1. Criteria for Evaluations – A reputable assessment firm will
provide to you, upfront, the criteria used for making evaluations
BEFORE using a service that purports to provide objective
evaluation, find out the type of information provided back to you in that
evaluation. It is essential to
understand the type of review system and criteria used for the evaluation. Typical evaluations include analysis of
potential market viability, competitive landscape, production
feasibility/viability, market stability/growth/diversity, potential for IP
protection, existing competition, state of development, challenges posed, and
commercialization potential. Additionally it may be of benefit to learn who
performs the evaluations and their credentials.
Be wary of companies who do not provide sources for their information on
intellectual property protection potential or other pertinent information.
2. Disclosure of Costs Upfront – A reputable assessment firm
will provide you with the cost of the evaluation in advance
TYPICAL evaluation services range from $150-500 depending on
the service used and the extent of the report. Be wary of companies that offer
free preliminary reviews as these are often sales tactics used to get you to
buy additional, more in-depth evaluations at much higher costs after their
initial review is found to be positive and highly marketable. Be especially
cautious of companies that request promotional fees or try to sell invention
development assistance or marketing services after initial reviews and do not
disclose these fees during your initial contact with them
.
3. Non-Disclosure/Confidentiality Agreement – A reputable
assessment firm will sign a non-disclosure agreement or provide it as a part of
their Terms & Conditions
Non-disclosure agreements are invaluable when you want to
discuss an unpatented idea with a third party.
It provides a legal contract between you and the company that any
information relating to the invention will remain confidential and not be
shared with third parties. Non-disclosure agreements are different from
marketing or licensing contracts and it is important read any documentation
thoroughly before signing it.
4. Avoid Conflicts of Interest– A reputable firm will provide
objective assessments without wanting you to use additional marketing or patent
filing services.
Firms that provide both assessments and marketing or patent
application services often have conflicts of interest in their assessment since
a positive assessment will likely lead to an inventor spending more money with
the company for these additional services.
Hiring a company that provides just evaluation services may provide a
more honest assessment because they can remain objective and do not have a
vested interest in providing positive evaluations with the hopes of up-selling
additional services. Hiring different companies at each stage of the process
(e.g. patent attorneys for patenting; licensing agents for licensing;
evaluation firms for assessment) ensures objectivity and prevents possible
conflicts of interest.
5. Promotion & Licensing Contracts – A reputable firm will
be upfront that most inventions do not make money and do not ask for upfront fees
for licensing the invention.
If it sounds too good to be true, it most likely is. A
reputable licensing agent rarely relies on large upfront fees, but instead
makes money from royalties resulting from successfully licensed
inventions. They are highly selective in
the technologies they chose to represent and often have high rejection rates,
which trustworthy firms often disclose. Additionally, be wary of firms that
claim to have special relationships with manufacturers or will promote your
invention at trade shows unless they have specific proof of such relationships.
