The N.I.H. Syndrome

Not every company welcomes outside submissions. Many companies do not want to see anything from independent inventors. The Not Invented Here (N.I.H.) Syndrome is very much alive and well in American industry. It is an established management pathology.
Consider Apple, for instance. The company makes no bones about not wanting to see outside submissions. On its website it warns, in part:
Please do not submit any unsolicited ideas, original creative artwork, suggestions or other works in any form to Apple or any of its employees. The sole purpose of this policy is to avoid potential misunderstandings or disputes when Apple’s products or marketing strategies might seem similar to ideas submitted to Apple. If, despite our request that you not send us your ideas, you still submit them, then regardless of what your letter says, the following terms shall apply to your submissions.
Terms of Idea Submission
You agree that: (1) your submissions and their contents will automatically become the property of Apple, without any compensation to you; (2) Apple may use or redistribute the submissions and their contents for any purpose and in any way; (3) there is no obligation for Apple to review the submission; and (4) there is no obligation to keep any submissions confidential.
This notice notwithstanding, I know people who have had audiences to show product to Apple’s senior management. Clearly this harsh warning is to wave off the great unwashed. If you have the “know who,” you will be seen. And obviously, this policy does not refer to iPhone apps, which Apple encourages.
Companies have many reasons for this situation. A lot of the resistance comes from selfish self-interests. “If you have a 100-person R&D department spending millions of dollars a year and a lone inventor comes along with a better idea, it makes it harder to justify your department to your boss,” Michael Odza, publisher of Technology Access Report, told The Wall Street Journal. Woody Freelander, a former director of marketing and licensing at Union Carbide Corporation, has another take on the problem. He feels that if a corporation reviews and then rejects a submission, it opens itself for potential lawsuits if the company ever does something akin to the submission, even if what it does is not influenced by the submission. He adds that being so careful “may insulate corporations from lawsuits, but it also insulates them from great ideas.”
Some companies are N.I.H. only in select areas and are open to ideas in others. On its website, IBM states particular areas it does not want inventors to address. IBM will not consider the following submission types because they are impractical to evaluate:
◆ Advertising, slogans, sales promotions, or public relations
◆ Algorithms, mathematical formulas, or theories
◆ Marketing and other business methods
◆ Applications and procedures for using IBM products
◆ Broad concepts still to be developed
◆ Type styles, type elements, and keyboard arrangements
◆ Features or functions available on other products
◆ Manuscripts, books, manuals, research papers, theses, and other similar documents
◆ Ideas for computer programs
◆ Suggested changes to computer programs
◆ Niche markets—low-volume, higher-cost products aimed at very specific markets
Nonetheless, in my experience, if you have a trusted relationship with a power in senior management, companies are always open to hearing about opportunities to make more money. “Do Not Enter” signs are really to protect the company from uninvited submissions.
For many years, World Book paid no attention to my proposals for a line of educational learning aides under its trademark. Then one of my closest friends became publisher of the encyclopedia. I resurfaced the idea, and he said, “Go do it.”
When I come into an N.I.H. environment and I have no powerful advocate inside, I find a connection or I go elsewhere. It is the company’s loss. There are too many potential licensees for me to waste time on people or companies that don’t want to see me or appreciate the potential of the business opportunities in my bag.
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