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Author Topic: what percentage to negotiate with the patent law firm?  (Read 1798 times)

mighty

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I need to negotiate to give a percentage of my patent business to a law firm in exchange for them to do the patent for me, the whole process. The invention is fairly straight forward, won't need too much work to describe, at least no more so than any other patent would. If they're interested, and the patent could be over a million dollars, how much percentage is a fair percentage for them to ask for?
Do you recommend I get a 3rd party agent to negotiate with them?
I thought I had heard that 7% was a fair portion to give over. Is that too little? Too much?
thanks,
mighty
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WTF_Over

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Re: what percentage to negotiate with the patent law firm?
« Reply #1 on: 09-22-11 at 06:06 pm »

I need to negotiate to give a percentage of my patent business to a law firm in exchange for them to do the patent for me, the whole process. The invention is fairly straight forward, won't need too much work to describe, at least no more so than any other patent would. If they're interested, and the patent could be over a million dollars, how much percentage is a fair percentage for them to ask for?
Do you recommend I get a 3rd party agent to negotiate with them?
I thought I had heard that 7% was a fair portion to give over. Is that too little? Too much?
thanks,
mighty

Easy.

A firm that agrees to take your work on a percentage basis isn't a firm with which you want to do business.

Check references, pay the freight, and get quality work.

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mighty

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Re: what percentage to negotiate with the patent law firm?
« Reply #2 on: 09-23-11 at 09:03 am »

I don't understand.
I have no money to pay for a patent. I thought it would be a good idea to give over a small percentage so I didn't have to go find money. I simply can't easily come up with 10000 dollars, let alone prosecution or litigation costs.
what did you mean by check references? I assume pay the freight just means pay for the patent?? I don't understand what you are trying to say.
Should I work out a fixed sum to pay them once I sell the patent? Am I wrong to think I can even work out a deal at all? This firm is a pretty big firm, with their own engineers, multiple attorneys, etc.
help!
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Patentstudent

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Re: what percentage to negotiate with the patent law firm?
« Reply #3 on: 09-23-11 at 09:10 am »

Did the firm already agree to work on a percentage basis or is it just a something that you want to try?
I can't imagine a reputable law firm is willing to work on the basis of a percentage of a possible patent sale price. 
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khazzah

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Re: what percentage to negotiate with the patent law firm?
« Reply #4 on: 09-23-11 at 10:45 am »

I have no money to pay for a patent. I thought it would be a good idea to give over a small percentage so I didn't have to go find money.
Am I wrong to think I can even work out a deal at all? This firm is a pretty big firm, with their own engineers, multiple attorneys, etc.

It's very unlikely that you'll find a firm interested in this.

Law firms run on cash. Client payments in, salaries and rent out. Law firms simply aren't structured to run on long term loans (patent will take 3-7 years to issue) made against hard-to-value assets (a patent application). Simply put, your idea doesn't fit the law firm model.

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Karen Hazzah
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Information provided in this post is not legal advice and does not create any attorney-client relationship.

mighty

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Re: what percentage to negotiate with the patent law firm?
« Reply #5 on: 09-23-11 at 11:35 am »

we didn't work out a deal yet. I asked about possible alternatives to payment, such as a stake in the business, and they said that they do consider such options. He said that if I could think of a way to work out payment, 'you name it, we've done it'. As I've said, this is a large firm with a well established reputation. I know that they normally would not want to be tied up in the risk of the invention, but just assume that, in this case, they know that there is a great viability to the invention, and they are confident of its success.
So, what other options for payment do you know of? You guys are being really helpful, but so far you've only said what you don't think is possible. Can you give me some ideas of what people do do to work out payment when they don't have the means to pay for it out of their pocket?
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JimIvey

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Re: what percentage to negotiate with the patent law firm?
« Reply #6 on: 09-26-11 at 10:09 am »

My take on this issues is that investing in a new idea ought to be left to people who do that for a living.  There are venture capital firms and angel investors and that's where the money ought to come from for patent services and other business development.

That said, an independent inventor might get lucky and find a patent practitioner who hasn't learned that lesson yet.

Regards.
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klaviernista

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Re: what percentage to negotiate with the patent law firm?
« Reply #7 on: 09-26-11 at 10:55 am »

That said, an independent inventor might get lucky and find a patent practitioner who hasn't learned that lesson yet.
Regards.

I am aware of at least one NH firm that takes matters on a percentage basis.  Last I heard, they were not doing well.  They get a lot of solo inventors walking in the door who B&M about the price of a patent, and state that they can't pay.  Rather than sue for recovery of fees, the partnrs in the law firm have agreed to take partial ownership in a business.  I don't think it has  panned out for them once.

FWIW OP, you might be better served by putting together a business plan and pitch your idea to a number of Angel investors.  Most investors will understand the value of IP, and if they are willing to pony up for your business, they will be willing to pony up for proper IP protection as well.
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This post is not legal advice.  I am not your attorney.  You rely on anything I say at your own risk. If you want to reach me directly, send me a PM through the board.  I do not check the email associated with my profile often.
 



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