Here is what I would do (FWIW):

Play like you're serious and willing to talk big...

Make some calls, etc, and get big vol pricing on making millions. This way, you 
know the data the other side of the table will use in any negotiation.

Get a Provisional Patent. They're $200 and last a year or two, and get you some 
protection - while you're theoretically working on the real one...

Find a model maker, woodworker, whatever, to build a handful of hand-made 
prototype cases to your spec. Don't hand them out, show them, and if anyone is 
offended by not giving them some (like some low level rep at some toy company), 
  give the idea that you don't think it would be right, since you're currently 
in deep negotiations with a competitor, BUT, if they are serious, they should 
get serious quickly - you're still taking offers... You get to keep your 
prototypes AND it will make them more hungry to deal with you, since they're 
competitor might be seeing something they aren't. Just like consulting - 
everyone wants to hire a busy consultant, no one wants a consultant with 
nothing else to do... ;)

Go the way of licensing to a big company. No hassles or liabilities. The final 
patent can be finished by them. You can also just sell it outright. If there 
are follow-on type toys from it, you could negotiate around that too, and maybe 
have a ready buyer for permutations you come up with. Have an experienced agent 
or lawyer in that area be with you. If they're experienced and good, they'll 
more than get their fee covered in increased $$ negotiated.

While that's going on, casually look at the make it yourself angle - it adds 
leverage to your negotiations. You'll have until the provisional runs out to 
get it sold or go for the real patent or decide to make it yourself, etc.


Ben Hencke wrote:
> Hi all,
> I've got a small PIC based LED toy (think fancy keychain like), and I
> wanted to ask the piclist's advice on a few things.
> 
> First about the toy, its small, has very few components, and
> everything interesting about it is implemented in firmware. I designed
> the PCBs and made them at home, they are about 0.5" x 2" (most of the
> space used by the battery holder). Everyone I've showed it to has
> encouraged me to get a patent, but these are expensive, and given the
> market for small LED toys, I dont think any over seas would be ripoffs
> would have any problems at all getting around it. If I'm going to
> throw $10k at it of my own money I'd rather put it in to the other
> aspects of getting it finished and built, marketed, etc. Worst comes
> to worst I'd at least have 1000s of the things to show for my money.
> Before you tell me I'm wasting my time trying to sell keychain lights,
> ever time I've played with one of these things down a city street I
> get stopped like every 5 minutes by someone asking me where I bought
> it. I'm pretty sure if done right that it would take of and be at
> least momentarily popular. I've read a few Inventor books but these
> leave me asking more questions than they answer.
> 
> So then a few questions:
> 
> 1. Patent something that might be easily ripped off? Are they
> absolutely necessary?
> 2. Any ideas on how I could get plastics made for this thing? Maybe
> something like a snap together case, or a rubberized soft shell or
> something.
> 3. Someone once told me I'd need to get it safety tested and whatnot,
> any pointers to laws regarding this sort of thing?
> 4. A lot of people told me to license the idea and/or firmware to
> larger toy companies, and let them handle all the rest of the details,
> but this road always seems to go down the path of requiring a patent.
> IF this idea was patentable, I'm not sure any toy company would pick
> it up.
> 5. I've seen a lot of posts about manufacturing, usually for up to
> 100s of boards, but does anyone know of a place that specializes in
> making thousands of smaller boards?
> 6. I'm thinking that I could approach some of the smaller local toy
> stores and talking them in to carrying them for a while to test out
> the market, if it works out, then I'm sure there are toy conferences I
> could schmooze with people and show them some sales data. I'm not a
> sales/marketing guy, so maybe I'm totally missing something there?
> 7. Is there something I should know about but haven't asked? :-)
> 
> Thanks in advance,
>   Ben
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