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  1. #1
    Join Date
    Apr 2008
    Location
    Tucson, AZ
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    281
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    When should I call an idea a business and what about selling an idea?

    I recently wrote a provisional patent application and registered an idea. I have several question about developing my idea and selling it.

    Should I start a business if: in my first year I may not sell anything? How does that work in taxes? It would be nice to get an EIN tax number so wholesalers will talk to me and I can calculate potential cost. As a sole proprietor, would my expenses for cost of development of my idea be a loss on my taxes if I made no revenue that year because I’m still developing? And what if the idea never sells, but now have this tax id number?

    What about offering my idea to these big multinational companies? I noticed Milwaukee, an American company, is owned by a China company. It seems all patent ideas will immediately be given across the world and not be protected.

    I noticed Malco says on their web site they want ideas, but will not sign any confidentiality agreement and depend only patent or patent pending rights. That sounded scary; but is that how all the big companies do it?

  2. #2
    Join Date
    Jan 2014
    Location
    New England
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    5,155
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    Wouldn't a patent and or tax attorney for starters give you some ideas what to do or give you direction?

  3. #3
    Join Date
    Apr 2008
    Location
    Tucson, AZ
    Posts
    281
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    Thread Starter
    Thanks, but I was looking for fellow technicians who have experienced developing something or submitting ideas who might have some insight.
    99% of patents do not make money and probably 99.999% had an attorney; not that it's the attorney's fault. I know I can spend $400 dollars an hour on a patent attorney and get many answers. I thought about it. So it goes.
    I have a little idea simple enough for me to write my own provisional patent application and make a prototype; so I did. I'm now a registered independent inventor with the patent office, of which I am proud, if not foolish. I can now write "Patent Pending" on my product. The provisional application cost me $70 and a lot of reading. That is good for one year. I will try to sell it. If not, I may write my own full utility patent. That will cost me $800 and a lot of reading instead of $20,000 typical for an attorney. Many patents that attorneys write don't go through, it's not their fault. It's just the nature of invention. I plan to do as much myself as possible because it's fun to learn. If I don't make a big profit or the patent does not get approved, no loss. I gain.

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