Invention Promotion Companies

The Federal Trade Commission (FTC) provides guidelines to protect consumers from fraudulent practices in the realm of invention promotion. According to the FTC, an invention promotion company is defined as a business that offers to help inventors patent and market their inventions in exchange for a fee. These companies typically offer a range of services including patent research, patent application preparation, prototype development, marketing analysis, and promotion services.

However, it’s important to note that not all invention promotion companies are fraudulent or engage in deceptive practices. The FTC guidelines aim to identify those that do engage in such practices and provide protection for inventors against them.

In the United States, invention promotion companies are required to adhere to specific rules regarding theĀ publication of their success rates. The Federal Trade Commission (FTC) enforces regulations under the Inventors’ Rights Act of 1999, which mandates that these companies must disclose their success rates in their promotional materials.

According to the FTC’s guidelines, invention promotion companies must provide clear and conspicuous disclosure of their success rates, including the number of clients who have made more money from their inventions than they paid to the company, as well as the total number of clients who have used their services. This disclosure must be made in a manner that is understandable to the average consumer and not misleading.

Additionally, invention promotion companies are prohibited from making any false or misleading claims about their success rates or the likelihood of success for their clients. Failure to comply with these regulations can result in legal action by the FTC and other regulatory authorities.

Therefore, any invention promotion company operating in the United States must ensure that they accurately disclose their success rates in their marketing materials and avoid making exaggerated or deceptive claims about their services.

Here are some examples of FTC lawsuits:

FTC vs. World Patent Marketing (2018): The FTC settled with World Patent Marketing in 2018, alleging deceptive practices. The settlement included a monetary judgment of $26 million against the company, a ban on certain business practices, and the surrendering of assets for consumer redress.
FTC vs. Invention Submission Corporation (1996): In a case dating back to 1996, the FTC reached a settlement with Invention Submission Corporation (ISC), also known as InventHelp. The settlement required ISC to disclose success rates and prohibited false advertising. Monetary damages were awarded, although the exact amount is not readily available.FTC vs. Davison Design & Development (2009): In 2009, the FTC settled with Davison Design & Development over allegations of deceptive practices. The settlement included monetary relief for consumers, although the specific amount is undisclosed, and imposed restrictions on the company’s advertising.

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