Invention promotion fraud costs unsuspecting inventors approximately
$90 million a year by the false promises of riches. Everyone has heard
or seen the advertisements for invention promotion companies on the
television, radio, internet, newspapers and magazines. Many of these
companies prey on individual inventors who have little knowledge of
the process involved in obtaining patent protection and taking an
invention to market.
These promotion companies generally have a sales staff, often
telemarketers, who entice inventors by offering to do a free
preliminary review of their invention. Often after a cursory review
the promotion company will tell the inventor that they need to
complete a market evaluation of the invention for a fee. Questionable
promotion companies then provide the inventor with a fancy folder
containing mass-produced market data often having little relevance to
the invention.
Regardless of the invention's marketability, promotion companies are
generally very enthusiastic and suggest the inventor could make a lot
of money on their invention. Of course they suggest that the inventor
use the promotion company's marketing and licensing services. These
services often cost the inventor several thousand dollars.
Two simple questions will generally identify the less than reputable
promotion companies. If the company cannot, or will not, answer these
questions then you should not do business with them.
1. What is your rejection rate? (In other words, what percentage of
inventions submitted to the promotion company do they decline to offer
their marketing and licensing services? The higher the rejection rate,
the better off you are.)
2. What is your success rate in having a client's invention licensed?
Can you provide the names and telephone numbers of recent clients that
have had their inventions licensed?
Of course, inventors should always investigate the company before
making any commitment. Call the Better Business Bureau, the consumer
protection agency, and the Attorney General in your city or state, and
in the city or state where the company is headquartered to find out if
there are any unresolved consumer complaints about the firm.
Lastly, always keep in mind what it is that the invention promotion
company is offering to do for you. Rarely does a promotion company
actually offer to seek patent protection for your invention. Education
is the best defense! There are many great resources on the internet
dedicated to assisting inventors.
For more information on invention promotion scams, browse the National
Inventor Fraud Center website at www.inventorfraud.com and the Federal
Trade Commission website at www.ftc.gov.
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