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o pay an upfront fee of as much as $10,000
and to commit a percentage of the royalties the invention may earn. On the
otherhand, reputable licensing agents typically do not rely principally on
large upfront fees. They normally rely on royalties from the successful
licensing of client inventions and are very selective about which ideas and
inventions they pursue. A request for an upfront fee frequently is another
distinguishing characteristic of a questionable invention promotion company.
How to Protect Yourself
If you are interested in working with an invention promotion firm,
consider taking the following precautions before you sign a contract and pay
significant amounts of money.
* Early in your discussions with a promotion firm, ask what the total cost
of its services will be. Consider it a warning if the salesperson
hesitates to answer.
* Be careful of an invention promotion firm that offers to review or
evaluate your invention but refuses to disclose details concerning its
criteria, system of review, and qualifications of company evaluators.
Without this information, you cannot assess the competence of the firm
or make meaningful comparisons with other firms. Reputable firms should
provide you with an objective evaluation of the merit, technical
feasibility, and commercial viability of your invention.
* Require the firm to check on existing invention patents. Because
unscrupulous firms are willing to promote virtually any idea or
invention with no regard to its patentability, they may unwittingly
promote an idea for which someone already has a valid, unexpired patent.
This could mean that even if the promotional efforts on your invention
are successful, you may find yourself the subject of a patent
infringement lawsuit.
* If no valid, unexpired patent exists for your idea, seek advice from a
patent professional before authorizing the public disclosure of your
idea.
* Be wary of an invention promotion firm that will not disclose its
success and rejection rates. Success rates show the number of clients
who made more money from their invention than they paid to the firm.
Rejection rates reflect the percentage of all ideas or inventions that
were found unacceptable by the invention promotion company. Check with
your state and local consumer protection officials to learn if invention
promotion firms are required to disclose their success and rejection
rates in your locality.
In reality, few inventions make it to the marketplace and still fewer
become commercial successes. According to experts used in FTC cases, an
invention promotion firm that does not reject most of the inventions it
reviews may be unduly optimistic, if not dishonest, in its evaluations.
* Be wary of a firm that claims to have special access to manufacturers
looking for new products, but refuses to document such claims.
Legitimate invention promotion firms substantiate their claims, which
you can check.
* Be skeptical of claims and assurances that your invention will make
money. No one can guarantee your invention's success.
* Avoid being taken in solely on a firm's promotional brochures and
affiliations with impressive-sounding organizations.
* Beware of high-pressure sales tactics.
* Investigate the comp
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