Application for a Patent

If you find, after preliminary search, that your invention appears to be patentable, the next step is the preparation of a patent application covering your invention. File it with the Commissioner of Patents and Trademarks, Washington, DC 20231. All subsequent correspondence should also be addressed to the Commissioner.

The Patent Application. With few exceptions the patent application must be filed in the name of the inventor. Even the application for a patent on an invention by a company's researcher must be filed in the inventor's name. If there is more than one inventor, a joint application is made. The patent application can be assigned, however, to an individual or a corporation, and then the patent will be granted to the assignee, although filed in the inventor's name.

Often employment agreements require an employee to assign to the employer any invention relating to the employer's business. Even without such an agreement, the employer may have a "shop right" to use (free) an invention developed on the job by an employee.

Application for a patent is made to the Commissioner of Patents and Trademarks and includes:

(1) A written document that comprises a petition, a specification (descriptions and claims), and an oath;

(2) A drawing in those cases in which a drawing is possible; and

(3) A filing fee.

The exacting requirements of the Patent and Trademarks Office for a patent application are described in Title 37, Code of Federal Regulation, which may be purchased from the Superintendent of Documents; Government Printing Office, Washington, DC 20402.

The construction of the invention, its operation, and its advantages should be accurately described. From the "disclosure" of the application, any person skilled in the field of the invention should be able to understand the intended construction and use of the invention. Commercial advantages, which would be attractive to a prospective manufacturer, need not be discussed.

The claims at the end of the specification point out the patentably new features of the invention. Drawings must be submitted according to rigid Patent and Trademark Office regulations.

The filing fee is normally paid by check, payable to the Commissioner of Patents and Trademarks or by a money order sent by registered mail. The Patent and Trademark Office assumes no responsibility for its safe arrival.

What Happens to Your Application in the Patent Office. When your application is received in the Patent and Trademark Office, it is given a preliminary examination to determine whether or not all requirements are met. If The application is in order, you will be notified of that fact and your application assigned a serial number and filing date. These govern its position on the docket. If there is some very minor deficiency, such as some irregularity in the drawings, the date and number will be assigned and the necessary revision requested later. If the application is incomplete, you will be notified and your application will be held up until you supply the required information to correct the deficiency.

After your application is filed, it is examined by an examiner trained and experienced in the field of your invention. Frequently, the examiner finds existing patents showing inventions enough like yours that revision of the application claims will have to be make. Sometimes several revisions and arguments by your patent attorney (or agent) are necessary to overcome successive objections raised by the examiner. Each objection constitutes and action by the Patent and Trademark Office; and if no response is made to an action within a prescribed period, the application is considered abandoned. An abandoned application is dropped from further consideration. Because each application must ordinarily await its turn to be considered or reconsidered, it generally takes on the average of nineteen months to get a patent.

If the examiner finally refuses to grant a patent on the basis of the claims requested, the application may be appealed to the Board of Appeals of the Patent Office. A brief for this appeal must be filed within sixty days after the date of the appeal.

When all the examiner's objections are satisfied, a patent may be obtained by payment of a final fee. A brief description of each patent issued is published weekly in the Official Gazette of the U.S. Patent Office. At the same time, specifications and drawings of current issuances are published separately, and copies are generally available to the public.

Making Applications Special. Only under limited conditions may a petition be filed requesting that an application be given special treatment; that is, taken up for examination before its normal turn is reached. These requirements are of particular importance to small business owners who are eager to obtain a patent before starting a manufacturing program. If you ask for special treatment for that reason, you must state under oath:

(1) That you have sufficient capital available and facilities to manufacture the invention in quantity. If you are acting as an individual, there must also be a corroborating affidavit from an officer of a bank, showing that you have obtained sufficient capital to manufacture the invention.

(2) That you will not manufacture unless it is certain that the patent will be granted.

(3) That you will obligate yourself or your company to produce the invention in quantity as soon as patent protection has been established. A corporation must have this commitment agreed to in writing by its board of directors.

(4) That if the application is allowed, you will furnish a statement under oath within three months of such allowance, showing (a) how much money has been expended, (b) the number of devices manufactured, and (c) labor employed.

Your attorney must file an affidavit to show that he or she has made a careful and thorough search of the prior art and believes all the claims in the application are allowable. The attorney will also be expected to make sure that the last sworn statement described above is properly filed.

As distinguished from mechanical patents, there are also available patents to protect ornamental designs for articles of manufacture.

Finding the Cash Required to Starting a New Small Business. Now that You have computed your first financing requirements, where
are you going to receive the money? The first source is your personal savings. Subsequently relatives, friends, or other
individuals may be found who are willing to"venture" their savings in your business. Before obtaining too large a share of cash
from outside sources, remember that you should have private control of enough to assure yourself possession.

After you can show that you have carefully exercised your fiscal Prerequisites and can demonstrate experience and ethics, a
lending institution might be willing to finance part of your operating needs. This may be done on a short-term basis of from 60
days to as much as one year. Any institution which has money to give is mainly concerned with security. The security may be a
business advantage, but if you're just starting the ideal security is usually your house or some other private advantage.

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

Be familiar with your banker. In picking a banker consider Progressiveness, attitude toward your company, credit services
provided, and the size and management policies of the bank. Is your bank progressive? The physical appearance of the lender may
provide you some indication. When the employees are reasonably young, considering your problems and active in civic affairs that
the bank is very likely to be progressive. The character of the bank's advertisements might also be an indicator to its
progressiveness.

To succeed the banker should be interested in helping you to Become a better manager, and build a continuing relationship which
will mean rewarding business for you and the lender over the years.

Will the bank offer you the type of credit you need? For example, If seasonal accumulations of stock become a problem will the
lender make a loan against field or public warehouse receipts? If your funding is tied up in accounts receivable during your hefty
selling season, will the lender accept these receivables as collateral for a loan? Will the bank consider a term loan?

Finally, know the dimensions and management policies of the lender. Will Your maximum conditions fall well inside the bank's"legal
limit"? If you intend to do some export business, does it have a currency department? In the event that you or your traders sell
on installment conditions does the lender have facilities for managing installment paper? How profoundly is the bank concerned
with the growth and prosperity of the regional community?

When you handle your banker, then sell your self. Whether or not you Need 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 company to not betray a confidence. If you
require financial assistance carefully organize, in written form, complete information that will present a comprehensive
comprehension of your entire proposal. Many business-people or prospective small business operators ruin their chances of getting
financial aid by neglecting to present their proposition properly.

Trade creditor or equipment maker, Companies from which you Purchase equipment or merchandise may also provide capital for you in
the form of extended credit. Manufacturers of store fixtures, cash registers, and industrial machines frequently have financing
plans under which you may purchase on an installment basis and pay out of future income. You need not pay for the merchandise at
once. If products are for resale, then no safety aside from repossession rights of the unsold merchandise is involved. But too
extended a use of credit can prove expensive. Usually money discounts are offered if a bill is paid in 10, 30, or 60 days. For
instance, a duration of sale offered as"2-10; net 30 days" signifies that a cash discount of two percent will be awarded if the
invoice is paid within 10 days. If not paid in 10 days, the entire amount is due in 30 days. If you do not take advantage of the
cash discount, you are paying 2 percent to use money for 20 days, or 36 percent each year. This is high interest. Avoid it.

Among the main causes of failures among businesses is Inadequate funding. Should you enter company, remember it's your obligation
to provide, or obtain from other people, adequate money to supply a firm foundation for your enterprise.

Sharing Ownership With Other People. Now that you have decided what Business to start and about how much funds will be required,
you might find it necessary to connect with one or more partners to launch the enterprise.

If you lack specific technical or management skills which are of Major importance to your preferred business a partner with these
skills may prove a satisfactory means to pay the deficiency. If you are very skilled in your particular area but lack direction
training and abilities, you might look for a partner with a background in management. If you may want more startup money, sharing
the ownership of this company is 1 way to get it. Fantastic care ought to be taken in deciding upon a spouse. Personality and
temperament, as well as ability to render financial or technical assistance, influence the success of a pa333ship.

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

In a partnership the accountability for the debts of the firm is Infinite, as it's in a single proprietorship. This means the
owners are Personally accountable for the company's debts, even in excess of the amount that they Have invested in the business.
In a business the liability of the proprietor is Limited To the amount that 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 owner or a partner, or upon
the withdrawal of a spouse.