Why companies don't accept invention submissions from private inventors

You have a great idea with massive potential, but all those you have contacted don't reply ? Why.... Here are the main factors:

 

Practical Constraints

 

Volume of Submissions : Most large companies receive thousands of unsolicited submissions each year, and the vast majority are just 'ideas' that have not been meticulously developed. Sieving the good from the bad is a time-consuming and costly process, that overwhelm their internal systems. The time and money involved compared to the benefits they receive makes the process uncommercial.

Focus on Proven Markets : Manufacturers often prioritise ideas that have already shown some success or market demand, rather than risk spending time and resources on an untested idea.

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Intellectual Property Concerns

 

Ownership Issues : Companies avoid external submissions because they could inadvertently end up with competing claims on intellectual property (IP). If an invention is submitted, the company might not want to risk legal disputes over ownership, especially if the idea is developed independently by another party later.

Patent Protection : Some companies prefer to keep their innovations confidential until they’ve secured patents. Receiving an outside submission may inadvertently disclose an idea before they’ve filed the necessary IP protections.

 

Conflict of Interest

 

Legal Liability : Due to amount of unsolicited submissions they receive, there's the risk that some of the ideas are similar to a product they are developing internally. As a result, the inventor could claim that the company "stole" their idea. This leads to legal complexities and potential lawsuits.

 

Internal Innovation and R&D Teams

 

Existing R&D Resources : Most manufacturers already have in-house research and development (R&D) teams focused on product innovation. These teams are staffed with professionals who are aligned with the company’s strategic goals, and they’re more likely to produce ideas that are feasible and align with the brand’s identity.

Alignment with Strategy : Even if an idea is creative, it might not fit into the company’s current business plan, target audience, or market direction. Manufacturers often prefer innovations that align with their established product lines or market strategies.

 

Competitive Advantage

 

Secret Development : Companies prefer to develop new products and technologies in-house to maintain a competitive advantage. External submissions can sometimes offer ideas that would be easy to replicate or disclose too much about what the company is working on.

Publicity and Reputation : If an idea from an external source turns out to be a success, it may lead to public scrutiny about why the company did not come up with it themselves. This can affect their image as a leader in innovation.

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Non-Disclosure and Submission Processes

 

Legal Formalities : If a company does decide to consider outside submissions, they often require a non-disclosure agreement (NDA) or other legal agreements to protect both parties. This is a barrier for inventors who may not want to go through the complicated legal process.

Lack of Clear Submission Channels : Many manufacturers do not have a formal or transparent submission process for inventions, making it difficult for inventors to approach them effectively.

 

Cultural and Historical Factors

 

Lack of Openness to External Input : Some companies may have a corporate culture that does not prioritise external input, preferring to keep innovation strictly within the company.

Previous Bad Experiences : Some manufacturers may have had negative experiences with external submissions in the past, such as dealing with frivolous or unworkable ideas, which leads them to avoid it in the future.

 

What Can Inventors Do ?

 

To overcome these barriers, inventors often seek alternative paths, such as:

 

• Licensing : Licensing their idea to a company, where they receive compensation for their invention.

• Patenting : Securing a patent before approaching companies to ensure protection of their ideas.

• Networking and Collaboration : Building relationships with people in the industry or reaching out to innovation hubs, incubators, and competitions designed to encourage new ideas.

• Crowdsourcing or Startups : Some inventors choose to bring their ideas to the public or build their own startups instead of relying on established manufacturers.

 

While manufacturers may not actively seek outside submissions, there are still opportunities for inventors to showcase their ideas through the right channels.