The costs of creating new business inventions isn't inexpensive. One of the major pricing and costs of new inventions, however, can be determined fairly easily in advance: the cost of obtaining a U.S. patent.

Those new to the world of invention ideas may be shocked to know the average inventor pays thousands of dollars to protect his or her new invention. Only a small portion of this cost goes directly to the United States Patent and Trademark Office (USPTO); the rest is attorney fees. These costs include:

1. Hiring an invention services expert to run a preliminary patentability search

2. Paying to have your invention submission application properly prepared

3. Employing a patent attorney to create an abstract for your invention patent

4. Paying for miscellaneous product ideas fees.

Action Steps
The best contacts and resources to help you get it done

Obtain invention help with a preliminary patentability search

The first step is to conduct a patentability search to ensure your invention may be patented. This runs about $650 to $1000 when you hire a patent attorney. You may also do this search yourself, which could cost you nothing but time. However, if your search isn't thorough, you could end up spending thousands for an invention that can't be patented.

I recommend: For detailed information on how to conduct your own preliminary patentability search, read "Patent It Yourself" by David Pressman, sold at Books-A-Million. Also, consider hiring a company specializing in patent searches, like Patent Searching Services.

Prepare an application for your new invention

A patent application should be prepared by a patent attorney. (Remember, a patent is not merely a form to fill out; it is a complex legal document that should be created by an expert.) This cost depends somewhat on the type of invention being patented, since patent drawings and descriptions must be included. However, expect to pay about $300 to $600 on average.

I recommend: For more information about patent applications, read "Understanding Patent Applications" at Nolo. To find a qualified patent attorney, use the searchable database at USPTO.

Create an abstract for your product ideas

An abstract for your invention must be prepared; this is a highly detailed description of the invention and should only be prepared by a qualified patent attorney. Again, the cost of an abstract varies according to the complexity of the invention, but you can expect to pay $3500 to $5500 for a fairly simple invention, or $5000 and $8000 for a more complicated one.

I recommend: Although many experts advise inventors to only use a qualified patent attorney, you might consider hiring an invention corporation like The Patent Office, which can prepare your paperwork at potentially a lower cost. For an interesting article on top mistakes inventors make when patenting their idea, read "The Ten Most Common Mistakes: Inventors on their Own" at the Patent and Trademark Depository Library Association.

Expect other costs for protecting your new ideas

The actual filing for a patent runs as little as $133 and should be sent via Express Mail, which costs $16.50 to $26. When USPTO examines the paperwork, changes are usually requires at a cost of $800 to $2,000 in attorney fees. Later, formal patent drawings must be prepared, which costs $125 to $150 per page. An Issue Fee must be paid to USPTO, which is about $685 to $750, and an attorney must be hired to finalize your documents, at a cost of $200 to $400.

I recommend: For complete information on the USPTO's fees, see their FAQ page. To calculate shipping fees and print a shipping label, visit the United States Postal Service.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Always consult a tax preparer about how to handle patent costs for your new inventions. However, do know that most costs associated with obtaining a patent are deductible.

Thomas Edison, Benjamin Franklin, Bill Gates. All had great visions, but more importantly their hard work turned their idea into a reality. To get your invention from the brainstorming stage to the store shelves, you need to consider:

1. If other products that fulfill the same function or use are already on the market.
2. How you'll finance research and development.
3. If you have the time and patience for a long process.
4. Potential profitability.

Action Steps
The best contacts and resources to help you get it done

Research the market

Whether you're creating an entirely new category in the marketplace or simply putting a new spin on an existing item, your invention has to fill a need in the marketplace. Make sure your product is unique before investing a lot of time and money in it.

I recommend: Do simple Internet searches on sites like Google and Business.com to determine what kind of competition is out there. Find focus group sample survey forms at InventionCity.com. If this is your first invention, study the "Seven Things Every Inventor Should Know."

Develop a prototype

Developing a model of your invention streamlines the patent process and simplifies the search for a manufacturer. It's also a good way to work out design kinks and determine how much it will cost to manufacture.

I recommend: Find out the many reasons why every inventor should develop a prototype before marketing an invention at IPFrontline.com. Learn how to create a prototype and digital renderings of your product at AskTheInventors.com. If you aren't an engineer, get help creating a working prototype, physical prototype or virtual prototype from an invention services firm, such as InventionHome.com or InventHelp.com.

Patent your invention

Protect your invention in the marketplace with a patent. This will prevent competitors from stealing your idea and will protect it for a number of years — 14 to 20 — depending on the type of patent. The patent process is notoriously difficult to navigate, so consider hiring a registered patent attorney or agent to assist you.

I recommend: Apply for a patent on your design through the U.S. Patent and Trademark Office (USPTO). Find a registered patent attorney or agent in your area by searching the USPTO attorney/agent database.

Find a manufacturer and distributor

Before you can start marketing your invention, it has to be translated from a prototype into a real-world product. To find manufacturers, attend tradeshows and interview potential partners about pricing, quality and service.

I recommend: To find a manufacturer for almost any type of product, look to the Thomas Register for a list of American manufacturers or the Thomas Global Register for international manufacturers. Learn more about the manufacturing process at InventionCity.com.

Market your invention

To get your invention from the manufacturer's warehouse to the consumer, you need to come up with a sales plan.

I recommend: Get tips on marketing your invention in the Ultimate Invention Success Kit from InventionSuccess.com. If your product would appeal to a wide base of consumers, consider selling it on television as a direct response retailer. Home Shopping Network (HSN), Guthy-Renker and Thane all provide submission guidelines for new product vendors.

License your invention

If getting your invention to market seems like a lot of work, it is. To lighten the load, consider licensing as an option. In this scenario, you hire other companies to produce and sell your product while you collect licensing fees.

I recommend: Get a better idea of how licensing works and find companies that are searching for products to license at AskTheInventors.com. Before signing any agreements with an invention marketing firm, learn what to beware of and search a list of companies that have been known to scam inventors at BPMLegal.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  To find a manufacturer, attend tradeshows that feature products in the same industry as yours and inquire about the manufacturers.
• •  Keep your invention close to the vest and only share it with people you trust completely. If you're in the patent process, consider having all of your company employees sign a non-disclosure agreement. That way, if they leave the company, they won't be able to share your idea with their next employer — your competition.
• •  Document your invention process with detailed dates and entries. If your patent is ever challenged, you'll need the documentation to back it up in court.
• •  Hold on to your prototype. You'll have to share it with manufacturers and patent attorneys, but make sure you keep possession of it. Prototypes are expensive to create and should be protected.

You have a great idea for a new invention...But what do you do with it? Is there some way to protect your idea from getting stolen? How do you sell your idea to manufacturers? Is it possible to manufacture and sell your business inventions on your own? If you're new to inventing, be sure you understand new inventions basics before proceeding beyond the idea stage.

If you need invention help, there are three main areas you should explore. These are:

1. The patenting of new ideas,

2. Licensing new business inventions,

3. And selling your ideas outright or manufacturing and selling them yourself.

Action Steps
The best contacts and resources to help you get it done

Patent your idea on your own or through invention services

The first step every inventor should take after thoroughly thinking through their invention is to apply for a patent. Patents, which are issued by the federal government, protect your work from being stolen. Ideas that are too similar to already patented ones cannot be patented. Your idea must also be 'non-obvious' and must be so fully described in your patent application that a person skilled in such matters could create the item.

I recommend: The United States Patent and Trademark Office offers a host of educational material on patents, including articles fully explaining what a patent is, what can and cannot be patented and how to apply for a patent. For those who would rather hire someone to take care of the patenting process for them, consider invention submission corporations like Inventhelp, which offers free patent information through the mail.

License your invention ideas to manufacturers

Once you've applied for a patent, you can license your invention. Send a one-page letter to each manufacturer who might be interested in your idea. This letter should announce that you're interested in licensing your patent rights, exactly what your invention is and how it benefits the potential buyer. If you can include a professional brochure or link to a well-designed website, all the better.

I recommend: The National Inventor Fraud Center provides free information about licensing your patent, including tips for finding manufacturers, creating marketing materials and negotiating a contract. For detailed information on how to sell your patented invention, read "How to License Your Million Dollar Idea" by Harvey Reese, available through Books-A-Million.

Explore other ideas for your inventions and patents

Other options for inventors include selling your idea outright (making a one-time profit, instead of earning royalties)or trying to make and distribute your invention by yourself. The first option is sometimes preferable if you can't find a manufacturer willing to license your idea. The second idea may be ideal for those with an entrepreneurial spirit and a solid business background.

I recommend: For articles on creating and marketing your invention, check out Will It Sell?, a website by James E. White. Entrepreneur.com offers several articles on selling your invention, including "Selling Your Invention" by Tamara Monosoff, which includes information on selling directly to the public.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Some experts say it's smart to produce your new invention and start selling it to users before approaching manufacturers. Then, solicit feedback from your buyers and get written permission to use complimentary quotes from them on your website and in your brochure or letters for marketing.

Inventions are always being created for all industries, and eventually they lead to new products for businesses and consumers. And, while the process of creating an invention may be tedious, going through the proper channels to secure patents and copyrights ensures that only the best will go from the drawing board into the hands of the consumer. Many government offices and regulatory organizations also help bring them to life.

Action Steps
The best contacts and resources to help you get it done

Patent Cooperation Treaty (PCT)

The Patent Cooperation Treaty is an agreement between contracting states that offers national and international patent protection for inventions with a reduction in the cost of filing multiple applications.

I recommend: The World Intellectual Property Organization offers information and resources for learning more about the Patent Cooperation Treaty.

Copyright

A copyright is issued on a piece of intellectual property. This gives the copyright holder exclusive rights to use and distribute this property for a specific amount of time.

I recommend: The U.S. Copyright Office provides all of the laws and policies regarding filing for a copyright, what type of property can have a copyright and how violators of copyrights can be punished.

Design patent

A design patent is a patent on the specific shape and size of an object.

I recommend: Beck & Tysver's BitLaw website provides a summary of what a design patent is and what the procedure is for an inventor to file for a design patent on an invention.

Intellectual property

Intellectual property encompasses the creations of the mind, including music, literature, ideas and designs.

I recommend: The Intellectual Property Owners Association offers resources and information on intellectual property laws and court rulings throughout the United States and abroad.

Patent royalties

A royalty is a specific amount of money issued to the holder of intellectual property. This money is earned through licensing of the intellectual property to an entity for a specific amount of time. Patent royalties are paid when an infringement on the patent is apparent.

I recommend: Patent Royalty Solutions explains how a person can determine an infringement on a patent and collect royalties from this ruling.

United States Patent and Trademark Office (USPTO)

The United States Patent and Trademark Office is the government agency that reviews invention ideas and issues patents based upon a number of standards.

I recommend: The United States Patent and Trademark Office provides general information on obtaining a patent from its office.