Scam invention companies are prevalent all over the country, in spite of legislative and regulatory attempts to shut them down. Recently we learned that an old friend of ours was taken by a well known invention scam company to the tune of $36 thousand dollars. We decided to write out an article of things detailing some of the characteristics of an invention scam company.
Secrecy Obsession
From the first phone call, invention scammers want you to be distrustful everybody but them. They are the major proliferates of the “stolen invention” stories, which are rarely if ever true. They want you to believe that everybody else in the industry (every patent attorney, every prototyper, etc.) is out to steal your invention. That way you will only trust them. What they are really trying to do is keep you from working with anybody else. There is a place for secrecy, but you can’t be obsessed with it because you’ll paralyze your business.
Over-the-Top Praise
“Your Invention is simply amazing! In fact, we already did all the research on it, and we believe there is huge, huge potential.”
Praise is the hook that gets most people. Once you’re convinced that you have a brilliant idea, you’re far more likely to put your money behind it. After all, you’re investing in a sure thing. The truth is, it’s very likely your invention will not succeed, at least not at the beginning of the process. And it probably isn’t new. This is on of the reasons why we think patent research is so important early in the process..
Bundling Services
Once they have you hooked, they will lay down a plan for bringing your invention to market, a very expensive plan. They will deliver a thick three-ring binder detailing all of the services you simply must buy from them if you want to succeed. The services will run the gamut from patents, to marketing, to prototyping, to pitching. It will all be bundled together, and they will push like crazy for you to buy the whole thing. Again, if you believe your invention is a sure thing, you’re much more likely to pay for whatever services they are telling you that you need.
As a rule, you should always avoid companies that bundle their services or claim to be experts in every area. Bundled services may sound like a better, more streamlined way to work, but the truth is that they won’t be good at anything except putting on a show for you.
Pushing the Pitch over the Patent
In 2008, the USPTO issued a rule (Rule 11.5b) that was supposed to make it much more difficult for registered practitioners to work with invention submission companies. Our interpretation of the rule is that there can no longer be an intermediary between the client and the practitioner.
Invention scammers used to try to put themselves between the inventor and the practitioner, both in communication and in billing. With the implementation of the new rule, they could no longer do this. So they changed tactics and belittle the importance of patenting. Instead what was important, they said, was getting your invention in front of companies who would be interested in paying for the whole thing, including applying for a patent. In a way, this sounds even better than before because they were offering you a route to success without even having to pay the patent. They would always claim to have close relationships (NDAs is already in place) with various companies who buy inventions. So they still push all the other services, market research, preparing reports, 3D modeling, prototyping. But instead of going the patent route, they would go the “pitch” route.
Always watch out for people who claim to have all the industry contacts.
Pushing Design Patents
While it’s gotten harder for scammers to use patents, when they can they will. This is because they know that getting you a patent is a great way to encourage you to continue spending. So what they will often push is a design patent. Design patents are not the same as utility patents in terms of what they cover. Design patents only cover the appearance of the invention. Also, design patents are much easier and much cheaper to get — not that they’ll be passing any of the savings on to you. Unless your invention fits the design patent category, you should avoid people who advise you to go for a design patent.
Of the things to watch out for listed above, flattery is the big one. Honest people who work in the invention development industry will be honest about your chances for success.
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