The Numbers Reveal the Truth
Let’s look at a typical example of an invention marketing company. There’s an outfit called Davison Design and Development, Inc., in Pittsburgh, Pennsylvania. (It was previously known as Davison and Associates, but that’s another story for later in this chapter.) Davison, in compliance with the American Inventor’s Protection Act of 1999, 35 United States Code § 297, and as ordered by the court, reveals on its website affirmative disclosure to consumers that includes its success record in commercializing inventions. This information was current as of June 2009:
Number of people who submitted new product ideas during the past five years: 522,772
Number of people offered a predevelopment agreement (or similar contract for research services): 308,412
Number of people offered a contingency agreement (or other contract for licensing representation): 308,412
Number of people who purchased a predevelopment agreement or similar contract for research services: 49,255
definition
Marketing is the process of selling or offering something for sale based on a plan.
Number of people who signed a contingency agreement or other licensing representation agreement: 49,255
Number of people offered a new product sample agreement (or any other contract for design services for a virtual or a product sample): 37,201
Number of consumers who signed a new product sample agreement or similar agreement: 13,425
Number of consumers who obtained a license agreement with a company not affiliated with Davison: 314
Number of consumers in the last five years who made more money in royalties than they paid, in total, under any and all agreements with Davison: 10
Percentage of Davison’s income that came from royalties generated by licenses of consumers’ products (drum roll, please): .001 percent
Clearly, this company makes its money from fees. The successful inventors it has represented are few and far between. Furthermore, these numbers cover only business conducted within the United States. Davison, and other invention marketing companies, sign up people from all over the world. There’s no way to regulate or calculate their offshore business. But it seems fair to assume that Davison’s rate of success is no greater for offshore inventors than it is for American inventors.
Patent attorneys, on the other hand, can deliver a very valuable service, as you learn in Part 4. Alas, the occasional bad egg overcharges and builds false expectations. You must be ever vigilant. Don’t assume advanced law degrees on the wall mean you have nothing to worry about.
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