HOW TO CONDUCT THE SALE OF PATENTS
While the inventor may put much hard study upon his invention and make
many costly experiments, this part of his work is usually a pleasure;
and in securing the patent he invariably has able counsel in his
attorney with no anxiety on his part; but with the commercial proceeding
of selling his patent, which involves the greatest prudence and care in
managing, it is different, and here is where the inventor's real work
begins if he expects to reap the benefit of his invention.
[Sidenote: Patent-selling Agencies.]
For the benefit of unexperienced patentees it is deemed expedient to
give a word of warning here regarding the host of so-called
patent-selling agencies, which under various imposing titles, coupled
with an apparently honest and straightforward method of business, tempt
each patentee, upon the issue of his patent, to place the same in their
hands and authorize them to negotiate the sale thereof. Their
propositions are very attractive and temptingly prepared; their offers
appear to be "gilt edge"; their circulars are high-sounding and
rose-colored; their contracts are formal looking, and drawn up in an
impressive way, highly advantageous to the patentee; but it will be
noted in all cases that they will require the patentee to pay down a
certain sum under some pretence,--such as to cover the cost of
advertising the patent, to have circulars printed, to secure copies of
the patent for distribution, to have a cut made illustrating the
invention, or for membership fee, and so on, it matters not what, so
long as it is an advance fee. Many will also agree to sell both the
United States and Canadian patents, if the patentee will file the
Canadian application through them; it is evident, however, that this is
only a scheme to get the patentee to take out the Canadian patent
through them--they having no facilities for disposing of either of the
patents.
The writer is not prepared to say that there are no honestly conducted
patent-selling agencies, but from long experience and observation, has
never known where a patentee was ever materially benefited by placing
his interests in the hands of these concerns, and has yet to learn of
them ever making a sale solely through their own efforts. Very few of
these concerns have any facilities whatever for selling patents; all of
their time being taken up in mailing their weekly circulars to inventors
immediately upon the publication of the _Official Gazette_, and working
inventors up to the remitting point which usually ends the matter so
far as they are concerned, unless they believe they can get another fee
out of the patentee.
There may be exceptions, but patentees should fully satisfy themselves
as to the integrity of these firms before placing business in their
hands, as the Assistant Commissioner of Patents in his report in the
Webberburn case, 81 O. G., 191 K, clearly pointed out that the methods
of these concerns were such as to sell the patentees rather than their
patents.
[Sidenote: The Patentee the Best Selling Agent.]
That the patentee himself is the best selling agent there can be no
doubt, for he is familiar with the construction and operation of his
invention in every detail, and knows its merits and superior points far
better than anyone else, besides manufacturers and others wishing to
purchase patents invariably desire to deal with the patentee himself.
Business men, it may be said as a rule, do not think very much of an
invention which the inventor has abandoned to others to negotiate,
moreover the personal push of the inventor is, in nearly all cases,
essential to the successful termination of a sale.
Subtract the personal energy and presence of the inventor from the
successful inventions of the past and of to-day, and the chances are
that they would not have succeeded as they did. It is not only a
question of material interest, but also of enthusiasm and confidence,
and each patentee, having but one patent or a set of patents to push,
can lend thereto that individual attention which insures good work and
success.
[Sidenote: In Case the Patentee Cannot Undertake the Selling.]
However, if from any reason the patentee is unable to handle his own
invention and must engage the services of an agent or salesman, he
should select one from among his own acquaintances, in whom he has
confidence. He should if possible get a person who has had experience in
the line of the invention, as such a person would likely understand it
and the trade better than others. It is not really necessary that he
should have had experience in selling patents; if he is a good talker,
knows how to approach business men, and thoroughly understands the
invention, he will probably make money for the inventor and himself. The
patentee should have him submit all offers of value for his
consideration, and should not give the agent power to sign or collect.
The patentee should name a reasonable price for the patent, allowing the
agent a liberal commission upon the price, and encouraging the agent by
allowing him a certain percentage of all he may be able to get over and
above the price named. This will encourage the agent to work for the
highest price obtainable. The inventor should make every effort to be
able to personally attend to the details of selling, and keep the
business under his personal supervision.
[Sidenote: Methods of Selling Patents.]
There are a number of plausible methods to which the patentee may resort
in disposing of his patent without the aid of questionable selling
agents, and it is the purpose of the following pages and succeeding
chapter to set forth such methods as have in the past proved beneficial
to patentees; those along which success have been achieved, and such as
are employed by the most successful inventors of the present time in
handling their patents.
It is true that no definite method or system can be given that will
apply to all patents alike, as the method in each case will depend more
or less upon the character of the invention, and to the particular art
to which it belongs; however, from the following pages the patentee
should be able to judge what particular methods will best apply to his
individual case, and proceed along these lines.
There are many patents issued which the patentees thereof can as
successfully dispose of from the smallest hamlet in the United States as
from New York, Chicago, or any of our larger cities, while, of course,
there are others which only those directly connected with the largest
and wealthiest corporations can hope to dispose of successfully. The
main thing is not to become discouraged or give up until one succeeds
in making a sale.
[Sidenote: About Advertising.]
To make the merits and importance of an invention publicly known is, in
many cases, one of the best ways of bringing about the introduction and
sale of a patent. If the inventor has a patent on an invention that
manufacturers or others want, and can make its merits and superior
qualities known to them, negotiations will soon follow. There is no way
for patentees to place themselves in communication with prospective
investors quite equal to an advertisement in the proper medium. Here it
may be well to state that patentees who decide to advertise their
patents for sale or otherwise should place their advertisements in
publications of known standing, such as the leading daily newspapers. A
brief, well-worded advertisement in the "Business Opportunities" column
of these papers bring quick and good results, though, perhaps a better
class of inquiries may be obtained by advertising in the trade journals
of the class to which the invention relates, and while the trade
journals may not bring about as many inquiries as the dailies, those
that answer will be more apt to be interested and talk business. Either
of the above are good mediums, but in advertising patents for sale
patentees should carefully avoid those publications that are published
at uncertain intervals, and usually for the express purpose of
circulating among inventors for various purposes. They do not reach the
class of people that invest in patents. Inventors should know the class
of people that would be likely to become interested in their inventions,
and advertise in such mediums as have the largest circulation among that
class.
[Sidenote: How to Write an Advertisement.]
In the construction of an advertisement there is often too much waste by
using too much verbiage, too many unnecessary words or sentences,
sometimes too much display. Prudence in the arrangement, and care in
editing an advertisement, will save much expense. The size of an
advertisement of this class has really little to do with its pulling
qualities.
The statements should be assuming, and at the same time truthful, as any
deception in an advertisement is sure to work an injury. There should
not be more claimed in the advertisement than sounds reasonable, even
though it be stating facts; if an advertisement sounds unreasonable it
will not have the desired result. Inventors sometimes become so
enthusiastic over their inventions that they exaggerate unintentionally.
A good rule is for the inventor to read over the advertisement, and ask
himself, "If this statement was read by me, would I believe it; would it
convince me?" etc.
Putting one's self in the purchaser's place is always one of the best
factors in writing good advertisements. The inventor should put himself
in the place of the purchaser of the patent, and reason what would
induce him to investigate its merits; what would likely cause him to
take it up, and so on; he should think and write fully along these
general lines, incorporate these reasons into an advertisement; then
boil it down by cutting out the unnecessary words and sentences; prune,
remodel, and rewrite until he has a brief advertisement, clear, concise,
and to the point.
[Sidenote: Correspondence as a Means of Bringing Patents before
Interested Parties.]
While to advertise, as suggested in the foregoing pages, would require a
very moderate outlay, and be, perhaps, the better course to pursue:
however, in connection with it, or if the patentee does not feel that he
can afford the expense of advertising, a very good plan is for him to
secure copies of a number of the trade journals of the class to which
his invention relates, and carefully look over the advertisements
therein, and select a list of such manufacturers as would seem likely to
be induced to purchase the patent in question, or manufacture the
article on royalty. In this manner the patentee will probably get the
best up-to-date list obtainable, and it may be set down as a fact, with
very few exceptions, that if manufacturers and dealers who make and
handle just such articles as the patent calls for cannot be interested,
it is very hard to interest others not engaged in such line, except when
the invention is large, and requires a great deal of capital to work the
same.
[Sidenote: How to Correspond with Manufacturers.]
To each of the parties of the list thus selected, or to a number of
them, the inventor should write a well-composed and convincing letter
setting forth the invention in its best light, and stating just why it
would be to the interest of the parties solicited to investigate the
same. Some time should be spent on this letter before attempting to
write it, and the writer should weigh well in his own mind what would be
best to say, and the proper way of expressing it. He should be as brief
as possible, consistent with legibility. The statements should be
assuming, yet in every respect true. He should state in brief terms just
what the invention is, what it will do, the points and advantages it
has, and at the same time endeavoring to get the parties interested so
that they will inquire into the invention, rather than attempt to come
to terms in the first letter.
The letter should be brief and pointed, and plainly written upon
business-size paper; and if the inventor has a typewriter, or access to
one, he should use it. If he has printed circulars he should send one
with his first letter, which will enable him to make the letter briefer
and more business-like.
In correspondence it is well not to name a price until the parties are
interested, and first endeavor to get them to make an offer. The
patentee should be patient and should not expect to jump right into a
bargain at once. If the invention is a meritorious one there will be
more than one of the manufacturers to whom the patentee may write, who
will become interested, and when such a state exists, the patentee can
begin to be more exacting as to his demands since competition has been
created between the manufacturers.
[Sidenote: Circulars.]
A few dollars invested in circulars will frequently be found of great
value to the patentee if he intends to negotiate the sale of his patent
mainly by advertising and correspondence, as they will save a great deal
of writing and explaining as well as appear more business-like and
attractive, and may be the means of more readily effecting a sale.
[Sidenote: Illustrations.]
If the patentee can afford the additional expense of an illustration, it
will greatly increase the appearance of the circular, and make it more
readily understood and interesting. The cut should be neat and set forth
the invention in its best light. It would be better to entrust the
procuring of the cut to the printer, for he will know just what is
wanted and can secure the same at a better price. A sufficient number
of well printed circulars, with illustration, can be obtained of any
printer for a few dollars.
[Sidenote: About Getting up Circulars.]
The circulars should be attractive, convincing, and logical; nicely
arranged, and neatly printed upon good paper. A mistake is often made in
sending out trashy-looking circulars, poorly printed upon cheap paper;
they repel rather than attract, and do not have the desired effect.
The circular should have good head-lines so as to attract the attention
of its recipient at a glance, and his interest should be held by having
the uses and advantages of the invention well written.
Many of the pointers suggested in advertising and letter-writing will
equally apply to the writing and getting up of the circulars, and need
not be treated further here, except that the patentee should dwell
especially upon the merits of the invention, its uses, and advantages
over like articles. This should be done in the most interesting manner
possible, describing it so that its value will be fully understood.
[Sidenote: Uses of Printed Copies.]
It will be well for the patentee to order some printed copies of his
patent, as manufacturers and others usually ask for them if interested,
in order that they may examine the patent, or have an expert to examine
it, to ascertain its validity, novelty, and what protection is really
afforded by the patent. It cannot be denied that in either case the
invention will suffer a cold-blooded rigid examination, and must stand
or fall solely upon its merits. If, however, the invention is adjudged
to have real merit and properly protected by the Letters Patent,
business negotiations will likely begin, and the patentee will perhaps
speedily make a satisfactory deal.
[Sidenote: First Impressions All-Important.]
Some inventors use printed copies of their patents instead of circulars,
but, while they fully set forth the invention in a technical way, it
cannot be said that in all cases it is advisable to send copies of the
patent until called for. Many parties who become interested in patents
are not familiar with mechanical drawings and technical specifications,
and very often do not get a very favorable impression from a copy of the
patent; and it is very important that the first impressions should be
favorably created, for upon this much will depend. If parties become
sufficiently interested to fully investigate an invention, they are very
apt to form a favorable opinion of it.
[Sidenote: Value of Models.]
There is no way of so easily creating a favorable impression and gaining
the interest in an invention as by a neat and perfect working model of
the invention. Man never loses the child-love for toys, and a perfect
miniature machine of any description will attract more attention than
one of full size. With a model the inventor has the full and immediate
attention of his prospective purchasers at once. If the patentee, or his
agent, intends visiting manufacturers, or to sell the patent by
territorial rights, he will find a model of his invention almost
indispensable.
Inventors should be very careful about sending models to unknown
parties, and should mark the number of the patent and their name and
address upon the model. It should invariably be understood in advance
who is to pay the transportation charges, before sending a model with
any charges to collect.
While models are very helpful in setting forth an invention and making
sales, high prices exclude many inventors from their use. Model-makers
usually charge fifty cents per hour for each man working upon the model,
and market price for the material used; from these figures the inventor
may make a rough estimate of what a model of his invention will cost.
[Sidenote: Working Drawings.]
Working drawings are different from those forming a part of the patent
in that they are more detailed, giving the size of each piece and the
material of which it is constructed. While working drawings are not
quite as expensive as models, they do not show the invention to the
advantage that models do, and are of little value to those who do not
understand them. On the other hand, working drawings have the advantage
of being easily sent through the mails, and can be duplicated at small
cost. Manufacturers prefer working drawings to models in quoting prices
on manufacturing the invention in quantities.