About Lee Leichter Expertise Manufacturing, Outsourcing, Regulatory (FDA), Quality systems and problems, Exporting, Start-up Issues, strategic planning, Distribution, etc.
Experience Employment history: Over 25 years in the industry
Question i have an idea for a medical device and i don't have the resources to apply for a patent. i'm thinking about approaching a company about manufacture/marketing the product. how can i find out what a fair price would be for my idea and is it customary to ask for a percentage of sales if the idea comes to fruition?
Answer Jennifer,
The value of your idea depends on the potential value of the product. Your share is usually determined by the amount of effort and/or equity that you invest. The least valuable asset is the idea itself. There are hundreds of great ideas that do not make it because they are not properly developed.
The number and types of arrangements available to the inventor are unlimited. A percentage of the sales, or royalty is not unusual. For just the idea, without at least a patent or a patent search, that may not be possible.
Another option may be to contact a business incubator, or company that specializes in developing new medical products. After signing a confidentiality agreement, they will usually be able to determine the potential value and suggest an appropriate method to develop the idea. Many of them will help form a company and assist with acquiring financing. Approaching a large established manufacturer without any idea as to the value of your idea is one I would not recommend.
I know several people involved in helping new ventures and developing new products. If you would like to see if this is for you, please e-mail me directly at leichter@pipeline.com.
