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 time consuming. As an alternative, others use the services of an invention or patent promotion firm. Indeed, many 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. They not only urge inventors to patent their ideas or invention, but they also make false and exaggerated claims about the market potential of the invention. The facts are:
* few inventions ever make it to the marketplace; and
* getting a patent doesn't necessarily increase the chances of commercial success.
There's great satisfaction in developing a new product or service and in getting a patent. But when it comes to determinig market potential, inventors should proceed with caution as they try to avoid falling for the sweet-sounding promises of a fraudulent promotion firm.
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. 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 your idea and you. As an inducement, a firm may offer to do a free preliminary review of your invention but beware; the "preliminary review" is just a ploy to set up a face-to-face meeting with you so they can high pressure you into a contract.
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. 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. 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 charges you a fee in advance—take your business elsewhere.
Also, some invention promotion firms 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. Do not be persuaded by such claims. Ask for verifiable proof that the promotion firm actually has special access to a manufacturer. For example, a telephone number or email address by which you can contact the manufacturer and verify the special access before you sign any contract.
Please be aware that a person may submit a complaint against an invention promoter with the United States Patent and Trademark Office (USPTO) under U.S. Code of Federal Regulation, Title 37, Section 4.3. Under Section 4.4, If a complaint meets the requirements, the invention promoter named in the complaint will be notified of the complaint and given 30 days to respond. The invention promoter's response will be made available to the public along with the complaint. If the invention promoter fails to reply within the 30-day time period set by the Office, the complaint will be made available to the public. There are other provisions that are aimed at protecting the public against the numerous and devious invention promotion firms.
The bottom line is, if an invention promotion company believes that your invention is marketable, then they should be paying you, not the other way around.