Need Information on Invention Marketing Company
WAM1024
Harshaw Research? Any information would be appreciated
John Nagle
>Does anyone know anything about an invention marketing company advertised as
Never heard of them. Basic searching yields this:
Harshaw Research Inc.
PO Box 408 / 2nd and Main Street
Ottawa, Ks 66067
785-242-9500
D-U-N-S Number: 80-231-2215
Single location
John Nagle
C...@my-dejanews.com
wam...@aol.com (WAM1024) wrote:
> Does anyone know anything about an invention marketing company advertised as
> Harshaw Research? Any information would be appreciated
>
--
Wam1024,
It doesn't matter what the name of the invention marketing co. is, they are
pretty much all the same -pay money for nothing-. What ever you pay them for
you can do yourself with a little bit of work. Good luck!
sc
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Gene Seach
Subject: BEFORE USING AN INVENTION MARKETING CO.
NOTE: This article is being reposted for the purpose of educating the
newcomers of this newsgroup ("usenet alt.inventors")... There has been
additional information concerning the use of the Better Business Bureau
for references, presently if you use the BBB as references do with
extreme caution.
"Like Vampires, the Invention Brokers can be killed off only by
shining the bright light of truth to expose their operations".
(ROBERT P. BELL P.C.)
INVENTION PROMOTION FIRMS
Checking their credibility.
There are numerous ways to verify the credibility of any firm that
you contemplate doing business with.
1. Contact the Attorney General's Office of the state in which they
are headquartered for any complaints against that firm.
2. Contact the Better Business Bureau of the city in which the firm
is located. Don't be surprised if you receive conflicting reports
from the BBB and State Attorney General's offices. Fraudulent
invention marketing firms routinely settle complaints out of court.
This procedure will keep their BBB report clean. However, the State
Attorney General's Offices maintain records of all complaints.
Some BBB's also have a program called "Tell Tips" where you call in
and they will play a recorded message about the company you are
inquiring about. This is a paid subscriber service that allows
companies to record their own messages. So keep in mind that you are
not receiving an objective evaluation of that company. You will be
listening to the company's own sales presentation. Contact the
Consumer Affairs Office in the city in which their headquarters are
located. If you contact the Chamber of Commerce of which the firm
belongs, remember that the Chamber of Commerce is a paid membership
organization that was created to promote the business of its paid
members.
3. Insist that the invention marketing firm provides to you in
WRITING, the number of inventions the firm has represented and the
number of inventors that have made more money than they invested.
If they refuse to provide this information in writing then do not
do business with them. A few states have made this a mandatory
requirement for invention marketing firms wishing to operate within
those states. The FTC only requires one invention promotion firm to
disclose this information. Many invention marketing firms do not
abide by these laws. Some firms will lure inventors across state
lines into states that do not afford such protection.
BEWARE: If a marketing firm represents 4,000 inventions annually and
2 inventors make more money than they invested, that is only a .05%
success ratio. Don't be misled by less than and more than numbers.
Understand that "less than 3% are successful" could mean "0% are
successful", and "They represent more than 200 inventions" could
mean "They represent 20,000 inventions". "Less than" and "more than"
figures are misleading sales techniques. Some invention promotion
firms have a ZERO % success rate.
4. Ask what are the various names they have done business under.
It is commonplace for disreputable companies to get in trouble
either financially or legally, go out of business, then reopen
using a different name. If they have operated under another name,
find out why they changed. Some invention marketing firms will even
create new companies, if they anticipate any adverse legal action.
In this manner they will already have a functioning company to
transfer operations to when they receive an adverse legal action.
5. Find out how long they have been in business under their present
name. Nonetheless, longevity does not necessarily mean they have
been successful in getting new products on the market.
6. Find out if they or their affiliates were a party to Federal
Trade Commission punitive actions.
7. If there is a free evaluation, request in writing the number of
ideas that are submitted for evaluation and the percentage of those
ideas that they accept. Find out if it is an objective evaluation
or appraisal. If they refuse to provide this information in writing,
do not do business with them. Many invention marketing firms
misrepresent the evaluation of your idea. They will state that they
have evaluated the merit and marketability of your idea, when in fact
they have not.
*Note: Some invention promotion firms have started parent companies.
They have been known to tell inventors that they cannot represent
your idea because they represent a similar idea. They then turn your
idea over to their parent company. In this manner, they can tell
inventors that they reject more ideas than they really do. If you
have submitted your idea to one company and they have turned it over
to another, proceed with extreme caution.
8. Find out if they are licensed to operate in your state. Many
states have stringent laws governing the activities and operations
of marketing firms. These laws were enacted for your protection.
Contact your States Attorney General's Office for this information.
BEWARE: If a marketing firm has to meet with you in another state,
find out why. If you have to make a decision and sign a contract in
another state, first contact your own State Attorney General's
Office to see if they are allowed to operate within your state and
secondly, seek competent legal counsel. If you sign a contract or an
agreement in another state, you will lose all available protection
afforded to you in your own state.
9. Request the names and addresses of inventors living in your area
that the firm has represented. Don't be misled by statements such as,
"Due to the confidential nature of the business, we are not allowed
to do that", "We would only give you the good ones anyway." or "the
FTC will not allow us to do that." If the company will not provide
the information, approach with extreme caution. Some salesmen
representing invention marketing firms have been known to tell
potential victims that the Federal Trade Commission prohibits them
from releasing such information. This is not the truth.
10. The Federal Trade Commission provides tips to help you avoid
shady companies.
Deceptive sales practices
The following article appeared in the "New York Law Journal" in
1978: "Invention promoters invest large sums in advertising,
usually in handyman's magazines and local newspapers. They offer
"valuable" free information to inventors. When an inventor nibbles,
the developers send the potential client a package of materials,
including several sleek brochures containing seemingly legitimate
endorsements by public officials and satisfied clients. Pictures of
products ostensibly on the market give the impression of a firm
thriving on the success of its clients. Also included is a
confidential disclosure document or record of invention form to be
filled out and mailed back to the company. The developer promises to
"examine" the invention, a commitment which leads the inventor to
expect an evaluation, but which means little more than that a
salesperson will soon be in touch. The inventor is contacted by a
company representative who invites the potential client down to the
firm's impressive offices, where pictures and certificates adorning
the walls create an aura of respectability. A preliminary agreement
is proposed in which a market analysis and a patent search will be
done, at a cost to the client of $150 to $250. While the salesperson
is encouraging, the inventor is given the distinct impression that
the developer will not go any further unless the preliminary results
are positive. After a month or so, the client will get a phone call
(or simulated telegram) suggesting that the inventor hurry down to
the promoter's offices. The salesperson sounds excited and notes
that the results of the preliminary research agreement are back.
Explicit evaluations are rarely given, even orally, but clients are
regularly told that their ideas have great potential, or that the
firm has decided to take a chance. One company representative sent
a client a personal note "I would like to discuss these search
results and the marketing cost we are prepared to assume as a
participant". The impression is conveyed that the developer does not
make a profit unless the invention is sold or licensed. This is
further advanced by the developer's insistence on taking 10 or 20
percent interest in the invention. The patent results are
presented to the inventor, who of course cannot understand them.
The client assumes, incorrectly, that the firm would not go ahead
with the venture if the results were not promising. The market
analysis, little more than a compilation of statistics, contains
impressive numbers which delude the unsophisticated client into
believing that a detailed dollar analysis has been undertaken."
Little has changed since 1978 when this article was written. The
only real changes are the increases in their fees and that they
advertise in a broader communications media.
The following excerpt was taken from an article titled "Patent
Nonsense: Invention Marketing Companies Often Lead On Naive Clients,
Their Critics Charge" that appeared in The Wall Street Journal
September 11, 1991. "Inventors and others contend some of these
firms are bamboozling thousands of inventors out of tens of millions
of dollars annually. "These companies are simply ripping off
inventors", says Tim Pope, an Oklahoma state legislator who helped
push through a law to regulate invention marketers in his state.
The problem is growing because amateur inventing is enjoying an
upsurge. Between 1985 and 1990, the number of patents granted
annually to individuals rose 40%. And, it turns out, aspiring
inventors are vulnerable to a sales job, for they usually have no
idea how to market their gadgets.
Watch out for deceiving sales practices. Once you send or call for
free information from various invention marketing firms, most will
have a commissioned salesman call you immediately, day or night,
stressing the urgency of sending your idea to them. Never seeing
the inventor's idea, some salesmen will emphasize that the idea has
good market potential. Moreover,if you don't send it in right away
you may lose your rights to the idea. This should immediately
trigger a red flag warning signal. Don't let the enthusiasm for your
invention overshadow your common sense. Remember the risks and think
out any plan of action before jumping in with both feet.
Many deceptive marketing firms prey on the inventor's greed. For the
firm's efforts, they will charge the inventor thousands of dollars in
fees, then take a percentage of the royalties, if they are successful
in getting the product on the market. However, if the inventor
chooses to pay higher fees they would not share in the success. In the
hopes they will not have to share in the success of their hard earned
labor, many inventors will pay the higher fees. This does not mean that
the amount of work and the amount of effort put forth by the firm
increases or decreases. It does mean though, if they are a fee based
company, that their profits increase drastically when you choose the
higher fee. It does not increase the firm's success rate, but it may
increase their Dun & Bradstreet financial rating. Escalating fees have,
through the years, been their most successful ploy.
The initial evaluation is normally free and leads to progressively
higher costs.The second fee varies anywhere from $150 to $800 and up.
Then the inventor is confronted with the third, but not always final,
fee. This fee varies anywhere from $3,000 to $12,000 and up. Quite
often there are miscellaneous costs added after the inventor pays the
third fee. Some firms will refuse to tell you what the third fee will
be. Many marketing firms give the illusion that they are willing to
share in the cost or risk. When the inventor is paying $3000 to
$12,000 for their services and the actual cost of performing the
service is $1100, where is their cost or risk? An authentic
sharing in the cost or risk is for the firm to represent the invention
on a contingency basis. This type of arrangement forces the firm to
produce results before either party can realize a profit.
Read carefully any sales brochures sent to you by invention marketing
firms. Pay special attention to the fine print and "disclaimers". If
the brochure displays products, look for disclaimers, such as "not
intended to represent success". The quality and color of an
advertisement should not be, in any way, interpreted as a gauge of
success. A sales technique often employed by marketing firms is the
preparation of a product portfolio, brochure, report, etc., as part of
the initial service fee. This may not determine whether or not the
inventor's idea is marketable.
BEWARE: Generally, most information is "boiler plate" data with names
of inventors/inventions inserted by computer. Don't be misled by the
number of pages in the report. It is the quality of the report that
counts, not the quantity.
Misleading guarantees
Don't be enticed by guarantees. Guarantees are used as a sales tool. Do
not be misled by a misconception of what exactly the guarantee states.
1. Money back guarantee if successful in getting the inventor's product
on the market. Yes, you read it right. This is not a money back
guarantee if they are unsuccessful in getting your product on the
market. If a firm has a 0% success rate, then the inventor has a zero
percent chance of recovering his losses. Find out what the firm's exact
success rate is.
2. Money back guarantee if no response in a specified period of time.
Many manufacturers require waivers before considering new products. If a
manufacturer requires a waiver, they will respond by stating "they are
interested in the idea but would require a waiver before undertaking any
further assessment." This could constitute a response. Moreover,
a guaranteed response does not guarantee success.
3. Money back guarantee if unsuccessful in obtaining a patent may not
guarantee a patent on your idea. Find out if the patent application
should receive a final rejection from the US. Patent and Trademark
Office, will a new application be submitted? BEWARE: If a new
application is submitted, this process could take years and eventually
the inventor may end up with a patent on a different idea.
4. Money back guarantee if a patent search determines that the idea is
unpatentable. In a normal patent search, all classes and subclasses
that are relevant to your idea are searched and a statement of
patentability is issued by the patent practitioner. Invention
promotion firms have been known to generate two patentability searches.
One may say it is patentable, the other may say that it is
unpatentable. The inventor will only receive one. Normally the one that
says it is patentable. If the invention promotion firm says that your
idea is patentable with a design patent, find out why it is not
patentable with a utility patent. The design patent protects
only the appearance of an article and not its structure or utilitarian
features. If both are done, insist on receiving all copies. One search
could say it is patentable, the other could say it is not patentable.
By adding ornamental designs to an inventors idea, it is possible for a
fraudulent invention marketing firm to obtain a design patent on almost
anything.
BEWARE: If you only have a design patent, someone could copy your idea
and simply make their product look different, and you couldn't stop them.
Other Traps
Get the facts in writing. You should never send a company your hard
earned money based solely on a telephone conversation. Many contracts
have clauses that state any verbal understandings are null and void.
Since it is your money, you have a right to know their success rate.
If that firm will not provide that information in writing, do not do
business with them. An exclusive license to market your idea takes you
completely out of the picture. If you are unfortunate enough to choose
a marketing firm that has a 0% success rate and you have signed an
exclusive agreement with them, you have just assured yourself of
failure. Don't be misled by commissioned salesmen employing
sophisticated titles. Some known titles used are "new product
development director," "assistant to the president" and "marketing
director." No matter what titles they use, their pay is contingent on
what you, the inventor, pay for their service or, in most cases,
disservice. If a salesman encourages you to send your money right in
so they can get your idea in a forthcoming show or get it right out
to an interested manufacturer, approach with extreme caution. These are
sometimes used as tools to get you to send in money right away. If the
firm wants to rush your idea into a show, have them provide to you in
writing how many products they have successfully brought to the market
as a result of the shows. If they will not provide this in writing, do
not do business with them.
Understanding the risks
A University of Oregon study showed "from 100 initial ideas, fifteen may
survive technical screening; eight may seem commercially feasible; five
might then be developed; but probably only one would survive testing and
commercialization to become a successful product." It is imperative that
you, as the inventor, understand this kind of risk. There is no such
thing as a sure thing. Do not compound that risk by contracting an
outside invention marketing firm that has a minute or zero success rate.
ARE THEY A FEE BASED COMPANY? FEE BASED COMPANIES MAKE
THEIR PROFITS FROM THE FEES YOU PAY THEM. BEWARE OF THE CLAIM
"WE CAN MAKE OUR MONEY IN VARIOUS OTHER WAYS." CAN MAKE
DOES NOT MEAN THE SAME AS DO MAKE.
Prepared and Presented by
Inventors Awareness Group
1533 East Mountain Road, Suite B
Westfield, MA. 01085-1458
Tel 413-568-5561
Fax 413-568-5325
E-Mail: iag...@aol.com
The preceding article was taken from a great booklet written for all
inventors. To receive a complete version of "INVENTION... TRUTH OR
CONSEQUENCES" send $5.00 (postage and handling) to the above address.
The Inventors Awareness Group is a non-profit organization.