I don't have much experience, but I'll throw out some guesses to prime the pump. The CrunchPad is a very non-trivial design, there is probably a couple million

I don't have much experience, but I'll throw out some guesses to prime the pump. The CrunchPad is a very non-trivial design, there is probably a couple million invested either as real money or contributed effort ("IP"). a) Cost of a prototype... it depends. :-) Your hypothetical is badly underspecified. In the boat owner world, we use a unit known as a Boat Unit of Cost (BUC) which is typically defined as $1000 ($100 if you are cheap like me, $1,000,000 if you are Larry Ellison http://en.wikipedia.org/wiki/Larry_Ellison#Sailing http://en.wikipedia.org/wiki/Larry_Ellison#Sailing http://en.wikipedia.org/wiki/Rising_Sun_%28yacht%29 http://en.wikipedia.org/wiki/Rising_Sun_%28yacht%29). Lets define a "Prototype Unit of Cost" (PUC) to be $100,000. Designing the hardware (schematic, mechanical) if you don't do it yourself. 1.0 PUC for a starting point for design to schematic capture. 0.5 PUC for a simple layout. 0.5 PUC for mechanical design. Software, assuming you are using open source (say porting U-Boot and a Debian-based linux distribution to your device). If you add custom application software on top of this, you will add 1-10 more PUCs. 1.0 PUC (linux boots and runs well) Fabbing a 1-4 layer board is pretty cheap for prototype quantities, a couple hundred to a few thousand dollars. This is probably your cheapest purchase. :-/ 0.1 PUC If you are using small surface mount parts (i.e. need to use automated machines to place parts), it costs a LOT for the first unit, but the next 10,000 are pretty cheap. If you promise to build large quantities, the assembly outfit will build the first few prototypes at a fairly reasonable price. If you stiff them and don't go to production, well, that probably only happens once. Ever. 1.0 PUC. Maybe less, likely more. If you need a custom or semi-custom enclosure, $$$ (my crystal ball has no experience, and it will be heavily dependent on what the enclosure is). 0.1 - 1.0 PUC If you need FCC/CE/UL certification (i.e. not a hobbyist device), add a lot more. Again, my crystal ball is inexperienced, say... 1.0 PUC assuming passing the first time (perhaps with some minor mods). So, having said all that, my gut feel is: * Hobbyist device... $1,000..$10,000 * "Collection of already certified modules" simple commercial device, mostly self-designed... $100,000..$500,000. * Outsourced design, software, with a more integrated design (less buying of pre-certified modules)... $500,000..$5,000,000 b) You own all the IP that you paid to have developed. The legal doctrine that covers this is "work for hire." http://en.wikipedia.org/wiki/Work_for_hire http://en.wikipedia.org/wiki/Work_for_hire (Disclaimer: IANAL, you always want your lawyer to CYA for you on this!)