On a sad note, the money that these thieves have stolen from unsuspecting inventors over the years will be used to obtain the very best legal defense that money can buy. In the end, after legal fees, hidden and transferred assets, very little if anything will likely be returned to the victims. Additional deceptions are stitched in as the presentations continue. For example, the firms often emphasize their track records and the importance of their screening process, touting product research reports that purportedly constitute a professional product and market evaluation of the idea. Over prior years, the FTC has charged a half a dozen invention promotion firms with deceptive sales practices.
Most firms offer services in two stages.
Indeed, the FTC said, fraudulent invention promotion firms do not offer an honest appraisal of the merit, technical feasibility or market potential of an idea, and in some instances their patent searches are incomplete. Nonetheless, these reports generally cost several hundred dollars or more, although the price is not mentioned until after the customer is taken through a series of calculations about the costs associated with manufacturing and marketing the product and its ultimate retail price. The phase one report serves as a marketing tool for phase two services, which include patenting and marketing the idea. Invention promotion firms might mention trade shows at which they purportedly will display an idea, or special relationships they have with manufacturers who might be interested in producing it. A utility patent, which grants the inventor of any new and useful process or machine exclusive rights to the invention, may offer more protection than a design patent, which grants to any new ornamental design for an article of manufacturer. 'Unscrupulous invention promotion firms often apply for patents that provide such limited legal protection that it is easy for competitors to find a way to design around the patent,' states an FTC brief on invention promotion firms.