Method for securing licensing agreements on new products

• US 7,970,691 B1
• Filed: 02/13/2006
• Issued: 06/28/2011
• Est. Priority Date: 02/13/2006
• Status: Active Grant

• Current Assignee: Peter Doran
• Original Assignee: Magma Management Incorporated
• Inventors: Doran, Peter
• Primary Examiner(s): Augustin; Evens J
• Application Number:
  US11/352,735
• Time in Patent Office: 1,961 Days
• Field of Search: 705/37, 705/310
• US Class Current: 705/37
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/18 Legal services

Abstract

A method for securing licensing agreements on newly developed products, which have been submitted to a host company, includes a plurality of steps that grants a third party company an opportunity to evaluate the product while absorbing minimal financial loss and, therefore, increasing the likelihood of successfully licensing the product on a long-term basis. After receiving an inquiry from the third party company, the host company provides a short-term licensing agreement with a development bonus to the third party company. After conducting due diligence and evaluating the product, the third party receives a long-term exclusive licensing agreement. Such a short-term and the long-term exclusive licensing agreements are executed by at least the inventor, the third party company and the host company.

Claims

1. A method for improving a success rate for obtaining a licensing agreement on a product that an inventor has submitted to a host company, said method comprising the steps of:

A. said host company providing and transmitting a licensing package to a third party company, said licensing package including a short-term licensing agreement and access to an invention'"'"'s website, said third party company and said host company signing said short-term licensing agreement, said host company sending a payment to said third party company wherein said payment has a predetermined dollar value for covering the costs of evaluating said product;

B. after a predetermined time interval has lapsed, said host company contacting said third party company for verifying receipt of said short-term licensing agreement; and

C. upon request from said third party company, said host company providing a long-term licensing agreement to said third party company after said short-term licensing agreement is no longer enforceable, said inventor and said third party company executing said long-term licensing agreement;

wherein said short-term licensing agreement is valid for a term period that is less than a term period of said long-term licensing agreement.

2. The method of claim 1, wherein said predetermined dollar value is greater than or equal to one United States dollar.

3. The method of claim 1, wherein said short-term licensing package comprises:

a non-disclosure agreement for said product.

4. The method of claim 1, further comprising the step of:

D. said host company requesting an independent attorney to work with said inventor and said third party company for obtaining intellectual property protection on said product.

6. The method of claim 1, wherein said predetermined dollar value is greater than or equal to one United States dollar.

13. The method of claim 1, wherein step A further comprises:

ii. said host company performing a confidential screening on said product.

14. The method of claim 13, wherein step A further comprises:

iii. said host company requesting a state-of-the-art search to be conducted on said product for determining a scope of product development in a field of endeavor related to said product.

15. The method of claim 14, wherein step A further comprises:

iv. said host company posting said product on a password protected website, which is managed by a centralized web server, said product posting including a written description of said product and a drawing depicting essential features of said product;

v. said host company performing specialized searches for seeking out at least one of said third party company that may be interested in making said product;

vi. said host company matching said product in a proprietary product roster developed by said host company to determine whether an existing product line and existing manufacturing capabilities of said at least one third party company are a suitable match with said product; and

vii. said host company sending an information package to said inventor, said information package including a plurality of press release copies and a plurality of product brochure copies along with contact information for said at least one of third party company that has been located on behalf of said inventor.

16. The method of claim 15, wherein step A further comprises:

viii. said inventor mailing said press releases and said product brochures to each of said at least one third party company; and

ix. after reading said press releases and said product brochures, said at least one third party company interested in learning more about the product, contacting said host company via a communication medium.

17. The method of claim 16, wherein said communication medium comprises:

at least one communication medium selected from the group including an email message, a telephone call and a fax transmission.

5. A method for improving a success rate for obtaining a licensing agreement on a product that an inventor has submitted to a host company, said method comprising the steps of:

A. said host company receiving an inquiry from a perspective inventor client, said inquiry disclosing said product to said host company, said third party company and said host company signing said short-term licensing agreement, said host company sending a payment for a predetermined dollar value to said third party company for covering the costs of evaluating said product;

B. said host company providing and transmitting an exclusive licensing package to a third party company, said exclusive licensing package including a short-term licensing agreement and access to an invention'"'"'s website;

C. after a predetermined time interval has lapsed, said host company contacting said third party company for verifying receipt of said exclusive licensing package; and

D. upon request from said third party company, said host company providing a long-term exclusive licensing agreement to said third party company after said short-term licensing agreement is no longer enforceable, said inventor and said third party company executing said long-term licensing agreement;

wherein said short-term licensing agreement is valid for a term period that is less than a term period of said long-term licensing agreement.

7. The method of claim 5, wherein said exclusive licensing package comprises:

a non-disclosure agreement for said product.

8. The method of claim 5, wherein said method further comprises the step of:

E. said host company requesting an independent attorney to work with said inventor and said third party company for obtaining intellectual property protection on said product.

9. A method for improving a success rate for obtaining a licensing agreement on a product that an inventor has submitted to a host company, said method comprising the steps of:

A. said host company receiving an inquiry from a perspective inventor client, said inquiry disclosing said product to said host company;

B. said host company providing and transmitting an exclusive licensing package to a third party company, said exclusive licensing package including a short-term licensing agreement and access to an invention'"'"'s website, said third party company and said host company signing said short-term licensing agreement, said host company sending a payment for a predetermined dollar value to said third party company for covering the costs of evaluating said product;

C. after a predetermined time interval has lapsed, said host company contacting said third party company for verifying receipt of said exclusive licensing package; and

D. upon request from said third party company, said host company providing a long-term exclusive licensing agreement to said third party company after said short-term licensing agreement is no longer enforceable, said inventor and said third party company executing said long-term licensing agreement;

wherein said short-term licensing agreement is valid for a term period that is less than a term period of said long-term licensing agreement.

10. The method of claim 9, wherein said predetermined dollar value is greater than or equal to one United States dollar.

11. The method of claim 9, wherein said exclusive licensing package comprises:

a non-disclosure agreement for said product.

12. The method of claim 9, wherein said method further comprises the step of:

F. said host company requesting an independent attorney to work with said inventor and said third party company for obtaining intellectual property protection on said product.