Spotting an invention scam

Many companies promise to patent, build or sell your idea. Some are honest. Others charge thousands of dollars and deliver little or nothing. These warning signs and checks can help you protect your money and your idea.

1. 01Watch for big promises

   Be careful if a company says your idea is "sure to sell," promises licensing deals or royalties, or praises every idea without asking hard questions. Honest experts tell you about risks and competition.

2. 02Watch for pressure and upfront fees

   Red flags include "today only" prices, pushes to sign quickly, and large fees before anyone has looked closely at your idea. Common examples are a cheap "evaluation" that leads to a bigger package costing thousands. Never pay just to have your idea reviewed or "marketed" without clear, written deliverables.

3. 03Ask for their success numbers in writing

   U.S. law requires invention promoters to tell you, in writing before you sign a contract, how many customers they've had and how many of those customers made more money than they paid. If a company won't give you these numbers, walk away.

4. 04Check who will handle your patent

   Only a registered patent attorney or patent agent can represent you before the USPTO. Look up anyone they name in the USPTO practitioner search. A "design patent" is not the same as a "utility patent." Ask which one you're getting and why.

5. 05Research the company before you pay

   Search the company name plus "complaints" or "scam." Check the USPTO's published complaints about invention promoters, your state attorney general, and the Better Business Bureau. Read the FTC's guide to invention promotion scams.

6. 06Protect your idea

   Share only what's needed, ask for a signed NDA before you share details, and keep dated records of everything you show anyone. In Vault Forge your inventions stay private unless you share them, and every revision is saved with a date.

7. 07If you were scammed

   Report it to the FTC and your state attorney general. You can also file a complaint with the USPTO, which publishes complaints against invention promoters. Keep every contract, receipt and email.

This is general information, not legal advice. Talk to a registered patent attorney or agent about your situation.