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Inventor'sHandbook
Original: http://web.mit.edu/invent/h-main.html
(Lemelson-MIT Program)
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ontents
This handboo! was "reated b# the Lemelson-MIT Program to address the
independent inventor$s and aspiring entrepreneur$s most %re&uentl# as!ed
&uestions regarding 'nited tates patents. e hope that this handboo! will
provide some help%ul in%ormation on the patenting and "ommer"iali*ation
pro"esses.
hapter +: hat Is Intelle"tual Propert#,
hapter : hat an e Patented,
hapter : Is M# Idea Patentable,
hapter 0: 1ow 2o I ondu"t a Patent ear"h,
hapter 3: Is M# Invention orth Patenting,
hapter 4: 1ow 2o I 5ppl# %or a Patent,
hapter 6: 1ow 2o I Prove the Idea Is Mine,
hapter 7: hat 5re ome Options to ommer"iali*e M# Patent,
hapter 8: 1ow 2o I Li"ense M# Invention,
hapter +9: hat 5re ome uidelines in 2eveloping a usiness
Plan,
hapter ++: 1ow 2o I ;aise apital,
;esour"es %or Inventors
http://web.mit.edu/invent/h-chapters/h-one.htmlhttp://web.mit.edu/invent/h-chapters/h-two.htmlhttp://web.mit.edu/invent/h-chapters/h-three.htmlhttp://web.mit.edu/invent/h-chapters/h-four.htmlhttp://web.mit.edu/invent/h-chapters/h-five.htmlhttp://web.mit.edu/invent/h-chapters/h-six.htmlhttp://web.mit.edu/invent/h-chapters/h-seven.htmlhttp://web.mit.edu/invent/h-chapters/h-eight.htmlhttp://web.mit.edu/invent/h-chapters/h-nine.htmlhttp://web.mit.edu/invent/h-chapters/h-ten.htmlhttp://web.mit.edu/invent/h-chapters/h-ten.htmlhttp://web.mit.edu/invent/h-chapters/h-eleven.htmlhttp://web.mit.edu/invent/h-chapters/h-resources.htmlhttp://web.mit.edu/invent/h-chapters/h-two.htmlhttp://web.mit.edu/invent/h-chapters/h-three.htmlhttp://web.mit.edu/invent/h-chapters/h-four.htmlhttp://web.mit.edu/invent/h-chapters/h-five.htmlhttp://web.mit.edu/invent/h-chapters/h-six.htmlhttp://web.mit.edu/invent/h-chapters/h-seven.htmlhttp://web.mit.edu/invent/h-chapters/h-eight.htmlhttp://web.mit.edu/invent/h-chapters/h-nine.htmlhttp://web.mit.edu/invent/h-chapters/h-ten.htmlhttp://web.mit.edu/invent/h-chapters/h-ten.htmlhttp://web.mit.edu/invent/h-chapters/h-eleven.htmlhttp://web.mit.edu/invent/h-chapters/h-resources.htmlhttp://web.mit.edu/invent/h-chapters/h-one.html8/10/2019 Inventors Handbook
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hapter +:
hat is Intelle"tual Propert#,
To en"ourage the "reation o% valuable ideasD and prote"t them %rom being
stolenD the '.. legal s#stem developed the "on"ept o% intelle"tual propert#.
The %our !e# "lasses o% intelle"tual propert# are:
Patent:5 grant issued b# the %ederal government giving an inventor the
right to eF"lude others %rom ma!ingD having madeD usingD leasingD o%%ering
to sellD sellingD or importing an invention in the 'nited tates. 5 patentD
howeverD does not ne"essaril# guarantee inventors the right to ma!eD use or
sell their inventionsG in some "asesD utili*ing a patented invention depends
on another person$s priorD uneFplored patent. @iolating patent rights is
!nown as in%ringement and "an be litigated. Patent in%ringement o""urs
when one violates ea"h element o% at least one "laim in a patent.
Trademark/ :5 non-%un"tional wordD logoD sloganD s#mbolD designHor
an# "ombination o% theseHthat distinguishes a produ"t or servi"e.
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Trade Secret:5 %ormulaD patternD manu%a"turing pro"essD method o% doing
businessD or te"hni"al !now-how that gives its holder a "ompetitive
advantage. Trade se"rets "over a wide spe"trum o% in%ormationD in"luding
"hemi"al "ompoundsD ma"hine patternsD "ustomer lists and so%tware. =o%ederal law prote"ting trade se"rets eFistsG legal de%initions var# %rom state
to state so inventors should ma!e "are%ul note o% the re&uirements
depending on the lo"ation.
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hapter :
hat an e Patented,
Patents are produ"ts o% the legal s#stem. 5s su"hD the# appl# onl# to
inventionsD and then onl# i% the invention %alls within legall# de%ined
"ategories. 5n#thing outside these "ategories "annot be patented. The '..
has a B%irst to inventC poli"# regarding inventionD meaning that the %irst
originator o% an invention re"eives "redit %or it. The %irst person to patent an
invention will not re"eive "redit unless the# were also the %irst to invent it.
5lsoD in the 'nited tates #ou have + months %rom the %irst enabling
dis"losureD in whi"h #ou des"ribe #our invention in signi%i"ant detail so that
someone reasonabl# s!illed in #our %ield "an reprodu"e #our inventionD
without undue eFperimentation to a"tuall# "laim #our invention in a patent
appli"ation.
In the 'nited tatesD the date that is + months %rom the date o% the %irst
enabling publi" dis"losure is the bar date %or %iling a patent appli"ation. I% an
appli"ation is not %iled be%ore or on the bar dateD the invention is generall#
no longer patentable. In most %oreign "ountriesD howeverD patent rights to an
invention are generall# destro#ed i% an inventor does not %ile a patent
appli"ation be%ore the inventions %irst enabling publi" dis"losureD in the
'nited tates or overseas. The three legal "lasses o% patentabilit# are:
ti!ity Patents: ranted to inventions that involve a new and use%ul
pro"essD devi"eD ma"hineD manu%a"tured itemD "hemi"al "ompound or
%ormula. 'tilit# patentsD whi"h appl# to virtuall# an#thing that "an be madeD
are granted %or a period o% 9 #ears %rom the date o% %iling a patent
appli"ationD a%ter whi"h the patent to an invention be"omes publi" propert#.
"esign Patent: ranted to a newD original or ornamental design %or a
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manu%a"tured item. Patents on ornamental designs last +0 #earsD and the#
prote"t onl# the appearan"e o% the item.
P!ant Patent:ranted to an invented or dis"overed new plant variet# that
"an be aseFuall# reprodu"ed. Plant patents are granted %or a 9-#ear period.
5lsoD the 'nited tates allows its inventors to %ile provisional patent
appli"ations. Provisional patent appli"ations are des"ribed in hapter 4
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hapter :
Is M# Idea Patentable,
To be patentedD #our invention not onl# must %all within one o% the three
statutor# "lassesD it also must %ul%ill three other re&uirements:
#ove!ty:Aour invention must be new. I% it has been publi"l# !nownD used
or sold an#where in the '..D or des"ribed in printed material availablean#where in the world more than one #ear be%ore the date o% #our patent
appli"ationD #our invention "annot be patented. 5 note o% "aution:
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hapter 0:
1ow 2o I ondu"t a Patent ear"h,
5 patent sear"h is a subset o% the prior art sear"h in whi"h #ou loo! %or
mention o% similar ideas in a"ademi" and te"hni"al literatureD et". Aou must
"ondu"t a prior art sear"hD in"luding a patent sear"hD and submit #our
%indings along with #our appli"ation to the 'PTO. 5n inventor has a legal
obligation to dis"lose relevant in%ormation o% whi"h the# have !nowledge.
Aou "an be sued i% it is dis"overed that #ou !new about other similar
inventions or relevant in%ormationD and did not submit that in%ormation to
the 'PTO. This is "alled ine&uitable "ondu"t or %raud on the patent o%%i"e.
I%D howeverD #ou sear"h %or and submit relevant prior artD and the 'PTO
a""epts how #ou have distinguished #our invention over the prior artD su"h
a""eptan"e in an issued patent appli"ation "arries a legal presumption o%validit#. This is eFtremel# di%%i"ult %or others to "hallenge. Man# parties
that in%ringe a patent will attempt to "hallenge a patents validit# b#
sear"hing %or prior art that the patent holder did not in"lude in the patent
appli"ation. In"luding and distinguishing prior art in the patent appli"ationD
whi"h will be noted in a patent i% and when a patent ultimatel# issuesD
entitles the patent holder to this tremendous presumptive advantageD b#
law.
5dditionall#D i% an inventor see!s %unding (see hapter ++)D sophisti"ated
investors will alwa#s per%orm due diligen"e and evaluate the strength o% a
patent should an#one ever "hallenge it. ondu"ting an ade&uate prior art
sear"h and distinguishing #our invention %rom the prior art strengthens an#
ultimatel# issued patent.
Aou$d be astonished how man# JnewJ ideas alread# have been patentedD
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hapter 4:
1ow 2o I 5ppl# %or a Patent,
Patent law is highl# "ompleFD and dra%ting patents is among the most
di%%i"ult o% all legal writing. That$s wh# eFperts "aution that preparing and
%iling patent appli"ations on #our own ma# result in patents that don$t give
ade&uate prote"tion. 1iring an attorne# "an save #ou grie% and mone# in
the long runG in some "asesD patent attorne#s "an also provide guidan"e in
li"ensing and mar!eting. Aou "anD howeverD "ut #our eFpenses b# dra%ting
the patent appli"ation #oursel% and having the attorne# proo% #our %inal
appli"ation.
5 patent is granted to the owner/assignee and usuall# in"ludes:
5ll o% the names o% the inventions inventors. 5n# patent "an be
invalidated i% an# inventors name is missing. 5 &uali%ied patent
attorne# or agent "an best determine i% there is a &uestion o%
inventorshipH"on"eption o% the invention is the tou"hstone o%
inventorshipD in "onKun"tion with having Bredu"ed to pra"ti"eC the
invention.
There are two t#pes o% redu"tion to pra"ti"e:
+. B5"tualC redu"tion to pra"ti"e: This o""urs when the
invention is a"tuall# made and usedD as des"ribed in the
appli"ations Bspe"i%i"ationC and in"luded in the appli"ations
B"laims.C 5 small or pilot s"ale eFample o% an invention "an
su%%i"e %or a"tual redu"tion to pra"ti"e.
Bonstru"tiveC redu"tion to pra"ti"e: This o""urs upon the %iling o% a
patent appli"ation in whi"h the appli"ation "oversD in all o% its
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"ategoriesD the ultimate a"tual inventionD as "laimed and des"ribed in
the appli"ation and an# ultimate patent. Patent pra"titioners o%ten
re%er to this !ind o% patent as a Bpaper patentDC until the invention is
Ba"tuall#C redu"ed to pra"ti"e.
5n abstra"t
One or more drawings
The invention$s nameD ba"!groundD purposeD and advantages
rie% des"riptions o% the drawings
The spe"i%i"ation: a written des"ription o% the invention and an
eFplanation o% how to ma!e and how to use the invention in the
best mode at the time o% %iling the patent appli"ation
laims de%ining the invention. laim dra%ting is eFtremel# "ompleF
and importantD be"ause the "laimsHwhat an inventor "laims to be
their inventionHare the most indispensable element o% a patent
appli"ation.
=ote that the 'PTO posts the entire patent appli"ation on the Internet +7
(eighteen) months a%ter the initial %iling date.
In the absen"e o% a separate assignment on %ile at the 'PTO or a private
"ontra"tual arrangementD the inventor owns the patent appli"ation and an#
subse&uent patent. Two or more inventorsHthose who generated the ideasD
not simpl# implemented themHma# appl# Kointl#. In su"h an instan"eDabsent a separate "ontra"tual arrangementD ea"h inventor owns an e&ualD
BundividedC portion o% the patent appli"ation and an# subse&uent patent. #
owning an undivided portionD an inventors ownership interest is that o% the
whole inventionD not a spe"i%i" part o% the invention. ?or eFampleD i% three
inventors appl# %or and re"eive a patentD ea"h inventor shares an e&ual
undivided ownership o% the entire invention. =otabl#D in the absen"e o%
private "ontra"tD ea"h single inventor has independent rights to pra"ti"e
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and/or li"ense the whole inventionD irrespe"tive o% whi"h o% the three
inventors are responsible %or whi"h "laims and material in a patent. ThusD i%
a patent "ontains %i%t# "laimsD and one inventor is responsible %or onl# one
o% the patents "laimsD that inventor "ould pra"ti"e or li"ense the entireinvention in the absen"e o% private "ontra"t stating otherwise. This has
a"tuall# o""urred and been validated b# the %ederal "ourts. The law o%
patent ownership highlights the ne"essit# o% inventors agreeing on
e&uitable ownership per"entagesD in writingD prior to %iling a patent
appli"ation. This is o% "ourse absent a pre-eFisting "ontra"tual obligation o%
an inventor to assign rights in an invention to an emplo#erD su"h as a
"orporation or a universit#.
Patent %iling %ees "an "hange #earl#. On"e a patent is issuedD maintenan"e
%ees "ome into e%%e"t. ?or "urrent %ees "onsult the 'PTO
http://www.uspto.gov/main/howto%ees.htm.
It will li!el# ta!e up to a #ear-and-a-hal% or more %or the 'PTO to respond
to #our appli"ation and a #ear-and-a-hal% to three #ears %or a %inal patent
grant or reKe"tion. On"e #ou %ile #our patentD the term Bpatent pendingC ma#be applied to the invention until #our appli"ation is a""epted. 5lthough a
number o% patent appli"ants use this termD the %ederal patent statute does
not "ontain the term Bpatent pending.C
Provisional patent appli"ation: 5nother option to "onsider is a provisional
patent appli"ationD whi"h allows the term JPatent PendingJ to be applied to
the invention %or one #ear. It "an be %iled at a lower "ostD but the patent
o%%i"e does not review the "ontent o% a provisional patent appli"ation during
its %irst #ear. ;ather it eFpires a%ter its one-#ear li%etime. There%oreD the
provisional appli"ation must be repla"ed with a "onventional patent
appli"ationD su"h as a utilit# appli"ationD within one #ear o% its %iling. 5
provisional appli"ation does not have to satis%# the same legal re&uirements
as a utilit# appli"ationD su"h as the ne"essit# %or patent "laims. =onethelessD
the relationship between a provisional patent appli"ation and a utilit#
patent appli"ation is ver# "ompleFD espe"iall# i% an invention "hanges be%ore
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the provisional patent appli"ation is "onverted to a utilit# appli"ation. In
this "aseD a reputable patent attorne# or agent should be "onsulted.
Patent ooperation Treat#: This treat# allows inventors to obtain patent
prote"tion simultaneousl# in a number o% "ountries b# %iling an
JinternationalJ appli"ation. The inventor must be a resident o% a "ontra"ting
nation to %ile. 1e or she "an then %ile an appli"ation within his or her
"ountr# o% residen"eD indi"ating in whi"h member tates he or she would
li!e the patent to have e%%e"t. urrentl# there are about ++6 "ontra"ting
tates. More in%ormation is available at the orld Intelle"tual Propert#
Organi*ation$s websiteD http://www.wipo.int/p"t/en/indeF.html
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hapter 6:
1ow 2o I Prove the Idea Is Mine,
BTa!e m# word %or it.C In the world o% patent lawD this adage holds little
weight. The %irst person to invent an ideaHas opposed to the %irst person to
%ile a patentHis the legal inventor. That$s wh# in "ases o% disputeD it$s
imperative to be able to prove the date when #ou %irst envisioned the
invention. ;egardless o% what an#one tells #ouD mailing #oursel% a
registered letter does not "onstitute legal proo% o% invention.
To prote"t #our invention %rom potential "hallengesD the %irst thing #ou need
to do is put #our idea in writing. Aour do"umentation must be "ompleteD
a""urate and "on"ise. reate resear"h and development noteboo!sD and
don$t leave an#thing to guesswor!. The noteboo!s should des"ribe the
invention in words and pi"turesD %ull# eFplaining how it operates. Aourentries also must be su%%i"ient to enable an#one with ordinar# s!ill in the
te"hnolog# to understand the material. In"lude observationsD "al"ulationsD
s!et"hesD photos and %ormulas i% appli"able. 5lsoD write down an# unusual
or uneFpe"ted resultsD ideas or "onversationsD and date and witness them.
In"lude re"eipts o% #our pur"hases and re"ords o% visits to attorne#s.
The pages o% #our noteboo! should be "onse"utivel# numbered and
permanentl# bound.
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The noteboo!s should be witnessed wee!l# b# two people #ou trustD but are
not relativesD and who understand the signi%i"an"e o% what the# see and
read. I% #ou ma!e a "hange to an original entr# that has been witnessed
alread#D the original witness should sign and date the "hange. The "hangealso should be noted on the page "orresponding to the date o% the "hange. In
additionD #our witnesses should sign a non-dis"losure agreementHa
statement that binds them to respe"t the "on%identialit# o% #our wor! and
allows #ou to dis"uss #our invention with some prote"tion. 5lsoD #ou ma#
want to "onsider getting the pages notari*ed b# a notar# publi".
hen two or more parties "laim the same inventionD the patent o%%i"e "an
de"lare what the %ederal patent law terms an Binter%eren"e.C 5n inter%eren"e
is a pro"eeding to determine whi"h part# was the B%irst to inventC (see
hapter ). The %ederal patent law terms the inventor who %iled an
appli"ation at an earlier date as the Bsenior part#.C The senior part# holds
the legall# presumptive advantage in an inter%eren"e pro"eedingD
irrespe"tive o% whi"h part# the patent o%%i"e ultimatel# de"lares as the B%irst
to invent.C 2isputes over inventorship are eFtremel# "ompleF and inventors
should "onsult a reputable patent attorne# or agent.
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hapter 7:
hat 5re ome Options to ommer"iali*e M# Patent,
Persisten"e and determination are !e# ingredients in trans%orming #our
idea into a produ"t in the mar!etpla"e.
Consider severa! paths to commercia!i+ation:Trans%erring the ownership
o% #our patent outright means #ou re"eive an agreed-upon pa#mentD withno %uture ro#alties. Aou ma# sell all or an# part o% the inventionD though
selling is rarel# re"ommended. hile #our patent ma# not have a "urrent
appli"ationD or #ou ma# not dis"ern itD the %uture "ould hold "ommer"ial
opportunities un%oreseeable toda#. elling #our invention might deprive
#ou o% a potential %ortune.
5nother route in the "ommer"iali*ation pro"ess is li"ensingD through whi"h
#ou retain ownership o% #our patent while allowing another part# to ma!eD
use or sell the inventionG in eF"hangeD #ou re"eive ro#alt# pa#ments.
I% #ou$re highl# entrepreneurialD #ou "an ta"!le the Kob o% laun"hing #our
own "ompan#. This means #ou$ll need to master ever#thing %rom
%undraising to manu%a"turingD selling and distribution. ?or assistan"e in
starting #our own "ompan#D #ou "an "onta"t the '.. mall usiness
5dministration.
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Man# inventors turn to invention mar!eters to gain a""ess to
manu%a"turers. e war#. Man# o% these organi*ations are %raudulentG the#
"harge he%t# %ees and don$t deliver on their promises.
5 %ew warning signs that the "ompan# is de"eit%ul:
It o%%ers to evaluate #our inventionD but re%uses to give out details o%
its evaluation "riteria or evaluators$ &uali%i"ations
It re%uses to dis"lose its mar!eting su""ess and reKe"tion rates
It re&uires large up %ront %ees and a per"entage o% the ro#alties
It "laims spe"ial relationships with manu%a"turersD #et o%%ers no
proo%
e sure to as! %or re%eren"es %rom past "lients and "he"! that the mar!eting
%irm is registered with the etter usiness ureau.
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hapter +9:
hat 5re ome uidelines in 2eveloping a usinessPlan,
iven the time it ta!es %or a patent to be issuedD it ma# be a good idea to
start mar!eting #our invention immediatel# a%ter #ou$ve %iled the patent
appli"ation. 2eveloping a business plan is one o% the %irst items on theagenda.
5 business plan o%%ers multiple advantages. It !eeps #ou %o"used on #our
goals and timelinesD helps identi%# strategi" %laws that need to be ironed outD
and it aids in evaluating the mar!et and #our produ"t$s earning potential. It
is also highl# bene%i"ial as a planning tool to be used at various stages o%
the produ"tion and mar!eting pro"essD and as a sales toolD "riti"al to raising
"apital.
;emember that #our business plan is "ompeting with hundreds o% others.
Ma!e it "on"ise and pro%essionalD but detailed enough to "onve# a sense o%
"redibilit#. 5 solid business plan in"ludes:
5 summar# o% #our produ"tHwhat it doesD its advantages and patent
status
5 mar!eting anal#sisD in"luding mar!et opportunities and
"ompetition
ProKe"ted salesD pri"ing and distribution
Produ"tion plansD methodsD "ostsD "apa"ities and implementation
timeline
Management personnel
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?inan"ial statementD "ash %low budgetD suggested wholesale and
retail pri"es
ProKe"ted pro%its
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hapter ++:
1ow 2o I ;aise apital,
Perhaps one o% the greatest "hallenges in the entire invention pro"ess is
raising "apital. It$s impossible to "over this topi" "omprehensivel# in a
bro"hure. e o%%er a %ew tipsHthe %irst o% whi"h is to resear"h the subKe"t
thoroughl#.
5s an entrepreneurial inventorD it$s best to have several mone#-raising
strategies. 5 Koint ventureHwith an individualD group or %irm with a vested
interest in #our produ"tHis one option. Aou provide the invention and a miF
o% manu%a"turingD mar!etingD managementD and distribution !now-howD and
#our partner provides a servi"e %ree o% "harge in eF"hange %or pro%its. To
%ind partners or potential investorsD "onsider running an ad in a newspaperD
su"h as The )all (treet MournalHor "onta"t investors organi*ationsD whi"ho%%er material support o% all sorts. an!s and other traditional lenders also
ma# be willing to %inan"e #our enterpriseD espe"iall# a%ter #ou$ve a"hieved a
tra"! re"ord.
5nother eF"ellent sour"e o% start-up %unding is venture "apitalD gained
through individual investorsD %inan"ial institutions or venture "apital %unds.
?inan"ial agentsD who wor! %or a %inder$s %ee plus reimbursement o% out-o%-
po"!et eFpensesD ma# be able to "onne"t #ou to venture "apital. 5s with
invention promotersD "he"! out #our potential investors thoroughl#.
Lo"alD state and %ederal government programs that provide businesses with
%inan"ial assistan"e are another avenue to "onsider. ?ederall# %unded mall
usiness Innovation ;esear"h Programs and the mall usiness
5dministration (the single largest government agen"# mandated to ma!e
business loans) are valuable sour"es o% %unding and in%ormation.
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;esour"es %or Inventors
?ew things in li%e are as satis%#ing as translating #our "reative spar! into
realit#. ta# determinedD persistent and above allD enthusiasti". ood lu"!
with #our invention and have %unN
;esour"es %or the Inventor
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