Thanks to a few brilliant minds over the course of the last hundred years or so, wireless technologies have become ubiquitous, but that hardly means they have become easy.  Yes, there are many options out there that make things ‘easy’, but those easy things come at a cost which involves compromises on cost and/or capability.                                                                                    

If they say, “Hardware is hard”, then “RF is FM” is freaking magic 

1. Define requirements
   
   

What do you need the wireless component of your system to do?  There are scores of protocols and technologies out there for wireless devices.  Most are familiar with the standard ones like Bluetooth and Wi-Fi, but even in each of those there are many components.  Also, the standard ones are only worth it, usually, if you need to communicate with other existing devices.  If you are creating your own system, and you don’t need to talk to phones or other networks, then a proprietary network can be a large cost savings.  

Range and battery life are other requirements that define which wireless system to use.  These two are usually at odds with each other.  Even when you don’t have battery life issues, there are maximum output power limitations that will affect range capability.  

2. Pick a protocol
   
   

As stated above, a key requirement is to define what other devices you’ll want to communicate with. These are divided into two categories, proprietary and standardized. Standards are great because you can talk to common and existing devices. However, they can cost more to implement and you usually have to pay a fee to use them. Proprietary protocols are great too, as you can choose components that fit your requirements. If designed properly, proprietary protocols can be as secure or more secure than standard ones as well. It all depends on what features are more important in your application.

3. Determine volume
   

Almost all engineering design tasks are haunted by the volume question.  Final product cost can almost always be driven down with volume. Of course, the catch is that while new products are being developed, the number of units that will be sold is mostly a guess at best.  All the market research in the world can lead the best and the worst companies to the wrong conclusions.  Take the best guess you can, be conservative, then be more conservative, and start there.  Once the market is validated, more engineering can always (and more justifiably so) be put into the product to reduce production costs.

One of the most common ways to reduce upfront costs when developing a wireless product is to utilize a module.  Sure they cost about 2 – 10 times the cost of the raw components, but they can save $10K to $300K in development and compliance costs.  For instance, it may make sense to use a Bluetooth radio system module for up to a few thousand units.  A cellular radio system module may be cost effective up to 50K units.

4. Choose a Country of Operation

Yep, where you operate a radio system matters.  Radio (wireless) emissions are regulated throughout the world (FCC in the USA) and the rules change everywhere.  Luckily, there are some common bands or frequencies that can be used throughout the world (thanks to the microwave oven).  The most common is 2.4GHz; this is where Bluetooth and Wi-Fi operate.  However, these frequencies aren’t the best for long distance communications.  900Mhz (ISM) is a band that is used in the USA for high power and longer range communications.   However, this same band is not legal in Europe and only parts are legal in other countries.  It can get complicated and these are just the open or public radio bands.  There are myriads of bands that are used for government, police, air traffic and maritime uses.

Keep in mind also that these regulations in various countries require compliance.  This means they must be tested by an independent lab that states that your device works properly, follows the rules, and plays well with others.  Compliance is a significant cost and is one of the major up-front cost savings when using a pre-certified module.

5. Specify
   

This is the hard work where the rubber hits the road.  You need to write down your requirements and be prepared to make compromises.  Items like range, capability, and overall system operation need to be carefully thought out, then validated with an engineer.  We are here to help you do this.  Check out our blog at 5 Tips for Writing Your Specification for Product Development for help writing your specification document.

Creating or adding wireless communication to a product is a complex task, but with the right help it can be a fairly deterministic process.  Carefully thinking about all of the parameters and requirements from a business and technical perspective is key to getting the right radio system designed and developed.  Also, the radio system is just part of your product design.  For more information about designing your electronic system, check out our e-Book below.

Printed wiring board (PWB) is an older term used for PCBs.  It was exactly what it sounds like, it was a way to print wiring.  This term could still be used for very simple PCBs where the function is more for mechanical wiring than active circuitry.

A look inside a modern cell phone is a PCB that reflects the ‘work of art’ side.  It’s a finely crafted network of wiring and components, flexible and rigid PCBs which all work together perfectly to provide the functionality we’ve come to take for granted in modern technology.

No matter what your needs are, it’s important to realize that all PCBs are a combination of at least 2, if not more engineering disciplines.  Understanding what these disciplines are and how to specify your requirements are important aspects of getting your PCB done right the first time.  The disciplines are:

Electrical engineering – this is the obvious one. The goal is to wire electronic circuits together.  Of course we’ll need some electrical engineering.

Mechanical engineering – while perhaps not so obvious, we live in the physical world. We are wiring in the physical world so there are mechanical requirements to consider.  Some PCBs have very few mechanical requirements like put 4 holes in the corners.  Others move towards the work of art level, but most are in between.

Software engineering – Almost all PCBs these days have some level of software in them. If there is a microcontroller, then there is software.

Thermal engineering – Many times grand assumptions are made about the environment something will operate in. The environment something will operate in can change the design drastically. Specialties – If there are lights, then perhaps there is an optical engineer involved.

Other specialties can be involved just depending on what needs to be done.

Below is a How-to guide to help you communicate details of the PCB to your engineer for design of your circuit board

{{cta(‘c11f1602-72cd-4abd-be0b-41cfad610249’)}}

High Level Functionality – The first step is to write down what you want it to do.  You can start out with very broad definitions of your inputs and outputs and what it does.  Provide whatever level of detail you can.  Helpful aspects to think about are parameters like: 

Think about these types of questions and have an understanding about how it all goes together. Of course your engineer will be happy to fill in the gaps, but the more effectively you can communicate, the better chance of getting what you want and saving costs due to miscommunication. 

For more details on how to write a specification, please check out this article. 

Mechanical and Thermal Requirements – We know we need to understand the kind of space you want to put your PCB into.  Sometimes it’s as simple as ‘put it in this box’.  However, even that can lead to issues.  What about these questions:

Software Requirements – While many boards have very basic functionality like ‘turn this on when this happens’, other PCBs can have very complicated logic built into them.  In some cases, software can drive 75% of a PCBs design cost, and sometimes more.  Software is a double edge sword in modern day PCB design.  On the one hand, it offers extreme flexibility and capability to create complex functionality and control.  On the downside, all of the flexibility and control can lead to software never being finished.  If there is a new idea to implement, it’s likely you’ll be able to add it in to the software.  This is great if it means you can sell more of your product with a software change.  It’s not so great if changes are made haphazardly because software changes are ‘easy’.  A specification is very important for this phase.  Make sure you can answer these questions:

What does the software have to do in all cases? Not just in the main case, but in everything you want it to do.

Other Specialties – If other specialty engineering disciplines are required, specification and design can get more complicated.  Some companies, like ours, are familiar with LEDs where we can cover most of the requirements for a LED lighting project without an optical engineer.  However, there are other cases where complicated instrumentation may need to be researched or subcontracted for very specific design aspects.  Below are some examples of some non-standard engineering requirements.

In many of these cases, modules have been developed by 3rd parties that can help reduce the engineering requirements of the specialty work to the level of skilled engineer.  In some cases, it is the scientist who needs the PCB built and they can provide the first-hand expertise on how the other engineers need to interface to their specialty systems.

One more very important engineer that was not mentioned is the manufacturing engineer.  This isn’t necessarily a specific engineering discipline, but to consider how your PCB assembly will be produced.  Placing a surface mount component is cheaper than placing a through hole component.  (Machines do the surface mount work.)  There are scores of items to review to ensure high yield PCB development.  Many are standard practices, but the skill lies in the hands of the engineers building the board.
Printed circuit board development is a complex and highly skilled craft.  With all of the various skills involved, it is best completed by a team of engineers.  Sure, there are many design challenges that are small enough to be completed effectively by a single engineer in a reasonable amount of time.  However, as the saying goes, two heads are better than one.  Having an engineering team develop your PCB where there are design processes and reviews in place help ensure a high quality design for your product.

 {{cta(‘c11f1602-72cd-4abd-be0b-41cfad610249’)}} 

So just as the name states, the goal here is to prove the concept of the product you want to ultimately produce.  The goal is fairly clear, however, the way you define that goal gets a bit trickier.  The three things you want to accomplish at this stage are:

1. Lean startup mentality – fail fast, fail cheap.  You have the idea, now does anyone want it?  Having a POC that is cost effective to create is important here.  Assessing validation of the idea and product at every stage of prototyping is paramount.  You must avoid phrases like, “I just know this will be big.” 
2. Determine your next incremental step.  If you have X resources, what do you expect to accomplish after expending X resources?  For instance, if you are willing to put in 100 hours of time and $200, there should be a goal at the end of that stage.  It can be as simple as answering the question, does anyone like my product to determine if it is worth investing more time.  It could be more complex such as, I need to be able to raise $20,000 for my next step of development with this POC. 
3. Does it work?  This may seem obvious, and so many times ideas seem so clear in your head, but once you start working on it, you find details that just do not pan out. 

Building hardware isn’t cheap, but it is getting better all the time.  Here is where places like Spark Fun and products like the Raspberry Pi and Arduino come in.  You can mock up some hardware, display, some buttons, and show how your product can work.  Of course this is great if you are technical, but if you are not, then you have a few more challenges ahead of you, but you can still validate.  Perhaps you can make up some renderings and tell the story of your product visually.  Or, you can partner with someone technical.  In either case, technical or not, you should always build a team.  Techs need non-techs and vice versa, but this is another blog. 

Your POC needs to tell the story, show the story, and validate the product.  The definition of a POC is the goal.  It is defined by the early stages of accomplishing these goals.  Keep in mind that a POC is also typically limited in looks and function.  It is not a minimal viable product (MVP).  It’s just the first stages on your way to a functional prototype, and pilot run, and MVP.

Unless you have all of the resources you need to create and develop your product, you are more than likely interfacing with a technical consultant or engineering company.  The more effectively you can communicate with the technical team, the better your chances of getting what you want. 

Writing it down and describing all of your ideas and how they will work together will be a very effective task for moving your idea forward with your technical team.  You will begin to see holes in the logic, stumble upon new ideas, and begin to document what is in your head.  Writing it down will also alleviate the constant ruminating of an idea in your head.

But you say, “I’m not an engineer!  I don’t know how to write a specification!”.  Well, both statements may be true, but if you want to pave the way to a successful product development venture, you’ll need to learn to communicate your ideas effectively to the engineers who can write a specification.  And with a few helpful tips, you too can write a basic specification.

An item of note, this list is for a somewhat validated idea.  This list assumes you’ve already performed the basics like validated a market, created a tentative business model, and you have performed some level of prototyping.

1. Brainstorm.  Your first step is to just get all of your ideas down on paper.  White boards, drawings, and short lists are a good place to start.  You want to focus enough on this so it is all out of your head and on paper.  You can move things around later, but now you have your concept documented and you can begin to refine it.
2. Strong and weak words.  Inventors tend to get very tied to their ideas.  Try to break away from that and begin to describe what you need done using some special words.  If you use a phrase like, “The device shall be made from titanium,” then the reader will expect that you are the expert in this material and there is no room for variance.  Other strong phrases are: must have, required to, and will.  Does it need to be made from titanium or is it that weight to be minimized?  There are weak words to use like may or should or can.  Think about what is absolutely required and what would be nice, and the real goal you are hoping to achieve.  Then write that down.  Keep in mind that opposites can also be valuable in your writing.  Phrases like cannot, shall not, and should not are equally useful.
3. Sketch.  As you have heard, a picture is worth a thousand words.  You may be amazed at how effective a simple block diagram in Power Point can be.  Show how things are connected.  Show the logical flow of operation.  There are great mock-up tools for software/apps these days you can also use.  The more you think and articulate your idea, the more effective it will be conveyed and possibly become a better product.
4. Write what you know.  You are probably not an engineer if you are reading this, so don’t try to be.  Yes, you should educate yourself in the technical field of your idea.  You should not spend your days looking over websites for microcontrollers and then specify the use of one in your project.  Describe the features and functionality you require, don’t try to engineer the product unless you have that skillset (before you had this idea).  An experienced engineer will have just that, a lot more experience.  Take advantage of that and let them do what they are good at.
5. Iterate.  A specification is a living document.  It can change as the market and business input is uncovered.  As you learn more about your idea, do more research, and develop your product and business, it will constantly evolve.  Now with that being said, once you engage a technical team, there can be costs associated with change.  You will want to get close enough to start engaging your technical team, but once you hand it over to them you should have a good assurance it’s right, and only make changes that absolutely have to be done.  Inventors tend to like to ‘tinker’ with their ideas which can keep products from ever reaching the market, so iterate until you have something to sell, then stop.  Let the market drive your iterations.  This is a subject for another posting.

What I’ve described above is generally referred to as Functional Requirements Specification or a FRS.  The engineering team will then likely create several documents from this which could be a Design or Product Specification, Test and Validation Plans, etc.  Those are beyond the scope here. 

Don’t worry about making it perfect.  From a non-technical perspective, you should put down the things that you care about.  However technical and non-technical that is.  If you care about the color, put that down.  If you care about costs, put that down.  If you don’t care what material is used, let the engineer figure that out.  In any case, your technical team will start to ask you a lot of questions to help flesh out your specification.  After the ground work is laid, then everyone can be on the same page for what needs to be done.

But there often is a long, and lengthy, process from taking an idea from concept to reality, to something tangible that you can hold in your hand.

This is where Anidea Engineering comes in. We take ideas, mere thoughts, and bring them to reality, making them into something real.

We make something from nothing, whether it is helping with product development, engineering consulting, hardware design and engineering, software design and development, industrial design and mechanical engineering, printed circuit board design and development or manufacturing and prototypes, we do it all!

On the top of our web site, right below the URL, is an amazing document to help any inventor prepare for the process, one which we excel at guiding companies through.

When you’re ready, it is time to make a prototype. So what exactly is a prototype? Merriam-Webster defines a prototype as “an original or first model of something from which other forms are copied or developed; someone or something that has the typical qualities of a particular group, kind, etc.; and a first or early example that is used as a model for what comes later.”

Thomas Edison went through many different variations of his prototype of the light bulb before he found one that worked. It took him more than 10,000 tries, but eventually he got there. This can be a long process, but in the end, it is worth the time and dedication. After all, your idea is on the path to becoming a reality.

So you start with a prototype to create a tangible version of your idea. There are many types of prototypes, but the three Anidea Engineering typically deals with are:

• Proof of Concept – This would be an early level prototype that includes many of the final features, but usually has a low level of customization. Typically, Anidea Engineering can take a few off-the-shelf-devices, modify them, program them, etc., and prove the concept the inventor has in mind is practical. They can then be used for raising early stage funds and validating your idea to focus groups.
• Functional Prototype – This is a mid-stage prototype, which usually has a high level of customization. Most components are custom or designed for volume purchasing at this point.  Most of the features are in place. There may be some compromises on functionality due to cost or time constraints.
• Pilot Run – This is a late stage prototype which you have before you start production without the engineers. At this stage the device should represent what you intend to sell. If you find issues here, you iterate, make minor changes and try again.

Prototypes can range in how sophisticated their design and packing are, whether they are made in the garage with a glue gun, or professionally made and ready to show to the market. However, in the early stages, it doesn’t have to be pretty – it just needs to work. Even if it doesn’t, and you keep having to return to the drawing board for your design, don’t feel badly. It isn’t a failure; you are learning what doesn’t work. If it worked for Edison (Even Thomas Edison went through more than 10,000 prototypes until the lightbulb was just right), it will work for you, right?

At Anidea Engineering, we guide you through the process, going from a garage and glue gun inventor to a professional, sellable, specific product.

Yes, prototypes are expensive. For instance, a watch might cost $100 in a department store, but to get that watch from concept to prototype, with manufacturing and testing, may cost more than $100,000.

It takes time, effort, organization and work to take an idea from concept to reality, and we’re here to help.

To learn more, visit www.anidea-engineering.com or call us at (561) 383-7311. Check us out and see how we can help you. Have an idea? Get Anidea! We’re located at 8020 Belvedere Road, Suite 1 in West Palm Beach Florida. Not local? Call and we can set up a Skype conversation at gabriel.goldstein.anidea.

It may come as a surprise, but you can pay a company or a person for engineering design work, and not own the design that you paid for. It has happened to several of my clients working with other vendors in the past, and it happened just recently and I was compelled to bring this to light.

I refer you to the Copyright Law of 1976. It’s some nice light reading for a Sunday afternoon; it’s rough.  Here is the gist, if you create something, it’s yours. Yes it gets more complicated that than that, but in the case of engineers and other people who are typically in the business of creating, that’s the way it works. So you walk into Joe Engineering, Inc. (no offence, Joe) and pay them to create your new invention for you, they own the design and have every right to protect it. You could still very well have a patent on it, but without any additional contractual terms, they own it.

Now obviously in whatever you signed with Joe, you should have been assigned at least some rights to the work you are paying them to create, but that’s where the devil is in the details. And as I lay out these examples, one isn’t better than the other, they are just different and it depends on the company’s monetization model.

Work for Hire. This is an actual exception to the copyright law above. As I stated above, if you create something, you own it. Well we are all pretty comfortable and understand that if you are an employee of a company, the work you do is owned by the company. This is work for hire. However it gets messier if you work with an independent contractor, company, or freelancer. The entity that created the work for you owns the work, unless rights have been explicitly granted to the entity doing the hiring.

So you walk into Joe Engineering, Inc., sign the agreement, they do the work, you pay them, now what? If the agreement states that the work was a ‘work for hire’ or that you are granted full rights to the design, then you can do whatever you want with the work. If however if a ‘work for hire’ was not agreed to ahead of time, they could very well present you with a set of drawings and say thank you very much. Heck, they may not owe you anything, it just depends on your agreement. Typically they would just offer you the output documents (files to produce the product, but not change). Which brings me to the key point of this paper, read and understand your contracts.

This isn’t about the companies being mean, it’s just the way they chose to do business. What typically happens, is if a contracting company sells and assigns the entire rights of the design to the client, they have to charge more. They are selling their work at full price. On the other hand, if you have a company which tightly controls their intellectual property and maintains ownership of their designs, they generally charge less as they intend to monetize their costs other ways (manufacturing, change orders,etc.).

The typical case when a client finds out about the details of their agreement is when the client is no longer satisfied with the work of the engineer and wishes to split their paths. The client explains that they need all of their design files. These are the files used to create the design. They could be source code, solid models, schematics, etc. And you want the files used in the native software so they are easily editable so you can have someone else work on them. And the engineering company tells you no, you don’t own those files. You don’t have a lot of options here. You are either tied to that engineer on this project or you can pay another engineer to re-create the design for what might be a simple change at a significant cost.

As I said above, read and understand your contracts. You may get three bids from engineers on your development project and one is just so much lower, this may be a reason why. Sure, as an entrepreneur and/or startup company money is tight, but be careful of the long term implications.

Disclaimer. I’m not a lawyer. Seek good legal advice. I own an engineering company and have seen these issues played out numerous times when new clients want to use us instead of their other engineer. 

Consider the origin of the word “prototype”:

c.1600, from French prototype (16c.) and directly from Medieval Latin prototypus “original, primitive,” from Greek prototypon “a first or primitive form,” noun use of neuter singular of prototypos “original, primitive,” from protos “first” (see proto- ) + typos “impression, mold, pattern” (see type (n.)). In English from 1590s as prototypon.

So think ‘first impression’.

I try to use a few more specific phrases to help articulate what the various forms of a prototype.

• Proof of concept – This would be an early level prototype that includes many of the final features, but usually has a low level of customization.  Typically we can take a few off the shelf devices, modify them, program them, etc., and prove the concept the inventor has in mind is practical.  They can then be used for raising early stage funds and validating your idea to focus groups.  They are generally not the prettiest things in the world, but they are a good start.

• Functional Prototype – This is a mid-stage prototype which usually has a high level of customization.  Most components are custom or designed for volume purchasing at this point.  Most of the features are in place.  There may be some compromises on functionality due to cost or time constraints.

• Pilot Run – This is a late stage prototype which you have before you start production without the engineers.  At this stage the device should represent what you intend to sell.  If you find issues here, you iterate, make minor changes and try again.

It’s important to state that there is a large continuum of what your prototype will be.  You can start out with very low tech methods, as I call ‘Garage and a glue gun’, and work your way up to a professionally made, ready to show the market device. 

You must start though.  Don’t be afraid of making something ugly or that it won’t come out right. It won’t.  You will get better.  Failure is OK.  Start somewhere and keep on working on it.

Iterative Design

Design and engineering don’t happen all at once.  Most famous painters don’t paint the perfect picture first time out.  With oil paints, you can just keep painting on top of what you have until it looks the way you want.  Your product will not be perfect the first time.  Keep making prototypes until it’s the way you want it.  Of course this needs to be tempered with budget constraints and your time.  Experiment, permutate (make different variations), research, test, and do it all over again. Dyson famously made 5,127 of his vacuum.  Edison had over 10,000 attempts at his light bulb.

Garage and a Glue Gun

This is where you just have to start somewhere.  Everyone can use tools to some degree.  The more you use them, the better you’ll be with them.  Sketch, illustrate, research, learn, experiment, modify, and create.  Repeat.  It will not be perfect.  The greatest obstacle to finishing a task is starting.  Also, this is a good time to take out your camera phone.  These early documentation steps will provide great entertainment for later and possibly help you defend your ideas.

Professional Prototype

After you’ve done some of your initial experimentation, and you have a plan, it’s time to consider a professional prototype.  You don’t need to be an expert at everything.  You should be very familiar with your product and have some very specific ideas about what it should be in the end.  When you approach a professional, you should have a written document.  It doesn’t need to be a full specification, but it should have the things that you care about along with the known unknowns; the things you know you need their help with.

A professional prototype development company should have a wide range of resources.  They will have better tools, machines, toys, skills, and disciplines.  Generally, a combination of electrical and mechanical engineering will be required for most projects, however if there are other specialties required, make sure they have access to those other skill sets either through contractors or partner companies.

When working with a professional service, especially product development services, be sure you understand your agreement.  Various companies have vastly different business models that may or may not be agreeable to you.  Be sure you understand what you are paying, what you are getting, and who owns what.  It is possible for you to pay for a design and not own it.  Some firms will work for sweat equity in part or in full which is great to save you money, but treat them like you would any other partner, as you will be working with them for a long time.

Conclusion

While I’ve tried to make this exhaustive, it by no means is.  Every idea and business plan will have its own nuance and particulars.  Product development is a tough road no matter how you slice it.  I think the hardest part of it is that the capital required to physically create something just to sell the first one is usually pretty high.  On the other hand, there is a lot of activity in software and web products there is more of a gradation in how quickly you can start marketing your product and the intangible aspect of it.  There are still many great product ideas out there waiting to be found and executed.  I personally love creating tangible products and entrepreneurship, so that’s what I do every day and I feel it’s all worth it.

Resources

• Anidea Engineering Blogs

–      http://www.anidea-engineering.com/blog/

• LMP, Inc.

–      http://www.lmp-solutions.com/

• Inventing Daily

–      http://www.inventingdaily.com/

• Sketch Up

–      http://www.sketchup.com/

• TinkerCad

–      https://tinkercad.com/

Web References

• Documenting Your Idea

–      http://www.docie.com/patenting-help/documenting-your-idea/

• Document your Invention or Idea

–      http://www.veritek.com/Media/EDocs/documenting_the_idea.pdf

• 3 Things You Need to Know About Launching a Product Business

–      http://www.entrepreneur.com/article/230068

• Launching a Product Business

–      http://www.entrepreneur.com/article/230068

• How to Build a Billion Dollar Business Plan

–      http://www.forbes.com/sites/alanhall/2012/08/26/how-to-build-a-billion-dollar-business-plan-10-top-points-2/

Angel Groups

• Angel Forum of Florida

–      http://www.aiffl.org/

• Gulf Coast Venture Capital Association

–      http://gcvca.org/

• New World Angels

–      http://www.newworldangels.com/wp/

• Tamiami Angel Fund

–      http://tamiamiangels.com/

IP Strategy

Intellectual property (IP) is a big buzz word these days.  It’s important stuff.  If you can convince the US government (or other government) that you have an original idea, they will help you protect and give you exclusivity of it for a period of time, generally 20 years.  That sounds great, doesn’t it?  You can also file a provisional patent that is kind of places a foot in the door which discloses that you are working on an idea, but you aren’t ready to file a patent yet.  If you file a patent based on your provisional, you’ll get an earlier file date. 

Ultimately what you want is a Utility Patent.  You want to patent the actual utility of what you’ve created.  Those are the good ones.  There are other types like Design Patents, but they are more easily circumvented.

Above while I was talking about the government helping you protect your idea, they will only do so much.  The patent office does try, and they do a decent job, of making sure the patent they give you is unique, however they are not the only opinion that matters.  In the case where two issued patents have overlap, people can go head to head for years dumping tons of money into lawyers trying to get injunctions or other compensation in place.  Alternatively, you may have protected IP and someone else is selling a product which infringes on your patent.  It will cost a good bit of money to make them stop. The old line is that a patent is only as good as your pockets are deep.

So why patent at all?  It’s a reasonable question.  In general, patent what you can with the finances you have, but don’t go overboard.  Or, you can always take advantage of some other techniques like “first mover advantage” or “first to market”.  Coke doesn’t have a patent on the drink itself, but people can’t copy the true ingredients.  Coke has a trade secret on their recipe and they have proven that they go through extraordinary efforts to protect it.  The proof of how hard they protect it, and it actually being unique, provides them protection.

Footnote: I’m not a big fan of patents.  Not because I don’t think a patent is cool, but that they get way over used and big business has ruined it for the common inventor.  I do think they are very good for impressing your mother, and who doesn’t want to do that.

General Protection Mechanisms

So you are going to need to talk to someone about your ideas, as no one can do it themselves and you have to build a team.  So the first step is to have a Non-Disclosure Agreement (NDA).  This is a basic agreement between you and to whom you are talking to that they will not disclose your discussions and they will not benefit from them (unless you end up hiring them in some way).  These are basic agreements.  You can download them for free/almost free.  They are a good first step.  If nothing else, it sets a clear expectation that you expect your conversations to be between you and the other party.  If you don’t trust the other person, the NDA probably won’t mean much.  Also, many people won’t sign them.  Investors typically won’t as it exposes them to risk, as they tend to see a lot of deals and ideas.  They may already know 3 people working in that space.  The suggestion here is start out slow, and make sure they have a legitimate interest.  As the relationship grows, they may sign an NDA and get more involved with your venture.  On a side note, most professionals only have their integrity and reputation.  We know not to talk about other people’s ideas or to try to leverage information given in confidence.

Keep your mouth shut.  Not everyone at the bar on a Saturday night needs to know about your whiz bang idea.  Be careful about who you speak to about your idea.  Think of it as a need to know kind of thing.

Also, as you getting started with your team, you may be thinking, “We’ll figure out the money later” type of thoughts.  No, do it now, while there is nothing to argue about.  Money makes people weird.  At the very least create a rough operating agreement that you sign with your ‘friends’.  Talk about the ownership distribution, who does what, and how a person can leave or come in.  Just get some basics out of the way.  If the money starts rolling in, the last thing you want to do is start fighting with your co-founders about who owns and does what.  It will be over before it begins.

Also, keeping ownership straight, everyone should read up on the Copyright Law of 1976.  It talks about who owns things when you hire a contractor if not otherwise agreed to.  Make sure you understand the agreements you sign with contractors, especially dealing with ownership and rights. Yes, it is possible for you to pay for something and not own it or full rights to it.  There are all sorts of variations here where a contractor may become part owner (sweat equity) or a manufacturer may partner with you.  The key here is to make sure you understand the agreements.

Read the next installment.