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Normally, where you develop a unique property which is protectable by patent or is some other form of protectable intellectual property based on the intellectual property of another, you seek to negotiate a royalty you pay to the holder of the underlying intellectual property based on what you propose to sell it for. The other way is to charge the other companies a royalty for use of your intellectual property. It sounds like you are thinking of the latter approach. What you should do is finish your development so you have a completed product and then approach the companies involved.
If your addition is not protectable as intellectual property you do not have anything. You only have a derivative work if you created something. If not you have nothing to steal. You only violate their rights if you use their product that is outside the license.
I understand you're saying I have nothing to steal if I haven't created a derivative work but I never got permission to create the derivative work. I'm sorry to take too much of your time I just want to be clear. My fear: company likes my idea, but I'm not able to patent it or obtain any protection after I've finished developing and I've spent money on developing, company says you're not protected we'll just take this and develop an alternative version based on the demo you gave us and then all my work was for naught as far as profiting from it goes.
If you sold the product without ever going to the company anybody could copy it and use it if was not protected. So unless you can copyright or patent your work, all you have is something you can use for yourself because anybody can copy it once it is put on the market.
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In that case I should find out if what I have done is patentable or protectable.
Ok, one more concise question....is there a way to ask for permission to create a derivative work with the sole purpose of benefiting the profits of company with a small royalty worked in. Like a derivative protection status or something like that?
Your development work does not infringe anyone's rights. It is only when you try to sell it does that happen. Until you have developed your product and determined if it is protectable there is no point in contacting the company. Once you know where you stand, you can then start your negotiations.
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