Professor Demchick's Patent Services
Paul H. Demchick, United States Registered Patent Agent
(United States Patent and Trademark Office Registration 52,808)
Professor Demchick's Blackboard
Dr. Demchick has been a college and university faculty member for many years. On these Blackboard Pages he does a little teaching. These pages are intended as general, introductory information. Compromises were made between including details in these pages and keeping the pages readable for a general audience. These pages are not intended as legal or other professional advice.
INVENTION PROMOTERSI suspect that almost every patent practitioner who works with independent inventors and small companies has horror stories about victimization of inventors (to whom the world of patents is new) by inventor promotion companies.
ONE OF MY HORROR STORIES: A retired woman contacted me about something she had invented. The idea seemed worthwhile. Over the past couple of years she had tested the waters and the product sold well. A couple of years ago, before the first sale, she had paid an invention promotion company for help. She explained to me that she paid them with money raised by selling her furniture. For the amount she paid them (which was comparable to the entire patent application and prosecution cost with many patent agents, including me) they gave her a nice looking, hardbound report about the prospects for her invention. The book was a brief description of her invention, some general and worthless boilerplate material and copies of several somewhat related patents (not the results of serious patentability search). That was it. It was worthless. Actually, it was worse than useless, because she had the illusion of protection. She now wanted to try again to get a patent. The news that I had to deliver: Since the invention had been on sale in the United States more than one year ago, the invention could never be patented.
FTC Facts for Consumers: Invention Promotion Firms (October 2003, Federal Trade Commission) includes:
"; "Think you have a great idea for a new product or service? You’re not alone. Every year, tens of thousands of people try to develop their ideas and commercially market them. Some people try to sell their idea or invention to a manufacturer that would market it and pay royalties. But finding a company to do that can be difficult. As an alternative, others use the services of an invention promotion firm. Indeed, some inventors pay thousands of dollars to firms that promise to evaluate, develop, patent, and market inventions...and then do little or nothing for their fees.
"Unscrupulous promoters take advantage of an inventor’s enthusiasm for a new product or service."
"Advertisements for invention promotion firms are on television, radio and the Internet, and in newspapers and magazines. These ads target independent inventors with offers of free information on how to patent and market their inventions. Often, however, the only information you get is about the promoter.
"If you respond to the ads — which may urge you to call a toll-free number — you may hear back from a salesperson who will ask for a sketch of the invention and information about you and your idea. As an inducement, a firm may offer to do a free preliminary review of your invention.
"Some invention promotion firms may claim to know or have special access to manufacturers who are likely to be interested in licensing your invention. In addition, some firms may claim to represent manufacturers on the look-out for new product ideas. Ask for proof, such as contacts at manufacturers, before you sign a contract with any invention promotion firm that claims special relationships with manufacturers. If the promoter provides only one or two names, be careful: The contacts may be "shills" — people hired to give favorable testimonials.
"After giving your invention a preliminary review, a firm might tell you it needs to do a market evaluation of your idea — for a fee that can be several hundred dollars. Many questionable firms don’t do any genuine research or market evaluations. Sometimes the "research" is bogus, and the "positive" reports are mass-produced in an effort to sell clients on additional invention promotion and marketing services. Fraudulent invention promotion firms don’t offer an honest appraisal of the merit, technical feasibility, or market potential of an invention.
"Some invention promotion firms also may offer a contract in which they agree to help you market and license your invention to manufacturers. Unscrupulous promoters may require you to pay a fee of several thousand dollars in advance, or to agree to make credit payments instead. Reputable licensing agents usually don’t rely on large advance fees. Rather, they depend on royalties from the successful licensing of client inventions. How can they make money when so few inventions achieve commercial success? They’re choosy about which ideas or inventions they pursue. If a firm is enthusiastic about the market potential of your idea — but wants to charge you a large fee in advance — take your business elsewhere."
A patent agent colleague who used to work for the United States Patent and Trademark Office helping independent inventors recommended the following resources: