Products, Patent and Competition

This from someone I am yet to meet...

Hello Mr. Spiers!

I just read your book "How Small Business Trades Worldwide" and I wanted to first thank you for such a great book and second ask some questions that hopefully you could answer or send me in the right direction to answer myself. Of the books I've read on import/export your angle and unique experience and understanding of trade really stand out. I specifically wanted to ask you a little more about your advice on avoiding patents.

In one example, I'm looking to have a new type of game controller manufactured for me (this would be one product of many, many products - certainly not my specialty in any sense). I would prefer to follow your advice and NOT get a patent and avoid the legal hassle, paperwork and wasted time. However, a business-major friend of mine has told me that another company could copy the idea and PATENT IT THEMSELVES. I'm not TOO worried about them copying it... but them patenting my own idea would really piss me off!

***I believe to patent in USA it must be new and yours, among other criteria. Once you sell something across a state line, it is no longer new. So unpatentable. Might check this.***

Also, I'm not certain how often we would redesign the product (the new concept itself is the big innovation, after that I don't see much in the way of improvement) -

***Two part answer: Check out "perturbility rate" google brings up nothing... but long ago I read an article about BART in SF Bay area, and why it did not perform as advertised. Engineer said too much new tech interacting... the lesson was "piecemeal out innovation in digestible chunks..." part two... of course YOU do not see much in the way of improvement, but your customers will... Jobs had no idea the iPod would morph into the iPhone...***

which your book implies would eventually get us shouldered out of the market by high volume competitors. What do you think?

***I think that big boys flow into the vacuum we create when we move on to newer more profitable ideas... We invest $5000, return ten thousand, this goes on over years ... later as we come up with alternatives and as we see a given item where we are, years into iterations, investing 5,000 and returning 9 thousand, we begin to phase that item out in favor of new items, based on customer feedback, wherein we invest 5 and return 10 again... our hapless supplier watches us lose interest in a product he makes, and we in turn are pleased to see them pull some residual value for themselves by selling to the big boys. Something like that...does that make sense? ***

I believe the future of my company lies in constantly developing many different types of novel products - and in that sense it's very similar to your concept of constantly innovating on the design of a single product. Our novel products might get copied elsewhere but we'd keep innovating by creating new ones.

***Well, I have merely stated what others taught me... what you just said is exactly what Steve Jobs does...and every other thriving small businessperson.***

I know nothing of the "hassle" of filing a patent. If it were easy (I don't even know if you have to pay to do it or not) then I'd do it just to keep people out of the market longer,

***Jeff Bezo's reason for patenting "one-click ordering" was to keep from getting sued by some pirate. it is a terrible cost which contributes to USA non-competitiveness and copntributes to the reason people prefer say Airbus to Boeing. Your customer satisfaction keeps people out of your market forever. It is necessary and sufficient.***

but if it's really time-consuming and/or expensive then I'd be more inclined to avoid the process.

***It does not work as advertised, so don't bother.***

Well, I'm sure you're busy and I don't mean to waste your time. I would really appreciate any information or advice you could give on the subject, even if it's only a link! Thanks so much!

**Never a waste of time to answer questions... I need to invent time in a can or something..need more...***

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