Dear Action Line: I have an idea for a great invention and noticed these ads on late night cable TV for Davison Design & Development in Pittsburgh, Pa. It sells a program to market inventions, but is this the way to strike it rich with good ideas? - D.M., Tulsa
No, says the Better Business Bureau of Western Pennsylvania. The bureau report (
tulsaworld.com/bbbdavison) says the BBB recently issued a D grade to the firm due to 262 complaints filed against it, most regarding service and advertising, five of which were never resolved.
Also, the firm agreed to pay $10 million in consumer redress in July 2008 to settle Federal Trade Commission charges it deceived consumers across the country to pay thousands of dollars to market their inventions. The settlement includes a cash payment of $6.9 million, plus other property valued at $3.1 million.
The FTC complaint shows the defendants charged up to $12,000 to evaluate and promote consumers' inventions after enticing them "with false claims about their selectivity in choosing products to promote, their track record in turning inventions into profitable products and their relationships with manufacturers."
They also deceptively claimed that their income came from sharing royalties with inventors, rather than from the fees consumers paid. (See the FTC report on the settlement at
tulsaworld.com/davisonsettle.)
Under the settlement, "the defendants cannot misrepresent that they're selective in accepting inventors, and that they have a stake in an invention because they 'work for free' or receive significant income from royalties. They also can't misrepresent how many consumers have contracted with them, how many of those consumers realized a net profit or how many product licenses they obtained for consumers."
The FTC says every year tens of thousands of people try to develop ideas and commercially market them. Some try to sell ideas or inventions to manufacturers who claim to market them and pay royalties. Inventors pay thousands of dollars to invention-promotion firms promising to evaluate, develop, patent and market inventions but then do little or nothing for their fees.
FTC inventions fact sheet: See the FTC's fact sheet "Invention Promotion Firms" at
tulsaworld.com/ftcinventionmarketing "Unscrupulous promoters take advantage of inventors' enthusiasm for new products or services. They not only urge inventors to patent their ideas or invention, but they also make false and exaggerated claims about the market potential of the invention," the fact sheet states.
Few inventions make it: Most inventions never make it to the marketplace, and though patents provide valuable protection for successful inventions, getting patents doesn't necessarily increase their chances of commercial success. There is great satisfaction in developing new products or services and in getting patents. But when it comes to determining market potential, inventors should proceed with caution as they try to avoid falling for the sweet-sounding promises of a fraudulent promotion firm.
Invention-promotion firm advertising: Advertisements for invention-promotion firms are on television, radio, Internet, newspapers and magazines. They target independent inventors with offers of free information on how to patent and market inventions. Usually the only information you get is about the promoter. When you respond to the ads, you hear from sales representatives who ask for a sketch of the invention and information about you and your idea. As an inducement, firms offer free preliminary reviews of inventions - and of course they are always positive.
Submit Action Line questions by calling 918-699-8888, emailing
phil.mulkins@tulsaworld.com or by mailing them to Tulsa World Action Line, PO Box 1770, Tulsa OK 74102-1770.
Original Print Headline: Ads don't deliver riches to inventors
Action Line
Edmunds.com last week released its annual list of Best Used Cars for 2013, a list of 17 cars across every segment based on "the most important criteria: reliability, safety, value and availability."
Dear Action Line: I received a mailing from the IRS and wonder if this is typical. I thought all such notices came by email. Should I call the Tulsa IRS on this? - B.N., Tulsa
CONTACT THE REPORTER
918-581-8339
Email
