Tag Archives: advice for inventors

3D Printing The Way To the Future

February 4, 2019 3VE Marketing

3D printing is one of the latest and most innovative technological developments in the manufacturing industry today. It is taking the world by storm and even replacing traditional manufacturing processes in some areas. Historically, manufacturing starts with a pre-formed mold to make an object. Alternatively, it can start with a solid object whose shape is then altered through removal. For example, ancient gun barrels and bullets were by produced by pouring molten metal into a mold shaped like the barrel or bullet. Even today, many metal tools and polymer products are made via the molding process. Think about Mount Rushmore, the national monument in Keystone South Dakota. It was created by artfully chipping away at mountainside granite rock to create the likenesses of four historic American presidents.

3D print manufacturing is different. This method is already being used in a wide variety of applications, but many people have little to no knowledge of what it is or how it is being used. If you’ve seen the movie Star Wars Episode 2: Attack of the Clones, you might remember the quote by metal android C3PO: “Machines making machines… How perverse!”

How Does It Work?

In general, 3D printing begins with a virtual 3D image of a model. The image is then used to create an exact replica of the model. This is performed by printing (constructing) one thin layer at a time—from bottom to top—using the 3D image as a guide. Using this process, there is no need for either a mold or for the removal of excess material. In fact, if done perfectly, there is no need for the additional treatments such as polishing, sanding, etc., that are usually part of the traditional manufacturing process.

Now this, of course, is an oversimplification of 3D printing.

Let’s Try An example

An example might be the best way to explain the process. Let’s say you have a blue clay cup you want to produce. The first step is that you need a 3D image of the cup that can be downloaded into a computer. In practice, images would be made of the cup by deconstructing the cup into small layers, from top to bottom.

[Think of it as slicing a loaf of bread in very thin slivers. This slicing allows the computer to ultimately take a virtual 3D image of the entire loaf of bread. Instead of having an image of only the surface, you now can see all the holes and contours associated with the inside of the loaf. This is your 3D image.]

Back to the cup. Using this 3D image, each of the images (slices) are downloaded into a computer associated with a print machine. The print machine can be best described as a pen, waiting to draw the image. The main computer would then feed each cross-section image of the cup to the printer. A blue clay solution would be fed into the printer (much like the ink into a computer printer). A human operator would press the “print” button… and voila! The printer would start making a copy of the blue cup, thin layer by thin layer, based upon the 3D images.

Before long, you have an identical cup, made perfectly by a printer. Of course, the process is a little more complicated than that… In reality you would have to cool the clay after each layer so as not to end up with just a big blob. But this is what 3D printing is doing.

How Did We Get Here?

Charles Hull is credited with creating 3D printing in 1984. Although, some might credit Hideo Kodama of Nagoya Municipal Industrial Research Institute. Kodama came up with the initial idea of creating solid print modes, based upon layers using polymers, and published his work in 1981. Even still, Charles Hull is considered the grandfather and creator of modern-day 3D printing. And since 1984, 3D printing has grown into a multibillion-dollar industry.

In 2018, according to the Wohlers Report, in 2018 the 3D print industry exceeded $7.3 billion. In fact, from 2016–17 the industry saw an 80% surge in 3D printers sold… And this market is only expected to continue to grow.

One of the biggest benefits of 3D printing is the ability to quickly produce prototypes of an early design product at minimum expense. Another advantage is the ability to manufacture certain items domestically instead of relying on international companies. For example, replacement parts could be created in a local warehouse as opposed to being shipped from overseas. Another benefit is the ability to manufacture items with a minimum of materials and virtually zero waste. The 3D printer prints exactly what it is told—nothing more, nothing less.

Endless Applications

3D printing is already being used in a wide variety of industries including aerospace, airlines, automotive industries and jewelry. Sneaker companies are using the technology to produce early test prototypes. And the food industry is using it to create innovative food products and even candies in shapes that could never be achieved by hand.

A most interesting application of 3D printing is in medical applications. The FDA has already approved several types of products manufactured using 3D printing, including orthopedic implants, surgical instruments and external prosthetics. And researchers are even exploring creating organs and body parts such as eyes, ears, hearts and skin using 3D technology.

Lastly, 3D printing is used in the construction of houses and buildings. Yes, foundations of houses are being “printed” using cement. Builders believe that this may save both time and resources and reduce waste.

The future is upon us… And computers, machines and 3D printing are literally “laying the foundation” for great improvements.

For Inventors, News

Manufacturing Methods: Which Is Right for You?

December 27, 2018 3VE Marketing

Most people never really think about the machines and man hours that go into manufacturing the products that seem to magically appear at the local supermarket or big box store. But the challenge every manufacturer faces is how to reach the end goal of providing high quality consumer goods… while keeping costs at a reasonable level. Manufacturing methods are not one-size-fits-all. So how do you choose the one that is best for you?

In deciding to utilize a manufacturing method that best suits the manufacturer’s goals and price point, several calculations must be made. This includes (but is not limited to):

consumer demand
cost to the manufacturer
costs of raw materials
transportation costs
taxes
availability of resources

Manufacturers must constantly evaluate their methods in an effort to reduce costs, lead times and errors in manufacturing. And there is a wide variety of manufacturing methods that may be employed, depending on the consumer market. These are four generally accepted systems that companies employ to manufacture products:

One-off production refers to making a single specialty item. This is the most expensive, because it usually refers to making something custom made according to the customer’s desires (e.g., a custom-built house, or a mall kiosk customized t-shirt featuring a photo of your family or pet).
Batch production refers to making a specific number of identical products. Specialty drink or food products are usually run in batches.
Mass production is generally focused on large quantities of products, using machines and repetition. Car companies generally employ this technique, perhaps running a facility for three days straight and then taking two days off for maintenance.
Continuous production refers to a 24-hour (nonstop) manufacturing process. Did you know that giant potato chip companies often fail to meet consumer demand, despite running their facilities indefinitely? Come on guys… More chips, please!

Each of the above general processes have unique costs and benefits for the manufacturer. And companies are constantly pushing the envelope to develop more streamlined manufacturing methods to increase quality, reduce costs and reduce industrial waste—while leaving less of a carbon footprint. But historically, there are several matters all manufacturers must deal with:

When to order supplies
When to make repairs or maintenance
When to transition to a new production line
How long inventory should remain on the shelves
How fast a consumer can receive a product
The order and layout of their facilities
Safety of their workforce

Choosing the most efficient manufacturing method for your business can mean the difference between success and failure… Headaches and peace… Profitability and bankruptcy. But manufacturers have developed some additional techniques to help streamline the overall process.

Kanben Scheduling System

Kanben was developed by Taiichi Ohno, an engineer at Toyota, to help streamline a just-in-time (JIT) manufacturing process. Basically, it includes some sort of alert system (human or computer) which orders new supplies when the company is running low. Nowadays, many manufacturers (and businesses alike) use a Kanben system for ordering supplies.

Just-In-Time Manufacturing

JIT is exactly what it sounds like: purchasing enough supplies to manufacture the right amount of goods before having to order additional supplies. Kanban and JIT basically go hand-in-hand. In theory, Kanben and JIT will allow manufacturers to reduce inventory, which should reduce a variety of costs.

Just-In-Sequence Manufacturing

Just-in-sequence is an extreme case of JIT, where supplies arrive at the factory the exact moment they are needed. However, using this method is risky because of the potential for downtime should the materials arrive late.

Quick Response Manufacturing

This involves a sole focus on getting products to the customer as soon as possible. However, speed comes at a cost due to the potential of mistakes and errors. Think of the classic scene from I Love Lucy, when Lucy and Ethel are unable to keep up with the conveyor belt while wrapping chocolate candies (so they stuff them in their clothes, hats… and mouths.) Mistakes will be made, but for all manufacturers speed vs. quality is a never-ending balancing act.

Cellular Manufacturing

The design and layout of a manufacturing facility is another area which, if done properly, can save both time and money. Cellular manufacturing describes a process where machines work in ordered sequence from start to finish. The automobile industry probably does this the best. After all, Henry Ford reduced the manufacturing time of automobiles from 12 hours to less than three by reorganizing how the workers and machines worked together.

Maintenance, Repairs and Changeover

Another struggle manufacturers face is knowing when to conduct maintenance and repairs. The experts suggest TPM, or total productive maintenance. This means, at the end of the day, all the manufacturing equipment is cleaned and serviced at one time rather than doing it haphazardly—or waiting until something breaks down.

Single minute exchange of die refers to how fast a manufacturer can change over to manufacture a different product. Ideally, this is under 10 minutes, or a “single-digit” amount of time. The downtime from the changeover costs resources and revenue. Think about changing a tire… Now think about a pit crew changing a tire.

There are endless ways to manufacture products, and manufacturers should think both critically and strategically about what process works best for them.

(I must note that some of the newest manufacturing techniques employ 3D printing, which I will address in another post.)

For Inventors, News

15 Landmines To Avoid When Licensing

November 19, 2018 3VE Marketing

So you’ve come up with a novel idea or method… and filed the appropriate patent or trademark applications. Maybe you’re waiting for the USPTO to grant your application, or you’ve already received a the red-ribbon stamped package from the government granting you a U.S. patent or trademark. Congrats! You’ve now got a tangible piece of intellectual property (IP) that you can license to other individuals or companies.

Below, I’m going to outline some of the pitfalls and landmines you need to consider when licensing your IP to ensure that:

your rights are protected
you’re not taken advantage of
and, as we all wish, you can make the right deal that will a generate a stream of revenue for years to come.

1. Hire An Experienced Intellectual Property Attorney

One size does not fit all when seeking an attorney to help you negotiate an IP license agreement. IP attorneys are specialists—and while your local real estate lawyer handles contracts, they probably don’t have the expertise to handle IP licenses. The importance of finding an IP attorney experienced with executing license agreements cannot be understated. Because, I assure you, any company worth its salt either has in-house IP attorneys (those that work directly for the company) or are represented by a large New York or California law firm to get the best deal they can for their client. Protect yourself—no one would hire a dentist to do their open-heart surgery.

2. Even David Had A Plan Against Goliath (So should you)

Let’s be clear, you are one individual probably approaching a company with several employees, years of experience and a bucket load of resources. Before reaching out to them as an inventor or IP holder, you’ve got to have an action plan. Remember, its your IP and you are usually the one making the first offer. Have you thought about several important terms before you begin negotiations? Some of these might include:

how long is the license grant
what is the scope of territories (where will it be sold)
are there any non-compete provisions (maybe they sell similar products)
what about future IP rights (do you have other applications)

Trust me, any company you’re trying to license to will have thought of these provisions well before you arrive… and so should you.

3. Confidentiality Agreement

We’ve all heard a story of someone shopping their product to a company, only to be turned down outright or simply ignored. Then, two years later an inventor may see his IP on the shelves of a major chain. A properly executed NDA or CDA can provide some protections to prevent this scenario. So, before you send over all your research and prototypes or your pending patent application (or patent), consider having a CDA or NDA in place.

4. Document Everything

So, I’ve said in my previous blogs that emails may not be enough when reaching out to companies. You have to be as proactive as you can. At the same time, keep diligent records of who you reach out to and when—and who you actually speak with. This will go a long way should you ever have to prove you provided a company with copies of your IP and they misappropriated your idea.

5. Exclusive Or Non-Exclusive? (That is the question)

Do you want to put all your eggs in one basket… or have the flexibility to manufacture the product yourself or license with another company? Each of these options has benefits and costs that you must weigh before entering into—and during—negotiations. Beware the company that offers you everything under the sun. Remember, this is a negotiation between two strangers—not a marriage after a long courtship.

6. Do You Trust Your Licensee?

If, and when, you enter into an agreement, you’re building a potential long-term business relationship. Research the company. You can find out how many lawsuits they are currently involved in, and what those lawsuits revolve around. How are the negotiations going… are they providing you with sufficient records? A licensing deal is a two-way street, and regardless of how much money they may propose dreams can fade away fast. This is business, and your IP is your baby. No parent would give their newborn to a stranger. And neither should you.

7. We All Want More Money… But Can You Count It?

If you’re unable to read a profit and loss statement or a financial audit report, I suggest you start reading up on basic accounting techniques. Remember, this is a business—and companies, like people, will cook the books in their favor. Protect yourself and learn the basics of finance.

8. Quality Control: It’s Your Reputation, Too!

Depending on your IP and product, make sure any potential licensee is able to manufacture your product safely. In the world of Twitter and Yelp, one bad review—or a batch of dangerous products—may spell the end of your IP and your reputation. Manufacturing in China may seem like a good idea monetarily. But if you’ve never visited the manufacturing facilities, can you really have faith in how they’re producing and presenting your IP to the public?

9. How Do You Want To Get Paid?

This goes back to my first point of having a plan: How will you get paid? This is the primary objective in licensing, after all. Monthly, quarterly, yearly? Net profits or gross profits? Milestone payments? Up-front fees? Patent prosecution costs (past, pending or future)? Consider how all of these may affect your bottom line.

10. Financial Stability (Don’t go belly up)

Understanding the financial stability of a potential licensee is critical for several reasons:

Are they on the brink of bankruptcy?
Do they have adequate capital to manufacture, market and sell your product?

Trust me, a worst-case scenario is for you to license your IP to a company—and then spend years in bankruptcy court trying to get your rights back.

11. Don’t Go Into The Graveyard

I will tell you a secret: Certain companies (I’ll mention no names) may simply buy your IP with no intention of ever manufacturing your product. Or maybe something better comes along, and they just move you into the background. Without certain protections and expectations, your IP could end up sitting on the shelf collecting dust. Make sure you have manufacturing and selling goals—and deadlines—somewhere in your agreement. Again, this is why an experienced patent lawyer, although expensive, can literally be worth their weight in gold.

12. Auditing Is Not Just About Profits

Learning how to read a financial audit, quarterly report and SEC statement is another necessary skill. But as an inventor, you may consider whether you want to have a yearly audit conducted relating to your IP and the financial stability of a company. Again, these are negotiations, and if you don’t ask, one thing’s for sure—you’ll never get them.

13. Maybe You Made A Bad Deal (Termination)

The terms for termination should be a two-way street. Understanding clearly how—and when—you can leave an agreement is strategic and may provide motivation for the licensee to meet certain financial or manufacturing goals.

14. Be Prepared To Sue And Be Sued

IP litigation cases are used for several purposes. Maybe a company wants to invalidate your IP, or maybe the licensee wants to bring an infringement case against a competitor. Either way, a few things are important for you as the licensor. First, know the litigation rights you’re giving up or retaining, understand which party is able to bring a suit, who defends it and how damages and/or liability are shared. Most importantly, understand that you as an inventor will certainly be involved in any litigation. You’ll be deposed and may have to testify at trial. Just be prepared.

15. Keep Inventing, And Inventing, And Invent…

So, you signed your first licensing contract. Hooray! Now you can sit back and watch the money flow in… NOT! If your IP is worth anything, you should know that once the bird is out of the cage, everyone else who wants to make money will be circling around like hawks. Companies will look for ways around your IP to provide different, cheaper and better options for the market. Don’t rest, keep inventing, keep thinking and keep pushing the envelope. Having 10 patents is always better than one.

News

Navigating the Manufacturing of Your New Product

September 25, 2018 3VE Marketing

Navigating the Manufacturing of Your New Product was originally published on Industry Today’s website.

When you have a cutting-edge invention, you need to understand market research, prototyping and building a business case when considering manufacturing your product. Many inventors fail to remain objective. And, they don’t ask for help through the process. To take your bias out the of the equation, Tommy Kirk, COO of Alotech, Inc. and COO of CTI Systems, advises inventors to seek a third-party firm to conduct relevant market research. He also advises inventors to seek out experts in the market all along the path to manufacturing. Read more as Tommy shares his insights inventors can learn from when manufacturing new products and learn more about what Tommy considers key to bringing your invention to life and navigating the manufacturing process.

Excerpt from Tommy’s Industry Today article:

An early mistake made by many inventors is failing to remain objective. This is because we can’t help being biased—armed with a patent or patent application, it’s easy to believe “my idea is the best one.” But the hard fact, according to Richard Maulsby, director of the Office of Public Affairs for the U.S. Patent & Trademark Office, is there are around 1.5 million patents in effect and in force in this country. Of those, maybe about 3,000 are commercially viable.

That’s a <1% chance that your patent will bring commercial success.

READ MORE

For Inventors, News

4 Trade-Offs You Make by Licensing

February 7, 2018 3VE Marketing

licensing alotech inc

Licensing an invention is about profiting while minimizing the personal risk and commitment. While there is less risk for the inventor, there are a few trade-offs you make when you decide to license.

1. You’ll Only Receive Royalties

In exchange for the rights to produce your intellectual property, the licensee will pay you a share of the revenue collected. Typically, inventors will see a 2-5% share in royalties but this number can increase or decrease based on the market size, expected margins, costs to develop and strength of the intellectual property. Assume you’ve created a new toy that sells in stores for $10. The manufacturer sold the toy to the store for $5 per unit. If your royalty was only 5%, you would receive 25 cents per unit. While it’s not a lot of money, you didn’t have to invest the same time and money the manufacturer did to make the product possible. It turns into a passive kind of income.

Royalties may only be paid out every quarter, depending on the company. While this sounds like a short amount of time, there could be a catch: you may not be cut a check until the quarter following the product sales (if anything sells).

For people who choose to manufacture themselves, the profit can be much higher and the payday a little quicker.

2. You Lose Control of the Product

If you have ideas about packaging, distribution, marketing, cost, production and sales, you shouldn’t license. When you decide to license, the licensee could possibly have complete control over the product. If the company wants to brand your product, you could have no say in it– even if the brand is the opposite of what you have in mind.

3. You Risk Loss of Your Intellectual Property

By exposing your intellectual property for someone else to manufacture, you take a huge risk your intellectual property will be stolen or pirated. Policing a licensee’s use of the IP to make sure they don’t infringe on your rights can be costly and time consuming, even if you have good legal representation. The company might also decide to license your product but never put it into production. This will tie up your intellectual property and keep you from producing it with other licensees or on your own for the entirety of your contract. Within that time, there’s the possibility someone can produce something that fills a similar niche and solves similar problems as your invention.

You could also be giving your competitors the right to use the same production process you use. The licensee will now be on a level playing field with your product.

4. You’re Entirely Dependent on the Licensee

The licensing process is usually limited and, if you’re wanting to continue production with the same company, you will have to re-negotiate the terms of the contract. Depending on how the product did, the interest in the product, new market observations and other factors, the contract and your cut could be changed.

The licensee could refuse to validate or let you audit their royalty statements to determine accuracy. Legal action can be taken but it would get very expensive very fast.

Although licensing can save time and headaches down the road, the deals can be complicated. If you go the licensing route, be prepared to budget for a top-notch attorney to help you navigate the murky licensing agreements so you don’t fall into any traps.

Would you rather keep control of your product?

At Alotech, we partner with you to find creative ways to manufacture your product while keeping you in control. If you’re looking for a manufacturing partner that listens to you, give Alotech a call! Because we work with inventors with a range of products and needs, we have the resources and knowledge to help you be successful. Contact us today by calling 919-842-3599, or visit our contact page and fill out the form.