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 (I think they gave up on me, I stopped getting them after around my 50th issued patent). While some might be legitimate business opportunities, many are scams or overpriced services. In the accompanying video, I provide a reality check for new patent holders and offers tips on spotting red flags.
1. 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 & 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. You could always print it yourself on special paper or even send it out to be printed on metal.
2. Common Post-Patent Scams
A. “Pay Us to Present Your Invention”
- Big-Box Retail “Connections”
You might receive calls promising to get your product on the shelves of major stores—but only if you pay a hefty upfront fee. - Empty Guarantees
Legitimate brokers or licensing agents typically work on commission or modest retainers, not large lumpsums 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. Patents that require a lot of work to sell can be different.
B. Overpriced Patent Plaques
- $100 (or More) 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. - Alternative
If you’d like a display item, consider reputable third parties (or do it yourself) at a more reasonable cost.
C. Fake “Official” Registries
- Bogus Invoices
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. - Actual Authority
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. They do list patents that the owners seek to sell in the Official Gazette, with a listing fee of $25.
3. 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. A reputable patent broker might legitimately spend large amounts preparing specialized marketing materials, such as claim charts and industry analysis, and might ask for those costs to be covered up front. However, simply calling up a friend at Home Depot and asking if they want to stock a product is an entirely different (and essentially free-to-the-broker) service. - 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. In fact, ask me if you want. Just comment below. I can’t provide you with legal advice, but I can draw on my experience as the target of countless anti-inventor scams. - Stay Alert
After you’ve invested so much effort and money securing your patent, don’t let your guard down now.
4. Embrace Legitimate Opportunities
- Networking & Licensing
While scams abound, plenty of genuine paths exist for monetizing or licensing your patent. Research thoroughly and approach recognized industry contacts. - Marketing Smartly
If you’re serious about commercializing, invest in market research, attend trade shows, and cultivate relationships with known manufacturing or retail partners.
Want More Details?
Watch the accompanying Innovation Cafe video where Gary Shuster shares his personal experience and offers practical tips for navigating post-patent opportunities without getting scammed.