Building credit responsibility

Be aware that if you are the manufacturer and distributor of your product, you will be responsible for providing product liability insurance to the retailers who sell the product. All retail products, no matter how innocuous they appear to be, must carry product liability insurance.

If you are building a business around your invention, keep in mind that it is your responsibility to enforce your patent. If you should find your product infringed this could be a significant expense. Many independent inventors choose to license their products for this reason alone. They know that they would never have the financial resources to sue for infringement.

Large companies also know that small independent product developers are not likely to have the funds to force them to stop if they choose to infringe. This makes it more likely that a large company might consider it worth the relatively small risk that an independent inventor could make them stop producing and selling the inventor’s patent protected product.

This entry was posted on January 8, 2010 at 8:45 pm and is filed under Dealing with risk, Economy, Financial Advice, credit score, finances (Tags: , , , , , , , , ). You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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