Make sure you read the Contract Inventors

[Derek Pater]

Make sure you read the Contract Inventors

by Derek Pater » Thu Oct 01, 2009 3:57 am

Derek Pater

Brown Belt

 

Posts: 517

Joined: Fri Jul 25, 2008 3:11 pm

Location: Melbourne Australia

I know all Inventors are keen to Licence their new Invention to a Manufacture, but reading the contract and understand exactly what you are signing. I have just seen a contract signed by a Client and it looks to me almost like a product Lock-out Contract.

Consider this, yes you have your great Invention Patents Applied, make sure it does not have a No-Minimum royalty period for 2 years like this one, the claims to I.P Rights by the Manufacture in this contract are so broad it could also lock-up another 10 Inventions made by the Inventor now and into the future.

I have heard of stories about Lock-Out Contracts but never seen one until today, this contract leaves the inventor paying for the say two patents all costs and a small amount of royalties over 4 years.

Some Manufactures do this to miss lead the Inventor and Lock them out of the Market for a Period of time so it will not affect their market share and they will not have to pay for tooling for the product, so basically the manufacture pays a fee to keep a product out of the market at the Inventors loss of true royalties.

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