Licensing Versus Going to Market Alone

Warren TuttleMonashee Marketingwwtuttle@yahoo.com

203-594-8808

External Product Development Lifetime Brands President United Inventors Association

Monashee Marketing

New York City retail store Buyer…learned housewares industry from ground up

Specialty Retail Store Owner

Independent Inventor Advocate

External Product Development for Lifetime Brands....25 licensing deals past two years

Taken several products directly to retail

UIA President

Lifetime Brands

30,000 products

9 Divisions

32 Brands including Farberware, Kitchen

Aid, Cuisinart, Pedrini, Towle,

Mikasa, Pfaltzgraf

Taking your product to market through others Leveraging valuable IP Making a royalty on each unit sold Establishing a fair royalty amount ($ or %) Negotiating exclusive or non-exclusive terms Setting annual quantity minimums Securing a signing advance Determining length of licensing agreement

Taking a professional approach Understanding industry licensing guidelines Vetting product at retail Develop working prototype proving function CADs and photos Researching and filing for a patent Creating a Sell Sheet NDAs

Research your industry Retail store and catalog shopping Internet Searches Trade Shows Industry Trade Magazines Industry Contacts Determine company with broadest distribution and

reach Seek “Inventor Friendly” companies

When personal resources are limited When industry standards are stacked against

you…the plight of the single sku vendor When you are working on multiple projects When running a company is not for you When your personal creative and business

strengths lie elsewhere When a larger company can simply do it better

than you

Product development services Expanding patent opportunities Branding Established distribution Expanded product assortment Acknowledging Inventor Platform for future licensing opportunities

Same initial development process (idea, prototype, patent search, marketplace vetting)

What are industry standards and nuances? What are retailer requirements for single item

vendors? What is price point of the product? High margin

and low volume opportunities. Can you earn a windfall profit early on? Can you build and sell the business?

1) Early Development Costs2) Tooling3) Manufacturing4) Inventory5) Shipping6) Warehousing7) Disbursement 8) Billing 9) Collection

Financial Resources…access to $ Time…quit your day job? Passion…are you a visionary, or simply crazy? Consumer Research…sketchy Industry…challenges within each Product…ability to manufacture Margins…high or low volume Personal Goals…quality of life