Michelle wrote:So can invidual inventors prevent that from happening? No?
Can groups of inventors working together help that? Maybe but it would be a hard fight.
I think the key is that an inventor has to be smart and really do his or her research. They should only speak to companies that have a good reputation for using outside inventions and they need to have a good non-dicslure agreement in place.
Are you involved with any inventor organizations? Which ones?
I'm not involved in an inventor organization, but invention was my primary motivation for getting a BS in engineering. I also have a BS in Business.
I've looked at patenting things since 30 years ago. One of my early influences was a Machine Design Magazine article about patents ( I think it was in 1984). Also, I know people that have obtained patents and who sought to obtain patents.
One of them, for example, invented toy sponges for kids to bath themselves with. The spong held a bar of soap, and the toy made it fun for kids to take a bath. He presented his idea to a company and they said they weren't interested. Within a half year they were making the guy's toy and selling it themselves. He didn't have a war chest to fight them in court.
Then there are the companies that sign an agreement to pay royalties, and set the idea on the shelf because it competes with their existing product line. If they don't sell the patented product then they don't have to pay royalties on it. There is nothing the inventor can do about it unless the contract states a minimum production level. Now isn't that a sweet deal?
There must be dozens of ways to shortchange somebody.
Let's say you get a patent deal signed, and the company decides to make your product in China. Nothing is made in the USA anymore. As you might know about half of China's software is pirated. Do you expect a patent to fare any better?
Then there's the scenario where you get a patent and someone else layers on their improvements and gets a patent. How do you deal with them effectively?
In the end it is little wonder that american patent applications have less value in a world that has no respect for intellectual property. In addition the US patent process itself is obsolete:
http://www.uspto.gov/go/com/annual/2001/03b_challenges.htm
The patent office isn't equiped for the demand.
Lastly, consider american corporate culture that is unreceptive to innovation unless it is in their "core business model". Even then it is a tough sell.
I remember when I was an engineer co-op student at IBM's R&D department, we thermally tested banking equipment with thermocouple probes to verify the equipment would work in all the class thermal environments. We had to rerun tests because at least one of the 50 or more probes would typically fail during the 4 hour testing period. So I redesigned the strain relief feature and reduced failures by more than 90%. Then I called the vendor, Omega
http://www.omega.com/toc_asp/subsectionSC.asp?subsection=A&book=Temperature&all=1
I asked them if they would make some with the redesigned feature, which required only a simple material change in the clip. You'd think they would be overjoyed to have a customer wanting to buy their product, and giving them a technical solution, free of charge. No, they never made them that way before! Their products were selling so why did they need my idea? OK, so I paid the tooling costs and we made the parts ourselves.
Likewise with so many other companies I've dealt with. Nobody wants to take a risk. Everyone is so content to sit in their little box. Even worse, maybe an executive with a high paying position is jealous of your idea, because they didn't think of it, and they are paid to think of ideas like that. It makes them look bad, so naturally they join the chorus of naysayers to pooh pooh your invention.
I don't mean to sound discouraging, but realistically only a few percentage of all patents actually make a net profit for the inventor. It's kind of like the movie star business -- for every big star there are hundreds, perhaps thousands that didn't make it.