PandaTip: This technical proposal template is written in the context of a person that has a concept for a new invention and is proposing that a company take the project on and begin the process of bringing the product to market. This scenario may involve a single inventor, a team of inventors, or a small company that has developed a concept and just does not have the financial backing to bring the product to market or even to develop a prototype.
Technical Proposal Template
ABOUT [NAME OF COMPANY]
PandaTip: Introduce yourselves first. Extensive profiles detailing the inventor(s), their educational backgrounds, and professional backgrounds will be important because the company to whom this technical proposal is written is likely very skeptical of proposals of this nature, and the person reviewing it probably sees a lot come across his desk. Separate yourselves with your credentials if you can. Something is going to have to grab their attention, and it doesn’t necessarily have to be your credentials but great credentials do not hurt you in this scenario.
WHAT IS [PRODUCT]?
PandaTip: Introduce the concept for the product. Give a very high level overview of it in a few paragraphs. This might be the most important section of your technical proposal because if you can’t get the reader’s interest at this conceptual level, then you will never get them to read any further through the specifics that you will get into in the next section. You should think of this section as painting a picture and conveying your vision to your reader.
HOW DOES [PRODUCT] WORK?
PandaTip: Now is the part of your technical proposal where you get into the nitty-gritty details of the product. If you have captured your reader’s attention you should be able to keep it through this section where they learn about the inner workings of the product. Again, with a technical proposal, perhaps more than any other, it is important to keep the reader’s attention. While the nature of this section necessitates some really dry details, infuse some energy wherever you can because if you lose your reader than it’s over.
TECHNICAL CONTRACT TEMPLATE
This Technical Contract (the “Contract”) states the terms and conditions that govern the contractual agreement between [COMPANY] having its principal place of business at [COMPANY ADDRESS] (the “Company”), and [INVENTOR] (the “Inventor”) who agrees to be bound by this Contract.
WHEREAS, the Inventor has conceptualized [PRODUCT] which is a [DESCRIBE PRODUCT] (the “Product”) and the Company has agreed to [EXTENT OF COMMITMENT] according to the terms and conditions herein.
PandaTip: The “Extent of Commitment” field could vary significantly as some companies may agree to help develop the product all the way to market while others may simply agree to put together a prototype prior to development. Customize to fit your situation.
NOW, THEREFORE, In consideration of the mutual covenants and promises made by the parties hereto, the Company and the Inventor (individually, each a “Party” and collectively, the “Parties”) covenant and agree as follows:
THE PRODUCT. Technical details of the Product are attached hereto as Exhibit A.
PandaTip: This format gives you leeway to describe the product in any manner you feel is appropriate. This could be a brief description, or it could involve technical drawings. It really depends entirely on where you are in the process before bringing your technical proposal to the Company.
COMPANY DUTIES. The Company agrees to perform all duties described on the page attached hereto as Exhibit B.
PandaTip: Again, because the extent to which the Company may agree to perform regarding the Product will likely vary, it is important to describe this very clearly in a manner that fits your situation. You want to be sure there is a mutual understanding and the description reflects that understanding in detail.
CONSIDERATION. In consideration for the rights conveyed herein, the Company agrees to pay the Inventor [AMOUNT] to be paid on or before [DATE].
PandaTip: If the Inventor is to receive a percent of the profits in addition, you can add “The Inventor shall also receive X% of the profits realized by the Company on the sale of the Product for X years after the execution of this Contract, payable by [DATE] of each year for the previous year’s share of profits.”
OWNERSHIP. The Parties acknowledge and agree that the Company will hold all intellectual property rights in the Product including, but not limited to, copyright and trademark rights. The Inventor agrees not to claim any such ownership in the intellectual property inherent in the Product at any time after the execution of this Contract.
PandaTip: Consider this section very carefully. As written, it conveys the ownership of the Product to the Company and the Inventor is left merely with a fee (in such a case, the company duties are irrelevant because the fee is all that matters to the Inventor). However, depending on your situation, you may want to retain partial ownership, in which case you can carve that out in this clause.
NO MODIFICATION UNLESS IN WRITING. No modification of this Contract shall be valid unless in writing and agreed upon by both Parties.
APPLICABLE LAW. This Contract and the interpretation of its terms shall be governed by and construed in accordance with the laws of the State of [STATE] and subject to the exclusive jurisdiction of the federal and state courts located in [COUNTY], [STATE].
IN WITNESS WHEREOF, each of the Parties has executed this Contract, both Parties by its duly authorized officer, as of the day and year set forth below.
[NAME], [TITLE] DATE