FOR RELEASE: APRIL 20, 1993
INVENTION PROMOTION COMPANY CHARGED WITH MAKING
FALSE AND DECEPTIVE CLAIMS
FTC Asks Court to Order Consumer Redress
The Federal Trade Commission has charged Invention Submission
Corporation of Pittsburgh, Pennsylvania, with misrepresenting the
nature, quality, and success rate of the invention promotion ser-
vices it sells to consumers for prices ranging from hundreds of
dollars to a total package price of approximately $5,000. Despite
representations to the contrary, the FTC alleged, virtually none of
the company's customers have earned more for their inventions than
they paid for the promotion services. The FTC has asked a federal
court to prohibit the defendants from engaging in the deceptive
practices in the future, and to order them to pay consumer redress.
The FTC's complaint detailing its allegations also names
Western Invention Submission Corporation (WISC), Intromark
Incorporated, and the parent company of all three, Technosystems
Consolidated Corporation (TCC); as well as Martin S. Berger, who is
the sole officer and director of the firms (collectively, ISC). All
of the defendants are located in Pittsburgh.
Since 1984, according to the complaint, the defendants have
sold a variety of invention promotion services to individual
inventors in stages. First, the defendants allegedly offer to
prepare a "Basic Information Package" concerning the idea or product
for $395 to $590. In the second stage, the defendants offer to
provide certain marketing and licensing services under a "Submission
Agreement" at a cost ranging from $3450 to $4890, the complaint
states. Third, ISC provides any leads it may receive on
- more -
Invention Submission--04/20/93)
a client's idea to Intromark, which allegedly attempts to negotiate
a license for the idea or invention, with clients agreeing to share
a percentage of any payments as a result of ISC's services.
(Additionally, ISC and WISC offer clients with more fully developed
ideas a separate service called the "Market Supplement Program," for
approximately $12,500.) The defendants allegedly have promoted and
advertised their services on television and radio and in newspapers
and magazines across the country, as well as through telephone and
in-person sales presentations.
The FTC charged that the defendants have made numerous false
representations in the course of selling these services. Among
them, the complaint alleges, were representations that the defend-
ants' services have resulted in financial gain for their "Basic
Information Package" and "Submission Agreement" customers, and that
their clients have a reasonable expectation of realizing financial
gain as a result of their services. Neither representation was
true, according to the complaint.
In addition, the FTC charged that the defendants misrepresented
that they will evaluate or appraise the merit or marketability of
their clients' ideas or inventions and that they have specialized,
valuable access to manufacturers. In fact, the FTC charged, neither
representation was true.
Other representations charged by the FTC to be false were:
-- that defendants perform services to develop or refine
clients' ideas or inventions;
-- that the processes used by defendants to search for
manufacturers or potential licensees will identify those who
are reasonably likely to be interested in commercializing
clients' ideas or inventions;
-- that the completion of the Basic Information Package
requires a substantial amount of research, drafting, or other
preparation;
-- that defendants submit clients' ideas or inventions to those
who are reasonably likely to respond and to be interested in
commercializing them;
-- that the New Product Submissions contain information that
manufacturers or potential licensees consider necessary or
valuable in determining whether to license or market the idea;
-- that seeking patent protection for an invention or idea is
undesirable or unnecessary and that ideas for which proprietary
or patent protection cannot be obtained can still be
successfully marketed;
(Invention Submission--04/20/93)
-- that defendants will assist clients to obtain a patent; and
-- that clients' ideas or products will be effectively promoted
at trade shows.
In addition, the FTC charged that the defendants have misrep-
resented their background, qualifications, experience, and expertise
as invention promoters and, more specifically, the background and
professional qualifications of their staff. Further, according to
the complaint, the defendants misrepresented the value, financial
gain, or exposure to potential manufacturers that clients may
realize by having their ideas included in defendants' new product
advertisements or catalogs.
The FTC filed its complaint in the U.S District Court for
the Western District of Pennsylvania, in Pittsburgh, today. In
addition to asking the court to prohibit the misrepresentations
alleged in the complaint, the FTC asked the court to order the
defendants to pay consumer redress and to rescind contracts
consumers have with ISC.
The Commission vote to file the complaint was 5-0. This
investigation is being handled by the FTC's Boston Regional Office.
NOTE: The Commission files a complaint when it has "reason to
believe" that the law has been or is being violated and that a
proceeding is in the public interest. The complaint is not a
finding or ruling that the law has actually been violated. The case
will be decided by the court.
Copies of the complaint and the fact sheet are available from
the FTC's Public Reference Branch, Room 130, 6th Street and Pennsyl-
vania Avenue, N.W., Washington, D.C. 20580; 202-326-2222; TTY for
the hearing impaired 1-866-653-4261.
# # #
MEDIA CONTACT: Howard Shapiro, Office of Public Affairs
202-326-2176
STAFF CONTACT: Phoebe D. Morse or Pamela J. Wood
Boston Regional Office
10 Causeway Street, Room 1184
Boston, Massachusetts 02222
617-565-7240
(Civil Action No. 93-0616) (FTC File No. 882 3060) (isc)