  This is the point at which the world sees the application and the point at which it becomes possible to enforce the patent if it is later granted.  Anyone who uses the patent after publication may owe royalties to the inventor when and if the patent is granted.

 

Around this time the patent prosecution phase starts.  I've likened Patent prosecution to a trial.  You can learn more about it from this video.

WhatitReallyTakes_V1.6
WhatitReallyTakes_V1.6

.If you succeed in convincing the patent office that you deserve a patent  the patent  will issue and you will receive a notice from the patent office along with a bill for their trouble.

 

In March 2013 "The America Invents Act"  went into effect.  Along with its many features [see my newsletter for an article on the AIA]  there was added a one  year period of "post grant opposition".  What that means is even though the patent office has granted you a patent and you have paid for it,  some competitor may come out of the woodwork and assert that they were wrong and you don't deserve the patent.  So hold your breath for one  more year.  Since the AIA is so new its not clear how often this feature will be used.

 

If you survive the post grant opposition you are free to practice your invention and stop others for doing so until the patent expires.  You will of course have to pay the legal costs to sue anyone who you think is infringing your patent.  This is so costly that many think that it makes a patent valueless, but in fact there are ways those inventors with few resources can protect their patent [see this article on how].

 

Of course if you want to keep your patent current even if you don't have to defend it you still have to keep paying the patent office "maintenance fees".   If you are using the patent or have a small portfolio those fees may not be too problematic, but if you have many patents particularly foreign ones you may find the charges get very big very quickly.  

 

For this reason even very large companies have put in policies of patent abandonment to stop paying for patents they aren't using.

 

Foreign patents are more complex.  We will save talking about them for a future article.   To learn more about this subject or any other patent related topic please contact us,

   

To contact us,  just send an email to rblazey@businessmetamorphosis.com or  give us a call at  (585) 520-3539  

 

 

 

 

 

 

Segmenting your Licenses
(Exclusive vs Non-Exclusive)
 
ITTr Logo 
Many patent owners think that there is only one ideal buyer for their patent and that they can only sell it to that company.
 
Actually a broad patent may be sliced up into pieces and sold to multiple buyers thus providing several different streams of income.  
 
The method of doing this is called "segmentation".    Lets talk about some of the ways a patent license can be segmented.
 
Among others , It can be segmented by:  Market,  Geography,  Exclusivity  and Term 
 
Starting with Market the license may allow the buyer to sell only through retail stores not via the Internet  or through dealers or for only one specific application.  Using Geography as a segment the license may allow sales only in a given country.  
 
Exclusivity and Non- Exclusivity allow the sale of multiple licenses where all other factors are the same,  for example a non-exclusive license to sell through retailers in the US will allow the licensor to sell multiple licenses for sales through US retailers each of whom may have their own channel. 
 
When you think about the best ways to segment your market you might want to make use of "Gustavo's Pyramid".  See the link for an article on what that means.
 
Using Gustavo's Pyramid you could execute one type of license for customers that pay a high price for relatively few high cost units,  another license for less expensive professional grade units and an third license for the mass market.
 
Segmenting by term allows the sale of licenses that expire and are re-negotiated to give better terms.  For example a license may be written for a 1 or two year trial period at attractive terms to the buyer.  If sales are very good the renewal of that license may not be nearly so economical for the buyer.  With proven sales, the existence of multiple bidders will likely  drive the cost of any follow-on licenses to higher levels.
 
To learn more, just send and email to rblazey@ittrifecta.com  or  phone me at (585) 520-3539

Finding Resources for the Entrepreneurial Quadrants

Hint:  They come out of Quadrant I

OA Logo   

 

 Opportunity Associates teaches customers how to manage new business opportunities outside of the space where they typically due business ,  what we call the "Business Comfort Zone"  of selling existing products to existing customers.   

 

But these opportunities all require funding to get off the ground and where can that funding be found?   Aside from borrowing, the only source of funds to grow a company is from its existing business,  the Business Comfort Zone we call Quadrant I.

 

Companies usually know they have to manage their costs to stay in business but sometimes they spend out of habit on activities that are no longer necessary to keep the business operating smoothly.   Existing departments will fight vigorously to defend their current budgets even if they see that their are opportunities to cut costs.

 

No manager wants to spend less than was budgeted for the current  year.  We all know there are myriads of different ways to cut cost.   We aren't going to deal with that here.  One of the things we do do at OA is that one of our members is  business coach and helping people economize in their business comfort zone is what he does.

 

What we suggest is to make a commitment to the other quadrants.  One way to do that is to allocate funds that are already being diffusely spent on new business to specific projects.  So, for example if the company is sending people to a trade show,  they could spend their time at the show contacting the same customers that they always have and talking to the same vendors, or they could spend that time talking to potential new customers for Quadrant II ventures or to potential new vendors to support potential new products in Quadrant III.

 

Using this approach the total amount of funding required doesn't have to be increased,  its just reallocated from unfocused activities relating to the business comfort zone to new activities related to the other 3 quadrants.
 
But this re-allocation can't take place until the company has made a commitment to devote resources to specific projects in the other quadrants.  That is why we recommend  that the company develop an opportunity inventory and consciously select projects from it to pursue.  To understand that better take a look at the video Opportunity Portfolio Video
OpportunityPortfolio_2008 
OpportunityPortfolio_2008
that describes the entire OA process.  What we are talking about here is Module II,  the opportunity inventory.   If you want a copy of the PowerPoint this video displays,  just ask.
  
  
 To learn more,  log on to our website at www.opportunity-associates.com  Or you can call me at (585) 520-3539 or email at rblazey@rochester.rr.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
Disclaimer

 
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.
 

 

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