OK. IP protection is difficult. I am the inventor on a number of patents. A few have turned out to be lucrative, but most are never used.
I think you need a copyright not a patent. (Read on.)
Most inventions are not worth patenting. Either they can be gotten around, are already invented/disclosed and so are invalid, or the amount ($) required to protect them is larger than they are worth. A patent gives you the exclusive rights to "make, use, or sell" a product, but only in the country where you hold the patent. You have to file for a patent, fight for it with the patent office, then you have to pay the initial and the regular maintenance fees... every so often.
Yes, getting a patent is expensive but it is far more expensive to protect it from infringement. Lawyers cost big bucks, but going to court costs a LOT more. Usually big companies just ignore little company's/person's IP rights and use it anyway. They figure if they get caught, they can outlast you in court and that you will give up. It is not a level playing field. Anyway, you cannot patent something that has already been disclosed. "Disclosed" means that the public knows about it. You have to file the patent application or a provisional application before you disclose the idea. If you show it to someone who has not agreed to keep it secret, or you publish the concept, or you sell a product containing the concept then it is disclosed. Anyway, if I understand you have already sold some of these products so it is already disclosed. Not patent-able!
Whether or not these folks are trying to steal you concepts, or not, is hard to tell. Their approach is pretty simplistic. Maybe they are just unsophisticated and this is their approach to things. Go a head and talk to them, visit them and see there capabilities, but don't agree to anything until you are good and sure you are ready. If you want to go forward be prepared to tell them how you want to do so. Don't let them dictate the process to you. My guess is that you would be better off to sell them concepts and designs up front, with an agreement that they will pay you some percentage of the selling price (royalty) for each product they sell. Monitoring this can become an issue. Then if they still want you to make the parts then it is clear that they want a partnership. Anyway, I would not given them your IP or product until you decide it is ok to go forward and they have agreed (in writing) to your terms.
Meanwhile there is something called a design patent, which does not cost much but is not very valuable either. It essentially consists of drawing of your product. You might wish to use this if you wanted to protect a logo on a item you sell. etc. etc. I do not have any of these, but it seems that the cost of filing and getting it would be cheap. I do not know what the maintenance fees are.
By the way, most folks do not know that the fees going to the patent office are cheaper if you are a small entity. You file as a "small entity". If you hire a patent lawyer his cost can easily be greater than the patent office fees. A good patent lawyer is hard to find. A good patent lawyer who is not expensive is even harder to find, but they exist. A poor lawyer is just plane expensive because they never get the patent or take for ever doing so. They almost always work by the hour. The last time I used my patent lawyer she charged $600/hour. However, she it really fast at comprehending and making the necessary decisions. My last few patents I have written the draft myself and then given then to the lawyer to revise. If you ever decide you want to file a patent, write the claims first. The search the literature for prior art to see if you stand a chance at getting the patent award. If not and you want to continue, then rewrite the claims and search some more. Then draft the body of the patent. Most everything, or something similar, has already been patented, but this does not mean that you cannot get a patent for your improvements.
Meanwhile, you might want to read up on Copyrights. You can copyright your works. I have no copyrights so my information here is limited, but I have seen it in affect. To protect your work you would probably have to hire lawyers and go after who ever is using your IP. You are sort of saying your work is a work of art, but there are all kinds of art. In fact, you do not have to file for a copyright to get the copyright. but it would be wise to put a copyright notification on your work and any drawings or publications or documents about your work. You are also not constrained on the public disclosure issue either. Microsoft and others sometimes copyright their code in a program rather than patenting it. It depends upon the code and what they plan to do with it. They do this largely because it last longer. Anyway, a patent is only good for 21 years after the date of application and sometimes it can take years just to get it awarded. Copyrights are valid for 70 years. You do not have to do a formal filing for a copyright, but you probably should. Read the following. Especially the section:
"How can I secure a copyright?"
A copyright is a form of protection provided by U.S. law to the authors of "original works of authorship" fixed in any tangible medium of expression. Learn more about the basics of copyrights.
www.uspto.gov
Also, the patent office has some tutorials on how to get a copyright :
Registration Tutorials
www.copyright.gov
If you think your designs fit with the definition of being copyrighted I would start putting this on your designs and if possible on your products. Certainly put this on any document you might show these folks. Then they know you have some protection.
Anyway, I think if you are inclined to so so you can register your copyright by yourself and safe the costs. I have not done it, but it seems pretty simple.
Dave L.
Back when you were a youngster in the trade they would give you a small bonus , a plack of some kind , a free dinner out for your family , a You Done Good certificate etc . Bottom line , you saved or made the company millions over the years over the production runs . Any monetary awards were minimal but were needed when learning the trade . I think back now and find that the actual physical things that were awarded mean so much more . I can't remember where I spent $500 bucks , but I can remember what I made for the Balto County Bomb Squad over the years , and have my souvineers .
