INVENTION PROMOTION OR INVENTION SCAM?
Before You Offer up Your Hard-Earned Money to an Invention Promotion Firm, Do a Little Homework. It Can Save You a lot of Money and Heartache.
By Mike Foley
It's easy to imagine spending hours working on a new product, ironing out the "bugs" and developing a market-ready prototype. Many of you have already done that.
But imagine this...
You now take your product to an invention-promotion company, one that you heard of on the radio. After a low-cost market analysis, they tell you your invention has great possibilities. The firm promises to help market your invention, but it will cost you thousands of dollars. You lay down the money and get back....nothing.
Scary, isn't it?
Every year, thousands of people invest their time and money on new product ideas and the dream of being a successful inventor. But without a working knowledge of the invention process or the marketplace, many first-time inventors lose big money to unscrupulous invention promotion firms that do little to help them.
How do such firms operate? By playing on an inventor's enthusiasm and naivete, promising services that are rarely delivered. And it's easy to fall prey to such companies. After all, their ads seem legitimate, appearing on radio, television and in newspapers across the country. The companies promise (a) an evaluation of the invention and (b) assistance in taking the product to the marketplace.
But unscrupulous firms will ALWAYS tell inventors that their products have market potential. And while legitimate companies rarely require large amounts of money up front, scam companies often charge inventors fees up to $10,000 or more.
Although the Federal Trade Commission continues to investigate such firms, the problem continues. Companies often change business names or addresses and continue to do business, taking money from inventors and delivering very little in return. And once such companies have your money, you'll rarely see it again.
So what can you do?
Before spending your dollars on a promotion firm offering big promises, move cautiously and consider the following:
1. Ask For References--Ask the firm for names and contact information of inventors they've helped or products they have successfully promoted. If they won't reveal the information or claim that it's "confidential," go elsewhere.2. Ask for the Success Rate--If the firm's success rate is less than two percent, walk away.
3. Beware of Evasion--If a company representative avoids answering your questions or seems evasive, find another firm.
4. Investigate--Call the Better Business Bureau and ask about the company's track record. In addition, check to see if the firm has been involved in lawsuits or settlements with the Federal Trade Commission.
5. Refuse Document Disclosure Fees--Many firms will register your idea in the Document Disclosure program of the U.S. Patent and Trademark Office, charging high fees for the service. But the Document Disclosure program costs a mere $10 and you can complete the simple process yourself. If the company charges high fees for this service, use it as a warning sign and walk away.
6. Review the Contract--Be sure the written contract reflects exactly what has been agreed to verbally. And it's always advisable to have an attorney review the contract before you sign.
What's the best strategy for inventors? Arm yourself with information and beware of those who may only want your money. And remember--much of the invention and patent process can be completed on your own. A great resource is David Pressman's classic, PATENT IT YOURSELF. Check it out and consider going solo.
Mike Foley has been editor at the Dream Merchant since 1990. He writes regularly for the Dream Merchant and many other publications.
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