> General FAQs
How does OpenInvo price an idea?
OpenInvo calculates the price for an idea based on a few factors:
1. How developed the idea is.
2. How big the market is for the product or service.
3. What the market will pay for the end product.
It is OpenInvo’s job to assign appropriate value to the ideas in our library. We will do our absolute best to please both the Idea Provider and the Idea Seeker.
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I am registered as an Idea Seeker with my company, but I have my own ideas that I want to provide for sale on OpenInvo. Can I be both an Idea Seeker and an Idea Provider?
Yes, you can. But make sure you pay special attention to the Idea Seeker Registration Agreement and the Idea Provider Registration Agreement. We cannot stress enough that any information you view from Idea Providers—no matter what your role on OpenInvo—is not to be used without adhering to the OpenInvo protocol.
In order to protect your ideas and the ideas of other Idea Providers we ask that you be forthright and let OpenInvo know your dual status.
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I was automatically logged out?!?
For security purposes, the site automatically logs you out after 30 minutes of inactivity. After prolonged idleness, OpenInvo will ask if you are still working. The message only stays up for three minutes; if there is no response the site logs you out.
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If an idea is purchased and then it is later discovered that the Idea Provider credited/paid was not the rightful owner, who is responsible?
In the case of a proprietary misuse or mispublication of an idea, OpenInvo agrees to refund the commission we take for the idea. It is in the agreement that we hold with the Idea Provider that they also refund their share of the compensation. We are not responsible for any additional fees. All ideas uploaded to the idea database undergo a preliminary proprietary rights search, but an Idea Provider must certify his/her ownership.
For more detailed information please refer to your Idea Seeker or Idea Provider Registration Agreement.
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> Idea Provider FAQs
Who can submit an idea?
We accept ideas from anyone; that’s the concept behind “open innovation.” At OpenInvo, companies look for resources from the “open community”—innovators outside the traditional realms of their business. The filmmaker with the kitchen gadget idea—we want your idea! The fashion designer with the language-learning concept—we want your idea!
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What if the price that OpenInvo sets is not what I want?
You have the right to challenge the pricing OpenInvo assigns to your idea if you think it’s too low. You are welcome to offer up a suggestion that you think is reasonable. However, keep in mind Thomas Edison’s maxim about inspiration and perspiration—people tend to think that their ideas should have a higher price, but may not realize how much work it will take to develop the end product.
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Can I develop my idea further after it is submitted and assigned a value by OpenInvo? If I improve or change the idea, does that affect the price?
We encourage you to submit your idea even if it is not developed to the point where you would like it to be. You can always come back later and edit the idea, add drawings and specs, video, or market research. We will reevaluate it and adjust the price accordingly.
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What are OpenInvo’s terms of sale?
Generally we sell ideas using three different sales models, though some deals do require special terms:
1. An idea is purchased for one lump sum.
2. An idea is purchased for a smaller lump sum plus royalties.
3. An idea is purchased with the intent of a new company being formed; a matchmaking equity percentage of the new entity becomes our commission.
If you would like to make a different proposal, please feel free to contact us with your terms.
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What kind of commission does OpenInvo take?
In most cases, OpenInvo takes 20% from the total sale price. For example, if an idea is sold for $20,000, we take $4,000 from the sale. This fee is paid to us from the proceeds, not in advance. That means that the Idea Provider gets a $16,000 profit from the deal. In the case of a royalty arrangement, the same system is in order. In both cases, we only get paid when you do.
In the case of an equity settlement, we negotiate our fee based on the same kind of terms that an investment matchmaker would get (our commission would usually be a small amount of the pre-money valuation of the Series A investment round).
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How is the sale of an idea being taxed?
Every country has its own specific tax rules and regulations, but OpenInvo will report the proceeds of any sale of an idea to appropriate tax authorities.
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How does OpenInvo protect an idea?
Some ideas are patentable, some are copyrightable. You can submit ideas that are rights protected or not. In the case that they are not (as is true for most of the ideas we get), we pledge to do our very best at protecting your rights to the idea. There are no 100% guarantees, but our policy works like this:
Idea Seekers who use OpenInvo are required to sign an agreement before they can view the ideas we have for sale. We never disclose an idea without a signed agreement from the person or company viewing it. Signatories to this agreement must pay for any use of the idea. If there is a claim of a similar product or service in development, that person or company will have to provide credible documentation that the idea was in development prior to their seeing it on OpenInvo.
That’s it. No patents, no copyrights. Just a legally binding contract between OpenInvo and the potential buyer.
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How do you stop someone from stealing my idea?
In addition to the OpenInvo agreements and any patents or copyrights you may own for your ideas, we have developed a Confidentiality Rating system that lets you easily control the visibility of your idea. You choose the privacy settings for each of your ideas, and how they appear in our system. And yes, we watch and track all the users on our system. We know what they, and you, are looking at, and when. This is for everyone’s benefit.
OpenInvo’s Confidentiality Rating system:
Private: Your idea is registered on OpenInvo, but you’re not yet ready to share it with anyone. For your eyes only.
Collaborative: Your idea is in progress and you want to make it accessible to other Idea Providers for collaboration, help, or other inquiries.*
Public: You want your idea to be visible to everyone. Maybe it’s something that people can use for the greater good?
Protected: You protected your idea before joining OpenInvo (i.e., you have a patent, patent pending, copyright, etc.). This idea is for sale.
Proprietary: Your idea is locked. It is only visible to Idea Seekers. OpenInvo tracks who views your idea and when with the utmost scrutiny. This idea is for sale.
*Note: In this case your idea is not protected from espionage. Although the OpenInvo Idea Provider community is a standup bunch, when you post any details of an idea in Provider Central, there is always the slight risk of a not-so-honorable user reading this information.
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Can OpenInvo help me find a co-founder or partner for a new business?
We are not connecting co-founders as of yet, but in the future there will be a "matchmaking" function on the Idea Provider side where two people who want to pursue a certain business, but need others to help them could find each other through the site. That is not our main focus but it will be in there in the next versions of the platform.
In some cases we'll have an investor type as an Idea Seeker who is looking to start
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> Idea Seeker FAQs
Where do the ideas come from?
We accept ideas from anyone, that’s the concept behind the notion of “open innovation.” However, we are unique in that we target creative types mostly in the domains of the arts and design. The founders of OpenInvo come from these creative fields, and realize that people in the arts are an untapped resource for creative thinking that can produce valuable solutions.
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Why do you call this Open Innovation when it is not free to use like “Open Source"?
Open innovation and Open Source are two different things. Open Innovation is a term promoted by Henry Chesbrough, Professor at UC Berkeley and author of a book by the same name. It is a concept that implies that companies should use external ideas and resources for R&D, rather than simply using internal resources (i.e. employees). This former methodology is referred to as “Closed Innovation.” Open Source refers primarily to software development where pieces of code are free to use for various implementations.
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Is it possible to purchase an idea directly through an automated system?
Not today, but soon enough. And you will not be forced to purchase an idea automatically when this is the case. Sometimes specific terms for a sale must be worked out on a case-by-case basis.
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> Collaboration FAQs
How does collaboration work at OpenInvo?
Right now the system works like this:
You can invite collaborators to work with you on an idea (by making a general announcement, or targeting individual Idea Providers).
Or, you can request to collaborate on someone else’s idea.
Once both parties agree to work together, they exchange contact information. You work on your idea via the OpenInvo platform, and then one of you uploads the idea and names the other as a collaborator. In the future, you will be able to collaborate directly on the OpenInvo platform using shared documents and other collaborative enhancements.
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How can I collaborate on an idea, but then give it a Proprietary Confidentiality Rating (CR)? This is confusing.
The Collaborative CR means that the idea is open for collaboration. The Proprietary CR means that the idea is now ready for market and/or closed to future Idea Provider collaborations, but this idea could have more than one author.
When you want other Idea Providers to see your idea—or some part of it—so that they might help you or offer advice, then the CR should be Collaborative.
If an idea is ready for sale, and no longer open for collaboration, has more than one author, creator, or owner, then the CR should be Proprietary.
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What is this mysterious Collaboration Agreement that I see mentioned?
In order to sell an idea where two or more authors/creators are involved, OpenInvo needs to be sure that there is no dispute between them. In order to ensure this, we ask that collaborating Idea Providers sign and upload an agreement that says as much. You can use your own, or you can find a simplified one here and in the Provider Guide on your home page.
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