By Gary Shuster
Securing a U.S. patent is a huge accomplishment—one that often involves significant time, money, and strategy (and of course innovation!). Once your patent is granted, though, you will find yourself buried under unsolicited offers. While some might be legitimate business opportunities, many are scams or overpriced services. Here’s a reality check for new patent holders, with tips on spotting red flags.
Why New Patent Holders Are Targets
Public Information: Once your patent is issued, details become publicly available. Scammers can easily find your contact information, patent number, and other data online.
Excitement and Relief: After years of navigating the patent process, you’re thrilled to see that official certificate. That excitement makes it easier for fraudsters to slip in with tempting “opportunities.” As an aside, you can now download the “Ribbon Copy”—it used to be mailed and was really cool looking.
Common Post-Patent Scams
“Pay Us to Present Your Invention”
You might receive calls promising to get your product on the shelves of major stores—but only if you pay a hefty upfront fee. Legitimate brokers or licensing agents typically work on commission or modest retainers, not large lump sums with vague results. Note, though, that when you are dealing with an established patent broker with contacts at “big tech,” you may end up paying a significantly higher retainer. Basically, if it is a consumer product, you should be much more aware of overpriced up-front fees.
Overpriced Patent Plaques
You’ll get offers to buy a fancy certificate or plaque for displaying your patent. While these aren’t necessarily scams, they’re often overpriced. If you’d like a display item, consider reputable third parties (or do it yourself) at a more reasonable cost.
Fake “Official” Registries
You might receive letters (that often look like an invoice) claiming to register your patent with an “international” or “official” listing. They may charge thousands for a meaningless service. The U.S. Patent and Trademark Office (USPTO) is the only official U.S. registry for U.S. patents. You’re not required to pay any private entity for a listing.
How to Protect Yourself
- Verify the Source: Check company names, website domains, and addresses. If they claim to be associated with a government agency, confirm through official channels.
- Question Upfront Fees: If someone promises guaranteed results (like big retail contracts) but demands a large, non-refundable payment, it’s a red flag. Consider the relationship of the up-front fee to the work required.
- Consult Trusted Professionals: If an offer sounds enticing, run it by a patent attorney or reputable business adviser before paying. You should also find a reputable inventor with a history of successful patent sales and ask them.
- Stay Alert: After you’ve invested so much effort and money securing your patent, don’t let your guard down now.
Embrace Legitimate Opportunities
While scams abound, plenty of genuine paths exist for monetizing or licensing your patent. Research thoroughly and approach recognized industry contacts. If you’re serious about commercializing, invest in market research, attend trade shows, and cultivate relationships with known manufacturing or retail partners.
Frequently Asked Questions
What are the most common patent scams?
The three most common are: (1) companies demanding large upfront fees to “present” your invention to retailers, (2) overpriced patent plaques and certificates, and (3) fake “official” registries that send invoice-like letters charging thousands to list your patent in a meaningless directory.
How do I know if an offer to license or sell my patent is legitimate?
Legitimate brokers typically work on commission or reasonable retainers tied to actual work (like preparing claim charts). Be wary of anyone demanding large non-refundable fees upfront with vague promises of results. Always verify the company’s track record and ask for references from other inventors they’ve worked with.
Is the USPTO the only legitimate place to register my patent?
Yes. The United States Patent and Trademark Office is the sole official registry for U.S. patents. Any private company claiming you need to register elsewhere or pay for an additional listing is either a scam or selling an unnecessary service.
Concerned about post-patent solicitations? Contact DeepLaw for guidance on protecting your intellectual property investment.