ANSWER from Bob Bell, patent attorney
I have a library full of such "studies" from other marketing companies. READ THE REPORT CAREFULLY. Crooked companies use these "studies" as the"hook" to snare their victims.
For example, one report for an invention for a film canister had pages and pages of text about *disposable cameras*. Disposable cameras do not use film canisters! There was also a colorful (but meaningless) chart entitled "Productivity: Manufacturing Leads the Way." All of this text is boilerplate taken directly from industry news sources. It is all impressive looking, but meaningless.
The "search reports" were word-for-word identical, even though the inventions, inventors, and attorneys were all different. "The Smith reference is relevant to the extent that is discloses an invention similar to your (invention name). This reference is also a good example of the amount of written material needed to get a patent." (!!!) Again, boilerplate, and again trash.
Are they recommending DESIGN patent protection? If so, RUN, do not walk, to the door. A Design patent is worthless for a gadget-type invention.
Are they selecting an attorney for you or controlling access to your attorney? Again, RUN, do not walk to the door. Fraudulent firms "bundle" their services (which are worthless) with attorneys services to make it seem like you are getting great value for your money (A patent AND marketing services!). In reality, although you may spend $5000 to $10,000 or more, the bulk of this money stays with the marketing company while a pittance goes to the attorney who prepares the worthless Design Patents. This is called "fee splitting" and it is against bar rules in all 50 States.
Are they asking for thousands of dollars up front? Again, RUN, do not walk away.
These firms often use retired or soon-to-be-disbarred attorneys in Florida. If you want a lousy attorney who will work for next-to-nothing, you might as well hire him directly and get rid of the middleman.
Invention fraud is a multi-multi-million dollar a year business. One company, American Inventors Corporation (AIC) had over 1700 Design Applications pending when it was shut down. At $10,000 apiece, that's $17 MILLION dollarsÂand this was small-time operation!
Why can't the government shut these crooks down? Simple. In America, it is not against any law to give lousy service at high prices which is what invention brokers do. Their "marketing" efforts are laughable, and the patent services marginal at best. There is no law against charging too much for this.
These firms prey upon your fears and hopes. They promise that selling an invention is easy -- it ain't! Inventing is probably the hardest thing you can do! Companies, by and large, are NOT interested in outside ideas!
IF you go ahead and give these folks $5000 to $20000, don't expect to see it back anytime soon -- nor can you expect any help from the Patent Bar, the Patent Office, The State Attorney General's Office, the Better Business Bureau, etc. etc. The amount they charge is a LOT of money, but not enough to make it worthwhile to sue them. Catch-22.
Legitimate invention promoters are few and far between.
--A legitimate invention promoter will not ask for money up front, but will take a percentage of profits ONLY.
--A legitimate invention promoter TURNS AWAY 99% of ideas submitted -- he or she is only interested in ideas that will succeed.
--A legitimate invention promoter does not advertise on radio, TV or in Popular Science, USA Today, etc. etc. These are advertising venues aimed at a large response audience--the type of audience crooks want to get at.
I have not heard of the company you mention, but their Modus Operandi (M.O.) sounds very much like all the others. Be "leery", as you say.
Robert Platt Bell & Associates, P.C. Patent, Trademark, & Copyright Matters 917 Duke Street Alexandria, VA 22314 Ph. (703) 683-8822 FAX (703) 683-8823 robertbell@erols.com
ANSWER from Joanne Hayes-Rines, Founder, Inventors Digest
I have not personally heard of the company you refer to, but would recommend the following: 1) Contact the Consumer Affairs Division of the state attorney general's office in your state and in the state in which the company is headquartered. The attorney general is in the capitol city of a state. Ask if they know anything about the company. 2) Ask the company for names of clients with whom they've done business. If they won't give references, don't do business with them. 3.) Ask for credentials of the chief managers, owners of the business. The more you learn about the business, the better able you will be to find out if they're on the up and up. Also, go to ID's web page and locate, in the clubhouse, an inventors' organization near you or near the company. Give them a call and see what they think. http://www.inventorsdigest.com
ANSWER from Joe Cote, Director, Business Development Arthur D. Little Enterprises, Inc. (Please visit our web site at www.adlenterprises.com)
Remember the old saying--"If it sounds to good to be true, it probably is."
I would ask for a list of satisfied customers. Check them out, if they have received what they believe is value for their investment and it satisfies your needs at this time, this may be a good start. If you want to go the added step of checking out their record with your state's Attorney General's office, that is another reasonable avenue.
For a fee of $545, I would want to know who will doing the work, will it be only a review of secondary materials, if analysis is provided--what is the background and professional credentials of the individuals providing their opinions.
Be a knowledgeable consumer, protect your interests and your investment.
ANSWER from Carol Oldenburg, Administrator, United Inventors Association of the USA
The company you named is one that I've received many calls about regarding questions about their business practices. I suggest that you do a lot of investigation before making a decision to do business with them. There are several tasks I suggest as part of that effort.
First, call the State Attorney General's office in both your state and the state where that company states they are headquartered. Ask if there has been any investigation or information regarding that company that they can share with you as a prospective customer. (You can get the numbers for the state offices you need by calling the National Assoc. of State Attorney Generals at (202) 326-6047)
Second, call the Federal trade Commission's Division of Consumer Protection and ask the same question of them. (202) 326-3650.
Third, contact local inventor groups in those areas and ask if that company is known to them and what their experience of them has been.
Fourth, in your contact with the company's representative, ask a list of specific questions which include, names, addresses and phone numbers of clients such as yourself who have done business with them and whom you can contact for references. Also ask for written names and credentials of their staff and their qualifications for doing the work they are proposing to do Also request, IN WRITING, their "success rate" which is the % of clients who have made a profit of $1 or more as a result of their services.
As a result of proceeding as outlined above, you will probably have a clear indication of what your decision should be. There are reputable service providers available but most will not propose to provide every service you need to launch your product from concept to market place, and most will also not require large up front fees for their services. A good place to begin is by getting a valid evaluation done by a service that does only that and has no vested interest in the results. These services are usually associated with state universities or small business development centers and there are a few available in different regions. |
