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Why do contract R&D Lab Manufacturers want to keep ownership of my formula?
I’m in the process of getting a quote from a manufacturer to do R&D on my prototype formula, I learned the lab keeps ownership of the formula. Is this normally how it is done, and why? Also, should my goal be to own my formula? And if so, how? I am willing to pay a fair price for this service. Thanks for your input.
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4 Replies
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There’s another discussion regarding your question
.Short version: Sure they do but it’s not advised to hire that sort of company. Get a more trustworthy one which gives you the right. -
Here are a couple previous discussions on this:
https://chemistscorner.com/cosmeticsciencetalk/discussion/comment/42958#Comment_42958
https://chemistscorner.com/cosmeticsciencetalk/discussion/comment/39213#Comment_39213But yes CM typically keeps ownership unless you somehow negotiate for it (could be built in after selling so many units for example). I’m sure the real reason is money, but I like to think it’s because the formulators put time into tweaking, stabilizing, enhancing the formula so even if you come with a general idea, it’s the CM who finally realizes the concept into a product.
If you do a true tech transfer- formula goes as is from your hands to the CMs, then you should definitely still own the formula, that’s how it works at my current job. -
It should be one of those discussions you have with a CM before you impart any information. Some labs will have different fees depending on whether they own the IP or whether you retain ownership regardless of the work they have done - and in which case, they may charge you a development fee.
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Thank you for the links above, and for the advice everyone.
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