{"id":34867,"date":"2021-08-26T12:19:19","date_gmt":"2021-08-26T06:49:19","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=34867"},"modified":"2021-08-26T12:19:22","modified_gmt":"2021-08-26T06:49:22","slug":"crowdfunding-for-inventors","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/crowdfunding-for-inventors\/","title":{"rendered":"Crowdfunding for Inventor: A Boon or Bane?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Once your idea takes a form of an invention, the next step is to introduce your invention in the public domain and then let it perform its core function. To serve such a purpose, the inventor seeks ample capital and expert assistance. This is where a third-party investors come into play. An investor could approach several avenues such as venture capitalists, angel investors, Crowdfunding, public listing to serve fundraising purposes. In this article, we will reveal some facts regarding Crowdfunding for Inventors in a detailed manner.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/crowdfunding-for-inventors\/#What_is_Crowdfunding_and_how_does_it_work\" >What\nis Crowdfunding, and how does it work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/crowdfunding-for-inventors\/#Probable_Benefits_of_Crowdfunding_for_Inventors\" >Probable Benefits of Crowdfunding for Inventors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/crowdfunding-for-inventors\/#Safeguarding_Intellectual_Property\" >Safeguarding Intellectual Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/crowdfunding-for-inventors\/#Intellectual_Property_in_Crowdfunding\" >Intellectual Property in Crowdfunding&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/crowdfunding-for-inventors\/#Crowdfunding_for_Inventors_Key_takeaways\" >Crowdfunding for Inventors: Key takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/crowdfunding-for-inventors\/#Bottomline\" >Bottomline&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Crowdfunding_and_how_does_it_work\"><\/span>What\nis Crowdfunding, and how does it work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Crowdfunding refers to a method of procuring\nfunds by accepting a small corpus of capital from various sources\/investors. It\nis commonly done through online mode where it is convenient to garner to\nmassive response &amp; secure as much attention as possible.<\/p>\n\n\n\n<p><strong><em>There are three pivotal pillars involved in the\nprocess-&nbsp;<\/em><\/strong><\/p>\n\n\n\n<ul><li>The individual with a\nbreakthrough idea who seeks funding<\/li><li>The people who are keen to fund\nthat idea&nbsp;<\/li><li>The mediator platform that\nbrings inventors and investors together<\/li><\/ul>\n\n\n\n<p>The campaign might be reward-oriented,\nequity-based, donation-oriented, or debt-based.&nbsp;<\/p>\n\n\n\n<p>Crowdfunding is deemed as one of the\nlow-risk forms of fundraising option as the corpus being invested by a person\nis small, and therefore the payback they anticipate is not significant.&nbsp;<\/p>\n\n\n\n<p>But, whatever be the quantum of investment, the person pouring in the capital will ask about the invention\u2019s details. Therefore, Crowdfunding for inventors is more likely to pose an increased risk than other projects where public intervention is not a concern.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/benefits-of-startup-india-registration-in-india\/\">Benefits of Startup India Registration in India <\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Probable_Benefits_of_Crowdfunding_for_Inventors\"><\/span>Probable Benefits of Crowdfunding for Inventors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/08\/Probable-Benefits-of-Crowdfunding-for-Inventors.png\" alt=\"Probable Benefits of Crowdfunding for Inventors\" class=\"wp-image-34940\" width=\"476\" height=\"496\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/08\/Probable-Benefits-of-Crowdfunding-for-Inventors.png 733w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/08\/Probable-Benefits-of-Crowdfunding-for-Inventors-288x300.png 288w\" sizes=\"(max-width: 476px) 100vw, 476px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Safeguarding_Intellectual_Property\"><\/span>Safeguarding Intellectual Property<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Your invention is your IP. Therefore, it is\nrecommended to wisely disclose it to a third party while taking adequate\nconfidentiality protection into account, if possible. Filing patents, design\napplications, trademarks are the most viable forms of safeguarding IP &amp;\nensuring that others do not counterfeit your IP. Ensuring IP protection should\nbe the priority of every inventor who seeks to gain monetary gain in future.\nInvestors who signalled to fund your project also expected to avail some\nbenefit out of the same.&nbsp;<\/p>\n\n\n\n<p>Most Investors have great admiration for an\ninvention that proposed to offer breakthrough functionality. Undoubtedly, they\nwill fund such an idea , but at the cost of knowing the basic concept that drive\nthe same. Securing an IP is one of the most daunting undertakings for an\ninventor in the funding phase. However, some measures can help an investor to\novercome such threats.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Intellectual_Property_in_Crowdfunding\"><\/span>Intellectual Property in Crowdfunding&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Although the crowdfunding landscape is conducive for credit seekers, some inventors might have a different thought on that. Most crowdfunding platforms are less detrimental to IP rights as they never ask the inventor to share the same. But they never dispense the desired funding until the inventor share the invention&#8217;s detail in exchange. Now even though IP rights are intact, sharing such information could jeopardize the patentability of the invention. However, it does not imply that Crowdfunding for inventors is futile or risky. There are some viable ways to stay secured in such an event &amp; maintain the protection of your invention. Let&#8217;s discuss them individually.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Patent Protection&nbsp;<\/h3>\n\n\n\n<p>Filing a provisional or complete patent\napplication ensures some degree of protection in the funding campaign.\nProvisional applications let you safeguard your valuable idea with a priority\ndate &amp; also spare you additional time to later file the complete\napplication in due course.&nbsp;<\/p>\n\n\n\n<p>The ultimate goal of <em><strong>Crowdfunding<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Crowdfunding\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> is to avail little corpus of funding from various investors, so getting a provisional application before that convinces you that you&#8217;re safeguarding the idea &amp; also not spending much on it. Moreover, the fund procured via the crowdfunding campaign can be used in supporting the patenting process later on.&nbsp;<\/p>\n\n\n\n<p>After <a href=\"https:\/\/corpbiz.io\/patent-registration\"><strong>patent filing<\/strong><\/a>, it would not be detrimental to reveal the detail of the same with prospective investors. However, it is essential to remember that no public disclosure should be made before filing the application. Any prior disclosure could hamper your chances of securing patent protection in the future. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Choosing apt jurisdiction<\/h3>\n\n\n\n<p>While opting for a platform for\nCrowdfunding, make sure to determine the region where it operates. If you have\nfiled the application in that region, you should opt for it as your funding\nmedium. Even if the platform functions in your region, it does not imply it is\nrun by that nation, and therefore you might end up disclosing your patent in another\nnation where no patent protection is obtained.&nbsp;<\/p>\n\n\n\n<p>Thus, it is advisable to dig down the target\nmarkets beforehand &amp; then conduct an extensive background search on the\ndesired platforms before selecting any.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">IP Protection for the Platform&nbsp;<\/h3>\n\n\n\n<p>Some crowdfunding avenues do facilitate some\ndegree of IP protection to the inventor, apart from the Non-Disclosure\nAgreement they possess for any campaign. In such scenarios, there is a\nlimitation on the messages posted on the forum, along with any intentional or accidental\ninfringement of your invention on the platform. If an infringement came to\neffect, the platform must have stringent guidelines in place to resolve the\nissue or halt the campaign to secure the rights. Therefore, it would be wise to\nmake a preliminary check to determine possible constraints on each\nplatform.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Trademark<\/h3>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/trademark-registration\"><strong>Trademark<\/strong><\/a> protection helps you secure and incentivize your brand. If there is some enticing name that you have thought of, it is recommended to get it trademarked &amp; utilize it in your crowdfunding campaign to lure more investors.&nbsp;<\/p>\n\n\n\n<p>Creating a brand in the initial phase will\nlet your invention cementsits place in the public domain and boost your\nmarketing efforts.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Modifications \/ Suggestions by Investors<\/h3>\n\n\n\n<p>The norms for inclusion of any modifications\nadvised by the prospective investors may differ region-wise. Such complex\nstandards must be examined carefully to avert any problem cropping up later.<\/p>\n\n\n\n<p>After revealing your invention on the forum,\nyou will encounter numerous suggestions regarding further improvements or\nchanges. Do not let these suggestions cloud your concepts or ideas about your\ninvention, and try to make informed decisions by taking relevant advice into\naccount.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Crowdfunding_for_Inventors_Key_takeaways\"><\/span>Crowdfunding for Inventors: Key takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Revealing your invention on a\nfundraising avenue is not the only possible way to compromise your patent\nrights. Even if you do not share enough detail to let a person possessing\nordinary skill in the art, you can still end up losing your patent rights via\nan on-sale bar. When the invention is sold or offered for sale for a year prior\nto the patent filing, on-sale bars came into play. The on-sale bar seeks that\nthe concerned invention is fit for patenting, which implies either some\ntangible model of the invention exists or the inventor has adequate detail to\ncreate the invention. So even without adequate public disclosure to let someone\nwith skill in the art create the invention, patent rights can still be\ncompromised when the invention is fit for patenting &amp; offered for sale.&nbsp;<\/li><li>In general, once patent rights\nare compromised, there is no way to retrieve them. Therefore, inventors &amp;\nstart-ups must take the relevant measures &amp; precautions to ensure that\nnovelty defeating events do not come to light. But, it may not be possible to keep\ninvention-related details isolated for long. Thus, the key step in securing any\npatent rights would be to file a patent application before involving with the\nsaid activities.&nbsp;<\/li><li>Novelty Defeating events\nprovide the invention no longer stick to originality. An invention is no longer\ndeemed new when it is already available in the public domain. What does this\nimply? An invention is considered known in the public where there are\npre-existing inventions that already reveal the components of the known invention.\nEven if it was the creator who revealed the invention, it is deemed a novelty\ndefeating event.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bottomline\"><\/span>Bottomline&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Crowdfunding is a viable alternative to\nconnect with potential investors and customers to commercialize an early phase\ninvention. If done aptly, it can let you launch your product to key markets\nwithout encountering considerable debt and act as a viable marketing tool per\nse. Owing to its intricate nature, the inventor may fall into the trap of\ndisclosing their invention without securing any benefits whatsoever. However,\nthat scenario is only possible when the inventor doesn&#8217;t take utmost care\nduring the platform selection process.&nbsp;<\/p>\n\n\n\n<p>By prudently reviewing your invention, filing inventions where required for all imperative forms of IPR beforehand, &amp; comprehending the norms of engagement with the crowdfunding platform you select, you can maximize benefits from the crowdfunding process while ensuring uncompromised ownership of your invention. Crowdfunding for inventors is nothing short of a blessing, provided the creator opts to approach cautiously while dealing with investors on a crowdfunding platform.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/startup-india-seed-fund-scheme\/\">Startup India Seed Fund Scheme: Objectives, Guidelines, and Eligibility Criteria <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Once your idea takes a form of an invention, the next step is to introduce your invention in the public domain and then let it perform its core function. To serve such a purpose, the inventor seeks ample capital and expert assistance. This is where a third-party investors come into play. An investor could approach [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":34898,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[968],"tags":[1933],"acf":{"service_id":"250"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":3902,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/34867"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=34867"}],"version-history":[{"count":40,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/34867\/revisions"}],"predecessor-version":[{"id":34944,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/34867\/revisions\/34944"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/34898"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=34867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=34867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=34867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}