- Q: What really makes a product stand out to FSBA?
- A: Patentability, uniqueness, demonstrability, high interest category, instant gratification (or not!) with the product after first use, high degree of frequency of use (will I use this product once a year or have many opportunities of use depending on the product category?), and great cost to sell margins… .just to name a few.
- Q: Is there a charge to submit or present a product to Faultless Starch/Bon Ami Co.(FSBA)?
- A: No Charges what so ever.
- Q: Will the Inventor be charged any money at any time?
- A: No. FSBA does not charge to review, evaluate, analyze, develop, tool, produce, ship, warehouse, market or sell. No charges at any time up front, in the middle or in the end. Period.
- Q: Will FSBA review just about any product category?
- A: Yes, FSBA welcomes consumer product submissions in most categories; however, items such as Apparel, Industrial, Food & Drug or other products with significant environmental or product liability risks are not. The evaluation criteria in each category remain the same for all candidates.
- Q: Is FSBA willing to meet in person with inventors?
- A: Yes and most certainly FSBA will meet with those candidates during final stages of evaluation. We will not meet with any candidate if our initial submission review process is incomplete. FSBA will fly the inventor to Kansas City should a personal meeting be desired.
- Q: Does Faultless Starch/Bon Ami Co. (FSBA) provide product evaluations or assessments?
- A: No, not as a service to Inventors. Only an initial review by the FSBA product development team will occur.
- Q: What do inventors need to have underway in order to satisfy FSBA's initial review process?
- A: Research into existing product category and existing competitive products already on the market, independent new product evaluation, patent search and the best possible prototype.
- Q: What happens next if the initial review is favorable?
- A: A mutual NDA will be signed by both parties and a more detailed evaluation and analysis of the product will occur. All Sales and IP related information will be requested.
- Q: What is FSBA going to do with the Sales and Patent Information?
- A: On-line research of the Market and of the IP. Direct and Indirect Competitor Analysis and Market Research will be considered. If all is a "Go", extensive Legal work will follow. When applicable, a patent search, patentability opinion and or patent analysis will be conducted.
- Q: Will Faultless Starch/Bon Ami Co. (FSBA) guarantee the inventor a minimum payment guarantee in its licensing agreement?
- A: FSBA will only guarantee that it will produce the bare minimum amount of units (usually determined by the amount of product loaded per container) at the beginning of the licensing agreement but in no way does that guarantee a minimum payment to the inventor.
- Q: How many units can FSBA promise the inventor that it will sell from one year to the next?
- A: None…if we did, that would be a minimum guarantee and we simply cannot promise that, at least not in the first three full selling cycles of the product in question.
- Q: Can the Inventor expect to license their product from Faultless Starch/Bon Ami Co. (FSBA) while it is still patent pending?
- A: Most likely No. Only 51% of the Patent Applications in 2006 were granted in the US and many of these patents granted are be deemed "limited" protection. So, it's really worse odds than a flip of the coin and investing hundreds of thousands and even millions of dollars in marketing and advertising if a product is patent pending is most often than not, too risky of an investment. With this said however, recently FSBA has entered into Asset purchase agreements with the contract including a Licensing Deal if and when the patent is granted.
- Q: Does FSBA only accept exclusive rights to the product?
- A: Most cases yes, with some flexibility built in if certain markets are best left to other licensees. Exclusive markets must be protected from possible invasion from other parties if markets are divided up by multiple parties.
- Q: What is the most common royalty rate that inventors can expect to realize?
- A: 1% - 6% of net sales of the product. (Net sales are computed as gross sales less any cash discount that FSBA offers to its accounts on accounts payable terms and conditions.)
- Q: Are inventors paid any money upfront and or at signing that are not considered a royalty valuation?
- A: That all depends on the product and negotiation.
- Q: How may an inventor walk away from a license deal?
- A: An exit strategy is part of any licensing agreement and each one is different. Typically, a 3 year time frame is agreed upon in order to provide adequate market reaction before any exit options can be exercised by either the inventor or FSBA.
- Q: Does Faultless Starch/Bon Ami Co. (FSBA) accept product ideas with out Intellectual Property protection?
- A: No. Product submissions must have achieved patent pending (includes provisional) or patent granted status.
- Q: Does FSBA pay for any of the Inventor's legal work?
- A: No, all patent work and related legal fees are at the inventor's expense.
- Q: Will FSBA license my product invention with out a granted patent?
- A: Historically, No. But recently we have entered into Asset purchase agreements with the contract including a Licensing Deal if and when the patent is granted.
- Q: If the Inventor owns a Trademark on the Product name will FSBA want to use it?
- A: It depends if the Trademark is the most suitable product name, but be prepared to release ownership of the Trademark if necessary as part of the licensing deal.
- Q: If the Inventor owns a domain i.e. (www.InventionName.com) will FSBA want to use it?
- A: It depends on the sales history if any and if the domain is the most suitable product name, but be prepared to release ownership of the domain if necessary as part of the licensing deal.