Guest304
New Contributor
Hello Everyone,
I would like to start by giving you some background on myself before I pose my question.
Before I do; the reason I'm not sharing the exact idea at the moment, is because I need proof of concept before I pursue the patent.
I'm a 26 year old in product development as a full time job. My industry is LED Lighting. That being said, I frequently have ideas that are worth pursuing in other industries. Sometimes they stem from my work and other times they stem from life. Recently I came up with something that has the potential to change an entire industry. I have spoken to my boss about this idea and he has agreed to fund me pursuing a utility patent and prototype aside from my work in the lighting industry (in exchange for a percentage of the net worth). To sweeten the deal his best friend owns a ton of market share in the industry in which my idea is, so I have a bit of an "in".
Anyway, the proof of concept is all but complete. I'm about ready to start the patent process and get get all of the information formatted in a presentable manner. Luckily my background has taught me most of these steps already. My question is actually two parts.
1. Does it make sense to try and create things in a large industry specifically for the purpose of licensing it out and getting the royalties, or would I be better served trying to produce the product myself and compete in the industry with the big players with my newly patented product? To give you background on the industry; between 70 million to 120 million units are sold each year, with pretty high margins on each. My plan with licensing is to simply ask for around 10-50 cents on each unit (obviously I will start high) sold to whomever licenses the product.
2. Is it smart to license solely to one company with large market share, or would it perhaps be better to just sell my patent to the highest bidder? I realize that most people will probably shun the thought of giving up my business that could be worth billions in the future to make money instantly. Yes, I AM a millennial technically, but I have no shortage of work ethic or ideas. I figure if this idea is successful, I have a few more (this being the best and most feasible) that would be just as easy to get moving on. Especially with my own capital to invest at startup.
To put my questions simply: Is it wise to simply create working prototypes and license the solutions to the big guys, or is it smarter to compete with them? If I consider myself an idea man (and implementer) should I focus on driving home this one idea on my own, or put multiple eggs in multiple baskets? (yes I read the threads that say focus on a single idea, but I'm in a slightly different situation I truly feel) Technically speaking, at the moment... If I have a solid idea, I have a super supportive boss and company behind me to pursue it. Although I would prefer using my own capital if I had/have the means.
Thanks for any input.
~J
I would like to start by giving you some background on myself before I pose my question.
Before I do; the reason I'm not sharing the exact idea at the moment, is because I need proof of concept before I pursue the patent.
I'm a 26 year old in product development as a full time job. My industry is LED Lighting. That being said, I frequently have ideas that are worth pursuing in other industries. Sometimes they stem from my work and other times they stem from life. Recently I came up with something that has the potential to change an entire industry. I have spoken to my boss about this idea and he has agreed to fund me pursuing a utility patent and prototype aside from my work in the lighting industry (in exchange for a percentage of the net worth). To sweeten the deal his best friend owns a ton of market share in the industry in which my idea is, so I have a bit of an "in".
Anyway, the proof of concept is all but complete. I'm about ready to start the patent process and get get all of the information formatted in a presentable manner. Luckily my background has taught me most of these steps already. My question is actually two parts.
1. Does it make sense to try and create things in a large industry specifically for the purpose of licensing it out and getting the royalties, or would I be better served trying to produce the product myself and compete in the industry with the big players with my newly patented product? To give you background on the industry; between 70 million to 120 million units are sold each year, with pretty high margins on each. My plan with licensing is to simply ask for around 10-50 cents on each unit (obviously I will start high) sold to whomever licenses the product.
2. Is it smart to license solely to one company with large market share, or would it perhaps be better to just sell my patent to the highest bidder? I realize that most people will probably shun the thought of giving up my business that could be worth billions in the future to make money instantly. Yes, I AM a millennial technically, but I have no shortage of work ethic or ideas. I figure if this idea is successful, I have a few more (this being the best and most feasible) that would be just as easy to get moving on. Especially with my own capital to invest at startup.
To put my questions simply: Is it wise to simply create working prototypes and license the solutions to the big guys, or is it smarter to compete with them? If I consider myself an idea man (and implementer) should I focus on driving home this one idea on my own, or put multiple eggs in multiple baskets? (yes I read the threads that say focus on a single idea, but I'm in a slightly different situation I truly feel) Technically speaking, at the moment... If I have a solid idea, I have a super supportive boss and company behind me to pursue it. Although I would prefer using my own capital if I had/have the means.
Thanks for any input.
~J
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