|
|
|
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.
|
|
<>
|
|
(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).
|