Many companies are out there looking to take advantage of your
eagerness to bring your invention market. If you are planning to use an invention
promoter, you need to understand how to tell the difference between a
legitimate invention promoter from a swindle.
Legally, the firm must disclose specific information to you
regarding their past business practices in a mandatory disclosure form before
an invention promotion contract may be established between you and the firm. To quote the law, “an invention promoter
shall have a duty to disclose the following information to a customer in
writing, prior to entering into a contract for invention promotion services:
(1) the
total number of inventions evaluated by the invention promoter for commercial
potential in the past 5 years, as well as the number of those inventions that
received positive evaluations, and the number of those inventions that received
negative evaluations;
(2) the
total number of customers who have contracted with the invention promoter in
the past 5 years, not including customers who have purchased trade show
services, research, advertising, or other nonmarketing services from the
invention promoter, or who have defaulted in their payment to the invention
promoter;
(3) the
total number of customers known by the invention promoter to have received a
net financial profit as a direct result of the invention promotion services
provided by such invention promoter;
(4) the
total number of customers known by the invention promoter to have received
license agreements for their inventions as a direct result of the invention
promotion services provided by such invention promoter; and
(5) the
names and addresses of all previous invention promotion companies with which
the invention promoter or its officers have collectively or individually been
affiliated in the previous 10 years."
Research the reputation of invention promoters before making
any commitments. If it sounds too good to be true, it probably is. Be wary of any firm that promises too much
and/or costs too much. Ask for references
from their current clients and research the firm’s reputation.
Adapted from “Eye on
IP” - Sheldon Mak & Anderson, Vol. No. 2013, October 25, 2013, www.usip.com/Publications/EyeonIP/131025.html