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X   H     H     X  H _ 8ћ  H XX    ٧  7msXXdXXd7  0 @ @  CriticalNewProductDevelopment#  ٧#  H byCurtisL.Harrington&KathyE.Harrington H f    (Y$$(  p8 ]  (Y$$( ] ] (Y$$(]  ' Generally,thedriversforanoverallIPprotectionstrategyfora_ new product_are(1)theexistenceoftheoneyearParisConvention,whichallowspatentapplicantstofileinothercountrieswithinoneyearoftheUSfilingdate;(2)thepotentialtoattractforeignpurchasers/licenseeswithinthefirstoneyearperiodafterfilingtoallowotherstoprovidetheinvestmentinforeignpatentsandtheforeignlicenses;and(3)theprovisionofamorerapidand,hopefully,moreefficientlicensesaleoftheproduct. ' Theterm productasusedhereincludesproducts,services,andhybridsituationsinvolvingboth.Thereareanumberofcritical_tim e  ingissues __ considerations that_Ԁnewproductintroducersshouldconsiderastheyattempttocaptureintellectualpropertyrightsandfacilitateearlysales.Itisunderstoodthateveryproductmaywarrant_ multipleor other_Ԁcriticaltimeconsiderationsinadditiontothoselistedhere. ' Thisanalysisalsoassumesthattheproducthasbeen_finished ;  , _Ԁthatproductionandunitcostsareknownformajorquantities(suchthatacompleteprofitabilityprofileoftheproductispresentable),andthattheresultingnumberscaneasilyjustify_ the moving_productionforwardregardlessofanysale,giventhat(a)thecompleteprofitabilityprofilewilljustifyit,and(b)anyperceivedlackofwillingnesstocontinuetheprojectwillresultina waitandseestrategybyapotentialbuyer.Thisanalysisalsoassumesthetimelyfilingofapatentbeforeanydisclosureismade.Timeperiods ,r)+  -f*,  % Thephasesthimetimeperiodstobeconsideredarecenteredaroundthepatentfilingdate,andinclude:theperiodprecedingthefilingbymorethantwomonths(PhaseI);theperiodprecedingthefilingbytwomonthsorless(PhaseIIthisistypicallythetime,onavaerabege,whichshouldbeallowedfaverageareasonabletime  J. thetimeallowwhichshouldbeallowedallowable  J. an  J. applicantshouldallowforapatentattorneytocompletedraftingdraftapatentapplication);andthe11monthperiodfollowingthefiling(PhaseIIItheendofwhichperiodleavestheapplicantonlyonemonthtotakefileforeignaction P 3 actbeforetheoneyeardeadlineforforeignfilingexpires). % DuringPhaseI,thefollowingtasksshouldbe_  addressed   completed __ completed :_ % 1.TheapplicantshouldcCompletelyfinishtheproduct.Thisincludesdevelopingdifferent_versions0    :  0  __ 0  ( 0   eco  0  economy 0   7,      0  ,lu 0   s  0  xury,base,fully_accessorized_, ; perm 0   ent  0  anent, 0  si  0 ! disposable! 0 " ! ,! " $ # )# $ 0 % ,retailsales,giv% 0 & % e0w% & 0 ' e < _aways_' ) ,) 0 * ) mo) * 0 + home+ 0 . + count+ . 0 / andforeigncountry/ 0 , + y+ , . - ry- . ( ' ,' ' ho' ( " ! reta! "   lu    m    nom  ,_Ԁsuchaseconomyandluxury_models1 ,1 2 ;2 _Ԁbaseandfully_accessori z   s   z ed__models3 ,3 4 ;4 _Ԁpermanentanddisposable_models5 ,5 6 ;6 _retailsales7 _versions7 _Ԁandimprintedgiveaway_versions8 ,8 9 ;9 __9 9 : and: home_Ԁandforeigncountryversions(takingintoaccountpossiblepeculiaritiesofforeignenvironments);_; addressing; packaging_issues,includingindividualandbulksalespackaging,salesdisplaydesigns,racksandshelving,freestandingcardboarddisplays,andthe_like< ,< = ;andconsidering= __> as> __> well> __> as> __> > type_Ԁandplacementofanytrademarknameandotherinformationontheproductand/orpackaging. % 2.CTheapplicantshould c ompleteacomprehensivebusinessplan,takingwhichshouldtakeintoaccountproduction_costsN M M N O ;O P ? ,? P ? ? @ ;@ __@ @ packagingQ ;Q R A ,A R A A B ;B __B B overhead_(including,ataminimum,patentinsurance,corporateentityformationcosts,productliabilityinsurance,andinventory_financing)S ;S T C ,C T C C D ;D __D  B( $N D costs_Ԁassociatedwiththeproduct_pipelineU ;U V E ,E V E E F ;F _Ԁforeignanddomesticproduction_costsW G ,G W X ;X G G H ;H __H H cost_Ԁvariationsbasedonprojectedsales_channelsI ,I _Ԁsuchas -f*U distributorsanddistributorprograms,directinternetsales,andcontractsalesto_K amajorK __catalogL sL Y ,Y Z ;Z J forexample;J _Ԁandcostsofsellingormanufacturinginforeigncountries,includingimport/exportefficiencies,tariffs,seacontainerpackingdensities,andforeigntaxeffectsofdirectmarketingorsalesagentlicensing,justtonameafew.Acomprehensiveandcarefullydetailedbusinessplanincludingtheaboveindicators(ataminimum)isaprerequisitetodeterminingthetruevalueoftheproduct.Withoutthislevelofinformation,thevalueoftheproductsimplycannotbeknown. ' 3.GTheapplicantshouldgatheralloftheinformationneededtopromotetheproduct.Muchoftheinformationgatheredwillalsobeusefulinactivitiesdirectedtowardsellingtheproducttoconsumersand/orsellingtheproductandassociatedintellectualpropertyrightstoanothermanufacturer. ' 4.TheapplicantshouldiIdentifycompetitors,customersandrelatedentities.Theidentityofpersonsandorganizationsevenremotelyassociatedwiththeproductshouldberecorded,including:(a) ' Productrelatedtradeassociations;  (b) ' Productrelatedprofessional  associations;_ (c) [   [ \ _(c)_\ _ ' Relatedgovernmentbranches,  electedofficialsandbureaucrats,includingtestorganizationsandstandardsettinggroups(local,stateandfederal);(d) ' Relatedtradeshows(veryimportant #h " for PhaseIIIactivities  thetimeperiod afterfiling);(e) ' Alltraderelatedmagazines, %P"$ includingpaidandfreesubscriptions,tradesales,andtraderelatedproductpublications,especiallythosewhichmaycarryanewsstoryrelatingtotheyourproductaftertheyourpatentisfiled;(f) ' Allnewspapersandmagazinesin P+(* anyawwayrelated withanyotherrelationship totheapplicantorproduct,includingthoseassociatedthroughgeographyorlanguage,for ,.*- example;(g) % Alistofproductendorsers, <. particularlythosewhomightendorsewithoutcompensation,andevenlocalelectedofficials,comedians,radiopersonalities,andotherpublicfigures. % [Notethatefforts(4)(a)through(4)(g)shouldnotbelimitedtohomecountryorhomelanguage.Wheretheproductadmitstouseanywhere,theentireworldshouldbeconsideredthepotentialmarketandtheinformationdatabaseshouldbeexpandedaccordingly.] % 5.TheIntegrateinformationgatheredinitems(1)through(4)aboveshouldbe  3 integratedtodeterminewhichmarketstoenter.Usingalloftheaboveinformation,theapplicantshouldmakealistofwhytheproductisbetterthan_^ those^ _ others_ _Ԁcurrentlyavailable,comparingallversionsoftheproduct(bothhighendandbasic)tothenextbestcurrentlyavailablealternative.Thisinformationwillbeusedbythepatentattorneyindraftingthecase. % _` During` a Tobegina _ԀPhaseII,theapplicantshould j; submitallproductinformation,especiallytheinformationoutlinedin(5)above,tothepatentattorneyandallowtwomonthsforthepatenttobecompleted(bothfirstandfinaldrafts)andthefiled. % InPhaseII,theapplicantshouldalso f.A fullyprepare(butdonotdiscloseortransmit)allmediawhichf canpossiblyf g wilg h lh beusedtomarkettheproductimmediatelyafterfiling.i Preparationofeverysortofmediaki j i ti j k it,includk l k edk l m inglongstory/shortstorycolorm n m m n o /black&whio p o eo p q tephotos,drawingsq r q ,diaq r s ,diagrams,s     videos s movies  t s ws t u su  u ,u  st   s  u inshortu v u u v w ,w y preparinginadvancewitheveryformofmediawhichapotentialpuy z y rlibhery z { blishermightwant.{ | { { | } Your} ~ } in} ~  in   newproductorinventionisonlybornonceandyoumaybeabletop  i  u   ckupfreeadvertisingifapu  g   blisherrunsthestoryasanews/interestitem.  T  j   hisexercisewillalsobegoodpreparation  fo   for w bendingoverw  x w baw x Thiswillhelptomaximizethetimeduringwhichfr eeadvertisingmaybeavailableandshouldalsobean_b goodb __ b adequateb _Ԁprepfor anyscheduledtradeshows.πTradeshowsshouldbescheduledduringPhaseIII,onlyafterthepatentisfiled,yet ,.*Z earlyenoughtoallowsufficienttimetodeterminewhatforeignfilingswillneedtobeeffectedpriortotheforeignfilingdeadline(oneyearfromtheUSfilingdate).     ' TheapplicantshouldkKeepinmindthateverytrulygood,new,andnonobviousinventionisanewsitem.Eachpublicationthatshowcasestheproductmaysave theapplicant athousanddollarsormoreinadvertisingcosts.DuringPhaseII,projectedplansforPhaseIIIshouldbefinalizedandreadyforexecutionimmediatelyafterfilingsothatalltimespentpostfilingcanbeexclusivelydevotedtopromotingandsellingtheproduct. ' OthertasksinPhaseIIinclude:(1)settingupalimitedliabilitycorporationorCcorpformarketingandsellingtheproduct;(2)securingasourceof_producttomeetsalesactivities;(3)contactingapatentinsurancecarriertocompleteinsuranceapplicationformsnecessarytoputprotectioninplaceimmediatelyafterfiling;(4)ensuringthatthesalesc company    c c entityc purchasescommercialproductliabilityinsurance;(5)selectingandapplyingforafanciful,nondescriptivetrademarkaftertheentityfilingforthesalesd companyd d entityd iscomplete(includingthehomecountryandallforeigncountrieswheretheproductisplannedtoappear,andtakingintoaccountthe6monthtrademarktreatywhichenablesforeignfilingwithin6monthsofhomecountryfiling);(6)ensuringthatthesalesentityregistersforaninternetURL(whichmaybethesameasthetrademark)intendedtobeusedtoselltheproduct;and(7)settinguptheHTMLfilesofflinetoallowthewebsitetogoliveassoonaspossibleafteranypatentsarefiled(utility,design,orboth).Theprimarygoalistotalpreparednesspriortofilinge the_patente _Ԁsothat,afterfiling,marketingandsellingcanbeginasquicklyaspossiblewithoutdelayorinterruption. ,.*-  % FilingthepatentisaprerequisiteforbeginningPhaseIII;absolutelynoactivitiesinPhaseIIIshouldtakeplaceuntilitcanbeestablishedwithcertaintythatfilinghasoccurred.Itmaybepreferabletodevoteafewdaysafterthepatentfilingtosecuringh h apostalorcomputerfilingreceiptorotherindiciaoffilinginhand.  5  % Oncethepatentfilingcanbeestablishedwithcertainty,theapplicant ($& |should|beginPhaseIII:(1)selltheproduct;(2)acquirefloorspaceattradeshowswhichrelatetotheproduct;(3)sendout the  m   mediakits/  newsreleaseitemstoallmagazinesandnewspapersworldwide,makingcertaintoprovidematerialin asmanyformats afor  as  p   possibleto matwhichwill meeteachpublicationsrequirements .Inadditionto (i.e., articlelength,quantityandtypeofphotographs a  m   nd  md  o rotherillustrations ,video   ,considerforeignlanguagetranslation format,etc.  versions  .  ) ;(4)followupbyphonewiththepublisherstopushnewsreleaseitemssubmittedin(3)above;(5)wherepossible,provideproductsamplestopublisherstofurtherinterest,eitherondemandorinmediapacketssubmittedin(3)above;(6)contactlocalmediatoensurethattheyfeaturetheproduct;(7)aftersecuringtradeshowspaceandboothnumber,forwardmediakitstolikelyforeignlicensees,localcountrydistributorsandotherentitieswhomight$$maybeinterestedinpurchasing$to$buytheproductandIPrights*,*andfollow/ing/uptoschedulemeetingsduringtheshowandmake<making<suretohavesufficientboothcoveragesothatallappointmentscanbeaccommodated;(8)setItingIupanewsletterbyemailandregularmailannouncingtheproductandhighlightingitsprogress,includingdistributors,publicationsrunningnewsstories,andanyothernewstidbits,evenincludingagrantofpatentinsurancewhenitoccurs(designpatentswilllikelybeexaminedquickly;allowanceandissuancearenewsworthy ,.*Z announcements);(9)secureLineupproductendorsersandhavenewsconferencesandeventswheretheendorsementsareformalized(formalizedendorsementsareasllsonews0woworthyannouncementsfortthenthenewsleettetterinitem(8)aboven);(10)Larrangetotestmarkettheproductinlocalretailstoresineuplocaltestmarketretailstoreswhichwillallowforyoutoplaceerectadisplay,possiblyonconsignment,andcarefullyrecordthesalesperunittime,andthetypesofproductssold;(11)atthetradeshow,becertaintoatthetradeshow,dontfailto(a)getyourtheproductinthe newproductspavilion,(b)meetwithforeignlicensees,salesagentsandbuyersandplantoclosedealswithin6six6monthsafterthefilingoftheyourdesignpatentsandITUtrademarksinordertoenableforeignfilingyouto  fileforeignwiththebenefitoftheyourU.S.filingdatepriority(whichexpiresafter6months);and(12)generallyinjectpumpsalesintoeachandeverymarketsegmentpossibletheinterestgeneratedyougeneratebythetimetheofyourtradeshowtaleskesplacewilldependdirectlyuponthemarketacceptancesyouhaveearned,thegrossnumbersofproductsyouhavesold,andthepositivepublicityandpopularitysurroundingtheyourproduct. ' CurtisL.Harrington&KathyE.Harrington&CurtisL. j HarringtonarepartnersinthelawfirmofHarrington&Harrington,whichspecializesinintellectualpropertyanditstaxation. ' CurtislocatedatSuite250,6300StateUniversityDrive,LongBeach,CA,90815.Hemaybereachedbyphoneat(562)594-9784,byfaxat(562)594-4414,orbye-mailatcurt@patentax.com.HeisadmittedtopracticebeforethestatebarsofCA,TX,AZ,andNV;theU.S.DistrictCourt;theU.S.CourtofAppeals,FifthandNinthCircuits;theU.S.SupremeCourt;theU.S.PatentandTrademarkOffice;andtheIRS.HeholdsaB.S.inChemistry(AuburnUniv.,1974);M.S.inChemicalEngineering(GeorgiaTech, ,.*- 1977);JD(Univ.Houston,1983);MBA(Univ.Oklahoma,1985);M.S.inElectricalEngineering(CaliforniaStateUniv.-LongBeach,1990);and_LLM_ԀinTaxation(Univ.SanDiegoLawSchool,1997).HeisspeciallyadmittedtopracticebeforetheUSPatentandTrademarkOfficeandtheIRS.CurtisalsocertifiedasaTaxationSpecialistbytheStateBarofCaliforniaBoardofLegalSpecialization.HehastechnicalreadingproficiencyinbothRussianandJapanese.Specialtechnologyareas:electrical,mechanical,andchemical.   % Kathyislocatedat355S.Mt.CarmelRoad,McDonough,GA30253.Shemaybereachedbyphoneat(770)914-1413,byfaxat(770)91414196,orbye-mailatkathy@patentax.com.SheisadmittedtopracticebeforethestatebarofGeorgia,theU.S.TaxCourt,andtheU.S.PatentandTrademarkOffice.SheisagraduateofMercerLawSchoolandalsoholdsaB.S.inElectricalEngineeringfromGeorgiaTech.SheholdsadditionalundergraduatedegreesinbothPhysicsandNursing,andiscurrentlyworkingtowardcompletingherMasterinTaxation.SheisamemberoftheGeorgiaAssociationforWomenLawyers,inwhichsheservedas_Southside_ԀChapterPresidentandStatewideMembershipChairin2007/2008,andinwhichshecurrentlyservesas_Southside_ChapterImmediatePastPresident.SheisamemberoftheTaxation&IntellectualPropertysectionsoftheStateBarofGeorgia,theAtlantaBarAssociation,theHenryCounty,ClaytonCounty,andFayetteCountyBarAssociations,andisastudentmemberoftheGeorgiaSocietyofCertifiedPublicAccountants.Specialtechnologyareas:electricalandmechanical.