License your invention without the risk -- protect your idea!

You've invented a great product and it's time for the next step. However, if you present an invention to a prospective buyer or licensee, it's no secret that your idea can be stolen. How can you draft an agreement that protects your interests?

Turn to Profit From Your Idea to help you create, modify and understand nondisclosure agreements specifically for inventors. In addition to providing sample agreements and practical advice, this all-in-one guide helps you:

• understand the licensing process
• determine ownership rights
• work with agents effectively
• find potential licensees
• publicly show inventions without the risk
• negotiate a fair licensing deal
• draft a comprehensive licensing agreement
• deal with international licensing
  

Disclosing your invention requires a balancing act: Presenting the best aspects of your invention while protecting the confidential aspects of your work. Use Profit From Your Idea to help you effectively maintain the necessary balance and minimize the risks of disclosure. The fully updated 7th edition comes complete with the latest licensing case law and includes brand new FAQs, many from the author's popular blog, Dear Rich: Nolo's Patent, Copyright & Trademark Blog.

Table of Contents

1. Gearing Up to License Your Invention

• Licenses
• Assignments
• The Licensing Process
• Avoiding Conflicts Among Multiple Agreements
• Challenges to Your Ownership
• Transferring Ownership of Your Invention to Your Business
• Disclosing Information About Your Invention
• Keeping Your Records
• No False Hopes! Reviewing Your Invention’s Commercial Potential

2. Intellectual Property Protection

• General Rules for Legal Protection of Inventions
• Utility Patents
• Trade Secrets
• Trademarks
• Design Patents
• Copyright Law
• Sorting Out Nonfunctional Features: Design Patents, Product Configurations, and Copyright

3. Ownership Issues for Inventor Employees

• What Type of Intellectual Property Is Involved?
• Employer/Employee: Patent and Trade Secret Ownership
• Inventions Covered by Copyright
• Special Employment Situations
• Working Out Ownership Issues With Your Employer

4. Invention Financing and Joint Ownership

• How Much Money Do You Need to License Your Idea?
• Sources of Funding
• Joint Ownership
• How Payments, Loans, or Investments Can Create Joint Ownership
• The Joint Ownership Agreement

5. Licensing Agents and Representatives

• Agents
• Completing the Agent Agreement
• Attorneys as Agents
• Invention Marketing Scams

6. Soliciting Potential Licensees

• Before You Begin Your Search
• How to Find Potential Licensees
• How to Overcome a Licensee’s Bias Against Submissions
• What’s the Best Way to Solicit a Potential Licensee?
• Product Presentations
• Should You Solicit Foreign Licensees?

7. Protecting Confidential Information

• Confidential Information and Nondisclosure Agreements
• Proceeding Without an Agreement
• Waiver Agreements
• When You Have Sufficient Bargaining Power
• Disclosing to Employees and Contractors
• Disclosing to an Attorney

8. The Key Elements of Your Agreement

• From Handshake to License
• Identifying the Parties
• Describing Your Invention and the Licensed Products
• Specifying Which Rights Are Granted
• Defining the Territory
• Setting the Length (Term) of the Agreement

9. Money: It Matters

• Some Basic Royalty Definitions
• Ways to Get Paid
• The Mysteries of Net Sales and Deductions
• How Much Do You Get?
• Royalty Provisions

10. Negotiating Your Agreement

• What, Me Negotiate?
• Documenting the Important Contract Elements
• Letter of Intent
• Option Agreements
• What If the Licensee Wants to Proceed Without a Written License Agreement?

11. Sample Agreement

• License Agreement
• Optional License Agreement Provisions
• Modifying the Sample Agreement for Your Needs

12. Warranties, Indemnification, and Proprietary Rights Provisions

• Promises, Promises … Warranties, Representations, and Covenants
• Indemnity: The “Hold Harmless” Provision
• Licensee Warranties and Indemnity
• Proprietary Rights
• Commercialization and Exploitation
• Samples and Quality Control
• Insurance

13. Termination and Posttermination

• Termination and Posttermination
• Termination Based Upon a Fixed Term
• Termination at Will
• Termination Based on Contract Problems
• Termination and Bankruptcy
• Posttermination: What Happens Afterwards?
• Survival of the Fittest

14. Boilerplate and Standard Provisions

• Paying the Lawyer’s Bills
• Dispute Resolution
• Governing Law
• Jurisdiction
• Waiver
• Severability
• Entire Understanding
• Attachments and Exhibits
• Notices
• No Joint Venture
• Assignments
• Force Majeure
• Headings
• Establishing Escrow Accounts

15. Service Provisions

• Service Provisions Versus Separate Service Agreements
• Training the Licensee’s Personnel
• Installation of Equipment
• Technical Support for the Licensee or for End Users
• Improving, Modifying, and Delivering the Invention

16. Handling the Licensee’s Agreement

• Dealing With Suggested Changes
• Evaluating an Agreement Presented to You
• Evaluating the Provisions and Suggesting Changes

17. After You Sign the Agreement

• Create Your Contract Calendar
• Dealing With Royalty Statements
• Resolving Licensing Disputes
• Avoiding Patent Misuse and Illegal Agreements
• The Taxman Cometh
• Quality Control

18. Help Beyond This Book

• Licensing and Intellectual Property Resources
• Working With an Attorney

Appendix: How to Use the CD-ROM

• Installing the Files Onto Your Computer
• Using the Word Processing Files to Create Documents
• Listening to the Audio Files
• Files on the CD-ROM

Index

Forms

• Agreement Worksheet
• Assignment of Rights: Patent
• Assignment of Rights: Patent Application
• Assignment of Rights: No Patent Issued or Application Filed
• Letter Confirming Employee's Ownership of Intellectual Property Rights
• Joint Ownership Agreement
• Agent Letter Agreement
• One-Way Nondisclosure Agreement
• Mutual Nondisclosure Agreement
• Contract Worksheet
• Letter of Intent
• Option Agreement
• Terms Sheet
• License Agreement
• Escrow Agreement
• Checklist for Reviewing a License Agreement
• License Dates Chart
• Audit Request Letter

*Audio files are not available with the ebook

Reviews

Press Reviews

" Tells prospective entrepreneurs how to move an idea 'from thought to bought' -- and roughly what inventors can expect to get in a licensing deal. " -Los Angeles Times " Gives detailed instructions on working with manufacturers, marketers and distributors, and addresses issues on copyright and trademark laws, ownership, finances and much more. " -Baton Rouge Advocate " Excellent... " -San Francisco Chronicle " Offers a lot of advice. Stim covers all the essential factors in his book. " -Joyce Lain Kennedy, Syndicated Columnist " With an array of forms on disk, in combination with the insights of intellectual property attorney Stim, inventors can hold onto the titles and profits of their inventions rather than sell out to companies. " -Book News " I do believe reading this book is a very good defensive measure and highly recommend it. " -George H. Morgan, Patent Agent " Thorough, accurate and well presented... This book is a tremendous asset for an inventor with the desire and inclination to 'do it yourself.' As an intellectual property attorney specializing in licensing transactions, I have enjoyed paging through this book and brushing up on a variety of issues, and yes, even learning a thing or two! " -Greg S. Weber, Esq. Creative Media Law Group

Customer Reviews

" Excellent guide for beginners. " -R.D.O. Coalinga, CA

Legal Updates

Here are summaries of important legal or procedural changes that affect the latest edition of this product.