Perhaps you have seen their late-night TV advertisements. Invention submission companies promise to help inventors not just to obtain patents, but also to license and market their inventions. Such an arrangement may sound very desirable to an individual inventor who lacks the know-how to successfully market an invention and does not know of a reputable patent attorney. Why not hand your invention over to an expert, who can take care of the rest? TV advertising and a professional website may lend the company an air of legitimacy. Unfortunately, such companies are rarely if ever legitimate.
The American Inventor’s Protection Act of 1999 requires such companies to disclose success rates to consumers. Usually, this is done in the least conspicuous way possible. Between 2001 and 2003, Invention Submission Corp., one of the alrgest such companies, signed deals with 6,480 clients. Only 14 made more money than they paid. FTC attorney Peter Lambert has stated that he is unaware of any such company achieving greater than a 1% success rate.
The companies spend millions on advertising to grab a piece of the $300 million market, then string along customers with optimistic evaluations and glossy business plans, constantly billing them more and more. Often the companies promise to get a patent for their customer, but then apply only for a design patent, which provides very limited protection for an item’s appearance alone. Victims often pay thousands and receive little or nothing in return.
Tips to avoid scams
-Few if any companies both obtain patents and market and license inventions. These are distinct businesses which each require in-depth expertise. If a company promises to do both, it is a warning sign.
-Ask for the company’s success rate and for some references.
-Look to see if your company is listed in the USPTO complaint database. Check google for scam complaints.
- Watch out for slick advertisements, glowing enthusiasm, high pressure sales, mis-matched addresses, companies that are difficult to get in contact with, and other red flags.
-Be wary of recommendations for a design patent, which are rarely suitable. Contact a patent attorney for a free consultation if you have any doubt about their patent advice.
Links/Resources
Beware Invent Help Press Releases
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