As a successful Inventor, who began marketing my own product-inventions, in the 1980s, I learned a great deal about how to proceed with a new invention. Unfortunately, some of my lessons were learned the hard way, through negative experience! One negative experience was with an "Invention Company" but let me say before proceeding further with this article, that not all Invention Companies are bad, some are good but you must proceed with one, with caution, as you will better understand in these next paragraphs.

In 1984, myself, along with my brother-in-law, co-invented a fishing tackle accessory, called "The Rod Floater", a flotation device to keep rod and reel combos from sinking if dropped overboard while fishing. We knew beyond a shadow of a doubt, that our invention had real potential and so we began to seek ways of getting the product-invention marketed.

We found in the ads sections of Mechanics type magazines, ads listing "Inventor Assistance", also called "Invention Companies". Their ads were very eye-catching and impressive and so we chose the best looking one and ordered their info-package.

The package arrived within only a few days and upon opening and reading it, we found there were many implied promises that if we would retain their services, success with our invention was practically around the corner.

We first ordered what they called their "Basic Information Package", for a fee of just under $400.00. Upon receiving this even more detailed info-package, we found that the implied promises for success were even more evident, with their claim of having evaluated our invention and having found tremendous potential in it. They also detailed where the item could be sold, once in the hands of a Manufacturer they would secure for us, who could produce and sell it. This would be under a "Licensing Agreement" this Invention Company would negotiate for us, which is a contract that secures a "royalty percentage" that would be paid to us from sales by a Manufacturer. Under this prospect of an agreement, we the invention owners would be called the "Licensor" and the marketing company would be called the "Licensee". Our percentage to be paid on sales, would be from 2% to 5% and would be calculated and paid to us each quarter (four times a year). It all sounded so very exciting!

With all of these possibilities, we went forward with the Invention Companies next step, the phase in which they would attempt to secure such a deal for us and our invention. The cost for this "next step", which we had to finance, was just under $4,500.00, bringing our total fees to the Invention Company, to nearly $5,000.00!

Approximately two years into their supposed efforts to line up a Licensee for us, they notified us by phone that they were in the process of negotiating a contract for us, with a Manufacturer! We were absolutely ecstatic upon hearing this wonderful news!

As we waited eagerly to hear the results of their negotiations, weeks passed and so we finally phoned the Invention Company and coincidentally, they were just wrapping up their meetings with this Licensee, who by the way, had a very impressive, global-sounding name! A couple of days later, we received the news, that the company agreed to pay us 2% quarterly, in exchange for rights to our invention! We were sent the contract to sign and upon rushing the signed copies back to them, we then sat back and waited, knowing that within a few months, we would begin receiving royalty checks!

Once an entire year had passed, with no word, check or correspondence of any kind, we felt it was time to check on the status of our invention's marketing. We called the Invention Company and to our great dismay and huge disappointment, they had the news to report that the Manufacturing Firm that was so interested in marketing our product-invention, had merged with another corporation and this new formed firm, was no longer interested in our product and was terminating our Licensing Agreement.

We were so distraught but were encouraged by the Invention Company, that they already had other interested Manufacturers they were presenting our invention to.

As another year of dead silence passed, I presented the idea to my brother-in-law, of pursuing marketing of the invention on our own. He agreed and we began securing investors, whom we could form a corporation of partners with, to get the product on the market. Through our newly formed Corporation, we were able to secure the money-capitol to obtain a design patent for our invention, to get set up to manufacture it, packaging for it and the other odds and ends, like product liability insurance secured for it.

Once all of these things were in place, we launched our product. We immediately began to experience success, getting the "Rod Floater", into a region of Wal-Mart Stores, then into Bass Pro Shops and Cabela's, plus many other large, reputable retail outlets. We also secured distributors, sales reps and T.V. marketing and also landed a promotional deal with a large Oil Company, who used the "rod Floater" as a promo give-away, by placing one in their cases of outboard motor oil!

After a couple of years of success, I did a little investigation, to find out what actually happened with our Invention Company misfortune. I first called the Chamber of Commerce, in the City where this company was located, that wanted to market our invention, as the Licensee. The Chamber of that city stated that to their knowledge, no such company ever existed! I also called some of the other companies that were supposedly called on by the Invention Company, during their endeavor to get our invention Licensed and these companies stated that they did not have record of our product-invention, ever having been submitted to them for consideration!

I also found out, that by law, in many states at that time, Invention Companies were required to release a statement detailing accomplishments or achievements they had experienced on behalf of inventors that would include the past five years of their "service" to inventors. As a former client, I requested one of these from the invention firm and upon receiving it, found they had accomplished a big fat "zero". They had not licensed one single invention, for a client, for the past five years!

My belief is that the supposed licensing of our invention was a bogus happening. I feel they used our product as an example to other inventors they wished to receive fees from, to entice them into becoming clients by telling them they had successfully licensed ours.

How do you protect yourself from scammers such as these? First of all, check their credentials, the best you possibly can. Ask them for references of other inventors they have had success in getting inventions licensed for. Get a Statement of Achievements from them, to see if they have had any successes at all. If they have not, chances are, their profits are made exclusively from fees they charge and not from successfully licensing inventions for clients.

You might also consider using an Invention Firm that charges only an expense type fee, with their main profits being made from percentages of royalties they have secured for inventors. Always proceed with caution and take plenty of time making your decisions because as the saying goes, "haste makes waste".