Another Day, Another Scam - "Invention Promotion" Companies

If you stay up late and watch TV, in addition to learning how to clean just about anything, you've probably seen ads for an invention promotion company, or an inventor's service company. These companies solicit inventors with offers to help you get a patent, find and negotiate with manufacturers and generally take the mystery out of bringing a product to market. HA!

These companies have become such a blight that way back in 1999 Congress passed the American Inventors Protection Act of 1999. In addition to requiring that these companies make certain disclosures to potential customers, the Act requires that the USPTO make public complaints against these companies, which it has done here.

Additionally, since the US Patent and Trademark Office licenses individuals who represent people in filing for, and prosecuting patents, the USPTO has been using its licensing authority to close down attorneys and patent agents who do the actual patent filings for these invention promotion companies.

One of the ways that these companies can guarantee that they can get you a patent on your product "or your money back" is by applying for design patents instead of utility patents. Utility patents (very very briefly) protect how something is done. Design patents protect how something looks. Most poeple want a utility patent if they think they have invented a new useful product. But many of these companies will just file a design patent, which is often as useful as a rock. But they are easy to get.

In June, the USPTO's suspension of an attorney who had filed about 1000 patents, I should say design patents, for one of these invention promotion companies was upheld by the Court of Appeals. Which just means the company will have to get another attorney or patent agent to do their filings.

To see a good use of your tax dollars, check out the USPTO's website aimed at helping small business avoid frauds in the areas of intellectual property protection. It's called Stop Fakes.

Posted: 27 Jan 2008 · Permalink