Invention Promotion Company

a. the intentional perversion of truth; b. an act of deceiving or misrepresenting

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jim_mich
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Invention Promotion Company

Post by jim_mich »

FTC Charges Invention Promotion Swindlers with Contempt

Feds Say Scam Took More Than $60 Million from 17,000 Consumers

http://www.consumeraffairs.com:80/news0 ... indle.html
March 19, 2007
The Federal Trade Commission has filed a civil contempt action against four individuals and eight business entities for allegedly operating a fraudulent invention promotion business in violation of a court order.

The individuals were employed by International Product Design Inc., which the FTC charged with fraudulent business practices in 1997. A court order issued in 1998 prohibited Julian Gumpel, Darrell Mormando, and Greg Wilson from deceptively marketing invention promotion services, but Gumpel later revived the same scam under the name, "Patent and Trademark Institute of America" (PTI), the FTC charged.

For a fee of $895 to $1,295, PTI promised to evaluate the marketability and patentability of inventors' ideas, but its evaluations were almost always positive and were not meaningful, according to the FTC.

For a fee of $5,000 to $45,000, PTI's clients were offered legal protection and assistance to obtain commercial licenses for their inventions. They also were told that PTI would help them earn substantial royalties from their inventions, but PTI did not help consumers license their inventions, and clients did not earn royalties.

The FTC alleges that PTI's business practices violated the court order, which prohibited the defendants from falsely promising to evaluate invention ideas and falsely claiming that consumers would profit financially if they bought PTI's invention promotion services.

The FTC also alleges that PTI never sent consumers the "Affirmative Disclosure" form required by the order; the form should have disclosed PTI's non-existent track record in bringing inventions to market.

On January 8, 2007, the Commission initiated contempt proceedings against Gumpel and eight corporate entities under his control: Technical Lithographers Inc., d/b/a Patent and Trademark Institute of America (PTI), United Licensing Corporation, International Patent Advisors Inc., Datatech Consulting Inc., International Product Marketing Inc., Unicorp Consulting Inc., d/b/a/ UNI Corp. Inc, Azure Communications Inc., and London Communications Inc.

On January 10, the U.S. District Court for the Eastern District of Virginia issued an order placing PTI in court receivership pending the outcome of the contempt litigation. According to a report prepared by the receiver, PTI has taken approximately $60 million from more than 17,000 consumers since 2000 but could not identify a single successful consumer.

On March 9, the court issued an order to show cause why Michael Fleisher, Wilson, and Mormando, a/k/a Darrell Johnson, should not also be held in contempt for violating the court order issued in 1998. The FTC alleges that they knew about and were subject to the court order, but repeatedly violated it in their roles as managers and salesman for PTI. A hearing on the FTC's charges against all of the defendants is scheduled for April 30, 2007.

The FTC has established a phone line for consumers who may have been harmed by PTI's conduct. Consumers may call 202-326-2926 for more information.
I don't know of any legitimate invention promotion companies. All are required by law to disclose their success rate upon request, but few of them do it willingly. When they do disclose it is very hard to decipher any real meaning from their documents as they try to hide their high failure rates.

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re: Invention Promotion Company

Post by Jim Williams »

As you are probably most aware, It's possible to file a disclosure with USPTO for $10. While such disclosure offers no patent protection at all, it does establish a legal date for the conception of an invention which can be very useful.

Invention promotion companies have been around forever. I am always astonished on how good your information is. Although I think we would disagree on some aspects of USPTO's practises, you have shown me a great deal about USPTO of which I was unaware. For that I include my thanks to you.
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Post by jim_mich »

The invention disclosure program has been discontinued by the PTO within the last few months. The PTO found that few people were using it. Mostly the invention promotion companies charged clients $500 and more for this $10 service; which the clients could have done themselves. A simple notarized document is just as good and is usually a free service at your local bank.


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re: Invention Promotion Company

Post by winkle »

suckers beware

the whole world is sucker city

knowledge is always better and much safer than opinion

just felt the need to point out the obvious

but it is obvious this is just my opinion
the uneducated

if your gona be dumb you gota be tough

Who need drugs when you can have fatigue toxins and caffeine
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re: Invention Promotion Company

Post by jim_mich »

I just today learned about a posible ligitimate invention promotion company...
ThinkFire Creates Unit to Help Inventors and SmallerCompanies Sell & License Their Patents
Wednesday March 21, 9:00 am ET
Chris Sommers Hired as Senior VP to Lead New Group


WARREN, N.J.--(BUSINESS WIRE)--ThinkFire, the leading business advisor to high-technology and private equity firms about intellectual property, announced today the creation of a Leveraged Transactions Group (LTG). The new division will focus on identifying and monetizing valuable patents owned by individual inventors, small and medium sized companies, universities and research institutions. For those patents that it selects as having significant value, ThinkFire will work closely with owners to sell or license the assets.

Click here for the rest of the article.
They seem to be involved mostly with high tech electronic and comunication patents.


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Post by rlortie »

Jim,

Have you ever ran into or heard of PatentCafe

http://www.patentcafe.com/
http://www.ipbookstore.com/
http://www.ipfrontline.com/

Here is one for you children and students.

http://kids.patentcafe.com/

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Post by Wheeler »

Thanks for posting that Jim.
When I was younger I went to Invention Submission Corp and as you might guess the office high up with 400 other small offices. There it was Invention Submission Corp. (Only in that rental office for short period of time).

One man behind a desk and a big yes(good idea) came out of his mouth.

I gave him a check and he said why don't you to go out to dinner and next time you back, give me the bill.
OK we said thanks!!

Should of been something that would make me think twice, but no I wanted it to be wonderful.

8 years later I hear I could make a claim to the agency handling the fraud accounts of Invention Submission Co.

The only thing I received for my large check was a few notes in the mail where they suggested my invention would go. And some pretty drawing of my invention.

Hey Jim Do you know of any software to build and test engines
I have searched several locations, but can't see any that will build in 3d and test.
Do you know if Inventor Cad Software or others like it will build engines?
I am asking you, because I think you once did a patent on an engine.
JB Wheeler
it exists I think I found it.
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re: Invention Promotion Company

Post by wheelmaster »

The answer here is to obtain your patent first. Get the thing in your name and be very careful who you let represent you. Have your own lawyer read and explain any and all contracts.

If a company tries to lock you into a deal that requires you to sign right now the answer should always be NO. These companies that help inventors are like car salesman. They will say there working for you but are only out to pad there own pockets. Trust no one and always look at the fine print.

On a final note. I don`t believe the inventor would need help selling his invention to the public. Just get yourself on the news and they will come to you.

WM
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re: Invention Promotion Company

Post by rlortie »

I believe the old school version is; Build a better mouse trap and the world will beat a path to your door!
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re: Invention Promotion Company

Post by Jim Williams »

jim_mich

Thank you for the information on the Disclosure Document Program which ended Feb 1st, 2007. I've used it for years, but understand Provisional Patents are far more popular now in part because of the patent pending status. I grew fond of it and will miss it.
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Post by rlortie »

Jim Williams and those of interest,

First off the Yahoo link Jim_Mich posted above for Think fire Services is now outdated and gone. They now have their own home page at:
http://www.thinkfire.com/index.html

Now I wish to propose a hypothetical Question:

I invent a gravity driven machine capable of producing cost effective electrical output that can be tied into the local grid. I apply and am granted a patent.

My patent protects me from others building my machine for sale, but it does not hinder big companies from building for utilization. That is they can build many units and connect them to the grid collecting full return without recognizing me as the inventor or paying me any royalty.

Now, am I correct in this assumption' or is their a way to protect my rights? The manufacture of generators such as General Electric builds and sells the units. They are paid for their efforts in kind. But if the machine is of simple design and can be built with little effort, then what protection can be taken by the inventor?

Remember this is all hypothetical, and only intended to bring up a point.

Ralph
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Post by graham »

My patent protects me from others building my machine for sale, but it does not hinder big companies from building for utilization. That is they can build many units and connect them to the grid collecting full return without recognizing me as the inventor or paying me any royalty.
An interesting point Ralph. We need a patent attorney to answer that one.
However I don't think that if it were relatively simple and could be copied by any handyman for his own use then imo there would be no way to stop them . I'm sure you would be one of them, and me too :-)
There would be millions at work as soon as the principle became common knowledge.

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Post by jim_mich »

There are many misconceptions as to what a patent does and does not do.
Ralph wrote:My patent protects me from others building my machine for sale, but it does not hinder big companies from building for utilization. That is they can build many units and connect them to the grid collecting full return without recognizing me as the inventor or paying me any royalty.
David Pressman in 'Patent it Yourself' wrote:What is a patent? It's is a right granted by the government to an inventor.

What is the nature of the patent right? A patent gives the owner - the inventor or business to whom the inventor legally transfers the patent - the right to exclude others from making, using, or selling the invention "claimed" in the patent deed for approximately 17 to 18 years, provided three maintenance fees are paid.
Ralph, I'm not sure what your point is? If the "machine is of simple design and can be built with little effort" then there may be a few people that will build them. But how many people have the skills and equipment to build such a device? Windmills are of simple design and can be built with little effort, but how many people build windmills for themselves? If you have a patent and someone builds it without your permission then they risk being sued. The bigger and wealthier they are (including large companies like GE) the harder they will fall.

A much better win-win situation would be to offer to sell a one time only right to build a single gravity wheel for personal use. What would you guys be willing to pay for the peace of mind of knowing that the gravity wheel that you build in your garage is legal and that you won't be hauled into court where you might loose the wheel and maybe even you home? I would think a one time fee of maybe six to twelve ounces of silver (currently about $109 to $218 worth) would be very reasonable for a home sized unit. (If the fee is denominated in silver then it automatically rises with inflation and the price is standard throughout the world.)

Big companies like GE would of course negotiate a fee or risk prosecution by the inventor.

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re: Invention Promotion Company

Post by rlortie »

Graham,

Your response is appreciated thank you!

My concern is not for "the do-it your-self" type individual. I am thinking of the larger utilities companies that dominate and with governmental approval (which they can lobby in) set the price. The consumer is stuck for paying outrages prices for electricity because of the cost of fossil fuel. Now they want to charge more for environmental friendly sources.

If there is no way to prevent this then once the wheel is invented the average consumer has gained nothing! Only those capable of building or buying their own would get relief.

A good example is my own electricity supplier. The primary source is coming from hydro-electric generation. But at a political stand point this is not deemed or included "green earth" technology???? So they offer me an option: I can pay more for wind power and I can say I am environmentally conscience.

They solicit by phone wishing my input as to whether I would be willing to pay more for wind than fossil or nuclear? No mention of hydro is made, I ask them what category hydro falls under and they refuse to answer.

The only was I can see for the inventor of the wheel to retain a restraint on monopolizing suppliers is to start his own utility company, supply it to the grid at a much reduced rate. He would still be in a position to play philanthropist and give as many machines or as much power he wished.

A lot depends on where you live and who has final say over your power generation, transmission and disbursal. For me here in Oregon U.S. A. The government owns and maintains the grid. Private or co-ops can supply and then utilize. They are paid for what they put in and then charge the consumer for what is taken out. A small fee is paid to the government for use of the grid. Now how can you beat a deal like that.

What is in the inventors favor for my locality is that any power I produce must be accepted on the grid. He would be compensated at a rate set by the utilities commission. There is no way for big brother to stop him.

For every wind generator sitting still due to lack of wind, I would like to see a gravity machine running 24-7

EDIT: Thank you for your input Jim_Mich, our posts crossed paths.
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re: Invention Promotion Company

Post by Jim Williams »

riortie

You are correct that a patent would prevent large companies from selling such an invention without being assigned such right by the inventor. But as stated on the utility patent itself the right the inventor has is to exclude others from making, using or selling the the invention in question throughout the United States. Without an international patent however, large companies could go international just like that. As a result a large company such as GE would still need to have the invention assigned to them to so much as use it or make it, without infringing the patent in the United States. An international patent would be preferred.

The threat posed for enormous profits would be in the hands of the inventor before a large company or the government. That's why I'm inclined myself to offer a working model of a gravity motor up for free or enough to cover costs at most for such an invention that would have such an impact on humanity. Oliver Wendell Holmes did the same with the stereoscope, which he invented.
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