How Much Is Too Much? When it comes to shipping and handling charges, there are no rules.

Q: What are the guidelines for charging shippingand handling fees to a customer?

A: This question has an interesting answer. Afterseveral calls to various agencies, including the U.S. PostalService and the Federal Trade Commission, the answer is: There areno guidelines. Companies can charge whatever they want for shippingand handling with impunity.

This explains why many companies collect a shipping and handlingcharge that's more than 10 percent of an item's purchaseprice. In fact, I noticed a piece of exercise equipment being soldon television with a $75 shipping and handling charge. Theadvertisement provided a 30-day money-back guarantee, less shippingand handling, of course. This high charge covered the cost of theitem as well as the actual shipping and handling charges!

Q: Is there an independent and affordable group ororganization that will evaluate an idea and provide a writtenreport?

A: Yes, there are several. Here are two of mynot-for-profit favorites: The Innovation Assessment Center atWashington State University's Small Business Development Centerin Pullman is designed to assist inventors and small businesses byevaluating a new product, process or service for its potentialcommercial success. Three evaluators (from a pool of more than 400)are selected to measure your idea against 33business variables, such as consumer safety, competition anddemand. The cost is $350 for the evaluation and a writtenreport. For more information, contact Stuart Leidner at (509)335-1576.

My second pick is the Wisconsin Innovation Service Center inWhitewater. This center specializes in feasibility assessments andmarket expansion opportunities for new products. The expert staffuses a variety of resources to analyze the product in four areas:technical feasibility, degree of competition, estimate of need anddemand trends. A fee of $495 buys a written report and an onlinepatent search, delivered in 30 to 60 days. For more information,contact Milissa Guenterberg at (414) 472-1365.

For inventions specific to the fields of energy and sports,there are two resources you can tap to receive a free productevaluation: The Energy Related Inventions Program (301-975-5500)and NordicTrack's Inventor's Network (800-967-2113).

Q: My idea has been developed to the point where I havea finished product complete with packaging. How do I get it on themarket?

A: Books have been written and countless consultantshired to try to answer this complex question. The best advice I cangive you is to sit down and identify your potential customers. Arethey companies or consumers? Pinning down who your customers willbe makes distribution choices much clearer, and hopefully moreprofitable.

Q: What's to prevent a manufacturer from stealing myidea once I show it to them?

A: You should never talk to a manufacturer or anyvendor about an unpatented idea without first having them sign aconfidentiality nondisclosure agreement. Every vendor I haveworked with has signed one. If a vendor refuses to do so,that's a red flag, and I suggest you go elsewhere.

That said, let's think practically about manufacturers. Theyare in the business of making stuff. The more stuffthey make, the more money they get. Hence,they want you to be a success because it means more businessfor them. Vendors that accept contract work rarely have theirown sales force. Therefore, even if a contracted vendor were tomake your idea without your permission, they would still have thesame challenge you have in trying to sell the product. Most ofthese companies want to fill the order and ship the product toyou.

Q: What does "patent pending" mean?

A: When an inventor labels a product with thesewords, it means he or she has filed a patent application with theU.S. Patent and Trademark Office (PTO) and is awaiting the issuanceof a patent. This notification puts the public on notice that thisproduct is probably going to receive a patent.

An unfortunate truth about patent-pending status is that itprovides no protection to the inventor. Only when a patent isissued does the inventor have protection. Therefore, a word to thewise: Never reveal your patent filing date while in patent-pendingstatus. Since the PTO generally takes one to two years to issue apatent, a potential competitor who knows your filing date will beable to calculate how long it will be before you receive patentprotection. With this knowledge, he or she can market your ideawithout consequence. It is only from the date of issue that he orshe must stop selling your idea or begin to sufferconsequences.

Q: Are there any Web sites you can recommend to helpinventors and entrepreneurs?

A: The U.S. Patent and Trademark Office's (PTO)Web site, http://www.uspto.gov,offers everything you need to know about patents and the PTO. Forexample, it has a listing of PTO fees and news. This site allowsyou to do an online patent search on all patents issued since 1976.Unfortunately, it does not provide the drawings included in apatent issuance. However, for a nominal fee, you can order anactual copy of the patent from this site.

You can also go to the IBM Patent Server at http://www.ibm.com/patent to searchfor patents. The advantages to this site include the ability toconduct a Boolean search (that allows you to input specific searchparameters), see patents as far back as 1971 and view apatent's drawings.

Sponsored by the National Inventors Hall of Fame, InventurePlace at http://www.invent.orgis a great site for inventor trivia. It sponsors inventing contestsand has a collection of linked sites.

Known as the Internet Invention Store, http://www.inventing.com, sponsoredby Impulse Communications, showcases inventions from inventorsworldwide. It also has a fairly comprehensive list ofinventing-related books.

If high-tech inventing is your bailiwick, http://www.thetech.org/revolutionariesis a great site for you to check out. Sponsored by The Tech Museumof Innovation and the San Jose Mercury News, this site hasonline interviews with the leading-edge pioneers of the SiliconValley. Interviewees include Michael Hackworth, president and CEOof Cirrus Logic Inc., and Al Shugart, CEO of Seagate TechnologyInc. (See next month's "Bright Ideas" for more on howto get inventing help on the Internet.)

Q: Are there ways to protect my idea without the costand frustration of filing a patent application?

A: Not really. In an earlier article ("BrightIdeas," February 1997), I wrote about keeping trade secrets.Really, the bottom line is this: If you're serious about youridea, you need to get into the game. You can't gamble withoutfirst placing a bet. The same holds true with ideas. You mustinvest in a patent and take risks if you ever hope to hit thejackpot.

Q: For many reasons, I don't have the resources todevelop my idea. How do I go about selling it?

A: If you decide to try to sell your idea to someonerather than develop it yourself, you will be traveling a very toughroad. Most large companies you might pitch your idea to haveresearch and development departments, so if you go to them with agreat idea, you are pretty much saying this department didn'tdo its job because it failed to discover your brilliant idea. Andmany times your idea will be evaluated by this department, whichhas a vested interest in turning it down.

What you want to receive in payment and what a company wants topay are usually worlds apart. The company will be doing most of thework, so it feels it should not have to pay as much as you feelyour "child" is worth. You, on the other hand, arelooking for a road to retirement paved with big dollar signs.Unless compromise is made on both sides, there can't be awinning solution.

Finally, most companies that invest in ideas want to know thatit will be a hit. Unless you have developed your idea to a pointwhere it has been test-marketed, most will not be interested enoughto talk with you.

There is one industry that welcomes ideas from inventors: thetoy and game industry. Many successful toys and games weredeveloped by individuals, then sold to large toy companies. G.I.Joe and Trivial Pursuit are two examples. In this industry, thereare toy developers who act as your agent to the toy companies. Fora percentage, they will pitch your toy or game idea to the topbrass and try to get you a contract. These developers are mostlylocated in New York City. To find their names, call a toy companyand ask which developers they like to work with.

Tomima Edmark is the inventor of the TopsyTail and severalother products and is author of The American Dream Fact Pack($49.95), available by calling (800) 558-6779. Questionsregarding inventions and patents may be sent to "BrightIdeas," Entrepreneur, 2392 Morse Ave., Irvine, CA92614.

Contact Sources

NordicTrack Inventor's Network, http://www.nordictrack.com

U.S. Patent & Trademark Office, Crystal Park 2,#0100, Washington, DC 20231, (800) PTO-9199