Inventors can lose money and time, and can jeopardize the patent rights of their invention if choosing to promote it without protecting the patent rights of the invention. It should be understood that the purchase of services relating to the development of a new product is a high risk expenditure, and there is no guarantee that a profit will result. Very few ideas or inventions are eventually produced and marketed successfully. Few inventors recover their costs of developing their inventions, and few even recover the costs of services provided by invention development firms. Inventors should also be aware that not every invention or idea is patentable, nor, even if patentable, would result in a patent that would provide the inventor with much protection against infringement.
Some states have specific laws regulating invention development companies.
The laws usually require the company to report on its number and percentage of successful clients - those who have made more money from their idea than what they paid to the invention development firm. In addition, the statutes may require that a bond be posted so that if the company goes out of business or misrepresents its services, refunds could be given to clients. If there is a local inventors' club or society, it may be able to provide you with the experiences of its club members. There are some state, city, and county organizations established for the purpose of promoting the growth of business and industry in their areas. Such programs are generally listed under the government sections of the telephone directory or may be listed with the Chamber of Commerce.