How Can I Sell an Idea for Profit? Unlocking the Idea-Invention Dichotomy

By Gene Quinn
January 19, 2019

Can you sell an idea? The short answer is yes, if you have a good idea and you do it properly. Just don’t expect to be able to rush to the finish line and receive a check before running the race. Responsibly moving from idea to invention to filing a provisional patent application is the recipe to follow.

How Can I Sell an Idea for Profit? Unlocking the Idea-Invention DichotomySelling an idea and waiting for lottery-like winnings to arrive at your doorstep seems to be the American dream. It is certainly the dream of every inventor, and it is a dream fanned by late night television commercials that suggest all you need is an idea and companies will be falling over themselves to pay you for the rest of your natural life for the right to use it.

It all sounds too good to be true! Well, that’s because—in its most simple terms—it is. That doesn’t mean there isn’t a kernel of truth to the story. There’s just a little more to it than suggested by those late night commercials.

The Catch

Let’s begin with a simple question: Can you sell an idea for profit? The short answer is yes, absolutely. And, if you come up with the right idea, you can make a very handsome profit. But there is a bit of a catch (or problem really). The problem (or catch) has to do with the definition of what qualifies as an idea worth paying for and what qualifies as something too vague to be worth anything.

The top definition for idea on Google reads: “a thought or suggestion as to a possible course of action.”

Merriam-Webster defines idea as: “a formulated thought or opinion… a plan for action.”

Dictionary.com defines idea as: “any conception existing in the mind as a result of mental understanding, awareness, or activity… a plan of action; an intention…”

While they share some commonality, these are all quite different definitions for what is, generally speaking, a rather simple word; a word that we typically think we learn the meaning to very early in life. This is why what seems like such a simple and straightforward question requires a bit of explaining.

Further complicating the question is the fact that the term is used very differently by legal and licensing professionals than it is by ordinary people in everyday conversation. In fact, if you ask five industry professionals whether you can sell an idea you are likely to get at least six different answers.

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Idea Versus Invention

If you ask a patent attorney if you can sell an idea, the answer is likely to be some version of no. This is because when a patent attorney hears the question they immediately think about inventions. You cannot patent an idea—that is a well-established and unassailable legal truth. Of course, every invention starts with an idea. So, too does every product, device, gadget or service. But an idea alone is just not enough.

If you ask a business or licensing professional if you can sell an idea, the answer is likely to be some version of yes. This is because every business or licensing professional with any real industry experience will have at least one story they can tell where at least one individual was paid for an idea. Usually these professionals will have dozens of examples they can rattle off with great authority.

But who is correct? Again, the answer is not so simple. Both the patent attorney and the business professionals are correct.

In the patent world, you must have more than a mere idea to obtain a patent. There needs to be real substance involved. This is because, in order to ultimately obtain a patent, the inventor (or the inventor’s representative) will need to describe the invention so that it can be clearly understood, with all the variations and permutations described such that someone skilled in the relevant technology field or science could both make and use the invention without engaging in what is called “undue experimentation.” Your patent does not need blueprint-level detail or even engineering drawings that will describe how the invention will ultimately be manufactured. What is required, however, is instruction manual-level of detail. So, think back to that last frustrating “some assembly required” device or machine you purchased. Eventually you were able to put it together, but the instructions certainly were not step-by-step foolproof. The goal of the patent is to teach, not to be a manufacturing document.

Now, if you have an invention, and the patent application you filed defines your invention to the level required by the law, it is entirely possible that business people and licensing professionals will look at your adequate and thorough legal description and consider it little more than an idea. Why? Because to get a patent you do not have to have a working prototype and you do not need to provide any manufacturing detail. All you have to do is describe the invention on paper so that someone can understand the innovative contribution you claim as yours. There will be many steps between obtaining patent protection on an invention and actually rolling out a safe, affordable product that consumers will want to purchase. So, for the business person and licensing professional, it is easy to look at even the best patent or patent application and characterize it as an idea, or at best a foundational representation of what the product or gadget will ultimately be once it hits the market.

Crossing the Idea-Invention Boundary

So, can you sell an idea? The answer is yes and no. If all you have is a mere idea that has no structure to it, there is realistically very little chance anyone is going to pay you anything. For example, thinking of the idea of creating an H.G. Wells time machine to travel back in time isn’t going to get you anywhere. The time machine is an extreme example because no one has any idea how to make one and the current state of scientific understanding suggests a time machine is an impossibility. So, let’s try this example: A hammer with an interchangeable head that allows it to perform multiple jobs.

If your idea is to create a hammer with interchangeable heads, and that is as far as you go, you are leaving out the critically valuable information that people are willing to pay for, which is how to bring this device into being. You cannot simply be an “idea person” and expect to be paid. You need to take that idea and begin to layer on specifics and nuances. What you are in search of is an invention. Remember, every invention starts with an idea, but an invention will be a nuanced and specific manifestation in a concrete and tangible form. Of course, that concrete and tangible form does not need to exist in the real world, but rather can take the form of description on paper accompanied by drawings that show the vision in your mind’s eye.

Once you have enough specifics, you will cross over what I refer to as the idea-invention boundary. Once you have enough tangible specifics to have an invention, the next step is to file some kind of a patent application, typically a provisional patent application, in order to establish ownership rights in your invention. While no exclusive rights will be granted until a nonprovisional patent application is filed, a provisional patent application starts the process, gets you a patent filing date, allows you to use the coveted terms “patent pending,” and—as inventor-coach Stephen Key explains—it will establish perceived ownership. The ownership is perceived because you have defined what you can in the future be expected to own with an issued patent. For more information about provisional patent applications please see Provisional Patents: What are they and why do you need them?

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Patent Pending Wins the Race

It is extremely difficult to sell a naked idea. It is likewise very difficult to sell an invention that has matured from an idea unless you have some kind of ownership pending. That is what a provisional patent can do. So, when you hear licensing experts like Stephen Key talk about licensing an idea without a patent, they are talking about licensing an idea that has matured into an invention and that has been established via a provisional patent application.

So, can you sell an idea? Yes, if you have a good idea and you do it properly, you can. Just don’t expect to be able to rush to the finish line and receive a check before running the race. Responsibly moving from idea to invention to filing a provisional patent application is the recipe to follow.

For more information on this and related topics please see Invention to Patent 101: Everything You Need to Know to Get Started and 10 Critical Pieces of Advice for Inventors.

 

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The Author

Gene Quinn

Gene Quinn is a Patent Attorney and Editor and President & CEO ofIPWatchdog, Inc.. Gene founded IPWatchdog.com in 1999. Gene is also a principal lecturer in the PLI Patent Bar Review Course and Of Counsel to the law firm of Berenato & White, LLC. Gene’s specialty is in the area of strategic patent consulting, patent application drafting and patent prosecution. He consults with attorneys facing peculiar procedural issues at the Patent Office, advises investors and executives on patent law changes and pending litigation matters, and works with start-up businesses throughout the United States and around the world, primarily dealing with software and computer related innovations. is admitted to practice law in New Hampshire, is a Registered Patent Attorney and is also admitted to practice before the United States Court of Appeals for the Federal Circuit. CLICK HERE to send Gene a message.

Warning & Disclaimer: The pages, articles and comments on IPWatchdog.com do not constitute legal advice, nor do they create any attorney-client relationship. The articles published express the personal opinion and views of the author and should not be attributed to the author’s employer, clients or the sponsors of IPWatchdog.com. Read more.

Discuss this

There are currently 6 Comments comments.

  1. Small Inventor January 20, 2019 10:30 am

    It seems to me that, even after obtaining a provisional patent AND non provisional patents based upon it, the barriers to being paid a reasonable amount for the “idea” are still huge. This is because large corporations, who are the the most likely to purchase or license the patents are much more likely to infringe the patents than to pay anything to use them. This is referred to as “efficient infringement” and small inventors are powerless to do anything about it because they do not have the financial resources to assert the patents against these large corporations.

  2. Edward Goldfarb January 20, 2019 11:11 am

    A GLOBAL GAME CHANGER

    The market for SOPO is worldwide 17+ billion units annually while eliminating a huge volume of plastic containers.

    Ralph Waldo Emerson said. “Build a better mouse trap and the world will beat a path to your door”. Ralph Waldo Emerson, never invented the better mouse trap. My quote is, build a better mouse trap and you’ll have to beat the world’s doors down just to get it noticed.

    Seriously, I have invented that better mouse trap (patent pending) SOPO (Stick On Pull Off) HBA soap – lotion Dispensers.

    SOPO Dispensers are 99.95% plastic free, have no plastic cap, hands-free use, works better than the current plastic containers, gravity fed therefore 100% of the contents is usable, no moving parts to jam or break, , easily and temporarily attaches to the shower wall, or any wall, and pulls off with a snap for recyclable and or biodegradable disposal. SOPO also cost less to produce than current plastic containers with plastic cap pump mechanism. There are working prototypes and those that have tested the product loves them and without exception would purchase products in SOPO DIspensers over others if they were available.

    Despite all the advantages SOPO have proven to be hard sell to major manufacturers such as P & G. I will eventually prevail either by licensing or self manufacturing as all manufacturering and marketing elements are in place and business plan draft written. BUT, taking a new product to market “ain’t” easy.

    Just thought I would share my trials and tribulations on “The better mouse trap”.

  3. Jorge Santos January 21, 2019 4:02 pm

    I have a picture hanging tool called dowel i would like to sell

  4. Jorge Santos January 21, 2019 9:05 pm

    I have a picture hanging tool called dowel i would like to sell or license i need baking for a percentage of 20 to 30 percent if your interested Contact me i not looking for any money down thank you

  5. Brian Matlock January 22, 2019 11:54 am

    One of the first principles taught in the business world is that the world WILL NOT beat a path to your doorstep just because you have built a better mousetrap. To think otherwise is known as MYOPIA! Won’t happen. It takes engineering and marketing to actually develop a product, aka millions or at least thousands of dollars of investment to get your project off the ground as they say. You may have an issued patent but have you built a prototype that can demonstrate that your concepts are correct, with ACTUAL data? If not, you will not likely license your idea unless you can clearly demonstrate constructive reduction to practice through calculations and formulas, etc. Why do you think companies spend millions of dollars on product development projects? Why should they take risk on early stage development when they can let someone else take the risk and then reap the benefits by acquiring the startup. This is why GAP funding is so crucial. To assist inventors to get their ideas from concepts into proven concepts. Then the industry players will take notice. If this all sounds depressing keep in mind that you will likely need to convince others along the way of your concepts improving the state of the art significantly the move the dial in your industry. Find investors. Make grant submissions and find the funding for each step of the way. Not for the weak of heart and in general, there are not many shortcuts.

  6. American Cowboy January 23, 2019 9:49 am

    My advice usually goes even further: in addition to the patenting, go into production and sell the product. The sales can be really small scale: local flea markets, a rudimentary website, … whatever suits for the inventor, his invention and its marketplace.

    What you want to demonstrate by this effort is not only that the invention can be made and work for its intended purpose, but that there is a market for the item — a market that is willing to pay a high enough price to cover production costs and yield a profit. Once that is clear, buyers are interested and can scale it up.