Licensing Versus Going
to Market Alone
Warren Tuttle
Monashee Marketing
[email protected]
203-594-8808
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External Product Development Lifetime Brands
 President United Inventors Association
 Monashee Marketing
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New York City retail store Buyer…learned housewares
industry from ground up
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Specialty Retail Store Owner
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Independent Inventor Advocate
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External Product Development for Lifetime Brands....25
licensing deals past two years
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Taken several products directly to retail
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UIA President
Lifetime Brands
30,000
products
32 Brands including
Farberware, Kitchen
Aid, Cuisinart,
Pedrini, Towle,
Mikasa, Pfaltzgraf
9
Divisions
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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
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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
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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
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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
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Product development services
Expanding patent opportunities
Branding
Established distribution
Expanded product assortment
Acknowledging Inventor
Platform for future licensing opportunities
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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?
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Early Development Costs
Tooling
Manufacturing
Inventory
Shipping
Warehousing
Disbursement
Billing
Collection
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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