‘‘(2) If a contract is entered into for the benefit of
a third party, the identity and address of such party shall
be disclosed by such party’s agent and such party shall
be considered a customer for purposes of this chapter.
‘‘(b) REQUIREMENTS OF INVENTION PROMOTER.—
The invention promoter shall—
‘‘(1) state in a written document, at the time
a customer enters into a contract for invention pro-
motion services, whether the usual business practice
of the invention promoter is to—
‘‘(A) seek more than 1 contract in connec-
tion with an invention; or
‘‘(B) seek to perform services in connection
with an invention in 1 or more phases, with the
performance of each phase covered in 1 or more
subsequent contracts; and
‘‘(2) supply to the customer a copy of the writ-
ten document together with a written summary of
the usual business practices of the invention pro-
moter, including—
‘‘(A) the usual business terms of contracts;
and
‘‘(B) the approximate amount of the usual
fees or other consideration that may be required
from the customer for each of the services pro-
vided by the invention promoter.
‘‘(c) RIGHT OF CUSTOMER TO CANCEL CONTRACT.—
(1) Notwithstanding any contractual provision to the con-
trary, a customer shall have the right to terminate a con-
tract for invention promotion services by sending a written
letter to the invention promoter stating the customer’s in-
tent to cancel the contract. The letter of termination must
be deposited with the United States Postal Service on or
before 5 business days after the date upon which the cus-
tomer or the invention promoter executes the contract,
whichever is later.
‘‘(2) Delivery of a promissory note, check, bill of ex-
change, or negotiable instrument of any kind to the inven-
tion promoter or to a third party for the benefit of the
invention promoter, without regard to the date or dates
appearing in such instrument, shall be deemed payment
received by the invention promoter on the date received
for purposes of this section.
‘‘§ 53. Standard provisions for cover notice
‘‘(a) CONTENTS.—Every contract for invention pro-
motion services shall have a conspicuous and legible cover
sheet attached with the following notice imprinted in bold-
face type of not less than 12-point size:
‘YOU HAVE THE RIGHT TO TERMINATE THIS
CONTRACT. TO TERMINATE THIS CONTRACT,
YOU MUST SEND A WRITTEN LETTER TO THE
COMPANY STATING YOUR INTENT TO CANCEL
THIS CONTRACT.
‘THE LETTER OF TERMINATION MUST BE
DEPOSITED WITH THE UNITED STATES POSTAL
SERVICE ON OR BEFORE FIVE (5) BUSINESS
DAYS AFTER THE DATE ON WHICH YOU OR THE
COMPANY EXECUTE THE CONTRACT, WHICH-
EVER IS LATER.
‘THE TOTAL NUMBER OF INVENTIONS
EVALUATED BY THE INVENTION PROMOTER
FOR COMMERCIAL POTENTIAL IN THE PAST
FIVE (5) YEARS IS XXXXX. OF THAT NUMBER,
XXXXX RECEIVED POSITIVE EVALUATIONS AND
XXXXX RECEIVED NEGATIVE EVALUATIONS.
‘IF YOU ASSIGN EVEN A PARTIAL INTEREST
IN THE INVENTION TO THE INVENTION PRO-
MOTER, THE INVENTION PROMOTER MAY HAVE
THE RIGHT TO SELL OR DISPOSE OF THE IN-
VENTION WITHOUT YOUR CONSENT AND MAY
NOT HAVE TO SHARE THE PROFITS WITH YOU.
‘THE TOTAL NUMBER OF CUSTOMERS WHO
HAVE CONTRACTED WITH THE INVENTION PRO-
MOTER IN THE PAST FIVE (5) YEARS IS XXXXX.
THE TOTAL NUMBER OF CUSTOMERS KNOWN
BY THIS INVENTION PROMOTER TO HAVE RE-
CEIVED, BY VIRTUE OF THIS INVENTION PRO-
MOTER’S 
PERFORMANCE, 
AN 
AMOUNT 
OF
MONEY IN EXCESS OF THE AMOUNT PAID BY
THE CUSTOMER TO THIS INVENTION PRO-
MOTER IS XXXXXXX. AS A RESULT OF THE EF-
FORTS OF THIS INVENTION PROMOTER, XXXXX
NUMBER OF CUSTOMERS HAVE RECEIVED LI-
CENSE AGREEMENTS FOR THEIR INVENTIONS.
‘THE OFFICERS OF THIS INVENTION PRO-
MOTER HAVE COLLECTIVELY OR INDIVIDUALLY
BEEN AFFILIATED IN THE LAST TEN (10) YEARS
WITH THE FOLLOWING INVENTION PROMOTION
COMPANIES: (LIST THE NAMES AND ADDRESSES
OF ALL PREVIOUS INVENTION PROMOTION
COMPANIES WITH WHICH THE PRINCIPAL OFFI-
CERS HAVE BEEN AFFILIATED AS OWNERS,
AGENTS, OR EMPLOYEES). YOU ARE ENCOUR-
AGED TO CHECK WITH THE UNITED STATES
PATENT AND TRADEMARK OFFICE, THE FED-
ERAL TRADE COMMISSION, YOUR STATE ATTOR-
NEY GENERAL’S OFFICE, AND THE BETTER
BUSINESS BUREAU FOR ANY COMPLAINTS
FILED AGAINST ANY OF THESE COMPANIES
WHICH RESULTED IN REGULATORY SANCTIONS
OR OTHER CORRECTIVE ACTIONS.
‘YOU ARE ENCOURAGED TO CONSULT WITH
AN ATTORNEY OF YOUR OWN CHOOSING BE-
FORE SIGNING THIS CONTRACT. BY PRO-
CEEDING WITHOUT THE ADVICE OF AN ATTOR-
NEY REGISTERED TO PRACTICE BEFORE THE
UNITED STATES PATENT AND TRADEMARK OF-
FICE, YOU COULD LOSE ANY RIGHTS YOU
MIGHT HAVE IN YOUR IDEA OR INVENTION.’.
‘‘(b) OTHER REQUIREMENTS FOR COVER NOTICE.—
The cover notice shall contain the items required under
subsection (a) and the name, primary office address, and
local office address of the invention promoter, and may
contain no other matter.
‘‘(c) DISCLOSURE OF CERTAIN CUSTOMERS NOT RE-
QUIRED.—The requirement in the notice set forth in sub-
section (a) to include the ‘TOTAL NUMBER OF CUS-
TOMERS WHO HAVE CONTRACTED WITH THE
INVENTION PROMOTER IN THE PAST FIVE (5)
YEARS’ need not include information with respect to cus-
tomers who have purchased trade show services, research,
advertising, or other nonmarketing services from the in-