STOP!

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Things to Know Right Now

Read the Contract!

Building a claim for breach of contract depends on the exact wording of the agreement.  An invention development contract often gives the "development company" wide latitude in terms of "performance," such as providing a "3D rendering" of the prototype -- a crude computer generated picture --  versus a physical prototype.  There are other "weasel words" used in these type of contracts: words used to "weasel" out of any real obligation to the inventor! Call for more.  

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What Are They Actually Agreeing to Do? 

The contract could give the invention development company room to do just about anything -- or virtually nothing --  in terms of developing or marketing an idea.  In most cases, the best time to challenge a contract is before one signs it, not after.    

In each case, you should have a lawyer review your contract before your sign it.  If you have already signed one, you lawyer should consider the dealings and communications between the inventor and invention company. Your lawyer will look at the promises made and what type of performance was reasonably expected and actually performed.  These are often the controlling questions.  

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American Inventors Protection Act of 1999

Your lawyer may look at whether the invention development company violated the American Inventors Protection Act of 1999, allowing an inventor to recover his or her money paid to the invention development company, plus attorney fees and treble damages. To have any chance of winning such a recovery, you should expect to produce "smoking gun" evidence of brazen, deceitful / intentionally misleading conduct; otherwise you may not be in the ballpark of getting an award for triple damages.  The facts of each case are very important. 

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Fraud and Misleading Behavior

Remember that an intentional breach of contract is not necessarily "fraud."  Contract law may govern your case, where you signed a written contract.  Relative to contract law, your remedies are typically the return of money you paid.  For breach of contract, you may not recover attorney fees or triple damages in Pennsylvania, unless a specific statute allows it.  

Likewise, the fact the fact that others have won a judgment against a given company in the past does not necessarily mean that said company is guilty of fraud in your case. Each case turns on its own unique facts and circumstances. In Pennsylvania, proof of fraud requires “clear and convincing evidence,” which is a high standard.  Hence, it pays to seek a thorough review of all the evidence (and good legal representation) before seeking to move forward.  

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INVENTION DEVELOPMENT "SCAMS"

The above list of complaints and scenarios found online is not exhaustive. But the question remains:  are some invention development and marketing companies a “scam” or total ripoff? The BBB warns as follows: "Beware if companies:

• • Insist on substantial upfront fees.

  • Won't disclose other clients' success and rejection rates.

  • Guarantee profits and refuse to provide written documentation of promises.

Realistically, few patented inventions are successful and most reputable firms:

• • Are highly selective.

  • Rely on royalties from successful clients' inventions.

  • Will not promote ideas if there are patent infringement risks."

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What if I already Paid The Invention Development Company? 

There are at least two sides to every story. It may be the case that a company labeled a "scam" (by alleged former customers posting information online) has won awards and helped inventors mass market their inventions.  Accusations are easy to levy; proof of a total "scam" or "fraud" can be elusive.  

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WHERE MUST YOU FILE SUIT? 

Your contract may have a choice of forum clause, requiring that you file suit in the city or state where the invention development company is located.  Such a clause may be enforceable.  Or, your contract with the invention development company may require that you not file suit in court and, instead, resolve your claim through private arbitration, sometimes AAA arbitration.  Click here to learn how arbitration is different (and more expensive) than court.

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HIRING A LAWYER

We are not currently litigating these cases.  However, we will review your inventions design contract and advise you before you pay any (more) money to an invention design company. 

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Before Paying an Invention Design Company

Call or email: 412.326.0468

Flat Fee $200 Contract Review 

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LITIGATION SERVICES

For litigation services, contact your local county bar association for a lawyer referral to evaluate evidence and possible suit (or arbitration claim) regarding:

• • Deception of any kind,

  • Misleading conduct,

  • Any failure to deliver goods and services as promised,

  • Breach of contract,

  • Fraudulent misrepresentation,

  • Unjust enrichment,

  • Failure to protect the confidentiality of an invention idea idea, and/or

  • Any violation of the American Inventor’s Protection Act (click here)

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IS A RECOVERY POSSIBLE?  

You need to keep an open mind until you have a lawyer actually look at the evidence in your case.  As mentioned above, while it is easy to label a company a "scam," it may be difficult to prove.  Plus, you may have endorsed a contract that gave great discretion to the idea development company in terms of developing or presenting your idea.

You are strongly urged to speak with a lawyer before you post any information online about the idea development company.  This is because (1) your comments may be inaccurate, exposing you to claims for trade disparagement; and (2) anything you say can be used against you (so if you misspeak, and misrepresent a fact, it can hurt your credibility); and (3) statements you make can only inflame the situation and frustrate my firm's ability to obtain a settlement on your behalf.

In appropriate cases, where the evidence exists, your attorney may sue for breach of contract, which is supposed to make the aggrieved party “whole,” meaning, if you win or settle your case, you may get the return of your money and intellectual property rights to your idea. With claims of intentional misconduct, one can also recover an award for attorney fees, plus punitive damages potentially, depending on the facts in the case.

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OPTIONS 

Contact our Pittsburgh lawyers before signing any contract with an invention design and development company.  If you have already signed a contract and gave the development company, call us before giving them any more money!  Our normal hourly rate is $220, but we can cap the fees at $200 for a one hour review of the the contract and state of your case.

Call or email today: 412.326.0468

If you have already paid a development company over 4K and you are looking to sue, contact the Allegheny County Bar Association for a lawyer referral:  412.261.5555.  Again, we are not currently handling litigation against invention development companies, but feel free to contact your local county bar association for a lawyer referral.  Or, contact the Better Business Bureau, or the Federal Trade Commission about any activity you believe was fraudulent.  You can contact your state's attorney general, however, idea development contracts are often considered "commercial" and beyond the scope of consumer protection investigations. Our Pittsburgh lawyers track investigations against Invention Design Companies in Pittsburgh area:  Operation Mouse Trap investigations, various websites, and miscellaneous blogs on this very subject.