The Patent Prospector has an interesting blog post detailing the Recent Federal Trade Commission (FTC) crack down on the widespread number of invention promotion scams. According to The Patent Prospector, Invention Promotion Company Davison has been running a “con on patent holders.” The FTC Release states that Davison has agreed to pay $10 million in consumer redress for charging inventors up to $12,000 to evaluate and promote inventions.
Davison is also now required to post on its website numbers detailing its success rate at making inventor’s money. It is not surprising that Davison had not previously posted this information on all of its literature since, according to the now FTC-mandated disclosure, out of the 441,751 inventors submitting inventions to Davison over the past five years, only 10 have made more money in royalties than they paid out under their agreements with Davison.
The FTC has provided a phone number, (216) 263-3434 for inventors who believe that they may have been harmed by Davison.