Legal Question in Business Law in Texas

funding agreement for invention

I have invented a product. I have a patent application on file with US. I am currently speaking with investors that want to give me start up money to build a prototype of my invention so that I can bring it to potential manufacturers and sell it. I need to know what kind of business contract I would enter into with these investors in order to ensure my invention remained mine and that they could still give me the money I need to start up. I am sure they will want some kind of return on their investment, but I don't know that it will sell so I can't give them any guarantees of return funds.

Asked on 2/17/06, 5:29 pm

2 Answers from Attorneys

James Grissom Law Office of James P. Grissom

Re: funding agreement for invention

Fundamentally, you need an agreement that allows the investors to invest money to obtain distributions of profits - not claims to assets in particular your invention. This is complex. Please consult a lawyer. I had a client a few years ago that lost a valuable invention the same manner in which you are headed.

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Answered on 2/17/06, 6:07 pm
Peter Bradie Bradie, Bradie & Bradie

Re: funding agreement for invention

The contract is quite complex and definitely not a do-it-yourself project. You need a lawyer to handle that for you, so you don't lose your intellectual property and still get the funding you need.

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Answered on 2/18/06, 10:48 am

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