Should You Hire a Contract Manufacturer?
"I'm a retired engineer who is spending his Golden Years designing new household products.
"I've obtained several patents for my inventions but haven't yet done anything with them. I've started getting emails from companies offering to take my patents and develop them into marketable products.
"The offers are tempting and appear to be low risk -- I just assign my patent to them, they do all the work, and I just sit back and collect royalty payments each month.
"But of course that sounds like it's too good to be true. What are the rules for dealing with these kinds of companies, and how do I avoid getting ripped off?"
These types of operations have been around a long time and are known as contract manufacturers.
Traditionally, a contract manufacturer does the following:
-- Licenses your patent.
-- Develops a prototype and prepares your product for manufacture.
-- Manufactures your product in whatever quantities you specify.
-- Ships the product back to you.