Pitching Your Invention to Toy Companies

Patenting toys is a hot area for many inventors, and can be very lucrative as well. You should always have a patent issued prior to pitching it to the toy reps otherwise you have no protection. In the very least you should have a pending patent application filed. In some rare cases, a toy company, typically smaller toy companies, will sign your non-disclosure agreement (NDA), but don't count on it.

When it comes to pitching and selling, and who to go to, it just really depends what industry you are in and if you have a winner of a product. I recently counseled one of my clients into a great patent licensing deal with a well established toy company, and she just recently filed her patent.

Here is a great Youtube link by Mike Mozart with advice about who to approach at toy companies when pitching your product: http://www.youtube.com/watch?v=pQrefQIqrwM&feature=fvw

Now is the Time to Invent and Patent

Companies have started to change their attitudes about accepting outside idea submissions from lone inventors. In the past, many companies instituted policies rejecting any outside idea submissions and instead relied on their internal R&D departments to come up with new products. Many of these companies did so to avoid potential patent infringement or other IP claims.

However, with the change in the economy, many companies are cutting back in their R&D budgets, so they are realizing that accepting outside ideas to buy or license is more cost effective. A prime example is Procter & Gamble, where Greg Swartz of Arizona, a lone inventor invented a battery-operated odor-eliminating device called the “Hang ‘n’ Fresh” that hooks inside garbage cans. Swartz took the approach of simply emailing P&G and received a response in 24 hours, in which the company took the invention under consideration. If approved, Swartz may have a large royalty license agreement or assignment (total sale of the invention) to P&G. In fact P&G established an external-ideas program in 2001. In 2008 P&G received 3,740 submissions, and has about 1,000 contracts under the program.

Patenting your invention, or in the very least filing the patent application now, and doing the proper homework as to the right contacts at the right companies, can land you a similar royalty or a million dollar assignment of your invention.