This
information can help an inventor determine how selective the promoter has been
in deciding which inventions it promotes and how successful the promoter has been.
Effective date: January 28, 2000
35
U.S.C. 297 Improper and deceptive invention promotion.
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(a) IN
GENERAL.- An invention promoter shall have a duty to disclose the following
information to a customer in writing, prior to entering into a contract for invention promotion services:
(1) the
total number of inventions evaluated by the invention promoter for commercial
potential in the past 5 years, as well as the number of those inventions that received positive evaluations, and the
number of those inventions that received negative evaluations;
(2) the
total number of customers who have contracted with the invention promoter in
the past 5 years, not including customers who have purchased trade show services, research, advertising, or other
nonmarketing services from the invention promoter, or who have defaulted in their payment to the invention
promoter;
(3) the
total number of customers known by the invention promoter to have received a
net financial profit as a direct result of the invention promotion services provided by such invention promoter;
(4) the
total number of customers known by the invention promoter to have received
license agreements for their inventions as a direct result of the invention promotion services provided by such
invention promoter; and
(5) the
names and addresses of all previous invention promotion companies with which
the invention promoter or its officers have collectively or individually been affiliated in the previous 10
years.
(b) CIVIL
ACTION.-
(1) Any
customer who enters into a contract with an invention promoter and who is
found by a court to have been injured by any material false or fraudulent statement or representation, or any omission
of material fact, by that invention promoter (or any agent, employee, director, officer, partner, or independent
contractor of such invention promoter), or by the failure of that invention promoter to disclose such information as required under
subsection (a), may recover in a civil action against the invention promoter (or the officers, directors, or partners of
such invention promoter), in addition to reasonable costs and attorneys'
fees--
(A) the
amount of actual damages incurred by the customer; or
(B) at the
election of the customer at any time before final judgment is rendered,
statutory damages in a sum of not more than $5,000, as the court considers just.
(2)
Notwithstanding paragraph (1), in a case where the customer sustains the
burden of proof, and the court finds, that the invention promoter intentionally misrepresented or omitted a material
fact to such customer, or willfully failed to disclose such information as required under subsection (a), with the
purpose of deceiving that customer, the court may increase damages to not more than three times the amount awarded, taking into
account past complaints made against the invention promoter that resulted in regulatory sanctions or other corrective actions
based on those records compiled by the Commissioner of Patents under subsection (d).