Inventors Handbook

8/10/2019 Inventors Handbook

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Inventor'sHandbook

Original: http://web.mit.edu/invent/h-main.html

(Lemelson-MIT Program)
http://web.mit.edu/invent/h-main.htmlhttp://web.mit.edu/invent/h-main.html


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ontents

This handboo! was "reated b# the Lemelson-MIT Program to address the

independent inventor$s and aspiring entrepreneur$s most %re&uentl# as!ed

&uestions regarding 'nited tates patents. e hope that this handboo! will

provide some help%ul in%ormation on the patenting and "ommer"iali*ation

pro"esses.

hapter +: hat Is Intelle"tual Propert#,

hapter : hat an e Patented,

hapter : Is M# Idea Patentable,

hapter 0: 1ow 2o I ondu"t a Patent ear"h,

hapter 3: Is M# Invention orth Patenting,

hapter 4: 1ow 2o I 5ppl# %or a Patent,

hapter 6: 1ow 2o I Prove the Idea Is Mine,

hapter 7: hat 5re ome Options to ommer"iali*e M# Patent,

hapter 8: 1ow 2o I Li"ense M# Invention,

hapter +9: hat 5re ome uidelines in 2eveloping a usiness

Plan,

hapter ++: 1ow 2o I ;aise apital,

;esour"es %or Inventors
http://web.mit.edu/invent/h-chapters/h-one.htmlhttp://web.mit.edu/invent/h-chapters/h-two.htmlhttp://web.mit.edu/invent/h-chapters/h-three.htmlhttp://web.mit.edu/invent/h-chapters/h-four.htmlhttp://web.mit.edu/invent/h-chapters/h-five.htmlhttp://web.mit.edu/invent/h-chapters/h-six.htmlhttp://web.mit.edu/invent/h-chapters/h-seven.htmlhttp://web.mit.edu/invent/h-chapters/h-eight.htmlhttp://web.mit.edu/invent/h-chapters/h-nine.htmlhttp://web.mit.edu/invent/h-chapters/h-ten.htmlhttp://web.mit.edu/invent/h-chapters/h-ten.htmlhttp://web.mit.edu/invent/h-chapters/h-eleven.htmlhttp://web.mit.edu/invent/h-chapters/h-resources.htmlhttp://web.mit.edu/invent/h-chapters/h-two.htmlhttp://web.mit.edu/invent/h-chapters/h-three.htmlhttp://web.mit.edu/invent/h-chapters/h-four.htmlhttp://web.mit.edu/invent/h-chapters/h-five.htmlhttp://web.mit.edu/invent/h-chapters/h-six.htmlhttp://web.mit.edu/invent/h-chapters/h-seven.htmlhttp://web.mit.edu/invent/h-chapters/h-eight.htmlhttp://web.mit.edu/invent/h-chapters/h-nine.htmlhttp://web.mit.edu/invent/h-chapters/h-ten.htmlhttp://web.mit.edu/invent/h-chapters/h-ten.htmlhttp://web.mit.edu/invent/h-chapters/h-eleven.htmlhttp://web.mit.edu/invent/h-chapters/h-resources.htmlhttp://web.mit.edu/invent/h-chapters/h-one.html


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T1< L


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hapter +:

hat is Intelle"tual Propert#,

To en"ourage the "reation o% valuable ideasD and prote"t them %rom being

stolenD the '.. legal s#stem developed the "on"ept o% intelle"tual propert#.

The %our !e# "lasses o% intelle"tual propert# are:

Patent:5 grant issued b# the %ederal government giving an inventor the

right to eF"lude others %rom ma!ingD having madeD usingD leasingD o%%ering

to sellD sellingD or importing an invention in the 'nited tates. 5 patentD

howeverD does not ne"essaril# guarantee inventors the right to ma!eD use or

sell their inventionsG in some "asesD utili*ing a patented invention depends

on another person$s priorD uneFplored patent. @iolating patent rights is

!nown as in%ringement and "an be litigated. Patent in%ringement o""urs

when one violates ea"h element o% at least one "laim in a patent.

Trademark/ :5 non-%un"tional wordD logoD sloganD s#mbolD designHor

an# "ombination o% theseHthat distinguishes a produ"t or servi"e.


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Trade Secret:5 %ormulaD patternD manu%a"turing pro"essD method o% doing

businessD or te"hni"al !now-how that gives its holder a "ompetitive

advantage. Trade se"rets "over a wide spe"trum o% in%ormationD in"luding

"hemi"al "ompoundsD ma"hine patternsD "ustomer lists and so%tware. =o%ederal law prote"ting trade se"rets eFistsG legal de%initions var# %rom state

to state so inventors should ma!e "are%ul note o% the re&uirements

depending on the lo"ation.


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hapter :

hat an e Patented,

Patents are produ"ts o% the legal s#stem. 5s su"hD the# appl# onl# to

inventionsD and then onl# i% the invention %alls within legall# de%ined

"ategories. 5n#thing outside these "ategories "annot be patented. The '..

has a B%irst to inventC poli"# regarding inventionD meaning that the %irst

originator o% an invention re"eives "redit %or it. The %irst person to patent an

invention will not re"eive "redit unless the# were also the %irst to invent it.

5lsoD in the 'nited tates #ou have + months %rom the %irst enabling

dis"losureD in whi"h #ou des"ribe #our invention in signi%i"ant detail so that

someone reasonabl# s!illed in #our %ield "an reprodu"e #our inventionD

without undue eFperimentation to a"tuall# "laim #our invention in a patent

appli"ation.

In the 'nited tatesD the date that is + months %rom the date o% the %irst

enabling publi" dis"losure is the bar date %or %iling a patent appli"ation. I% an

appli"ation is not %iled be%ore or on the bar dateD the invention is generall#

no longer patentable. In most %oreign "ountriesD howeverD patent rights to an

invention are generall# destro#ed i% an inventor does not %ile a patent

appli"ation be%ore the inventions %irst enabling publi" dis"losureD in the

'nited tates or overseas. The three legal "lasses o% patentabilit# are:

ti!ity Patents: ranted to inventions that involve a new and use%ul

pro"essD devi"eD ma"hineD manu%a"tured itemD "hemi"al "ompound or

%ormula. 'tilit# patentsD whi"h appl# to virtuall# an#thing that "an be madeD

are granted %or a period o% 9 #ears %rom the date o% %iling a patent

appli"ationD a%ter whi"h the patent to an invention be"omes publi" propert#.

"esign Patent: ranted to a newD original or ornamental design %or a


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manu%a"tured item. Patents on ornamental designs last +0 #earsD and the#

prote"t onl# the appearan"e o% the item.

P!ant Patent:ranted to an invented or dis"overed new plant variet# that

"an be aseFuall# reprodu"ed. Plant patents are granted %or a 9-#ear period.

5lsoD the 'nited tates allows its inventors to %ile provisional patent

appli"ations. Provisional patent appli"ations are des"ribed in hapter 4
http://web.mit.edu/invent/h-chapters/h-six.htmlhttp://web.mit.edu/invent/h-chapters/h-six.html


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hapter :

Is M# Idea Patentable,

To be patentedD #our invention not onl# must %all within one o% the three

statutor# "lassesD it also must %ul%ill three other re&uirements:

#ove!ty:Aour invention must be new. I% it has been publi"l# !nownD used

or sold an#where in the '..D or des"ribed in printed material availablean#where in the world more than one #ear be%ore the date o% #our patent

appli"ationD #our invention "annot be patented. 5 note o% "aution:


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hapter 0:

1ow 2o I ondu"t a Patent ear"h,

5 patent sear"h is a subset o% the prior art sear"h in whi"h #ou loo! %or

mention o% similar ideas in a"ademi" and te"hni"al literatureD et". Aou must

"ondu"t a prior art sear"hD in"luding a patent sear"hD and submit #our

%indings along with #our appli"ation to the 'PTO. 5n inventor has a legal

obligation to dis"lose relevant in%ormation o% whi"h the# have !nowledge.

Aou "an be sued i% it is dis"overed that #ou !new about other similar

inventions or relevant in%ormationD and did not submit that in%ormation to

the 'PTO. This is "alled ine&uitable "ondu"t or %raud on the patent o%%i"e.

I%D howeverD #ou sear"h %or and submit relevant prior artD and the 'PTO

a""epts how #ou have distinguished #our invention over the prior artD su"h

a""eptan"e in an issued patent appli"ation "arries a legal presumption o%validit#. This is eFtremel# di%%i"ult %or others to "hallenge. Man# parties

that in%ringe a patent will attempt to "hallenge a patents validit# b#

sear"hing %or prior art that the patent holder did not in"lude in the patent

appli"ation. In"luding and distinguishing prior art in the patent appli"ationD

whi"h will be noted in a patent i% and when a patent ultimatel# issuesD

entitles the patent holder to this tremendous presumptive advantageD b#

law.

5dditionall#D i% an inventor see!s %unding (see hapter ++)D sophisti"ated

investors will alwa#s per%orm due diligen"e and evaluate the strength o% a

patent should an#one ever "hallenge it. ondu"ting an ade&uate prior art

sear"h and distinguishing #our invention %rom the prior art strengthens an#

ultimatel# issued patent.

Aou$d be astonished how man# JnewJ ideas alread# have been patentedD
http://web.mit.edu/invent/h-chapters/h-eleven.htmlhttp://web.mit.edu/invent/h-chapters/h-eleven.html


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hapter 4:

1ow 2o I 5ppl# %or a Patent,

Patent law is highl# "ompleFD and dra%ting patents is among the most

di%%i"ult o% all legal writing. That$s wh# eFperts "aution that preparing and

%iling patent appli"ations on #our own ma# result in patents that don$t give

ade&uate prote"tion. 1iring an attorne# "an save #ou grie% and mone# in

the long runG in some "asesD patent attorne#s "an also provide guidan"e in

li"ensing and mar!eting. Aou "anD howeverD "ut #our eFpenses b# dra%ting

the patent appli"ation #oursel% and having the attorne# proo% #our %inal

appli"ation.

5 patent is granted to the owner/assignee and usuall# in"ludes:

5ll o% the names o% the inventions inventors. 5n# patent "an be

invalidated i% an# inventors name is missing. 5 &uali%ied patent

attorne# or agent "an best determine i% there is a &uestion o%

inventorshipH"on"eption o% the invention is the tou"hstone o%

inventorshipD in "onKun"tion with having Bredu"ed to pra"ti"eC the

invention.

There are two t#pes o% redu"tion to pra"ti"e:

+. B5"tualC redu"tion to pra"ti"e: This o""urs when the

invention is a"tuall# made and usedD as des"ribed in the

appli"ations Bspe"i%i"ationC and in"luded in the appli"ations

B"laims.C 5 small or pilot s"ale eFample o% an invention "an

su%%i"e %or a"tual redu"tion to pra"ti"e.

Bonstru"tiveC redu"tion to pra"ti"e: This o""urs upon the %iling o% a

patent appli"ation in whi"h the appli"ation "oversD in all o% its


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"ategoriesD the ultimate a"tual inventionD as "laimed and des"ribed in

the appli"ation and an# ultimate patent. Patent pra"titioners o%ten

re%er to this !ind o% patent as a Bpaper patentDC until the invention is

Ba"tuall#C redu"ed to pra"ti"e.

5n abstra"t

One or more drawings

The invention$s nameD ba"!groundD purposeD and advantages

rie% des"riptions o% the drawings

The spe"i%i"ation: a written des"ription o% the invention and an

eFplanation o% how to ma!e and how to use the invention in the

best mode at the time o% %iling the patent appli"ation

laims de%ining the invention. laim dra%ting is eFtremel# "ompleF

and importantD be"ause the "laimsHwhat an inventor "laims to be

their inventionHare the most indispensable element o% a patent

appli"ation.

=ote that the 'PTO posts the entire patent appli"ation on the Internet +7

(eighteen) months a%ter the initial %iling date.

In the absen"e o% a separate assignment on %ile at the 'PTO or a private

"ontra"tual arrangementD the inventor owns the patent appli"ation and an#

subse&uent patent. Two or more inventorsHthose who generated the ideasD

not simpl# implemented themHma# appl# Kointl#. In su"h an instan"eDabsent a separate "ontra"tual arrangementD ea"h inventor owns an e&ualD

BundividedC portion o% the patent appli"ation and an# subse&uent patent. #

owning an undivided portionD an inventors ownership interest is that o% the

whole inventionD not a spe"i%i" part o% the invention. ?or eFampleD i% three

inventors appl# %or and re"eive a patentD ea"h inventor shares an e&ual

undivided ownership o% the entire invention. =otabl#D in the absen"e o%

private "ontra"tD ea"h single inventor has independent rights to pra"ti"e


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and/or li"ense the whole inventionD irrespe"tive o% whi"h o% the three

inventors are responsible %or whi"h "laims and material in a patent. ThusD i%

a patent "ontains %i%t# "laimsD and one inventor is responsible %or onl# one

o% the patents "laimsD that inventor "ould pra"ti"e or li"ense the entireinvention in the absen"e o% private "ontra"t stating otherwise. This has

a"tuall# o""urred and been validated b# the %ederal "ourts. The law o%

patent ownership highlights the ne"essit# o% inventors agreeing on

e&uitable ownership per"entagesD in writingD prior to %iling a patent

appli"ation. This is o% "ourse absent a pre-eFisting "ontra"tual obligation o%

an inventor to assign rights in an invention to an emplo#erD su"h as a

"orporation or a universit#.

Patent %iling %ees "an "hange #earl#. On"e a patent is issuedD maintenan"e

%ees "ome into e%%e"t. ?or "urrent %ees "onsult the 'PTO

http://www.uspto.gov/main/howto%ees.htm.

It will li!el# ta!e up to a #ear-and-a-hal% or more %or the 'PTO to respond

to #our appli"ation and a #ear-and-a-hal% to three #ears %or a %inal patent

grant or reKe"tion. On"e #ou %ile #our patentD the term Bpatent pendingC ma#be applied to the invention until #our appli"ation is a""epted. 5lthough a

number o% patent appli"ants use this termD the %ederal patent statute does

not "ontain the term Bpatent pending.C

Provisional patent appli"ation: 5nother option to "onsider is a provisional

patent appli"ationD whi"h allows the term JPatent PendingJ to be applied to

the invention %or one #ear. It "an be %iled at a lower "ostD but the patent

o%%i"e does not review the "ontent o% a provisional patent appli"ation during

its %irst #ear. ;ather it eFpires a%ter its one-#ear li%etime. There%oreD the

provisional appli"ation must be repla"ed with a "onventional patent

appli"ationD su"h as a utilit# appli"ationD within one #ear o% its %iling. 5

provisional appli"ation does not have to satis%# the same legal re&uirements

as a utilit# appli"ationD su"h as the ne"essit# %or patent "laims. =onethelessD

the relationship between a provisional patent appli"ation and a utilit#

patent appli"ation is ver# "ompleFD espe"iall# i% an invention "hanges be%ore
http://www.uspto.gov/main/howtofees.htmhttp://www.uspto.gov/main/howtofees.htm


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the provisional patent appli"ation is "onverted to a utilit# appli"ation. In

this "aseD a reputable patent attorne# or agent should be "onsulted.

Patent ooperation Treat#: This treat# allows inventors to obtain patent

prote"tion simultaneousl# in a number o% "ountries b# %iling an

JinternationalJ appli"ation. The inventor must be a resident o% a "ontra"ting

nation to %ile. 1e or she "an then %ile an appli"ation within his or her

"ountr# o% residen"eD indi"ating in whi"h member tates he or she would

li!e the patent to have e%%e"t. urrentl# there are about ++6 "ontra"ting

tates. More in%ormation is available at the orld Intelle"tual Propert#

Organi*ation$s websiteD http://www.wipo.int/p"t/en/indeF.html
http://www.wipo.int/pct/en/index.htmlhttp://www.wipo.int/pct/en/index.html


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hapter 6:

1ow 2o I Prove the Idea Is Mine,

BTa!e m# word %or it.C In the world o% patent lawD this adage holds little

weight. The %irst person to invent an ideaHas opposed to the %irst person to

%ile a patentHis the legal inventor. That$s wh# in "ases o% disputeD it$s

imperative to be able to prove the date when #ou %irst envisioned the

invention. ;egardless o% what an#one tells #ouD mailing #oursel% a

registered letter does not "onstitute legal proo% o% invention.

To prote"t #our invention %rom potential "hallengesD the %irst thing #ou need

to do is put #our idea in writing. Aour do"umentation must be "ompleteD

a""urate and "on"ise. reate resear"h and development noteboo!sD and

don$t leave an#thing to guesswor!. The noteboo!s should des"ribe the

invention in words and pi"turesD %ull# eFplaining how it operates. Aourentries also must be su%%i"ient to enable an#one with ordinar# s!ill in the

te"hnolog# to understand the material. In"lude observationsD "al"ulationsD

s!et"hesD photos and %ormulas i% appli"able. 5lsoD write down an# unusual

or uneFpe"ted resultsD ideas or "onversationsD and date and witness them.

In"lude re"eipts o% #our pur"hases and re"ords o% visits to attorne#s.

The pages o% #our noteboo! should be "onse"utivel# numbered and

permanentl# bound.


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The noteboo!s should be witnessed wee!l# b# two people #ou trustD but are

not relativesD and who understand the signi%i"an"e o% what the# see and

read. I% #ou ma!e a "hange to an original entr# that has been witnessed

alread#D the original witness should sign and date the "hange. The "hangealso should be noted on the page "orresponding to the date o% the "hange. In

additionD #our witnesses should sign a non-dis"losure agreementHa

statement that binds them to respe"t the "on%identialit# o% #our wor! and

allows #ou to dis"uss #our invention with some prote"tion. 5lsoD #ou ma#

want to "onsider getting the pages notari*ed b# a notar# publi".

hen two or more parties "laim the same inventionD the patent o%%i"e "an

de"lare what the %ederal patent law terms an Binter%eren"e.C 5n inter%eren"e

is a pro"eeding to determine whi"h part# was the B%irst to inventC (see

hapter ). The %ederal patent law terms the inventor who %iled an

appli"ation at an earlier date as the Bsenior part#.C The senior part# holds

the legall# presumptive advantage in an inter%eren"e pro"eedingD

irrespe"tive o% whi"h part# the patent o%%i"e ultimatel# de"lares as the B%irst

to invent.C 2isputes over inventorship are eFtremel# "ompleF and inventors

should "onsult a reputable patent attorne# or agent.
http://web.mit.edu/invent/h-chapters/h-two.htmlhttp://web.mit.edu/invent/h-chapters/h-two.html


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hapter 7:

hat 5re ome Options to ommer"iali*e M# Patent,

Persisten"e and determination are !e# ingredients in trans%orming #our

idea into a produ"t in the mar!etpla"e.

Consider severa! paths to commercia!i+ation:Trans%erring the ownership

o% #our patent outright means #ou re"eive an agreed-upon pa#mentD withno %uture ro#alties. Aou ma# sell all or an# part o% the inventionD though

selling is rarel# re"ommended. hile #our patent ma# not have a "urrent

appli"ationD or #ou ma# not dis"ern itD the %uture "ould hold "ommer"ial

opportunities un%oreseeable toda#. elling #our invention might deprive

#ou o% a potential %ortune.

5nother route in the "ommer"iali*ation pro"ess is li"ensingD through whi"h

#ou retain ownership o% #our patent while allowing another part# to ma!eD

use or sell the inventionG in eF"hangeD #ou re"eive ro#alt# pa#ments.

I% #ou$re highl# entrepreneurialD #ou "an ta"!le the Kob o% laun"hing #our

own "ompan#. This means #ou$ll need to master ever#thing %rom

%undraising to manu%a"turingD selling and distribution. ?or assistan"e in

starting #our own "ompan#D #ou "an "onta"t the '.. mall usiness

5dministration.


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Man# inventors turn to invention mar!eters to gain a""ess to

manu%a"turers. e war#. Man# o% these organi*ations are %raudulentG the#

"harge he%t# %ees and don$t deliver on their promises.

5 %ew warning signs that the "ompan# is de"eit%ul:

It o%%ers to evaluate #our inventionD but re%uses to give out details o%

its evaluation "riteria or evaluators$ &uali%i"ations

It re%uses to dis"lose its mar!eting su""ess and reKe"tion rates

It re&uires large up %ront %ees and a per"entage o% the ro#alties

It "laims spe"ial relationships with manu%a"turersD #et o%%ers no

proo%

e sure to as! %or re%eren"es %rom past "lients and "he"! that the mar!eting

%irm is registered with the etter usiness ureau.


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hapter +9:

hat 5re ome uidelines in 2eveloping a usinessPlan,

iven the time it ta!es %or a patent to be issuedD it ma# be a good idea to

start mar!eting #our invention immediatel# a%ter #ou$ve %iled the patent

appli"ation. 2eveloping a business plan is one o% the %irst items on theagenda.

5 business plan o%%ers multiple advantages. It !eeps #ou %o"used on #our

goals and timelinesD helps identi%# strategi" %laws that need to be ironed outD

and it aids in evaluating the mar!et and #our produ"t$s earning potential. It

is also highl# bene%i"ial as a planning tool to be used at various stages o%

the produ"tion and mar!eting pro"essD and as a sales toolD "riti"al to raising

"apital.

;emember that #our business plan is "ompeting with hundreds o% others.

Ma!e it "on"ise and pro%essionalD but detailed enough to "onve# a sense o%

"redibilit#. 5 solid business plan in"ludes:

5 summar# o% #our produ"tHwhat it doesD its advantages and patent

status

5 mar!eting anal#sisD in"luding mar!et opportunities and

"ompetition

ProKe"ted salesD pri"ing and distribution

Produ"tion plansD methodsD "ostsD "apa"ities and implementation

timeline

Management personnel


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?inan"ial statementD "ash %low budgetD suggested wholesale and

retail pri"es

ProKe"ted pro%its


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hapter ++:

1ow 2o I ;aise apital,

Perhaps one o% the greatest "hallenges in the entire invention pro"ess is

raising "apital. It$s impossible to "over this topi" "omprehensivel# in a

bro"hure. e o%%er a %ew tipsHthe %irst o% whi"h is to resear"h the subKe"t

thoroughl#.

5s an entrepreneurial inventorD it$s best to have several mone#-raising

strategies. 5 Koint ventureHwith an individualD group or %irm with a vested

interest in #our produ"tHis one option. Aou provide the invention and a miF

o% manu%a"turingD mar!etingD managementD and distribution !now-howD and

#our partner provides a servi"e %ree o% "harge in eF"hange %or pro%its. To

%ind partners or potential investorsD "onsider running an ad in a newspaperD

su"h as The )all (treet MournalHor "onta"t investors organi*ationsD whi"ho%%er material support o% all sorts. an!s and other traditional lenders also

ma# be willing to %inan"e #our enterpriseD espe"iall# a%ter #ou$ve a"hieved a

tra"! re"ord.

5nother eF"ellent sour"e o% start-up %unding is venture "apitalD gained

through individual investorsD %inan"ial institutions or venture "apital %unds.

?inan"ial agentsD who wor! %or a %inder$s %ee plus reimbursement o% out-o%-

po"!et eFpensesD ma# be able to "onne"t #ou to venture "apital. 5s with

invention promotersD "he"! out #our potential investors thoroughl#.

Lo"alD state and %ederal government programs that provide businesses with

%inan"ial assistan"e are another avenue to "onsider. ?ederall# %unded mall

usiness Innovation ;esear"h Programs and the mall usiness

5dministration (the single largest government agen"# mandated to ma!e

business loans) are valuable sour"es o% %unding and in%ormation.


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;esour"es %or Inventors

?ew things in li%e are as satis%#ing as translating #our "reative spar! into

realit#. ta# determinedD persistent and above allD enthusiasti". ood lu"!

with #our invention and have %unN

;esour"es %or the Inventor

'nited tates Patent and Trademar! O%%i"e

eneral In%ormation ervi"es 2ivision

r#stal Pla*a D ;oom 9

ashington 2 9+

http://www.uspto.gov


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