| Many inventors come up with a great idea and wish | | | | tell if they are being honest with you about the |
| to sell this idea to another company in trade for | | | | amount of royalties (per unit sold) monies you will |
| royalties for use of their patent. This makes sense | | | | receive? If they are giving you per unit stipend then |
| because the inventor does not have to start his own | | | | you would need to be sure that they told you of |
| company and go thru all the risks to build the device | | | | "ALL" actual sales, whether they were from the |
| and can sit back in his home workshop and come up | | | | Internet, mail order, infomercial or in retail stores. |
| with his next invention or innovation. Often these | | | | You see the music industry does similar things to |
| inventors when making an agreement do not put in | | | | make sure the artists get paid. So does the insurance |
| the contract that they want audit rights to the | | | | industry as many times the risk is gauged by the |
| company's books which will be mass producing and | | | | amount of gross income for exposure calculations. If |
| bringing to market this innovative invention that they | | | | the totals are in error or misrepresents then the |
| thought of. | | | | artist, insurance company or you the inventor gets |
| Recently I was asked by a think tanker; "I need | | | | ripped off. This is why I advice that you put into |
| more insight on the audit rights you talked about?" | | | | your contracts when selling your idea, simple audit |
| Well if this company starts selling your invention, how | | | | rights so you get paid what they agreed too. Think |
| will you know how many they sold? So how can you | | | | on this in 2006. |