How does an inventor get his product patented and to market so he can make money off it?

QUESTION.
Well, I came up with an idea for a good business, but due to the lack of funding I am unable to secure the business. I have partnered with someone to make a unique machine, but he lives outside the US and has only signed a non-compete and non-disclosure. Therefore, I am worried if he makes this machine then he may partner with someone else, because he essentially is making an expensive machine for me out of his own pocket. Also, if the partnership works out and we move to the next level, which is selling this machine to a big corporation, then I think I will need counsel with me there too for a large order.

ANSWER.
You have an idea for a machine, but you do not have the money to build a prototype. That is such a common story. I think you can be classified as an inventor. As such, you should have figured out how to get the money to have your prototype built instead of having someone build it for you for free. What happens if this person who is building YOUR machine doesn't want to partner with you (or you don't want to partner with him)? Are you going to owe him for his troubles in that case? This person has signed a nondisclose agreement with you, so chances are he won't be able to partner with someone else.

Normally an inventor who has an idea has a few steps to perform before he or she takes their invention to a commercial level. First, she needs to have a prototype built. She will do that by saving the necessary capital to have the protype built (or she will build it herself). She may borrow funds in order to have the prototype built. This is often the case if she owns a home and has equity in that home she can borrow against. Second, after the prototype is built she tests it to see if it does what it is supposed to do. If other people are involved in this testing, then they sign noncompete and nondisclosure agreements. Fourth, if the invention does what it is supposed to do, then she should consult a patent attorney to have the idea patented. That is going to cost her some money, too. She should expect to pay for that cost herself, too.

While the invention is being patented, she is protected from anybody swiping her idea. Now the fifth step comes into play: do market research and prepare a business plan. You have many options available to you as to how to start your new business. You may want to go it alone. You may want to find partners. You may want to form a corporation and sell shares in it to investors. You may want to license your invention? It can get complicated, but that is why you need to do market research and prepare a business plan. Doing this will help you uncomplicate what it is you want to do. The written business plan will be your roadmap to success.

When the plan is complete, then you are ready to use it yourself, or to use it to attract partners, investors, or license your invention.

Consider taking a look at the following links. See PICK A BUSINESS

WRITE A BUSINESS PLAN

BOOKS ON VENTURE CAPITAL

LICENSE YOUR IDEA OR INVENTION

FINANCING YOUR SMALL BUSINESS & ANGEL INVESTORS

I hope my comments are helpful. Good luck! Regards, -Jeff

Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
http://www.jlippin.com/