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[Harry]

HI  I have filed for a patent in Canada, US and provisional  for the PCT for a solid fuel I developed.  All of the patent searches came up negative for similar fuels registered in the data bases.  I am assuming that  patents will be issued in Canada and the US.  The fuel I developed is 100% natural, and is hotter and cleaner than wood or coal.  It's configuration is diverse in that it can be formed as a brick, log, pellet, or fluff (similar in texture to lint from a drier).   It can be used in residential, commercial, industrial and power generation applications.

My question is, how do I put a value on the fuel?

Is there a formula that is an industry standard?

Can I license it out before I am assigned a number?

[Penny Ballou]

U: HI  I have filed for a patent in Canada, US and provisional  for the PCT for a solid fuel I developed.  All of the patent searches came up negative for similar fuels registered in the data bases.  
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Assuming you are a U.S. resident:

* One hopes a professional patent (searcher) pro did the search and you received a written opinion?

U: The fuel I developed is 100% natural, and is hotter and cleaner than wood or coal.  It's configuration is diverse in that it can be formed as a brick, log, pellet, or fluff (similar in texture to lint from a drier).   It can be used in residential, commercial, industrial and power generation applications. My question is, how do I put a value on the fuel? Is there a formula that is an industry standard?

* There has to be I do not know what it is without putting my fingers to work. Usual to value IP (which you do have) is the market, income or cost-approaches. However, you've a new fuel apparently with no direct competition therefore you're limited to using indirect competition as a valuation model. You might want to check with the Energy Tech Net portal. Their link used to be and may still be:

www.eere.energy.gov/inventions/energytechnet

* The Licensing Executive Society use to have a publication titled, "Valuing Technology in New Applications" authored by Mike Hruby and Mark Lutz of Technology Marketing Group Inc., in Acton, MA. You might find/read it though it leans to technology. Talked about was the Adoption-Diffusion Model.

U: Can I license it out before I am assigned a number?

* Absolutely but (personally speaking), I would want to coordinate with an energy-licensing consultant before disclosing trade secret info. Additionally, the U.S. Dept of Energy has a yearly invention submission solicitation you "might" want to consider: www.eere.energy.gov

Penny Ballou
www.inventored.org

[Harry]

Hi,  

Thank you for your input Penny.  I have had professionals do the search in Canada, US and Internationally, and no similar product has been found.  The Professional opinion was that it was patentable.

I will check out the links that you have suggested, and understand now the issues that are involved in putting a value on the IP.

I am a canadian , and hope to make contacts in the US to exploit the technology in the future.  I already made contact with interests in Europe, and wish to establish similar arrangements in the US.

Once again,  a big thank you for your input.

Have a Happy and Prosperous New year.

Harry

[Harry]

Well, I wasn't quite looking and they found me...They meaning an international company with a waste problem.  I guess I impressed them with our IP, and they want a partnership to commercialize the process and feed mechanism for the waste to energy solution.

Since it was my idea (IP) to solve their waste problem, should they be paying me royalties and a License fee?

They want to sign me, and I was wondering what is a fair signing bonus. Is it a percentage of what they would be replacing cost wise? Not only will I be getting rid of their waste but will replace fossil fuels they are currently burning.

As usual your help here is appreciated.

Harry

[JimIvey]

If you think substantial numbers will be involved, I'd strongly suggest finding a good licensing attorney to represent you.  On the other hand, if you think you'll be happy with whatever the International Company with a Waste Problem (ICWP) will pay, then things should be smooth sailing from here.

There's generally no set formula for what you'll get from a big company with interest in your IP.  All you have now is potential future rights to prevent others from making, using, or selling what your patents may eventually cover.  ICWP may be interested in that for a number of reasons.  

1.  They may truly like the technology and want to develop it.  What they hope to gain is your expertice, the right to exclude others from using your technology (your potential rights vested in your applications), and similar rights to exclude for a plethora of improvements and refinements one would hope to see over the years.

2.  They may hope to use your technology and not get sued by you.  (Sort of like riding the bus rather than driving the bus.)

3.  They may hope to hire you, learn all you know, fire you, and spend whatever money it takes in court to avoid giving you a dime (as I understand some major auto manufacturer did with the inventor of intermittent windshield wipers).

You need to figure out which and match it up with what assurances you want/need that nothing unsatisfactory is going to happen to you.  You should spend some time figuring out what it's really worth to them (and don't just say "millions" or "billions" -- try to get a couple of significant digits in your numbers).  That takes real research or at least professional help (who'll do the real research if you like).  And, of course, there are numerous pitfalls you should avoid in your agreements.

If you're going toe-to-toe with a huge ICWP, I'd strongly suggest some professional help.

Good luck!