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What is the going rate for a licensing Agent?

TapeSealTapeSeal subscriber Posts: 5
edited June 2008 in Commercializing Your Invention
My husband and I have a couple of inventions that we worked on, one of which is too much work for us to take on and we think that licensing is the route if we can find a reputable agent.  It is a food service disposable item that could work best for bars, convenience stores, etc.  We think though that the most ideal market would be for promotional purposes. 
 
We have applied for a design patent and have fully functioning prototypes but not the time or money due to other business ventures with other patents we have going.  My thought is that I would rather something be done with it than have the box of stuff sitting in my closet.
 
Does anyone have average costs of what to expect to pay a licensing agent both up front and % of the royalty if it were licensed?
 
Finally, who would be a good agent to contact to introduce the product?  (ps my husband and I would like to give all rights to our parents.  Is this a big deal to be the ones to introduce the product to the licensing agent and have someone else make all decisions for their benefit?)  
 
Thanks....Tammy
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    Innovator7Innovator7 subscriber Posts: 9
    A design patent application wouldn`t offer much protection.  I`d have NDA signed when talking to strangers.
    Licensing agent may take up to 50% of royalty.  It`s negotiable, as usual.
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    SalemHSalemH subscriber Posts: 4
    Many licensing agents (reputable), will not require an up front fee for their services, but will take a larger fee.
    If the licensing agent is ONLY licensing the product to companies (not manufacturing / producing themselves), then 5-10% can be standard.
    This means they are sourcing your potential interested parties in your project.
    If they are taking a position of manufacturing and distributing the project, then YOUR percentage of the product would be in the realm of 2-10%.
    Good luck.
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    scoobyscooby subscriber Posts: 0
    I anyone outer tha might take my I idea or no fancy prototype for cash or some kind of deal because I already spend $600.00 to this company that was helping me in making a prototype that was money that I earned with great effors and hard work any way the total cost for my prototype was going to be somewhere around $13000.00 dollars My idea don`t have any patent of any kind.If I only knew all this before I spend those $600.00 dollars I will have a provisional patent by now. Thanks friends
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    scoobyscooby subscriber Posts: 0

    I anyone outer tha might take my I idea or no fancy prototype for cash or some kind of deal because I already spend $600.00 to this company that was helping me in making a prototype that was money that I earned with great effors and hard work any way the total cost for my prototype was going to be somewhere around $13000.00 dollars My idea don`t have any patent of any kind.If I only knew all this before I spend those $600.00 dollars I will have a provisional patent by now. Thanks friends
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    TapeSealTapeSeal subscriber Posts: 5
    Thanks Innovator and DesignMyIdea.  Great information.  We actually decided to hold off pursuing anything with the above mentioned products since we are so busy with Tape-Seal.
    Scooby, other people on this site would know much better than me about how likely it would be for someone to offer you cash for your idea.  But I would say, don`t disclose anything confidential without a non disclosure agreement, did you get one of these signed by the company working on your prototype?  It would all depend on your idea on how likely it would be for you to get cash, let alone a licensing deal. 
    Check with others on this site, but it is my understanding that you don`t need to have a prototype to apply for a patent, or maybe I should say a fancy one.  You could really have something crudely put together.  Keep in mind though, the more complicated the item with moving parts and so forth you would want to have something decent put together.  You have to be pretty specific in your application.  So, again, it depends on your idea.
    Not only is $600.00 a lot of money, $13,000.00 is harsh.  Are you going to one of those invention submission companies?  Did you check this company with the BBB, get referrals, etc? 
    There is so much information to be found on this site.  I would recommend doing a search on the top right with your keywords.  You might find something from a few years back that is important for your current situation.  I was at this section last night and stumbled into this clip about licensing a product.  I think it would be helpful http://www.startupnation.com/media/chan ... enting.htm
     
    Good luck to you Scooby! 
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