Twenty years ago, investors would invest in new products and services they believe have marketplace potential. Today, investors are no longer satisfied with new products and services that have marketplace potential, but instead want products or services that are successful in the marketplace.
Existing companies want new products or services that will help them maintain or increase their market share. New companies want new products or services the will allow them compete in an existing market or enter a new market.
The availability of the Internet, company websites, news and information websites, search engines and on-line retail websites, make it easy for companies to monitor their competitor’s new products and services. It is important for companies to constantly develop new products or services that compete. It is also important they watch for ‘disruptive’ new products or services.
The U.S. 2017 tax law amendments, recent stock market growth, and the 2013 changes to the U.S. patent statute have forced inventors, entrepreneurs, and small businesses to change their IP strategies. Although not fully settled, it appears that the legal cost of a patent application can now be fully deductible in the year spent. The growth of the stock market has made more money available to invest in new ventures. The 2013 changes to the U.S. patent laws making the U.S. a ‘first to file’ country have forced inventors to file for patent protection as soon as possible. Today, large companies spend 6 to 10 times more on marketing than on product develop due primarily to Internet.
30,000 consumer products are launched annually, 95% of them fail. 97% of patent products never make money. Why? They typically fail due to lack of demand for t he product or service, product development and production problems, or marketing mis-steps.
We recommend that individuals, entrepreneurs and small businesses with new product and service ideas file a provisional patent application to protect them as soon as possible. This will protect the idea for 12 months. After filing, we then recommend they focus on strategies for creating demand. Once these strategies have been developed, we then recommend they focus on development, production and marketing. Ideally, all of the above steps should be at least partially completed before filing a non-provisional patent application. If there is no demand for the product, if the costs for developing or manufacturing are too high, or if marketplace barriers exist, then we recommend you re-evaluate.
We offer an alternative approach. Please contact us if you need assistance.