[Jewelry making - Article 01233] - Re: [Orchid] Selling Designs Rights

[James White]

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>         least.  I am to the point where I cannot even begin to keep up
>     with production for the orders.  I have only marketed to a very
>     small 

    This is a good place to be USUALLY. But if you can't hire people to
    do the work and still sell your device profitably then you've got a
    big problem. If your smashing sales are because you've underpriced
    the device rather than because of the device's inherent
    advantages/merits it will be hard to get anyone interested in taking
    it over and paying you. 

>         I have the initial patents filed with the PTO. 

    The bottom line is you don't have "patents filed." You may very well
    have filed an APPLICATION with the PTO but the only right that gives
    you is to say "patent pending" until the application is abandoned (or
    a patent issues). What applications do for certain is give YOU
    obligations that you must either follow through on or lose any
    possible future rights. The miscomprehension of the distinction
    between filing "patents" versus "applications" will be a big red flag
    to any reasonably sophisticated prospective buyer. The normal
    procedure to drive unsophisticated patent applicants to the wall is
    to simply exhibit a waxing and waning interest and drag it, and
    possibly real negotiations, out a year or more---it's a cheap and
    effective tactic! 

>         right now I'm working myself into the ground as a production
>     house. 

    Admitting this is another big red flag that could mean 1) no deal
    will be worth it because all that's been proven is that something
    sells well when underpriced or 2) your business skills/current
    knowledge make you an easy target to negotiate yourself into a bad
    deal. Remember, even if you are "profitable" selling the device
    yourself the real margins must be high enough to not only pay your
    royalties but to provide real profitability to the licensee (or less
    likely, outright buyer) that is ABOVE what competing opportunities
    for their resources offer. 

>         Does anyone know how I go about getting this business off my
>     hands and possibly selling it or licensing the rights to another
>     company? 

    Licensing is by far your best bet but it won't happen unless you can
    provide evidence that you are likely to get a strong patent and your
    device sales are, in fact, nicely profitable after all labor,
    materials, selling, overhead, and other costs are accounted for.
    There are several good licensing books available at my
    www.booksforinventors.com web site or via Amazon.com. Please do not
    expect someone else to take the weight of the decisions you must make
    off your shoulders. 

    I've looked at your jewelry pieces (not the device you want to sell
    off) on your web site and I like them (the artistic merit is solid),
    their prices look okay, and you've certainly done a good job getting
    them into stores (hopefully on a wholesale rather than consignment
    basis). But, as has been noted in this forum before, the jewelry
    business is a business and while artistic merit plays a part it is
    meaningless unless the sales prices provide sound profits to both you
    and your retailers AND (perceived) VALUE to the customer. 

    (And, I've sent you my phone number off line but here it is again
    (517) 347-0190, I would be happy to talk with you. Just don't expect
    enthusiasm alone to carry the day, hard headed pragmatism is more my
    style.) 

James E. White
Inventor, Marketer, and Author of "Will It Sell? How to Determine If
Your Invention Is Profitably Marketable (Before Wasting Money on a
Patent)"  Info Sites:   www.willitsell.com    www.inventorhome.com,
www.idearights.com www.taletyano.com www.booksforinventors.com

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