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[benchracer52]

So I have a new invention.

Another company had an idea - I tried it and found it didnt work - I built a new part that did work for our own use in motorsports.

I later developed the part to an even better level. We will call the part - Widget A.

In motorsports this is how we win races - we have lots of new inventions on our machines every year.

So Widget A became a big hit over night after the National champions started to use them and endorse them. Many people tried widget A and found them to be a big advantage in racing.

Within 3 months 6 companies started to copy widget A.

I filed for a patent using USPTOs online software - at this point not understanding its potential.

Now 9 Months later - there are even more companies copying the product, including several large companies.

Several of the OEMs now have been testing with it and may include it in new production models.

I have contacted an attorney for help since this now looks to be a bigger thing then I first imagined - attorney fees and potential costs are way out of the question for a small 2 man shop that is now growing at over 30% per month.

Widget A - retails for $195.00

Widget A will without a doubt be included in over 100,000 new machines per year within 2 years.

Since there is no way I can afford the huge attorney fees that I have been quoted - where do I go from here beside just curl up under a rock and watch other companies build and sell these??

I have an 8th grade education - so try to keep your answers simple.

[JimIvey]

You said that 6 companies started to copy your invention within 3 months and that now is "9 months later."  If it's been more than one year since your first public use, it's too late to get a patent.  If the first anniversary of your first public use is coming up, you have until then to have a patent application on file.  And, don't think that you can file a quickly thrown together provisional in hopes of cleaning it up later.  There's no reduced legal standards for provisional applications, so you must have a full, legally-sufficient patent application on file by the first anniversary of your first public use.

Now, let's look at your economics.  You've estimated about $20 million in gross revenues in the next 2 years.  I'm betting your estimate for preparing and filing your patent application was around $10,000 -- about 0.05% of your projected gross in 2 years.  What I don't know is your projected net from sales of your part -- so the economics may not be quite as lopsided as it appears when looking at the gross.  Since you asked for simplicity, net = gross - costs (net = profits, gross = total money coming in).

So, let's look at the cost of not getting a patent (assuming a patent is a perfect tool to prevent others from making, selling, using your invention without your permission -- it isn't).  How many units would you sell in 2 years if competitors are free to make and sell your invention?  50,000?  10,000?  Calculate that gross (your units x $200 -- for easier math than $195) and determine the difference from $20 million -- that's your opportunity cost from not being able to stop competition for your invention.  If the difference is more than $100,000, it seems fairly clear that a patent would be a good thing for you.

Now, it's entirely possible that, despite the economics, you don't have the $10,000.  First, imagine that Donald Trump said he'd let you in on an investment in which you give him $10k and it's likely to pay $20m in 2 years.  Do you think you could get the $10k then?  Probably.  It's often a matter of motivation -- how much are you willing to give up and stretch yourself to put $10k into something.  I'm sure it sounds self-serving, but every time I get soft-hearted with clients I find myself scrambling to find creative ways to pay my mortgage.  Patent applications are hard and not exactly over-compensated.  So, the costs are real -- not entirely greed-based by patent practitioners.  

Second, some practitioners are willing, in rare cases, to accept a "piece of the action" instead of money for fees.  The reason such cases are rare is that practitioners still have monthly expenses, like mortgages for example, and can't defer all income to business speculation.  My personal opinion is that investing is best left to the professional investors, not amateurs like patent practitioners.

That brings up the last possibility -- find investors.  $10k for $20m in 2 years sounds pretty sweet.  In racing, you probably talk to sponsors all the time, so you're used to asking wealthy people for money and making your best case for investing.  So, it shouldn't be too strange to you to ask for investment for your invention rather than for racing sponsorship -- you're just selling return-on-investment (ROI) rather than advertising.

I hope that helps.

Regards.

[Isaac]

You said that 6 companies started to copy your invention within 3 months and that now is "9 months later."  If it's been more than one year since your first public use, it's too late to get a patent.

The OP mentioned that he did file something at the 3 month point.   Hopefully there is something useful in that filing, which I'm guessing is a provisional application.    

Otherwise, if the 3 months and the 9 months are sequential, it does seem likely that the OP has already missed the filing window.

[ChrisWhewell]

As always, good answers & info by Ivey et al.

Mr. Inventor, you really should get some professional help on this, if your first sale, offer to sell, public use, public disclosure all occurred no earlier than one year ago.  Once the year is up, if you don't have a good patent application on file, you will forever waive the right to patent it, and the invention will be dedicated to the public.  Meaning: everyone can make, use, and sell the widget for free.

Since you've already disclosed it, and since so many companies are copying it, telling us what it is would cause you no further harm, if you are the original and true inventor, and if it is indeed patentable.  By disclosing to us that which is already in the public domain (widget A), you might get some even better advice on this.  I've worked on a lot of automotive cases and cost a lot less than $ 10K to write a patent spec.