GOOD Guy Test   I. Acceptance/Rejection/Success Rates 1. Acceptance Ratio.  Does the company accept most (>90%) inventions submitted to it? Suggestion:  Review the company's marketing literature very carefully. They will sometimes state whether they accept most inventions submitted to them.  Ask the company to answer this question "in writing." Yes (+0) Unsure (+2) No (+4) 2. Rejection Ratio.  Does the company reject at least some (>25%) of the inventions submitted to it? Suggestion:  Approximately 25% of inventions can be eliminated as not marketable during the initial stages.  Again, review the company's marketing literature very carefully.  Ask for the answer in writing from the company. Yes (+4) Unsure (+2) No (+0) 3. Success Rate.  Does the company have a "success rate" greater than 2%? Suggestion:  "Success rate" is the percentage of clients who made more money from their inventions than they paid to the company as a result of the company's services.  Definitely get this answer in writing. Yes (+4) Unsure (+2) No (+0) II. Reputation 4. Reputation With Inventor Groups.  Does the company generally have an "unfavorable" reputation amongst local inventor groups? Suggestion:  Contact your local inventor's group.  We have a complete List of Inventors Groups for you.  Answer "No" if the inventor groups you speak with don't know the company. Yes (+0) Unsure (+2) No (+4) 5. Reputation With Inventors.  Does the company generally have an "unfavorable" reputation amongst local experienced inventors? Suggestion:  If you don't know any experienced inventors, contact your local inventors group for the names and telephone numbers of some experienced inventors.  Answer "No" if the inventors you speak with don't know the company. Yes (+0) Unsure (+2) No (+4) III. Compensation 6. Up-front Fees.  Will the company require a large "up-front fee" (> $5,000) to market your invention through the entire process? Suggestion:  Again, read the company's marketing literature closely.  If you still can't find the answer, have the company state a proposed fee arrangement in writing prior to working with them. Yes (+0) Unsure (+2) No (+4) 7. Straight Commission.  Does the company ever work with inventors on a straight commission instead of up-front fees? Suggestion:  A GOOD Guy will typically go on a "commission basis" for at least one invention per year.  For this question you will have to ask the company (and read their literature) and see if you trust their answer. Yes (+4) Unsure (+2) No (+0) 8. Percentage of Money.  Does the company charge a large up-front fee (> $5,000) plus a significant percentage (> 10%) of any monies you receive? Suggestion:  Read all contracts carefully that they want you to sign.  If you can't find the answer from the documents, get the answer "in writing" from the company.  Many unscrupulous companies like to include a "percentage" clause in the contracts in addition to the large up-front fees to make the inventor falsely believe that they make their money off the commission not the up-front fees. Yes (+0) Unsure (+2) No (+4) 9. Finance Company.  Is the company directly associated with or have its own "finance company"? Suggestion:  Many of the unscrupulous companies will attract inventors to pay thousands of dollars through a "finance company" that they typically own or are directly associated with.  If you need to finance, you should seek an independent lender (who will be honest with you about the risks and will probably look into the company).  Yes (+0) Unsure (+2) No (+4) 10. Total Cost.  Is  the company willing to disclose their "total fees" for marketing your invention? Suggestion:  Ask the representative what the total costs will be.  Also, read their literature very closely for hidden fees and commissions.  As always, get it in writing. Yes (+4) Unsure (+2) No (+0) IV. Method of Seeking Licensees 11. Manufacturers Search.  Does the company locate potential manufacturers mainly (> 80% companies found) by SIC code? Suggestion:  A "good" manufacturer search will include a search for companies other than just by SIC code (such as determining the manufacturers of similar products, etc.).  Get this answer in writing prior to working with the company. Yes (+0) Unsure (+2) No (+4) V. Legal Problems 12. FTC Problems.  Has the company ever been sued by the Federal Trade Commission (FTC)? Suggestion:  We have a list of companies that have had problems with the FTC (See the NIFC Caution List and search the FTC Archives). Yes (+0) Unsure (+2) No (+4) 13. Attorney General Problems.  Has the company ever been sued by an Attorney General? Suggestion:  You will have to ask the company to respond to this question in writing.  Yes (+0) Unsure (+2) No (+4) VI.  Marketability of Inventions 14. Marketability Analysis Recommended.  Does the company recommend seeking a marketability analysis which evaluates the commercial feasibility of your invention? Suggestion:  A marketability analysis is very important.  Why pay thousands of dollars in marketing and patent fees if your invention is not marketable?  Read the company's marketing literature very closely.  Get the answer in writing.  Yes (+4) Unsure (+2) No (+0) 15. Marketability Analysis Provided.  Does the company provide a marketability analysis to its clients? Suggestion:  Simply ask a company representative if they offer such services.  Get the answer in writing. Yes (+4) Unsure (+2) No (+0) 16. Market Analysis Only.  Does the company only provide a market analysis without evaluating the commercial feasibility of your invention? Suggestion:  Many of the unscrupulous companies will only give you a "boiler-plate" market analysis in a fancy bound book (which tell you nothing about the marketability of your invention).  Read the marketing literature very closely.  Ask the representative whether they evaluate the commercial feasibility of your invention.  Get the answer in writing. Yes (+0) Unsure (+2) No (+4) 17. Disclose Weaknesses.  Does the company inform you of the weaknesses of your invention? Suggestion:  Every invention has at least one weakness which should be disclosed to the inventor.  Get the answer to this important question in writing. Yes (+4) Unsure (+2) No (+0) VII. Patent Searches 18. Patentability Opinion Recommended.  Does the company recommend seeking a patentability opinion from an independent registered patent practitioner? Suggestion:  Read their marketing literature and ask a sales representative. Yes (+4) Unsure (+2) No (+0) 19. Patent Classification Search.  Does the company offer to do a preliminary "patent classification search"? Suggestion:  This is not a patent search and is generally worthless.  See if the company advertises a "free patent classification search". Yes (+0) Unsure (+2) No (+4) 20. Search All Patents.  Does the patent search cover all issued United States patents? Suggestion:  If the company recommends a patent attorney, you should directly contact the patent attorney prior to working with the company and ask him if the patent search is of all U.S. patents.  "Computer searches" do not search all issued U.S. patents and should be avoided.  Get the answer in writing prior to working with the patent attorney.  If the company does not recommend a patent attorney to you, answer "Yes" to this question (however, make sure the patent attorney you select has a 'manual' search completed). Yes (+4) Unsure (+2) No (+0) VIII. Patent Protection 21. Patent Application Recommended.  Does the company recommend seeking a patent application prior to marketing the invention? Suggestion:  Read the company's marketing literature.  A company that says they will market an invention that is not patentable should be investigated further.  Yes (+4) Unsure (+2) No (+0) 22. Design Patents.  Is the percentage of "design" patents filed by clients of the company less than 10%? Suggestion:  Design patents generally have questionable value for most products unlike utility patents.  Get the answer to this question "in writing."  You should also ask the patent attorney what percentage of design patent applications he/she does for the company. Yes (+4) Unsure (+2) No (+0) IX. Who "Controls" the Patent Attorney 23. Selecting Attorney.  Does the company select your patent attorney instead of you? Suggestion:  If the company insists that you work with their patent attorney, this should be a red flag.  The BAD Guys like to control the entire process.  Don't listen to their statements that they can get "cheaper" patent services for you.  Get your own patent attorney. Yes (+0) Unsure (+2) No (+4) 24. Paying the Attorney.  Do you pay the patent attorney directly instead of paying the company for the patent services? Suggestion:  Call the patent practitioner and ask him/her whether you will directly pay the patent attorney.  Also ask the patent attorney whether you will be the "client" or is the company the client.  Definitely get this answer "in writing." Yes (+4) Unsure (+2) No (+0) 25. Attorney Communications.  Do you communicate directly with the patent attorney prior to the patent search being started? Suggestion:  Immediately ask the company whether you can speak with the patent attorney prior to working with the company.  A company that does not want you to speak with the patent attorney prior to having the patentability search completed should be avoided. Yes (+4) Unsure (+2) No (+0)