Frequently Asked Questions
Do I need a patent, trademark, or copyright to protect my idea?
Because we are not attorneys, we can't provide legal advice. If you have a legal question we recommend that you contact a qualified, practicing attorney. To receive royalties from the licensing of a toy or game, you do not need to register statutory rights. Toy & game companies will be looking only at the commercial potential of your item. If they see potential in your item and wish to license it, often the company will pursue patent or other rights on your behalf.
Do I need a working prototype before I submit my idea?
No. Ideally, everyone who comes to us would have a "looks like-works like" model. But we realize that this is beyond the skills and means of most inventors. In fact, we don't encourage our clients to take this step until after their item has been evaluated because of the likelihood of changes. Our teams can work from rough prototypes, drawings, even clear written descriptions. Just send in whatever you think is going to do the best job of getting the idea you have in mind across to us. Make us see what is in your head. There are more notes on Materials For Review under Get Started.
How long will it take after I submit my idea?
We try really, really hard to complete Product Reviews within three weeks of receiving your submission. Most are done in 7 to 10 business days. If your item has real potential, and we start showing it to the industry, you should expect 12 to 18 months to complete a thorough showing. Due to the seasonal nature of the business, there are a few prime times annually to show new items. If your idea catches the eye of a company, they'll need 4 to 8 weeks to complete their own internal review. It is usually one year from the time your item is licensed to the time you can buy it in the store.
How much can I make?
The rule of thumb is that inventors are paid 5% of wholesale gross. So here's a simple formula. Say you have a doll, and that doll sells wholesale for $20, you'd get a $1.00 per doll royalty. Now suppose that doll sells 200,000 units. That makes a total royalty of $200,000! Are there other ways to make money besides royalties? Absolutely. Basically, there are three ways a toy or game invention is going to make money. OPTIONS. This is a fee a company pays to have the item for exclusive review. They pay, and the inventor promises not to show it to anyone else for the specified period of time. Option payments can range from hundreds to thousands of dollars per month. ADVANCES. These are payments advanced against future royalties. Usually paid upon signing a License Agreement, this is up-front money that the company gets to deduct from royalties due later. Generally figured as 25% of the estimated total first year royalties, advances run from a few thousand to tens of thousands of dollars. ROYALTIES. This is the big one - what it is all about. Royalties are a rent that the company pays for the use of your idea. There is almost no limit to total royalties. Sometimes no more than a few hundred dollars over the advance, sometimes millions upon millions.
Are there specific things you're looking for?
Yes. Check out our Wish List for details.
Do I have to come to Minneapolis to see you?
We always welcome inventors, but there's really no need for you to come see us. If you'd like us to review an item in person, give a call and check our travel schedules - we may well be coming your way soon. In general, we prefer that you send your materials to us by mail or courier.
Do you do anything besides toys & games?
A wise man once said "In life, its hard enough to be good at one thing, much less two." We don't go much outside the toy & game area, but if you have a great idea check our links page for someone who might be able to help.