Logo of the Inventors Association of St. Louis

Inventors Connection
Inventors Association
of Saint Louis

Logo of the Inventors Association of St. Louis

Inventors Association of St. Louis (IASL) - Marketeers
PO Box 410111
St. Louis, MO   63141
Tel: 314-432-1291
Fax:
Contact: Robert Scheinkman, Director
E-mail: Director@inventorsconnection.org
Web Page: www.uspto.gov/web/offices/com/speeches/05-40.htm

BottomPrevious Next HOMEContentsIndex

==================>>> The meeting of the minds
"If your dream is big enough with guts to follow it, then there is a fortune to be made." -- -- "Hell, there are no rules here -- we're trying to accomplish something." -- Thomas A. Edison --
-- "Your Licensing Agreement’s 10 Non-Negotiable Demands by Harvey Reese" --

-- "Does Your Business Really Need An App for That" -- "Get the word out about the app. Tell current and potential customers about it and give them a compelling reason to use it."

-- -- "Nothing happens unless first a dream." -- Carl Sandburg

-- -- If your dream is big enough with guts to follow it, then there is a fortune to be made. -- You are no longer alone, for the IASL will help you in getting it together.

-- There's that pecking-order thing where people ask me, "What did you invent?" or "Is there somebody here that invented something famous?" -- I know that this is just a conversational starter, like, "How's the weather?" and I turn it back on them:
-- "It doesn't matter what I invented or what anybody else, here, at the IASL invented, it is what you have invented and WHAT YOU ARE GOING TO DO ABOUT IT?"

-->> You can have the best idea in the world for an invention - and unless you know what to do with it - it is not worth a dime!

-- What you need is HELP. Right! But what you expect is someone to do it for you. And what you expect is to get rich quick. - If you can do this easier than what I'm telling you - then You Show Me How? I would like to live on Easy Street, too. -->

-- "Web-Thinking: The Better Way To Win" --

-- At the end of Einstein's life he was asked the most important lesson in his Life? He answered: "There is no free lunch." --

-- "Cheryl Downing’s Marketing Soapbox" --
-- "Cheryl Downing 81-minute Oral Marketing Interview" --
-----------------------------------------
-- "Inventors Alliance = www.inventorsalliance.org" --

-- "There are three ingredients to the good life; learning, earning, and yearning." -- Christopher Morley

Below is an excerpt from a book recently written by Trevor Lambert, entitled Invent Secrets: How to Market and License Your Product Ideas. To learn more or order the comprehensive manual, which includes sample agreements, proposals and much more, please visit www.inventsecrets.com

Trevor Lambert is also the President of Lambert & Lambert, Inc., one of the leading licensing agencies involved in establishing royalty agreements on behalf of inventors and product developers. To find out how you can have them represent your invention, learn more on their website at www.lambertinvent.com

-- "Calculating the Royalty Rate,”
by Trevor Lambert of Invent Secrets

CALCULATING THE ROYALTY RATE

Royalty rates can vary greatly depending on the industry and the expected profit margins of the product. For consumer products, the average royalty rate can range from 4-12% of Net Sales, however high technology, software or medical technologies tend to capture a much higher royalty rate, as much as 25%+ of Net Sales. Rather than pulling a number out of thin air, it is best to have reasoning behind the royalty rate that you are asking for. To ascertain what may be reasonable for your invention, there are two commonly used methods by licensing professionals to value intellectual property: they are the Market Method and Income Method.

The first method, the Market Method, is a comparative method which is similar to purchasing a home. This is exactly like a realtor would find “comps” that are similar to the house that you are purchasing or selling (comparing the number of bedrooms, bathrooms, square footage, acreage, etc.) to ascertain the value. It is possible to find industry specific royalty rates through services that compile these license transactions. That way you can note the most recent published license deals with the royalty rates and various other terms and use that in your negotiation.

One service that we have used is called Royalty Source and can be found online at www.royaltysource.com. Also the Licensing Executives Society publishes ranges for specific product categories. The problem is trying to figure out if your invention deserves the high end or the low end of the scale. Does your consumer product deserve 5% or 12%? As a result, these usually give you a rough estimate to start the negotiation from, not a definitive answer.

The second method, the Income Method, values intellectual property based off of the anticipated income that the invention is likely to produce. The most common way to calculate a royalty rate using the Income Method is by utilizing the 25% Rule, which is widely used by universities and the Licensing Executives Society. This states that the royalty rate should be equivalent to 25% of the pre-tax profit of the product. To ascertain a royalty rate using the 25% Rule, the pre-tax profits are calculated based on the various market forces for the product and market segment. If a product is expected to have a 40% profit margin, then the royalty rate would be 10%. As another example, for a product with tighter profit margins of 10%, then the royalty rate would be 2.5%.

Below is a sample simplified calculation based on the 25% Rule showing the common costs associated with importing and retailing a product at a big box store.

Avg Retailer Markup 50.0%

Retail Price $9.95
Wholesale Price $4.95
Manufacturing Cost $1.15
Ocean Shipping $0.10
Packaging $0.14
Duty $0.06
Drayage/Truck/Handling $0.10
Warehousing/Fullfillment $0.12
Commission (10% avg) $0.50
Overhead/Administrative $0.05
Advertising $0.15
Promotion Allowance (3%) $0.15
Estimated Total Costs $2.86
Estimated Net Positive Cash $2.09
25% of Net Positive Cash $0.52
Suggested Royalty Rate 10.5%

The “Suggested Royalty Rate” is established by subtracting the amortized per product costs from the wholesale price to find the net pre-tax profit. Then 25% of the profit is then divided by the wholesale price to get the royalty percentage. It is supremely important that you base the royalty off of “Net Sales” rather than profits in the license agreement. If it was based on profits the licensee could “cook the books” to reduce your royalty unfairly. Furthermore, be sure to define Net Sales as narrow as possible, commonly it is defined as “Gross invoices minus returns actually credited, freight, Allowances and Trade Discounts.”

Another way to calculate royalties is by establishing a per-unit royalty, where the licensee pays a set amount for each unit sold rather than a percentage of sales. Generally I prefer this if I know the costs and expected wholesale price since it is easier for accounting and auditing, thus making it less likely for the licensee to make a mistake. The downside to a per-unit royalty is if the product sells for a long time, it becomes complicated to make inflationary adjustments. Additionally, if the licensee sells a product line at various price points, you might actually make less when compared to a percentage royalty rate.

To establish a “Suggested Royalty Rate” for your invention, utilize the royalty calculator found on the resources CD. There is also a unique tool that will allow you to monitor quarterly royalties to insure accurate payments by the licensee.

>> >> DISCLAIMER: The above general information is provided as a service only, and professional advice, over and above this information, should always be sought when considering specific applications or technology.

************************************************
-- --> > Playing Hardball -- Making deals and turning profits requires smart negotiating skills
************************************************

==============================================

-- -- Stolen Root Beer --

-- Fred, who owns a restaurant, is convinced that one of his employees is stealing root beer from him. Since he is a bad businessman, he doesn’t keep very good records of his inventory or his employees, so he doesn’t know who is doing it. He decides to set a trap to find out who is stealing from him. He assigns each of his employees a different night to close up shop. He then arranges the last 28 bottles of root beer in a square so that each side has nine bottles, as shown below:
2 5 2
5 0 5
2 5 2

-- Fred figures that whatever day he comes in where there are no longer nine bottles to a side, he will know it was the person who closed the night before who is doing it. Unfortunately for Fred, Bob, the thief, figures it out and manages to take four more bottles the night of his shift, rearranging the bottles so that Fred doesn’t realize they’re missing. Not only that, but Bob was able to take four more bottles away the next night he closed while still rearranging them to have nine bottles on each side. How did Bob do it? After Bob takes the first four bottles, he arranges the remaining 24 bottles like this:
3 3 3
3 0 3
3 3 3

-- When he takes the next four and only leaves 20 bottles, he arranges them like this:
4 1 4
1 0 1
4 1 4

===============================================

-- -- Useful Terms to Know --
*********************************
************************************************

PRODUCT COACH:/ Home - How To Get Your Invention Into The Market -- Learn the Shortcuts to Invention Marketing --
• The steps to approach and get into retailers
• What retailers expect from you
• Support that retailers want
• Tips to create attractive packaging
• Why having competitors is ok
• Methods to turn product benefits into competitive advantages
• Typical causes of product failure
• How products succeed
• The roadmap to get from product idea to market
• Inexpensive marketing tools to generate awareness, interest, and sales
• Market research to understand your customer's buying process
• The need to appeal to all people involved in the buying process
• How to price your product based on customer shopping styles
• How to calculate profit potential

Professional DVD. Professional Results.

-- "Innovation" --

-- "Morgan & Associates resource links" --

You, my friend, must get connected with the creative Inventors Association of
St.Louis.
-- "You've got to spend money to make money." For unless you inherit it, win the lottery, marry into big wealth, get it as a gift, find it, rob or steal it, you'll have to work hard and earn it! You, my friend, ain't got nothin'.

-- All we ask from you is that you donate a small amount from your inadequate income to the IASL.

-- Your money will be kept for good use and freely returned as conceptual knowledge and more valuable than when first offered. "Knowledge is Golden."

-- "5 Tips for Using Colleges and Universities to Help Your Business" --

You, my friend, must get connected with the creative Inventors Association of St. Louis.
--- You'll pool your god given brainpower and resources with the very best.

-- I was only a kid when I took a St. Louis County Bus and asked for a 'transfer' when I got on. --
-- I rode that bus until I came to my next bus-transfer-stop and waited and got on the next bus. I asked the driver that my 'transfer' be 'stamped' so that I could continue onto my next bus without paying more money. -- When I finally boarded my third bus and the driver saw where I had come from in using that wrinkled 'transfer,' he said, "Did you get your nickel's worth, kid?"

-- Those where the days when you got your money's worth for very little. When ideas were worth a dime a dozen.

-- I guess, it's pay-back time?

-- Aren't you amazed at what you read on the IASL's Website -- and it doesn't cost you even a penny?

-- -- But please -->

-- "Before you forget, send us either a personal check, business check, or money order. Make it out to the IASL for $35.00." -- -- Before you forget, send us either a personal check, business check, or money order. Make it out to the IASL for $35.00. --> It's a bargain to become an IASL Member; it was $55.00 to join before November 18, 2010!!

Come to an IASL Meeting and contribute $5.00 [inexpensive to what others charge] - or more and make your donations there. --> (Bring it in concealed in a plain brown wrapper :-))

***** ***** ***** ***** ***** ***** ***** ***** ***** *****
-- --> > Feel good about it, get an "Attaboy."

-- --> > "Attaboy, kid, you're doing real good! Give yourself a Gold Star."

-- Give yourself a Gold Star remembering this: "Fasten your seatbelts, listen to your heart and be kind as often as possible."

-- Good thoughts to follow, and still more for you to remember is your silent t in fasten - listen and often. Pronounce each as fassen - lissen - and offen. Do as the American patriots did at Boston Harbor, they dropped the Tea. ;-)

-- -- Continue A Kindness Chain -- --

-- -- "It is the source of art and science. The most beautiful thing we experience is the mysterious." -- Albert Einstein

-- Oy, speaking of meeting of the minds..
Two Martians landed on Earth and ran into each other.
"Hi!" said the first Martian. "What's your name?"
"428,629,352! And what's yours?"
"Mine's 664,935,715."
"That's funny,"
said the second! "You don't look Jewish!"

"Should you run into serious problems and your patent is not issued, you have to remove the "Patent Pending" state-ment; but if you state, "Patent Applied For," you're allowed to keep that desig-nation as long as you applied for a patent some-time in the past." -- Out in space two alien forms are speaking with each other.

The first spaceman says, "The dominant life forms on the earth planet have developed satellite-based weapons."

The second alien, who looks exactly like the first, asks, "Are they an emerging intelligence?"

The first spaceman says, "I don't think so...They have them aimed at themselves."

-- -- Patent Pending -- "While your patent application is being evaluated you can produce your product, sell it, and label it "Patent Pending." That means you have a patent application in the U.S. Patent Office that hasn't issued yet. -- This should have a seizing effect on competition because any Tuesday your patent may issue, and you can then stop competition from selling your invention, if they are infringing.

-- -- An important variation is the phrase, "Patent Applied For." Should you run into serious problems and your patent is not issued, you have to remove the "Patent Pending" statement; but if you state, "Patent Applied For," you're allowed to keep that designation as long as you applied for a patent sometime in the past. -- It doesn't matter whether the patent application has been granted, expired or abandoned." -- [www.inventorprise.com]

-- [1]35 USC §287(a) reads as follows: "Patentees, and persons making, offering for sale, or selling within the United States any patented article for or under them, or importing any patented article into the United States, may give notice to the public that the same is patented, either by fixing thereon the word "patent" or the abbreviation "pat.", together with the number of the patent, or when, from the character of the article, this cannot be done, by fixing to it, or to the package wherein one or more of them is contained, a label containing a like notice. In the event of failure so to mark, no damages shall be recovered by the patentee in any action for infringement, except on proof that the infringer was notified of the infringement and continued to infringe thereafter, in which event damages may be recovered only for infringement occurring after such notice. Filing of an action for infringement shall constitute such notice.."

-- "The only thing you take with you when you're gone is what you leave behind." -- John Allston

-- “Discovery consists of seeing what everybody has seen and thinking what nobody else has thought.”

-- Albert Szent-Gyorgyi, 1937 Nobel Prize winner in Physiology or Medicine

Five-year-old Becky answered the door when the census taker came by. She told the census taker that her daddy was a doctor and wasn't home, because he was performing an appendectomy.

"My," said the census taker, "that sure is a big word for such a little girl. Do you know what it means?"

"Sure! Fifteen hundred bucks, and that doesn't even include the anesthesiologist!"

-- Answer 5: Don Kelly

  -- Molding an idea into a product and getting it to market is a business proposition ... similar to investing in a parcel of land,  building a house on the lot and selling it all for a profit ... except that land and buildings have established relative values usually well known to investors and buyers in a community.  Not so with inventions.

--  Ideas and new products must have a value established on their behalf ... and this simply can't be done without investment funds.  It often requires legal work (patenting for example) and always requires some kind of sales or promotion effort to engender a demand. -  Getting other peoples money (OPM) is not easy for such ventures.

-- You mustn't spend money you don't have ... especially if you have medical issues in your family. [i.e.] This just may not be the time to go into a new business ... particularly one that stands only a small chance of turning a profit.

-- But take heart.  Since you have this idea, that "everyone loves," chances are you will have others in the future. Then, perhaps, you'll be at a stage in your life when you can better handle the risks.

--   Having said all that, however, you may want to pursue getting some grant money or other support from one of the many "assistive technology" promotion  organizations across the country.  The US Dept. of Education has a program, for example, that invests in technology that helps disabled people.  I think a principal research center is in Buffalo, NY.  Try "Google" for >>> assistive technology Your State <<< and perhaps you'll find some help nearby.
---------------------------------------------------------> > Mastectomy industry
Does anyone have advice on who could make/market a unique bra for mastectomy patients? thanks.... leonardi24

Mastectomy industry You'll find several if you Google >>mastectomy bra manufacturers<<. As a side note, Barbie inventor Ruth Handler was a pioneer in that industry. Don Kelly,...
-----------------------------------------------------> >

***** E-health and Web 2.0: "The doctor will tweet you now" --

-- Symptom of Cold / H1N1 Flu:

Fever:
- Fever is rare with a cold.
- Fever is usually present with the flu in up to 80% of all flu cases. A temperature of 100°F or higher for 3 to 4 days is associated with the flu.

Coughing:
- A hacking, productive (mucus- producing) cough is often present with a cold.
- A non-productive (non-mucus producing) cough is usually present with the flu (sometimes referred to as dry cough).

Aches:
- Slight body aches and pains can be part of a cold.
- Severe aches and pains are common with the flu.

Stuffy Nose:
- Stuffy nose is commonly present with a cold and typically resolves spontaneously within a week.
- Stuffy nose is not commonly present with the flu.

Chills:
- Chills are uncommon with a cold.
- 60% of people who have the flu experience chills.

Tiredness:
- Tiredness is fairly mild with a cold.
- Tiredness is moderate to severe with the flu.

Sneezing:
- Sneezing is commonly present with a cold.
- Sneezing is not common with the flu.

Sudden Symptoms:
- Cold symptoms tend to develop over a few days.
- The flu has a rapid onset within 3-6 hours. The flu hits hard and includes sudden symptoms like high fever, aches and pains.

Headache:
- A headache is fairly uncommon with a cold.
- A headache is very common with the flu, present in 80% of flu cases.

Sore Throat:
- Sore throat is commonly present with a cold.
- Sore throat is not commonly present with the flu.

Chest Discomfort:
- Chest discomfort is mild to moderate with a cold.
- Chest discomfort is often severe with the flu.
-------------------------> >
The only way to stop the spread of the epidemic is to spread the awareness.

If you have any questions, please contact your health care professional..

Stay healthy and enjoy your winter.
============================

-- "1 in 5 prescriptions never filled, study shows"-----------------------------------------------------------------------------------------------------> >

-- --> > "Google Health" < <-- --

-- "Inventors Assistance League *** Patent, Copyright and Trademark Information Center *** Help Protect and Market Your Invention!" --

-- "The real measure of your wealth is how much you'd be worth if you lost all your money." -- Tell a man that there are 300-billion stars in the universe and he'll believe you. Tell him a bench has wet paint on it and he'll have to touch it to be sure.

Q: I recently saw an interesting giveaway offer online. It said I could be sent a free MacBook Air. All I have to do is write a review. Could this be for real?

A: This falls into the category of Too Good to Be True. The MacBook Air runs around $2,000. That's quite a bit for a simple review. These offers are pretty common. They usually go like this: You first fill out a form. Then you have to sign up for various services. You may have to buy things.. And the prize will always be one step away. Someone will benefit from this, but it probably won't be you. Plus, your address and other information could be sold to crooks and spammers. This may not be illegal. But it's still a scam. -- Kim Komando

Two beggars are sitting side by side on a street in Rome. One has a cross in front of him, the other one the Star of David. Many people go by and look at both beggars, but only put money into the hat of the beggar sitting behind the cross. A priest comes by, stops and watches throngs of people giving money to the beggar behind the cross, but none give to the beggar behind the Star of David.
Finally, the priest goes over to the beggar behind the Star of David and says, "My poor fellow, don't you understand? This is a Catholic country; this city is the seat of Catholicism. People aren't going to give you money if you sit there with a Star of David in front of you, especially when you're sitting beside a beggar who has a cross. In fact, they would probably give to him just out of spite,"
The beggar behind the Star of David listened to the priest, turned to the other beggar with the cross and said: "Moishe, look who's trying to teach the Goldstein brothers about marketing!" :-)

-- Halo! - Statue? Telling It Like It Is --
-- Danny Thomas, comedian of years ago, liked to tell this story: "A dear little Italian mama was rewarded by her grown sons who owned a building construction company. They built for her a brand-new home of her own. They followed her every whim. When she insisted that in every room they have a 'hallo statue,' they put in niches in the walls for religious statues. Every room -- living room, dining room, den, bedroom, kitchen, and hallway -- just to make her happy. Even the bathroom!
-- The day came for the whole family to take Mama, her furniture and belongings to her new home. -- They waited for her praise. They waited for those tears of joy. They got, instead, ".. So.. wheridey put-em? ..Ya-know, .. I allawaze needa one? .. When I socialize wida my frenz, .. callin-em-up anasayin, "Halo! - statue?!!"

-- You're Not the Next Caller In-line --

-- "Albert Einstein Action Figure" --

--Great discoveries are made by mistake.
-- [Not really.] - Luck is whenever your experience meets opportunity. --

-- "Device could aid production of electricity NOVEMBER 27, 2001"

-- "Technology Review: High-Energy Batteries Coming to Market" --

-- "Cable TV Without the Cable--or the Satelite" --

-- "The real measure of your wealth is how much you'd be worth if you lost all your money." -- unknown

-- "60-Second Guide to Coming-Up with a Powerful Business Idea"

-- Try this, it really works --> >

-- To try Google 411, all you have to do is enter in this phone number on any phone: 1-800-GOOG-411, which is also 1-800-466-4411. You can do this from a home phone, a cell phone, etc. It doesn't matter, as long as you're using a working telephone.

-- Once you dial the number, you will hear a man's voice. He will ask you for your city and state and you just have to speak them into the phone. For example, I just tried this and I said "Toledo, Ohio." The recording will then go on to ask you for the business' name or a category you want to search under. So, keeping with my example above, I said "pizza" into the phone and Google 411 gave me the top 10 results for Toledo. There was everything from Papa John's to Pizza Hut to Inky's (a great pizza place in Toledo!) It gave me the option of starting over at any time as well. Pretty cool, huh?!

-- When you search by a category, listen for the result you're looking for and then just type in the appropriate number and Google 411 will automatically connect you to that business. And don't worry, all the connect charges are free too. That goes along perfectly with the toll free number, don't you think?! Now, if you're using a cell phone to do this, you can also receive a text message with the information if you'd like. This works along with the Google SMS service that's been around for awhile now. So, if you prefer text messages, just say "text message" into the phone and you can go on getting your information that way.

-- Like I said before, Google 411 is a free service, but depending on your phone service provider, standard phone charges may apply. This goes for text messages too, depending on what your cell phone provider's rules are.

-- Check it out today! Erin

Ring # RING
### ##
> > > Subject: FW: "Ring" "Ring"
> > >
> > >
> > >
> > > ((((RING))))
> > >
> > > **Pick Up**
> > > "Hello?"
> > >
> > > "Hi honey, this is Daddy, Is Mommy near the phone?"
> > >
> > > "No Daddy, She's upstairs in the bedroom with Uncle Paul "
> > >
> > > After a brief pause, Daddy says, "But honey, you haven't got an > Uncle Paul
> > > "
> > >
> > > "Oh yes I do, and he's upstairs in the room with Mommy, right now"
> > >
> > > Brief Pause
> > >
> > > "Uh, okay then, ...this is what I want you to do. Put the phone down on the
> > > table, run upstairs and knock on the bedroom door, and
> > > shout to Mommy that Daddy's car just pulled into the driveway"
> > > "Okay Daddy, just a minute"
> > >
> > > A few minutes later the little girl comes back to the phone.
> > >
> > > "I did it Daddy"
> > >
> > > "And what happened honey?" he asked
> > >
> > > "Well, Mommy got all scared, jumped out of bed with no clothes on
> and
> > > ran around screaming. Then she tripped over the rug, hit her head on
> the
> > > dresser and now she isn't moving at all!"
> > >
> > > "O my God!!! What about your Uncle Paul ?"
> > >
> > > "He jumped out of the bed with no clothes on too. He was all
> scared and
> > > he jumped out of the back window and into the swimming pool.
> > > But I guess he didn't know that you took out the water last week to
> clean
> > > it, he hit the bottom of the pool and I think he's dead."
> > >
> > > ***Long Pause***
> > >
> > > ***Longer Pause**
> > >
> > > Then Daddy says, "Swimming pool????? Is this 486 - 5731 ??"
> > >
> > >
> > >
> > >
> > >
> >
> >
>
>
>
>