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What is it about formula ownership?
We have been in talks with several CMO’s to develop a custom formula and it seems none want to give away ownership of the formula after it is completed. Can someone shed some light on why is this? And is this common? Tks
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5 Replies
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Of course, it’s to keep you as a client. Many will give you the option to buy the formula at an insane price.
You can also hire a formulator and develop the formula on your own, but of course they will tell you they have to redo that formula because something’s off and they will keep it anyway. Not all of course, use the search of the forum, there are a couple of topics regarding this with recommendations.
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it also depends how much work goes into developing it - the record so far is 130 hours (a little over two weeks’ worth of manpower) for a single formula, because the customer in question constantly moved the goalposts during the development process and, as happens more often than not on such projects, they only ever ordered the product once
the contract manufacturer I work for does release full formulas, but charges a substantial fee, between £3,000 and £5,000, to recoup the costs of the work undertaken
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If someone hired me to develop a formula, in my opinion the formula is the end product, so of course, the customer would get not only the list and sources of ingredients but also the preparation instructions.
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We do custom formulae and on completion client owns Formula/Process and Specifications.They can have It made wherever they want.
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Think about it this way…. does the music industry just allow other artists to sing and produce songs from other artists with out the proper consent and royalties??? Do you remember Napster???
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