In recent years, a large number of "invention development" companies have come into existence, claiming they can assist individuals in marketing their inventions. But according to the Illinois State Bar Association, some of those companies are less than reputable. Despite consumer protection activities by state and federal authorities and patent lawyers, many fraudulent invention and development companies continue to prey on actual and would-be inventors.

The disreputable companies operate by informing virtually every person who comes to them with an idea or invention that the concept has great merit. The fact is that many "inventions," while perhaps clever, lack commercial potential and cannot be sold. The company then might make a presentation to the would-be inventor using one or more employees of the firm with impressive job titles (such as Director of Engineering or Director of Product Licensing) to convey the false impression that a number of experts have independently arrived at a favorable evaluation of the invention.

In all too many cases, these companies operate in a manner that is harmful to the client's rights. For instance, a typical service offered to the client is the preparation of a brochure about the invention, which is sent to a list of manufacturers who might be interested. But many manufacturers, to whom brochures are sent, refuse to accept any ideas in confidence. Once the company transmits the brochure in this non-confidential manner, no one need pay anything to use the idea unless protection is obtained under the patent, trademark or copyright laws. And the investor's right to obtain valuable patent protection can be lost through widespread disclosure of the idea.

The U.S. Patent and Trademark Office recommends that individuals seek professional advice from a patent lawyer or a registered patent attorney or agent at a very early stage, in connection with any invention.

The Illinois State Bar Association recommends that inventors consider the following before any contracts are signed or fees are paid to an invention development company:

• Check the company's batting average to learn what percentage of the total number of clients have made money from their inventions, and ask for names and addresses of their satisfied clients. (The success percentage of some disreputable companies is much less than one out of a thousand clients.)
• Determine whether the company's fees seem to be in line with the actual services performed and whether they rely primarily on a percentage of royalties or sales price for their income.
• Learn whether the company will handle an idea even though a patent has not been obtained or applied for. Most reputable firms will handle only patented or patentable inventions.
• Be wary of a company that offers to prepare a patent application for you. Preparation of a patent application for another by someone other than a patent lawyer, registered patent attorney or agent, is unlawful.
• It is always wise to check out a company with the local Better Business Bureau, Chamber of Commerce or the Consumer Protection Division of the Illinois Attorney General's Office.

Note: This information was prepared as a public service by the Illinois State Bar Association and is a joint project with the Illinois Press Association. Its purpose is to inform citizens of their legal rights and obligations.