Chapter 15

HOW TO CONDUCT THE SALE OF PATENTS

While the inventor may put much hard study upon his invention and make many costly experiments, this part of his work is usually a pleasure; and in securing the patent he invariably has able counsel in his attorney with no anxiety on his part; but with the commercial proceeding of selling his patent, which involves the greatest prudence and care in managing, it is different, and here is where the inventor's real work begins if he expects to reap the benefit of his invention.

[Sidenote: Patent-selling Agencies.]

For the benefit of unexperienced patentees it is deemed expedient to give a word of warning here regarding the host of so-called patent-selling agencies, which under various imposing titles, coupled with an apparently honest and straightforward method of business, tempt each patentee, upon the issue of his patent, to place the same in their hands and authorize them to negotiate the sale thereof. Their propositions are very attractive and temptingly prepared; their offers appear to be "gilt edge"; their circulars are high-sounding and rose-colored; their contracts are formal looking, and drawn up in an impressive way, highly advantageous to the patentee; but it will be noted in all cases that they will require the patentee to pay down a certain sum under some pretence,--such as to cover the cost of advertising the patent, to have circulars printed, to secure copies of the patent for distribution, to have a cut made illustrating the invention, or for membership fee, and so on, it matters not what, so long as it is an advance fee. Many will also agree to sell both the United States and Canadian patents, if the patentee will file the Canadian application through them; it is evident, however, that this is only a scheme to get the patentee to take out the Canadian patent through them--they having no facilities for disposing of either of the patents.

The writer is not prepared to say that there are no honestly conducted patent-selling agencies, but from long experience and observation, has never known where a patentee was ever materially benefited by placing his interests in the hands of these concerns, and has yet to learn of them ever making a sale solely through their own efforts. Very few of these concerns have any facilities whatever for selling patents; all of their time being taken up in mailing their weekly circulars to inventors immediately upon the publication of the _Official Gazette_, and working inventors up to the remitting point which usually ends the matter so far as they are concerned, unless they believe they can get another fee out of the patentee.

There may be exceptions, but patentees should fully satisfy themselves as to the integrity of these firms before placing business in their hands, as the Assistant Commissioner of Patents in his report in the Webberburn case, 81 O. G., 191 K, clearly pointed out that the methods of these concerns were such as to sell the patentees rather than their patents.

[Sidenote: The Patentee the Best Selling Agent.]

That the patentee himself is the best selling agent there can be no doubt, for he is familiar with the construction and operation of his invention in every detail, and knows its merits and superior points far better than anyone else, besides manufacturers and others wishing to purchase patents invariably desire to deal with the patentee himself. Business men, it may be said as a rule, do not think very much of an invention which the inventor has abandoned to others to negotiate, moreover the personal push of the inventor is, in nearly all cases, essential to the successful termination of a sale.

Subtract the personal energy and presence of the inventor from the successful inventions of the past and of to-day, and the chances are that they would not have succeeded as they did. It is not only a question of material interest, but also of enthusiasm and confidence, and each patentee, having but one patent or a set of patents to push, can lend thereto that individual attention which insures good work and success.

[Sidenote: In Case the Patentee Cannot Undertake the Selling.]

However, if from any reason the patentee is unable to handle his own invention and must engage the services of an agent or salesman, he should select one from among his own acquaintances, in whom he has confidence. He should if possible get a person who has had experience in the line of the invention, as such a person would likely understand it and the trade better than others. It is not really necessary that he should have had experience in selling patents; if he is a good talker, knows how to approach business men, and thoroughly understands the invention, he will probably make money for the inventor and himself. The patentee should have him submit all offers of value for his consideration, and should not give the agent power to sign or collect. The patentee should name a reasonable price for the patent, allowing the agent a liberal commission upon the price, and encouraging the agent by allowing him a certain percentage of all he may be able to get over and above the price named. This will encourage the agent to work for the highest price obtainable. The inventor should make every effort to be able to personally attend to the details of selling, and keep the business under his personal supervision.

[Sidenote: Methods of Selling Patents.]

There are a number of plausible methods to which the patentee may resort in disposing of his patent without the aid of questionable selling agents, and it is the purpose of the following pages and succeeding chapter to set forth such methods as have in the past proved beneficial to patentees; those along which success have been achieved, and such as are employed by the most successful inventors of the present time in handling their patents.

It is true that no definite method or system can be given that will apply to all patents alike, as the method in each case will depend more or less upon the character of the invention, and to the particular art to which it belongs; however, from the following pages the patentee should be able to judge what particular methods will best apply to his individual case, and proceed along these lines.

There are many patents issued which the patentees thereof can as successfully dispose of from the smallest hamlet in the United States as from New York, Chicago, or any of our larger cities, while, of course, there are others which only those directly connected with the largest and wealthiest corporations can hope to dispose of successfully. The main thing is not to become discouraged or give up until one succeeds in making a sale.

[Sidenote: About Advertising.]

To make the merits and importance of an invention publicly known is, in many cases, one of the best ways of bringing about the introduction and sale of a patent. If the inventor has a patent on an invention that manufacturers or others want, and can make its merits and superior qualities known to them, negotiations will soon follow. There is no way for patentees to place themselves in communication with prospective investors quite equal to an advertisement in the proper medium. Here it may be well to state that patentees who decide to advertise their patents for sale or otherwise should place their advertisements in publications of known standing, such as the leading daily newspapers. A brief, well-worded advertisement in the "Business Opportunities" column of these papers bring quick and good results, though, perhaps a better class of inquiries may be obtained by advertising in the trade journals of the class to which the invention relates, and while the trade journals may not bring about as many inquiries as the dailies, those that answer will be more apt to be interested and talk business. Either of the above are good mediums, but in advertising patents for sale patentees should carefully avoid those publications that are published at uncertain intervals, and usually for the express purpose of circulating among inventors for various purposes. They do not reach the class of people that invest in patents. Inventors should know the class of people that would be likely to become interested in their inventions, and advertise in such mediums as have the largest circulation among that class.

[Sidenote: How to Write an Advertisement.]

In the construction of an advertisement there is often too much waste by using too much verbiage, too many unnecessary words or sentences, sometimes too much display. Prudence in the arrangement, and care in editing an advertisement, will save much expense. The size of an advertisement of this class has really little to do with its pulling qualities.

The statements should be assuming, and at the same time truthful, as any deception in an advertisement is sure to work an injury. There should not be more claimed in the advertisement than sounds reasonable, even though it be stating facts; if an advertisement sounds unreasonable it will not have the desired result. Inventors sometimes become so enthusiastic over their inventions that they exaggerate unintentionally. A good rule is for the inventor to read over the advertisement, and ask himself, "If this statement was read by me, would I believe it; would it convince me?" etc.

Putting one's self in the purchaser's place is always one of the best factors in writing good advertisements. The inventor should put himself in the place of the purchaser of the patent, and reason what would induce him to investigate its merits; what would likely cause him to take it up, and so on; he should think and write fully along these general lines, incorporate these reasons into an advertisement; then boil it down by cutting out the unnecessary words and sentences; prune, remodel, and rewrite until he has a brief advertisement, clear, concise, and to the point.

[Sidenote: Correspondence as a Means of Bringing Patents before Interested Parties.]

While to advertise, as suggested in the foregoing pages, would require a very moderate outlay, and be, perhaps, the better course to pursue: however, in connection with it, or if the patentee does not feel that he can afford the expense of advertising, a very good plan is for him to secure copies of a number of the trade journals of the class to which his invention relates, and carefully look over the advertisements therein, and select a list of such manufacturers as would seem likely to be induced to purchase the patent in question, or manufacture the article on royalty. In this manner the patentee will probably get the best up-to-date list obtainable, and it may be set down as a fact, with very few exceptions, that if manufacturers and dealers who make and handle just such articles as the patent calls for cannot be interested, it is very hard to interest others not engaged in such line, except when the invention is large, and requires a great deal of capital to work the same.

[Sidenote: How to Correspond with Manufacturers.]

To each of the parties of the list thus selected, or to a number of them, the inventor should write a well-composed and convincing letter setting forth the invention in its best light, and stating just why it would be to the interest of the parties solicited to investigate the same. Some time should be spent on this letter before attempting to write it, and the writer should weigh well in his own mind what would be best to say, and the proper way of expressing it. He should be as brief as possible, consistent with legibility. The statements should be assuming, yet in every respect true. He should state in brief terms just what the invention is, what it will do, the points and advantages it has, and at the same time endeavoring to get the parties interested so that they will inquire into the invention, rather than attempt to come to terms in the first letter.

The letter should be brief and pointed, and plainly written upon business-size paper; and if the inventor has a typewriter, or access to one, he should use it. If he has printed circulars he should send one with his first letter, which will enable him to make the letter briefer and more business-like.

In correspondence it is well not to name a price until the parties are interested, and first endeavor to get them to make an offer. The patentee should be patient and should not expect to jump right into a bargain at once. If the invention is a meritorious one there will be more than one of the manufacturers to whom the patentee may write, who will become interested, and when such a state exists, the patentee can begin to be more exacting as to his demands since competition has been created between the manufacturers.

[Sidenote: Circulars.]

A few dollars invested in circulars will frequently be found of great value to the patentee if he intends to negotiate the sale of his patent mainly by advertising and correspondence, as they will save a great deal of writing and explaining as well as appear more business-like and attractive, and may be the means of more readily effecting a sale.

[Sidenote: Illustrations.]

If the patentee can afford the additional expense of an illustration, it will greatly increase the appearance of the circular, and make it more readily understood and interesting. The cut should be neat and set forth the invention in its best light. It would be better to entrust the procuring of the cut to the printer, for he will know just what is wanted and can secure the same at a better price. A sufficient number of well printed circulars, with illustration, can be obtained of any printer for a few dollars.

[Sidenote: About Getting up Circulars.]

The circulars should be attractive, convincing, and logical; nicely arranged, and neatly printed upon good paper. A mistake is often made in sending out trashy-looking circulars, poorly printed upon cheap paper; they repel rather than attract, and do not have the desired effect.

The circular should have good head-lines so as to attract the attention of its recipient at a glance, and his interest should be held by having the uses and advantages of the invention well written.

Many of the pointers suggested in advertising and letter-writing will equally apply to the writing and getting up of the circulars, and need not be treated further here, except that the patentee should dwell especially upon the merits of the invention, its uses, and advantages over like articles. This should be done in the most interesting manner possible, describing it so that its value will be fully understood.

[Sidenote: Uses of Printed Copies.]

It will be well for the patentee to order some printed copies of his patent, as manufacturers and others usually ask for them if interested, in order that they may examine the patent, or have an expert to examine it, to ascertain its validity, novelty, and what protection is really afforded by the patent. It cannot be denied that in either case the invention will suffer a cold-blooded rigid examination, and must stand or fall solely upon its merits. If, however, the invention is adjudged to have real merit and properly protected by the Letters Patent, business negotiations will likely begin, and the patentee will perhaps speedily make a satisfactory deal.

[Sidenote: First Impressions All-Important.]

Some inventors use printed copies of their patents instead of circulars, but, while they fully set forth the invention in a technical way, it cannot be said that in all cases it is advisable to send copies of the patent until called for. Many parties who become interested in patents are not familiar with mechanical drawings and technical specifications, and very often do not get a very favorable impression from a copy of the patent; and it is very important that the first impressions should be favorably created, for upon this much will depend. If parties become sufficiently interested to fully investigate an invention, they are very apt to form a favorable opinion of it.

[Sidenote: Value of Models.]

There is no way of so easily creating a favorable impression and gaining the interest in an invention as by a neat and perfect working model of the invention. Man never loses the child-love for toys, and a perfect miniature machine of any description will attract more attention than one of full size. With a model the inventor has the full and immediate attention of his prospective purchasers at once. If the patentee, or his agent, intends visiting manufacturers, or to sell the patent by territorial rights, he will find a model of his invention almost indispensable.

Inventors should be very careful about sending models to unknown parties, and should mark the number of the patent and their name and address upon the model. It should invariably be understood in advance who is to pay the transportation charges, before sending a model with any charges to collect.

While models are very helpful in setting forth an invention and making sales, high prices exclude many inventors from their use. Model-makers usually charge fifty cents per hour for each man working upon the model, and market price for the material used; from these figures the inventor may make a rough estimate of what a model of his invention will cost.

[Sidenote: Working Drawings.]

Working drawings are different from those forming a part of the patent in that they are more detailed, giving the size of each piece and the material of which it is constructed. While working drawings are not quite as expensive as models, they do not show the invention to the advantage that models do, and are of little value to those who do not understand them. On the other hand, working drawings have the advantage of being easily sent through the mails, and can be duplicated at small cost. Manufacturers prefer working drawings to models in quoting prices on manufacturing the invention in quantities.