How to Patent an Idea or Invention

Because of the tremendous development and complexi­ty of technology, products, and processes, manufac­turers should be familiar with patent protection and procedures. It is important to understand patent rights and the relationships among a business, an inventor, and the Patent and Trademark Office to assure protec­tion of your product and to avoid or win infringement suits. This guide gives some basic facts about patents to help clarify your rights in this important legal area.

To understand the details of patent procedure you should at the start know what a patent is and distinguish among patents, trademarks, and copyrights.

A patent is an exclusive property right to an invention. It gives an inventor the right to exclude others from making, using or selling an invention for a period of seventeen years in the United States, its territories, and possessions. A patent cannot be renewed except by act of Congress. Design patents for ornamental devices are granted for 3.5, 7 or 14 years - as th Because of the tremendous development and complexity of technology, products, and processes, manufacturers should be familiar with patent protection and procedures. It is important to understand patent rights and the relationships among a business, an inventor, and the Patent and Trademark Office to assure protection of your product and to avoid or win infringement suits. This guide gives some basic facts about patents to help clarify your rights in this important legal area.

To understand the details of patent procedure you should at the start know what a patent is and distinguish among patents, trademarks, and copyrights.

A patent is an exclusive property right to an invention. It gives an inventor the right to exclude others from making, using or selling an invention for a period of seventeen years in the United States, its territories, and possessions. A patent cannot be renewed except by act of Congress. Design patents for ornamental devices are granted for 3.5, 7 or 14 years - as the applicant elects.

Trademarks are also registered by the Commissioner of Patents and Trademarks on application by individuals or companies who distinguish, by name or symbol, a product used in commerce subject to regulation by Congress. They can be registered for a period of twenty years.

Copyrights, administered by the Copyright Office (Library of Congress, Washington, DC), protect authors, composers, and artists from the "pirating" of their literary and artistic work.

First Steps

When you get an idea for a product or process that you think is mechanically sound and likely to be profitable, write down your idea. Consider specifically what about your new device is original or patentable and superior to similar devices already on the market (and patented). Your idea should be written in a way that provides legal evidence of its origin because your claim could be challenged later. Next you need help to determine your device's novelty and to make a proper application for a patent.

Professional Assistance. Professional assistance is recommended strongly because patent procedures are quite detailed. Also, you may not know how to make use of all the technical advantages available. For instance, you may not claim broad enough protection for your device. As a rule therefore, it is best to have your application filed by a patent lawyer or agent.

Only attorneys and agents who are registered with the Patent Office may prosecute an application. It will not, however recommend any particular attorney or agent, nor will it assume responsibility for your selection.

Establishing Novelty. This is one of the most crucial and difficult determinations to make, involving two things: 1) analyzing the device according to specified standards and 2) seeing whether or not anyone else has patented it first. The only sure way of accomplishing this is to make a search of Patent Office files.

Analyzing your device. This should be done according to the following standards of what is patentable:

(1) Any new, useful, and unobvious process (primarily industrial or technical); machine; manufacture or composition of matter (generally chemical compounds, formulas, and the like); or any new, useful, and unobvious improvement thereof;

(2) Any new and unobvious original and ornamental design for an article of manufacture, such as a new auto body design, (Note that a design patent may not always turn out to be valuable because a commercially similar design can easily be made without infringing the patent);

(3) Any distinct and new variety of plant, other than tubes-propagated, which is asexually reproduced.

Another way of analyzing your product is to consider it in relation to what is not patentable, as follows:

(1) An idea (as opposed to a mechanical device);

(2) A method of doing business (such as the assembly line system; however, any structural or mechanical innovations employed might constitute patentable subject matter;

(3) Printed matter (covered by copyright law);

(4) An inoperable device;

(5) An improvement in a device which is obvious or the result of mere mechanical skill (a new assembly of old parts or an adaptation of an old principle - aluminum window frames instead of the conventional wood).

Applications for patents on machines or processes for producing fissionable material can be filed with the Patent and Trademark Office. In most instances, however, such applications might be withheld if the subject matter affects national security and for that reason should not be made public.

The invention should also be tested for novelty by the following criteria:

(1) Whether or not known or used by others in this country before the invention by the applicant;

(2) Whether or not patented or described in a printed publication in this or a foreign country before the invention by the applicant;

(3) Whether or not described in a printed publication more than one year prior to the date of application for patent in the United States.

(4) Whether or not in public use or on sale in the country more than one year prior to the date of application for patent in the United States.

These points are important. For example, if you describe a new device in a printed publication or use it publicly or place it on sale, you must apply for a patent before one year has gone by; otherwise you lose any right to a patent.

Although marking your product "patent pending" after you have applied has no legal protective effect, it often tends to ward off potential infringers.

Getting the Money Required to Starting a New Small Business. Now that You have computed your initial capital requirements, where
are you going to get the money? The primary source is your personal savings. Subsequently relatives, friends, or other people may
be found who are willing to"enterprise" their savings in your company. Before obtaining too large a share of cash from outside
sources, remember that you ought to have personal control of enough to assure yourself ownership.

Once you can show that you have closely worked out your fiscal Requirements and can demonstrate expertise and ethics, a financing
institution might be willing to finance part of your working needs. This may be done on a short term basis of from 60 days to as
much as one year. Any institution that has money to lend is primarily concerned with security. The safety might be a business
asset, but if you are just starting the ideal safety is usually your house or some other private advantage.

The second thing the lender will want to see is some sort of Business program. If you finish a business plan - which includes a
cash flow forecast - the lender will see that you have completed some realistic and serious thinking about your business and be
more inclined to consider your request.

Become acquainted with your banker. In picking a banker consider Progressiveness, mindset toward your business, credit services
offered, and the size and direction policies of the bank. Is the bank innovative? The physical appearance of the bank may provide
you some indication. When the employees are pretty youthful, considering your problems and active in civic affairs that the bank
is likely to be innovative. The nature of the bank's advertising may also be a clue to its progressiveness.

To be effective the banker Ought to Be interested in helping you to Become a better manager, and develop a continuing relationship
that will mean rewarding business for you as well as the bank over time.

Will the bank give you the kind of credit you need? By Way of Example, If seasonal accumulations of stock turned into a problem
will the bank make a loan against public or field warehouse receipts? If your funding is tied up in accounts receivable during
your hefty selling year, will the lender accept these receivables as security for a loan? Will the lender consider a term loan?

Finally, know the dimensions and direction policies of the bank. Will Your maximum conditions fall nicely inside the
lender's"legal limit"? If you plan to do some export business, does it have a currency department? If you or your traders sell on
installment terms does the lender have facilities for managing installment paper? How deeply is the lender concerned with the rise
and prosperity of the regional community?

When you handle your banker, then sell yourself. Whether or not you Want a bank loan, also make it a practice to visit your banker
at least once a year. Openly discuss your plans and problems. It is the bank's business not to betray a confidence. If you need
financial aid carefully prepare, in written form, complete information that will present a thorough understanding of your entire
proposition. Many business-people or potential small business operators ruin their chances of getting financial help by failing to
present their proposal correctly.

Trade creditor or equipment manufacturer, Firms from which you Purchase equipment or merchandise may also provide capital for you
in the kind of extended credit. Manufacturers of store fixtures, cash registers, and industrial machinery frequently have
financing plans under which you might buy in an installment basis and cover out of future income. You need not cover the goods at
once. If goods are for resale, then no safety other than repossession rights of the unsold goods is involved. But too extended a
use of charge may prove expensive. Usually cash discounts are quoted when a bill is paid in 10, 30, or 60 days. For example, a
term of sale offered because"2-10; net 30 days" means a cash discount of two percent will be granted if the invoice is paid within
10 days. If not paid in 10 days, the whole amount is due in 30 days. If you don't take advantage of the money discount, you're
paying 2% to use money for 20 days, or 36 percent per year. That is high interest. Avoid it.

One of the principal causes of failures among companies is Inadequate funding. If you do go into company, remember it's your
obligation to provide, or obtain from others, sufficient money to provide a firm foundation for your business.

Sharing Ownership With Other People. Now that you have decided what Company to begin and about how much funds will be required,
you may find it necessary to join with one or more associates to launch the enterprise.

If you lack certain management or technical skills that are of Major value to your chosen business a partner with these skills may
prove a most satisfactory way to pay the deficiency. If you are very skilled in your special area but lack management training and
skills, you might look for a partner using a background in management. If you might need more start-up money, sharing the
possession of this business is one way to obtain it. Great care should be taken in deciding upon a partner. Personality and
temperament, in addition to capability to render technical or financial aid, influence the success of a pa333ship.

A partnership can be a mixed blessing. A spouse who places in time Or money has a right to expect a share in running the
enterprise.

In a partnership the liability for the debts of the firm is Infinite, as it is in a single proprietorship. This means the owners
are Personally accountable for the company's debts, even in excess of the amount they Have invested in the business. In a business
the liability of the proprietor is Limited To the amount they pay for their shares of stock. A partnership, such as a single
proprietorship, lacks continuity. Thus, the Company terminates upon the Death of the proprietor or a spouse, or on the withdrawal
of a partner.