Hardware Podcasts

#044 - When not to start a startup - how to license your idea (Part 1), with Stephen Key of inventRight, USA

The Hardware Entrepreneur · 20 Dec 2017 · 26m

What this episode covers

Stephen Key of inventRight explains why licensing an idea is often superior to starting a company, citing his work with Tim Ferriss and his own experience launching a skull-shaped guitar pick. Key argues that speed to market and avoiding the heavy lifting of operations are critical advantages of licensing, whereas entrepreneurship requires wearing many hats and managing significant risk. He advises inventors to sell the benefit of their idea first using low-cost 3D renders rather than building expensive prototypes, and to use provisional patent applications (PPAs) for perceived ownership while targeting companies with open innovation programs.

Most relevant to

early-stage companies

Topics

Mentioned

Companies
inventRight, Walmart
Products
BrainQUICKEN
Also
Tim Ferriss, The 4 Hour Workweek, Provisional Patent Application

Related episodes from other shows

Other shows on the same ground, closest first.

  • Product Startup · 37m

    116: How to Turn an Invention into a Product Business

    Tom Gray, founder of Make48 and former Handy Camel executive, explains how inventors can transition from hobbyist to business owner by choosing between licensing or building a startup. He outlines four critical assets for success: a refined prototype, a concise sales video, a one-page sales sheet, and proper IP protection. Gray advocates for a 'stepping stone' manufacturing strategy, using short runs and aluminum tooling to validate the product with real users before committing to expensive steel tooling. He emphasizes that this iterative approach reduces risk and increases the likelihood of securing licensing deals or investment.

    Validation & product-market fitCrowdfunding & preorders
    8 chapters

  • Product Startup · 39m

    060: How to Professionally License Your New Product

    Tom Gray, founder of Handy Camel and executive producer of Make48, explains that successful licensing requires a working prototype, patent protection, and proven market traction rather than just an idea. He advises inventors to start small with niche brands to generate sales data and positive reviews before approaching major retailers like Walmart or Home Depot. Gray emphasizes that licensing deals typically involve exclusive rights for 3-5 years, with average royalty checks ranging from $20,000 to $30,000 annually, and highlights trade shows like CES and the National Hardware Show as key venues for finding partners.

    Crowdfunding & preordersRetail, wholesale & distribution
    9 chapters

  • Predictable Designs Podcast · 12m

    Why Patents Are a Death Trap for Entrepreneurs!

    Host John Teel argues that prioritizing patents is a 'death trap' for hardware entrepreneurs, who should instead focus on validating market demand and minimizing financial risk. He explains that unproven ideas have little value and that most patents never reach the market, making early patent spending a poor use of capital. Teel recommends using non-disclosure agreements (NDAs) or provisional patent applications (PPAs) as low-cost alternatives to expensive utility patents until product-market fit is established.

    Intellectual propertyValidation & product-market fit
    1 chapters

  • Being an Engineer · 1h 12m

    S2E01 How to Determine if an Idea is Worth Pursuing – Mechanical Engineering Professor at MIT | Alexander Slocum

    Alexander Slocum, a Mechanical Engineering Professor at MIT, discusses how to determine if an idea is worth pursuing, emphasizing the importance of philosophy in design, managing ego, and validating market demand before production. He shares personal strategies for work-life balance, such as tinkering with children and using exercise to maintain productivity, and advises engineers to invest in their companies or pursue residual income through real estate or stock options. Slocum warns against the pitfalls of relying solely on patents, citing his own 'Massages Soap' failure, and recommends using provisional patents and handmade prototypes to validate demand before committing to expensive tooling. He also outlines a peer-review process for design teams and stresses the importance of protecting equity and seeking legal counsel for partnerships.

    Validation & product-market fitIntellectual property
    10 chapters

  • Product Startup · 31m

    157: How Hardware Startups Compete with Big Business

    Mike Stemple, founder of Skinit and Original Wraps (sold to 3M), explains how hardware startups can compete with large corporations by leveraging speed, scarcity, and customer feedback. He argues that while big companies suffer from risk-averse bureaucracy and feature creep, startups can succeed by focusing on minimum viable products and short-run manufacturing. Stemple advises entrepreneurs to invest in intellectual property and use licensing or white-labeling partnerships with major brands to scale revenue and attract acquisition interest.

    Validation & product-market fitScaling production
    8 chapters

The summary, chapters and topics are generated from the episode’s audio by this directory, not written by The Hardware Entrepreneur. The episode itself belongs to its publisher.