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The Agreement Between Edison and Inventor

wendylevinson's Avatar

I am confused as to what Edison gives me for my invention. I read the agreement and it appears that they take 60% of everything. Can anyone tell me exactly what I am assigning away and what I am gaining? Edison seems like a great idea, but I don’t want to give away 60%, which seems excessive. Can anyone better explain?

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williamj's Avatargold

Wendy,

From my understanding “Edison Nation” is a licensing entity that secures IP protection, develops and promotes your (our) ideas. Or at least the ones that “they” believe have a good chance of success.

If they are successful in getting contractual agreement, then any royalties (percentage of products sale price, usually very small) are split 50/50 between you and Edison Nation.

Reread the submission agreement again for a clearer understanding.

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heybensmith's Avatar

IMO it depends on the stage of your invention. Do you have a patent or is it just an idea? How much money do you have invested? How successful have you been so far?

There are other avenues if you have a successful patent with some sales. With just an idea and no capital (that would be me) $20 and a chance to have my ideas brought to fruition, with 0 effort on my behalf, is a bargain.

You keep referring to EN keeping 60%, so I assume you are looking at the lump sum payout for your invention.

Emotions with your “baby” aren’t good for progress, from what I have read and learned so far in my quest. Some inventors refuse to give an inch, some are successful and some are not. That is a long road I would not want to be on, unless I invented cold fusion or something.

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wendylevinson's Avatar

I have submitted a provisional patent application, so far…

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heybensmith's Avatar

Then, to the best of my knowledge, it would be up to EN what the best avenue is to run with your patent. LIcensing, selling or producing, depending on the type of search or insider licensing.

You have invested a good amount of money so far, but minimal costs involved at this stage. You must think about the massive amounts of money associated with production, packaging and marketing. EN will absorb all of these costs, at the cost of their percentage.

And, you have to do 0% of the work if selected.

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