Presentation on theme: "How to license a product idea www.npdtoys.com. Start with an idea (worth selling) It must be original i.e. a novel or unique device, method, composition."— Presentation transcript:
Start with an idea (worth selling) It must be original i.e. a novel or unique device, method, composition or process or an idea that is not obvious to those skilled in its field It must work technically prove an idea works with a prototype/proof-of-concept model There must be a market for it whether it’s red ocean or blue ocean, the idea must have clear value to the potential customer
classic bluff but on your face! classic bluff card play = old school THE IDEA:
Don’t be afraid to ask all friends/peers/associates might have an objective view that improves the idea – be open Non Disclosure Agreement (NDA) a good NDA helps the idea progress in confidence so always have your paperwork in place – be safe Ask an agent no one knows a field better than those that survive on it; and it usually pays dividends to let it go – be wise Validate the idea (properly)
“erm…is it supposed to look like a penis?” add glasses SOLUTION:
Market research spotlight competitor product and identify the top 10 customers to target Feasibility decide on the best end-product/price/place/promotion and then work backwards from the shelf to achieve each one Design and branding empathy ascertain the latent customer needs in order to develop the idea in a way they can instantly relate to/desire Make the idea fit (naturally)
in Amsterdam testing/tweakingin HK prototyping Final prototype Final production = NATURAL FIT!
What are the options? aside from an NDA, there are 4 main ways to protect an idea, but only pick the ones that truly secure the IP: Patents – protect how something works or what it’s made of Registered designs – protect what something looks like Copyrights – protect artistic works such as books and images Trade marks – protect a brand and a trading image Protecting the idea (properly)
“A game whereby the score is kept through the use of toy eyeglasses with attachable nosepieces. As the players accumulate points (or demerits), pieces are added to the nose, effectively extending its length” US, Canada and the EU Design registration:
Do keep it short use lots of images/prototype focus on the uniqueness of the idea highlight its feasibility leave a handout that makes sense without you Don’t S.P.E.L.L. I.T. O.U.T tell them things they already know stretch their minds bounce all over the place – illogical progression make it up Pitch it well (considered)
THE PITCH: Customer:Top 10 Price:SRP $15.99 C.O.G:ca $2.00 Box size:267x267x60mm THE RESULT: Customer:Spin Master USA Price:SRP $15.99 C.O.G:ca $2.00 Box size:267x267x60mm
From the bottom up always pitch to the bottom 7 target customers first in order to perfect the pitch in time for the top 3 Learn to love criticism believe the negative feedback and distrust the positive as polite whenever reworking or improving the pitch Smell the coffee know when to cut your losses – if the top 10 are clearly uninterested then please move on or find an agent Practice makes perfect (tips)
Royalty % a licensed idea will usually earn a royalty between 5-10% of the customer’s Net wholesale price Advanced payment usually an amount that covers the development costs related to the idea, which will be recoupable against future royalties Territories and Period don’t just give the customer the world without knowing if they can deliver it – retain as much control as possible Getting it right (contractually)
Winner of the W.I.T.T.Y award 2013 (Winning Inventor Toy of The Year) Best selling game in the US 2012 1,000,000+ sold games in 2 years $10 million+ in sales More than $600,000 in royalties
1Have an original and/or intelligent idea; 1Design it from the retail shelf backwards; 1Let it speak for itself; 1Don’t fall in love; it’s just an idea; and 2When you get there, make sure you get a good deal In simple terms (please)
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