Inventor Boot Camp Bert Vermeulen 10 17 2009

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Invention, Entrepreneurship, and Patents

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DaVinci Institute17 October 2009

Invention Patents

Entrepreneurship

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Topics:

Brief introduction

12 entrepreneurs / 15 ideas / 11 apps / 5 patents

Lessons and observations

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Bert Vermeulen:

Engineering & business education

Father & brother: 10+ patents each(John Vermeulen/Robbert Vermeulen)

Teach Mech Eng Design at CSU

Helped file 11 patent apps since 2003

corp21.com helps entrepreneurs

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9 Entrepreneurs, 9 ideas, 6 patent applications:Inventor Idea Patent App? Result Business

?

Bert Surftree (software)

2004 Abandoned No

Rita Web video software

2004 Abandoned No

CR66 Used car sales 2004 Abandoned No

Dr Deeds

Investment software

Search only Not pursued No

Happy Life

Software 2006 Abandoned No

MedXCo Reduce urine smell

2006 Abandoned No

Elias Open space cooling

Search only Did not pursue

No

Vesta Microcontroller Search only Did not pursue

Small

Ice Ear bud jewelry Design 2008 Granted Small

If there’s no business, there’ll probably be no patent.

Having a patent doesn’t mean there’s a business.

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Why were these patent apps abandoned?Example: Surftree

Initial patent application cost <$1000 (self done).

Three years later, the examiner came back with lots of objections.

Product wasn’t selling.

It would have cost $3-6K of professional advice and fees to get something narrow allowed.

Not worth it.

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Entrepreneur #10: ClearCorp.biz Instrumentation for water treatment plants.

At least 5 years of development (perhaps 10+ years).

First patent application filed September 2009 after working on it for 2+ years.

Opportunity. Market leader. Industry expert. Product pre-sold.

Challenges: Cannot file abroad after public disclosure. Cannot patent ideas 12+ months after first offered for sale. Need more than one patent application to be filed. Entrepreneur is 73 years old.

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Entrepreneur #11: Axelo.net:

3D Mouse using same technology that’s in the iPhone.

Provisional Patent Application filed November 2004.

Regular Patent Application filed October 2005.

Patent allowed June 2009. In final steps.

Now working on follow-on patent applications.

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Entrepreneur #12: John VanderHorst:

Invented pneumatic pressure regulator for Norgren in 1962. Design is still in production.

Started own business in 1964. Marginally successful.

Hired by Wilkerson in 1966 to design around his Norgren patent. Design is still in production.

Has been an inventor/entrepreneur ever since.

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John VanderHorst’s Inertia Pump (1980-1985):

IdeaPatentProductCompanyWilkersonRetire

US Patent# 4,370,101

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How does the inertia pump work?

Accelerate a pipe with liquid in it

Use a check valve to prevent back flow in reverse cycle

Oscillate back and forth

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Turn configuration into a loop and oscillate it

Inlet

Check valve

Fluid flow direction

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The John VanderHorst Story:

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“Minimize investment through Do It Yourself”

ISSUE: SOLUTION: Funding $100K+ out of own pocket Product development Made own protos. Outside tooling Manufacturing Build them yourself. $0/hr for 1 year Product introduction Visit local dealers

RV show in DenverPartner in Europe

National distribution Keep trying for 9 monthsMail samples to dealers

Worldwide licensing Know how to negotiate

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Tow-N-See Mirror patent summary: US utility patent application Jan 2003, granted Dec 2006.

International utility patent abandoned.

US design patent application Dec 2004, granted Sep 2006.

European design patent granted.

Competitor launched copy-cat product spring 2008.

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What’s next for Tow-N-See: $200-$300K/year business.

Runs itself.

Available for sale to the right buyer.

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Lessons and observations: Hurdles

Patents only useful with products & businesses It takes time and money

Opportunities A business with a patent is worth more Issued patents can create credibility For larger businesses, a good defense is a good

offense (numerous issued patents) You can do some of the work yourself

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Also keep in mind:

Most issued patents are never commercialized.

Commercialized patents can be quite valuable.

There is starting to be a market for good patents.

Patent litigation costs at least an order of magnitude more than patent prosecution.

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Questions and discussion

Inventor Boot Camp Bert Vermeulen 10 17 2009

Education