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INVENTOR
& DESIGNER
GUIDE
THIRD
EDITION
2014
Imagination is the beginning of creation.
You imagine what you desire, you will what you imagine and at last you create what you will.
Contents 3
Getting Started 4
Resources 15
New ideas are the backbone of the toy industry. The need for innovative product is constant.
Independent inventors and designers are an important source for new product ideas, but it can be a
challenge for them to break into the industry. An original idea ― one that is fully developed to a point
where it is presentable in either complete drawings or prototype format ― can be seen and it can be
sold. To get started as an inventor or designer of toys or games, it’s wise to make an honest evaluation
of your personal circumstances, as well as your invention. Ask yourself:
In addition to covering some of the procedures that may help you sell or license your invention or design
or manufacture and market it yourself, this Guide also introduces you to some of the rules and
standards that must be followed to meet U.S. safety requirements and to a variety of resources that can
provide further information and assistance.
To gain a better idea of what is currently on the market (and whether the item you have invented –
or something very similar to it – already exists), research the toy industry at the retail level.
Start by exploring the websites of both toy manufacturers and toy retail
DID YOU KNOW
outlets. For a more in-depth, hands-on experience, visit as many toy retail
Understand Your
outlets as possible (large toy chains and small, local toy stores; discount,
Market, a free resource
variety, gift/novelty, card/stationery and department stores; as well other
from the Small Business
outlets including bookstores, museum gift shops, drug stores,
Administration,
supermarkets, juvenile furniture stores, sporting goods stores and home
provides additional
supply centers). In-store research may be most productive in the early
research suggestions.
fall when most new products have arrived at retail stores for the holiday
shopping season.
While you’re in the store, remember to observe how the various toys are being sold: pay attention to
categories, pricing, packaging, product displays, and the amount of retail shelf space devoted to each
category, etc. This information will be especially important if you should later decide to manufacture
your invention yourself.
Read the industry trade magazines, especially after the new items have been previewed by toy buyers
at Toy Fair and other major tradeshows. Check your library’s Reader’s Guide to Periodical Literature
(see “toys, games” for feature stories about new toy industry products) to follow the consumer press;
consider both seasonal updates (e.g., outdoor and ride-on toys will be covered more heavily in the
spring) as well as news during the holiday shopping season. You may also want to obtain copies of
annual reports of publicly-owned toy manufacturers and toy retail chains.
To be certain that the toy you invented is not already protected by the U.S. government, conduct a
patent search. Patent searches are available online through the U.S. Patent & Trademark Office.
Because they can be time-consuming, patent agents, attorneys who practice patent law, or patent
searchers can conduct the searches for you, for a fee. Remember, too, that toy companies often work
two or more years in advance, so there is always a possibility that something similar to your invention
may already be in a planning stage.
Will it sell?
The toy industry is frequently compared to the fashion industry … styles and trends are seasonal and
shift frequently. Today’s attention grabbing “hot toy” can become tomorrow’s “toy box filler.”
Occasionally, though, a toy or game will catch and gain widespread appeal as a classic that entertains
and engages many generations of kids. When moving forward with your invention, you should ask
yourself:
DID YOU KNOW
Does it have long-lasting play value? TIA reports on
Will the consumer get his/her money’s worth? emerging trends both in
Is it fun? the toy space and in
Is it safe? other industries that
Is there growth potential (e.g., through brand extensions)? influence children’s
products. Blogs and
Toy companies are more willing to purchase an idea that has other online forums can
demonstrated long-lasting consumer appeal. Most of the larger toy also be great resources
companies conduct extensive market research to determine what types for low-cost market
of toys children like and play with the longest and the types of toys research on kids’ tastes
parents want to purchase for their children. Anticipating trends, and trending play
however, is difficult at best … even for the experts. patterns.
Many independent inventors conduct their own informal market research by having friends or relatives
play-test a product with the age group for which the toy is intended. Keep in mind, while it’s smart to
test out your concept and work out play patterns with friends and family, quoting this information at a
sales pitch is often not credible, as those close to you may have biased opinions.
Some prototypes, such as those for board games, can usually be made at
DID YOU KNOW
home, but some toys, such as those requiring custom-made molds or
Many companies
pattern designing, may require professional input.
specialize in making
prototypes for toys.
To determine the manufacturing cost, you will have to research suppliers
ThomasNet.com offers
and contractors for production cost estimates. Generally, the simpler the
a directory of vendors.
technology, the less expensive the item will cost to produce. If you want
to design a/an:
In addition to
comparing prices, ask
board game, you will need to price printing (game board, instruction
for references and
booklet, cards); playing pieces (tokens, spinners, timers); boxes; assembly;
reach out to get
shrink wrap, and so on.
feedback on sample
stuffed animal, you will need to price fabric; stuffing; accessories (eyes,
quality.
voices, squeakers, etc.); assembly and stitching services, etc.
plastic toy, you will need to price molding options such as compression,
extrusion, injection, rotational or blow (usually requires a custom-made mold.)
wooden toy, you will need to price the time-consuming, custom handwork and high-priced raw
materials.
electronic toy, you will need to price the wiring, the electrical boards, the time involved to put it
together, and so on.
Regardless of product type, other items to consider include: legal matters, safety requirements and
testing, marketing and sales, warehousing and distribution, etc.
Toys and games can be low cost, low margin items on retail shelves. Since most toys must be relatively
inexpensive to sell, the markup from production cost to retail is usually much lower than the normal
3x to 5x cost. Cost-effectiveness is top-of-mind for toy manufacturers who strive to keep production
costs low.
TIA and members of the toy industry are dedicated to ensuring the highest standards for safe toys.
Because new issues emerge over time, toy safety standards are continuously reviewed and enhanced.
These standards are shaped by a variety of considerations, including research on child development,
dynamic safety testing, and risk analysis.
Toy designers and inventors often work with others that sit on toy safety
DID YOU KNOW
standard-setting committees to synthesize information from parents,
The U.S. Consumer
psychologists, educators, and child development specialists to
Product Safety
understand how kids learn through play and at what age they are
Commission website
physically and cognitively ready for certain types of toys. They may
contains the latest
observe children in controlled test settings to assess how they play with
federal safety
toys and to determine the durability and age-appropriateness of various
information.
products.
As examples, as of August 14, 2009, the lead in surface coatings such as paints cannot exceed 90 parts
per million (ppm), and as of August 14, 2011, the total lead content of substrate materials of a toy must
be less than 100 ppm. The law also places a permanent ban on three specified phthalates in children’s
products, and a temporary ban on three additional phthalates in mouthable components. Regulations
that implement the new legal requirements are virtually complete, but TIA continues to work with the
Consumer Product Safety Commission (CPSC) to find ways to reduce unnecessary testing without
compromising toy safety.
Local colleges, business schools or adult education organizations may have DID YOU KNOW
courses on how to obtain patents and trademarks. You can also hire a TIA offers online access
patent or trademark attorney/agent who, for a fee, will provide this to recorded webinars
service for you. Along with a vast amount of information for inventors on the issue of patent
regarding patents and trademarks, the U.S. Patent and Trademark Office and trademark
maintains an online roster of agents and attorneys that are registered to protection, including
practice before the agency. Protecting IP in the Toy
Industry (2014) and
In some cases, a toy manufacturer will take care of obtaining the patent Design Patents and the
for you and hold it until such time when your agreement is dissolved. It is Role They Play in
then that you would either buy the patent back at the end of the run or Protecting Toys and
get the patent back after the contract is over. It is a dealing point and Games (2012).
could save some money.
If you do not have a patent on your product, you should have your own non-disclosure agreement (NDA)
to protect yourself. [view sample] Whether known as a confidentiality agreement, confidential
disclosure agreement, proprietary information agreement, or secrecy agreement, this is a contract
through which the parties agree not to disclose information covered by the agreement. Consider having
a lawyer write your NDA. NOTE: NDAs are controlled by state law and some states find them invalid.
The manufacturers will seek protection, too. Before a manufacturer asks to see your invention, you will
probably be asked to sign what is referred to as a “Disclosure”, “Idea Submission Form” or “Agreement.”
These forms will vary in content, but their primary purpose is to protect both you and the manufacturer
as it establishes exactly what you have revealed to them and at the same time releases them from
certain liabilities regarding what has been disclosed.
As an inventor or designer, you can typically introduce a new toy into the marketplace in one of two
ways:
Sell your idea/invention to a toy manufacturer (or have someone sell the idea for you)
Manufacture and distribute the item yourself
A larger company may receive thousands of ideas from external sources each year. An independent
inventor’s best chances may lie with contacting small- and medium-sized manufacturers directly. These
companies are more likely to have smaller budgets for product research and development, thus
increasing the chances of their interest in purchasing outside ideas. Be certain the manufacturer you
contact and your product are compatible (e.g., don’t build up your hopes if you approach a doll
manufacturer with a board game idea). Narrow your targeted list by eliminating those companies who
do not accept outside ideas. Do your research online (don’t forget to check out Facebook and LinkedIn
pages) or contact them directly to ask where (and to whom) you may address correspondence related to
new product submissions.
The toy industry trade magazines, LinkedIn groups and other online sites will frequently carry classified
ads placed by manufacturers or design firms who are looking for new product ideas. You might also
consider placing a classified ad offering your invention for sale. [See example below]
“For Sale - unique strategy board game combining elements of backgammon, checkers and chess.
For ages 12 and up. Patents and trademarks applied for. Professionally test-marketed. Reply to ….”
Brokers
You may choose to obtain the services of a third party that will “broker,” or negotiate, the sale of your
idea to toy companies. Manufacturers sometimes turn to these middlemen for outside ideas. They may
be referred to as toy brokers or toy agents; some are former toy industry executives and many are
independent toy inventors or former toy company staff designers. They work on commission, and their
fees may range from 15-60% of the royalties paid to the inventor by the manufacturer.
You should deal with these third parties as you would other professional service people: if they haven’t
been recommended to you, ask for references and check them thoroughly. Exercise caution when any
individual or organization requires payment in advance.
DID YOU KNOW
Invention or invention promotion firms are also brokers, with the The Federal Trade
exception that they usually handle all types of consumer products. Their Commission has a
services and fees also vary: some may require a fee of 10% of the royalty brochure on the
paid; others may ask for as much as 50% and still others may work on a subject of “Invention
flat fee basis. Check the invention firm with a local Better Business Bureau Promotion Firms”
or Chamber of Commerce, your state’s Attorney General’s office (many (printed copies are
states have laws protecting inventors from invention promotion firm available from the
“scams”) or have an attorney do this for you, prior to paying or signing FTC’s Public
contractual agreements. Ask the firm for examples of ideas that they Reference Branch
have placed with toy companies, and confirm this with the references at 202.326.2222).
they give you.
For example, if you decide to form your own business to manufacture and distribute your invention
yourself, you must be able to:
Raise capital;
Contract for production services at an affordable cost;
Obtain orders from toy retailers and ensure timely delivery; and
Continue promotional activities to increase consumer interest and sales.
Starting and maintaining a successful business requires many skills, and proper planning is crucial.
Create a business plan prior to introducing your product, determine cost-effective manufacturing,
distribution and marketing strategies and project sales growth.
Your business plan may call for purchasing all the raw materials (components) and assembling your
product yourself, or hiring various suppliers and contractors to perform these services for you. Suppliers
of materials and services (molds; eyes; fabric; stuffing material and machinery; game parts; sound
devices; boxes; art service designers of illustrations, logos, cover art, etc.; die-cutting for customized
game boards; packaging services; photography; wood fabricating; and toy and game assembly) can be
found on the Internet or in the Yellow Pages.
At one time, industry insiders recommended against exhibiting at a trade show unless sufficient
inventory existed to be able to fill an order. A more recent philosophy is that today’s manufacturing
techniques are now fast enough that it could be acceptable to hold on production until the initial
order(s) have been received. In either case, it’s a wise business decision to have a plan in place
regarding how an order will be fulfilled once that first order has been received.
As a member, you will be included in the TIA Member Directory that is available exclusively to other
members. Available 24/7 with real-time updates for contact information and other key data, this
searchable tool assists members in making new industry contacts and connecting with prospective
customers. Associate members also receive a free listing in the TIA Inventors & Designers Directory
(non-members do have the opportunity to include their contact information for a modest fee).
TIA hosts a variety of events that help members build industry relationships and attract exposure to
their business. Fall Toy Preview and PlayCon: TIA’s International Conference of Play Professionals each
boast a networking reception where you are sure to make valuable industry connections. The annual
Toy of the Year Awards (TOTY), held in conjunction with Toy Fair each February, offers another perfect
opportunity to network with industry executives.
Members of TIA receive exclusive benefits at trade events such as Toy Fair. Discount rates and priority
points on exhibit space are available to Associate members as well as a discount on material handling
costs for advanced shipments. Discounts are also available on services ranging from insurance to
shipping and from payment processing to retail solutions through TIA’s Affinity Partner Program,
through which the Association partners with a number of highly respected companies to offer members
substantial savings on products and services.
As mentioned previously, safety in toys continues to be an important issue that the industry faces on a
daily basis and it starts with toy design. TIA works diligently to maintain the industry’s reputation on
safety issues and to assure that emerging regulations are practical, sensible and effective. Our staff
ensures that TIA members stay informed of all the latest toy safety developments with e-updates
delivered straight to your inbox, along with a detailed webinar series that outlines the Consumer
Product Safety Improvement Act and how to comply.
In addition to these offerings, the TIA sponsors periodic seminars, trade show workshops and referral
services for toy inventors and designers.
Members have access to all of this information free of charge. For more information about TIA
membership, please visit the Association’s website at www.toyassociation.org.
Publications – Books
Del Vecchio, Gene. The Blockbuster Toy! How to Invent the Next Big Thing. Gretna, LA: Pelican
Publishing Company, 2003. www.pelicanpub.com
Levy, Richard C. and Weingartner, Ronald O. The Toy and Game Inventor’s Handbook. Updated Third
Edition, 2013. www.amazon.com
Miller, G. Wayne. Toy Wars: The Epic Struggle Between G.I. Joe, Barbie, and the Companies that Make
Them. Collingdale, PA: Diane Publishing Co, 2001.
Monosoff, Tamara. The Mom Inventors Handbook: How to Turn your Great Idea into the Next Big
Idea. New York, NY: McGraw-Hill, 2005. www.mcgraw-hill.com
Peek, Stephen. The Game Inventor’s Handbook. Cincinnati: Betterway Books division of F & W
Publications, 1993. www.fwpublications.com
Tinsman, Brian. The Game Inventor’s Guidebook: How to Invent and Sell Board Games, Card Games,
Role-Playing Games and Everything in Between. Garden City, NY: Morgan James Publishing, 2008.
www.publishing.morgan-james.com
Watson, Bruce. The Man Who Changed How Boys and Toys Were Made: The Life and Times of A.C.
Gilbert, the Man Who Saved Christmas. New York City: Penguin Books, 2003. www.penguin.com
Entrepreneur
Inc.
Inventors’ Digest
Minority Business Entrepreneur
Opportunity World
Small Business Opportunities
edplay Magazine
Monthly; for specialty toy, game, gift and museum store retailers.
Hobby Merchandiser
Monthly; covers model railroading, radio control, plastic model kits and other hobby items.
Model Retailer
Monthly; covers model railroading, radio control, rocketry, games (adult, role-playing, adventure,
strategy, war games and gaming miniatures), plastic and die cast model kits and dollhouse miniatures.
Playthings
Monthly; also weekly e-mail newsletter, Playthings EXTRA.
Many states have a Department of Economic Development to aid small business people/entrepreneurs.
General business assistance and information is available in many local offices of the U.S. Small Business
Administration and its partner, Small Business Development Centers.
T: 212.675.1141 | F: 212.633.1429
info@toyassociation.org
www.toyassociation.org