HOW INVENTION SCAMS WORK

First, understand the difference between a patent attorney and an invention promotion company.

A patent attorney is a lawyer who specializes in filing patent applications for inventors. They are bound by many laws governing their legal and ethical practices.

Invention promotion companies are commercial organizations that profess to be able to take your idea and submit it to industry (presumably, so that you will make money). But they hire patent attorneys to file your patent application - marking it up thousands of dollars.

Here's how the invention scam companies work:

They advertise on TV, hoping to strike a cord with a would be inventor by asking if you have an idea - and whether you want to become rich by presenting your idea to industry.

They will tell you that you have the best idea in the world (just what you want to hear), and they will methodically take UPWARDS OF $12,000 from you before the process is all over - and you could easily end up with a useless patent! A seasoned, respected patent attorney will charge about 1/2 that or less to file your patent.

But they are shrewd - they start out with a "free inventor's kit", then they charge $500 for an idea review. Then they "discover" that your idea is "original" and could be a big seller. Many times, this is not true - it's just to make you feel good. But you get excited and ready to pay the next "installment" of upwards of $4,000 for the next phase. This process goes on until they end up with all your money - you end up holding a worthless patent (most times).

The fact is, according to the US Patent and Trademark Office, less than 3% of all patents ever make more money for the inventor than it cost. The other fact is that the invention promotion companies have a track record that's MUCH worse - with less than 1/10 of 1% of their inventors ever making a profit.

Scam companies charge LOTS of money. They even offer financing - charging you interest on already outrageous prices! DON'T EVER finance your invention costs - it's money totally wasted in most every case.

AMERICAN INVENTOR PROTECTION ACT of 1999 (AIPA)

The AIPA legislation was passed to protect the American Inventor from fraudulent invention promotion companies. Invention scams are a BIG PROBLEM, so Congress stepped in to help the inventor.

American Inventors Protection Act of 1999 provides a new level of protection for inventors from fraudulent invention promotion companies. The Act requires invention promoters to disclose to you in writing the number of positive and negative evaluations of inventions they have given over a five-year period and their customers' success in receiving net financial profit and license agreements as a direct result of the invention promotion services. Customers injured by failure to disclose the required information or by any material false or fraudulent representation by the invention promoter can bring a civil action to recover statutory damages up to $5,000 or actual damages. Damages of up to three times the amount awarded are available for intentional or willful violations.

One of the provisions of this law is that the invention promotion company must disclose information about the percentage of inventors who make money from their patents, along with other information. You should read the AIPA information regarding invention promotion companies, Subtitle A - Inventors Rights/Invention Promotion Services. Ask the invention promotion company for an ORIGINAL copy of this law - not their reworded version that may leave out information that would tip you off to them being a fraudulent invention promotion company.

See the US Patent & Trademark Office's Web page on the AIPA HERE.