Great Minds

Unfortunately for inventors, the problems to solve are many. Ironically, the answer to an inventor's most urgent question (How do I protect my idea?) happens to be one of the most tedious aspects of inventing (Patent it). Dealing with patent searches and intellectual property attorneys isn't exactly the most glamorous leg of the journey.

"Many inventors haven't been through the process yet," says Rein. "It's their first time, and they have an understandable fear of the system. But venture capitalists and funding providers want to know what kind of protection you have. That's why patents are so important-they build a wall around [your invention]."

As if the process weren't complicated enough, Rein points out that all patent searches are not created equal. "The search is usually dollar-limited," says Rein. "If you spent a few thousand more dollars-or a few tens of thousands more dollars-in a search, there's a chance you'd find out something you wouldn't otherwise know."

It all comes back to that classic Catch-22 scenario: It takes money to make money. "There's an initial difficulty new inventors have-they're looking at the protection problem at a time when they have zero money," Rein admits. "To some extent, you can share your idea with potential funders in confidence, but you have to have enough money to seek adequate protection before you go out and really raise money. That's the tightrope inventors have to walk."

Besides taking care of patent legalities, revealing your idea to associates or investors requires a healthy dose of discretion. "The feedback I've gotten has been so valuable in improving my products, I've always considered [disclosure] a risk worth taking," says Flax. "But you always have to be aware of who you're talking to. Do your homework before you disclose information to anyone.

"If you want to show your invention to a large company, find out its reputation, whether it's interested in ideas from outsiders, and whether it has pending lawsuits against it. Of course, when there's an opportunity for you to benefit from someone's input, by all means share your idea."

However, because of the volatile nature of personal relationships, Rein advises taking precautions with even your closest friends and family-you never know when an informal collaboration could turn into a legal nightmare. Experienced venture capitalists will be on the lookout for loopholes created by partnerships based on "the honor system." Says Rein, "Getting the proper recognition of ownership on paper upfront is extremely important for inventors."

This article was originally published in the January 1996 print edition of Entrepreneur with the headline: Great Minds.