Invention Promotion Firms
NOTE: For reasons cited below, prospective inventors are well advised to seek the counsel of an attorney who practices in the area of intellectual property law - which includes patent, copyright and trademark, and preferably a patent attorney -- prior to contacting an invention promotion firm.
Every year, tens of thousands of people try to develop their ideas for new products or services and try to market them. However, few possess the knowledge and/or resources necessary to pursue this seemingly overwhelming endeavor on their own. In response to this problem, invention promotion firms promise to evaluate, develop, patent, and market inventions. Unfortunately, a number of these promotion firms charge inventors thousands of dollars and then do little or nothing for their fees.
Federal laws have been enacted to help protect the public from unscrupulous invention promotion firms. Prior to entering into a contract with a customer, invention promotion firms are required to disclose, in writing, information regarding:
a) the number of inventions evaluated within the past five years;
b) the number of customers who have contacted them in the past five years;
c) the total number of customers known to have realized a net financial gain as a direct result of services provided;
d) the total number of customers known to have received license agreements as a direct result of services provided; and
e) the names and addresses of all previous invention promotion companies with which the invention promoter or its officers have been affiliated in the previous 10 years.
Federal law also provides that a customer entering into a contract with an invention promotion firm has a civil remedy available for harm caused by any material false or fraudulent statement or representation, or any omission of material fact. Willful deception by the invention promotion firm may result in treble damages.
Missouri legislators have recognized the need for laws to help protect prospective inventors. The Attorney General of Missouri has successfully brought suit against invention promotion firms.
Contracts
For the protection of the prospective inventor, any contract between the inventor and an invention promotion company should include provisions addressing:
a) the ability of the customer to terminate a signed contract between the customer and the invention promotion firm at any time before the customer submits an initial payment to the invention promotion firm; and
b) the customer is not required to make payments to the invention promotion firm until seven working days after the customer has signed a contract between the customer and the invention promotion firm, and has received a completed copy of the contract.
It is also critical that the following clauses be included in a contract between an invention promotion firm and a customer in order to preserve the inventor's rights under patent law:
You are encouraged to consult with an attorney with experience in patent law before signing this contract. By proceeding without the advice of an attorney with experience in patent law, you could lose any rights you might have in your idea or invention. Your potential patent rights may be adversely affected by any attempt to commercialize your idea or invention before a patent application covering your idea is filed. Nonconfidential disclosures of your idea or invention may also trigger certain statutory deadlines for filing a patent application in the United States and would prevent you from obtaining valid patent rights in countries whose laws provide that patent applications must be filed before any public disclosure.
The provisions of the patent laws are complex. Numerous potential minefields exist regarding the timing and scope of disclosure that may jeopardize patent rights. The facts and surrounding circumstances are unique to each inventor, and should be discussed with an attorney, preferably a patent attorney. The term "patent attorney" refers to an attorney licensed to practice law, who is also registered to practice before the United States Patent and Trademark Office (USPTO). A patent attorney is uniquely qualified to evaluate both the technical merits of a potential invention and any factual circumstances that may affect patent rights.
The USPTO maintains a listing of patent attorneys and agents on its web site, which permits a geographical search. Upon accessing the USPTO web site address at www.uspto.gov, select the "Site Index" tab, then select "A" for "Agent and Attorney Roster." Further select "Attorney/ Agent Search" and finally select "Listing by Geographic Region."
For more information regarding invention promotion firms, the following web sites may prove helpful:
www.ftc.gov/bcp/conline/pubs/services/invent.htm
www.uspto.gov
www.uiausa.com