This is a transcript from a section of the course “Patents 340 – Invention Rating Checklist,” which is available here at IP.Education.
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When we have the best design around alternative, we can figure out the value of the invention in dollars and cents.
We would like to find the invention that has a huge value over the next best thing.
However, sometimes we do this analysis and find out that there isn’t much there.
Maybe our product is the same cost benefit as our competitors.
Maybe it is worse!
The economic value is really where the rubber meets the road for the invention.
If we can show economic value, the invention will often have real business value.
When there isn’t any economic value, well, there isn’t much of a reason to have the patent.
The economic value, in some respects, has a multiplier effect by the performance advantage of the invention over the best design around alternative.
An invention with a huge performance advantage will generally have a big economic value as well.
A level 1 result is that the invention has no economic advantage over the alternative.
This result may make you rethink whether a patent is a good idea.
After all, you are going to invest $60,000 or more on the patent. Will that investment pay off?
A level 2 result is that the invention has a 1.5x economic advantage.
A level 3 result is that the invention has a 2x advantage.
A level 4 result is that the economic advantage is 4x, and a level 5 result is that the economic advantage is 10x.
When figuring out whether your invention is worth patenting, an inventor can get very optimistic about their invention.
I am being kind.
I don’t know any inventor – especially a first time inventor – who doesn’t love their invention to death.
Many inventors have a stubbornness that is their best quality.
It helps them plow through the tough times to find innovative solutions to interesting problems.
But sometimes, the stubbornness can get in the way.
It is really important to be as objective as you can when doing these analyses.
It is very easy to imagine how wonderful it will be when every household wants your invention and it is flying off the shelves at every store.
But that doesn’t happen very often.
If your invention can survive a true, honest, and thorough design around analysis, it has great potential to be the one in a million success stories.