Full patenting can follow this. Any disclosure like getting it published in a technical journal can be done after this. They must do this at an appropriate time to create awareness on the product before launching the product in the market.
It is recommended that the services of a professional patent attorney be engaged for filing the patent (Reese, 75). Both the partners do not have experience in writing and filing patent before. The patent will be written better by a patent lawyer and chances of getting it accepted will be much better. It is also better that they bear the costs of the patenting themselves now and not wait to form a company and then raise resources through that for the patent. Funding agencies pay special attention at aspects of value of IP and how well it has been secured by the promoter while considering a loan proposal.
Another important thing that needs to be clarified right away is the ownership of the patent. Will it be owned by one individual or both or by the company that is to be formed The best would be to for the engineer partner to patent it in his own name and later on transfer the rights of use entirely to the company at some mutually agreed cost after it is formed. It would be fair as it is his efforts that has resulted in the patent and also because the patent filing need not wait for the formalities of forming a company, that is, if the two decide to go ahead and form one.
1.3 To Licence or Manufacture
After the patenting they will have to decide on whether to manufacture and market the product themselves or to transfer the knowhow to a third party for manufacturing under licence. The former means becoming an entrepreneur and deriving the full fruits of benefit s of the invention. An entrepreneur's skills are entirely different from that of an inventor. The entrepreneur takes full responsibility for doing everything like fund raising, manufacturing and marketing required for setting up and running the enterprise. He also takes all the risks associated with it. He will reap the full benefits only if he has the entrepreneurial capability and is successful in pursuing it. On the other hand if he licenses it to a right company, then he will be assured of a steady income as royalty without further effort. He will be free to pursue his other business interests. In a licensing since the manufacturer takes more risks in terms of manufacturing and marketing and therefore would naturally get a substantial amount of the returns the product generates in the market.
Here the enterprise is going to be started by a person with technical background and other with business background. The combined strengths of the two would be an ideal combination for a successful enterprise. The two have shown a strong desire to become entrepreneurs. The decision of the two to join and start a manufacturing enterprise, therefore, seems appropriate.
1.4 Corporate objective and strategies
The partners should therefore set up an enterprise with a corporate objective of "setting a profitable enterprise selling equipment related to pollution abatement in the automobile industry and helping the industry to attain high levels of environmental standards. This will be achieved through a process of design and manufacturing products of highest quality at optimum price through a work force that