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

- Show: [The Hardware Entrepreneur](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur)
- Published: 2017-12-20
- Length: 26m
- Page: https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-12-20-044-when-not-to-start-a-startup-how-to-license-your-idea-part-1-with-stephen-key
- Listen: https://traffic.libsyn.com/secure/thehardwareentrepreneur/044_-_When_not_to_start_a_startup_-_how_to_license_your_idea_Part_1_with_Stephen_Key_of_inventRight_USA.mp3

## Summary

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.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-12-20-044-when-not-to-start-a-startup-how-to-license-your-idea-part-1-with-stephen-key#t=0) Introduction and the Tim Ferriss Connection
- [5:24](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-12-20-044-when-not-to-start-a-startup-how-to-license-your-idea-part-1-with-stephen-key#t=324) The Tim Ferriss Effect and Book Success
- [9:47](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-12-20-044-when-not-to-start-a-startup-how-to-license-your-idea-part-1-with-stephen-key#t=587) Licensing vs. Starting a Company
- [13:26](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-12-20-044-when-not-to-start-a-startup-how-to-license-your-idea-part-1-with-stephen-key#t=806) Case Study: The Skull Guitar Pick Startup
- [17:02](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-12-20-044-when-not-to-start-a-startup-how-to-license-your-idea-part-1-with-stephen-key#t=1022) Guidelines for Choosing Licensing or Entrepreneurship
- [17:23](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-12-20-044-when-not-to-start-a-startup-how-to-license-your-idea-part-1-with-stephen-key#t=1043) Selling the Benefit Before Building
- [22:33](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2017-12-20-044-when-not-to-start-a-startup-how-to-license-your-idea-part-1-with-stephen-key#t=1353) Protecting Ideas and Open Innovation

## Topics

- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Intellectual property](https://hardwarepodcasts.com/topic/intellectual-property)
- [Prototyping & iteration](https://hardwarepodcasts.com/topic/prototyping)

## Most relevant to

early-stage companies

## Mentioned

- inventRight (company)
- Tim Ferriss (other)
- BrainQUICKEN (product)
- The 4 Hour Workweek (other)
- Walmart (company)
- Provisional Patent Application (other)

## Related episodes from other shows

- [116: How to Turn an Invention into a Product Business](https://hardwarepodcasts.com/podcast/product-startup/2022-03-02-116-how-to-turn-an-invention-into-a-product-business) (Product Startup)
- [060: How to Professionally License Your New Product](https://hardwarepodcasts.com/podcast/product-startup/2021-01-19-060-how-to-professionally-license-your-new-product) (Product Startup)
- [Why Patents Are a Death Trap for Entrepreneurs!](https://hardwarepodcasts.com/podcast/predictable-designs-podcast/2022-07-12-why-patents-are-a-death-trap-for-entrepreneurs) (Predictable Designs Podcast)
- [S2E01 How to Determine if an Idea is Worth Pursuing – Mechanical Engineering Professor at MIT | Alexander Slocum](https://hardwarepodcasts.com/podcast/being-an-engineer/2021-01-08-s2e01-how-to-determine-if-an-idea-is-worth-pursuing-mechanical-engineering-profe) (Being an Engineer)
- [157: How Hardware Startups Compete with Big Business](https://hardwarepodcasts.com/podcast/product-startup/2023-01-05-157-how-hardware-startups-compete-with-big-business) (Product Startup)

## Citing this page

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