Intellectual property value changes over time. In the beginning, it has little value. It starts as an idea scribbled on the back of a napkin. As time goes on, it gains in value as it moves into the marketplace. Different types of intellectual property change value for a variety of reasons. A patent offers a valuable solution to a market problem, but as new technologies offering better solutions enter the market, its value is reduced. Successfully launching a patented product into the market increases its value. Brands gain value as they become better known. Development also plays a big part in both the value of your IP and the licensing deal. The closer your IP is to market ready, the higher its value and the royalty rate to license it.
If your invention solves a real problem, appeals to the masses and is highly demonstrable, DRTV is a good licensing option. The challenge is convincing a DRTV company to take a shot on licensing your invention. How can you determine if your invention is a good fit for “As Seen On TV”? To find out, I interviewed Gil R. Tatarsky, whose company Distinct Creations (www.yourideastolife.com), specializes in working with inventors to license their product to direct marketing companies.