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Patent-Pending
RSVP
Program
If you do not want all the headaches of structuring and organizing a business, this program might be right for you.
Licensing
"But wouldn't I make more money if I manufactured it myself?"
The short answer is “yes”. But then reality hits. Handling the manufacturing either domestically or overseas requires a large investment of time and money. First you will need a rock-solid business plan, inventory financing and product liability insurance. You must work with engineers, industrial designers, sourcing agents and establish a sales and marketing team for distribution. Tooling can cost 10s of thousands of dollars and commonly exceeds $100,000 - and that is before you have manufactured or sold a single unit. Becoming a vendor to the large retail stores is extremely difficult especially if you only offer a single product, and if you do, you often don't get paid until 90 days later.
It is a tough road and very few ever become successful. But if you are willing to risk your home, car, and financial security and have the needed skills to manage a factory and make your product sell, I hope the best for you. It is an option and some people do succeed. Yet the main question for any investment ought to be, "How can I limit my risk as much as possible and maintain the greatest reward possible?" And I would suggest the best answer to this question is found in licensing.
INVENTOR STEPS
- Execute NDA
- Submit Executive Summary / Business Plan and eligibility form for review and program acceptance.
- Once approved, PDCA Agreement will be submitted to the Inventor.
- Marketing License will provide PDCA the right to secure up-front fees for the Inventor. (Our fee structure is normally based on a 10% contingency against all proceeds, to include future Royalties).
- RSVP program will be tailored with your specific project deal points and Capital requirements, and with mutually approved Terms and Conditions outlined.
*See sample offer
- Upon final review and approval, the RSVP program is offered to our network of investors. (Investors are intrigued by the NO RISK proposition).
*See Additional Info
- Once Funding is secured, 10% will remain with PDCA, the Inventor will receive pre-determined % and funder will receive his agreement for the future Royalty Stream, based on is % of funding participation.
- With an optional 10% fee, PDCA will also seek qualified Licensees of the technology.
- Inventor is responsible for all maintenance and filing fees of the Patent. (With special exceptions, Patent-Pending projects may qualify for our program).
- Bonded Escrow Agent is responsible for receipt and disbursements of all funding transactions.
We have changed the dynamics of the funding opportunity to favor all Participants involved!
Once Accepted
NEXT STEPS
If accepted by our Review Board and we were to come to terms, the term sheet will explain our proposal in detail. I.E.
1.) The program is a License strategy...RSVP>Royalty Stream Venture Participation, with no Equity Consideration. You maintain your 100% current equity ownership at all times, but you sacrifice a percentage of future Royalties.
2.) We would License the Patent for a 10% up-front fee paid to you> TBD, "TO BE DETERMINED".
3.) We have the option of sub-Licensing Rights (additional 10% fee paid to you), for (License Mktg. to others).
4.) If you receive 10+10=20% funding (actual capital $ TBD), you would provide the Funder(s) 20% of all $ proceeds from their RSVP.
5.) Our success-based Consultation fees for the program are in direct proportion, and equal to the % of funding received for the RSVP program, and again "with no Equity Consideration".
Example: NOT AN OFFER
We determine the value of the License to be- $4,000,000. NPV (Net present value)
Upon successful RSVP funding, you would receive- $400,000=10%
If we were successful with the RSVP sub-license-$400,000=10%
PDCA and you would then receive equal amounts of the proceeds of the RSVP -$800,000=20% each
As described in the above scenario, in essence, you would have sacrificed 20% Royalties to funders +20% Royalties to PDCA for the life of the Patent(s)*. The remaining 60% of the RSVP is yours to allocate anyway you desire.
Please keep in mind…This is an Exclusive Licensing Agreement and the Licensee(s) would then have the exclusive rights of manufacturing, sales, marketing and Distribution of your invention. Once this is in place, your job is done! (Except for receiving your 60% share of the $ / RSVP Checks.
This program is designed for those inventors who are tired of trying to raise Capital to launch their Invention, and it provides a proven vehicle to receive revenues from a comprehensive Licensing Strategy.
PDCA will review all eligibility forms submitted, for our consideration (rejection or approval), of the patented RSVP program. In some cases PDCA will consider an internal License of specific Innovations. (See Details.)
Hope this helps.
Thank You,
Tony
D. Anthony Bright / CEO / Founder [About the Founder]
PDCA Holdings, LLC
2765 Michigan Ave Rd
Cleveland TN 37323
Office # 423-473-1525
Cell Ph # 423-716-5829
FAX # 423-473-1090
e-mail->tbright@pdcaholdings.com
http://www.pdcaholdings.com/
Inventor Help - New Business Development
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