Action News Investigates has learned a lawsuit accuses a Pittsburgh-based invention promotion company of running a deceptive and fraudulent scam.
The class-action lawsuit says InventHelp and its affiliates took millions of dollars from inventors, who got virtually nothing in return. The company disputes the allegations.
Court records show InventHelp has convinced thousands of people to part with thousands of dollars to market their inventions. But the lawsuit says only a handful of inventors have made money.
After she saw an InventHelp ad featuring a caveman, Sherry Porter contacted the company about her idea.
“It was a pet collar with an LED light that went all the way around,” Porter said.
When Porter met with an InventHelp official at their office in Rochester, New York, she says the response was enthusiastic.
“She told me that it was a great idea. She said to me this invention could go as far as bigger animals, cows, horses, and she said possibly even to children,” Porter said.
Porter said she was skeptical.
But according to a class-action lawsuit filed in New York, InventHelp eventually convinced her to pay $700 and then another $9,000 to market her invention.
The lawsuit says InventHelp promised to send Porter’s invention to numerous companies. But when she followed up with those companies, she said, “they would write back and say they had already seen this product, that it had been on the market for years.”
She also got a book describing her invention.
“What Sherry received for that $10,000 was a hard-bound book very generally describing her invention that probably a third-grader could have put together,” said her attorney, Julie Plitt.
Earlier this year, the lawsuit says, an official at InventHelp’s Pittsburgh headquarters contacted Porter and said a company based in New York City called Abrams Gentile Entertainment was interested in licensing her invention.
But when investigators for Sherry’s attorney went to the office of Abrams Gentile, they found it vacant — nothing but empty boxes. The company’s name not even listed.
“As it turned out this company didn’t exist. The name of the company on the contract occupied vacant New York City space and to date that company hasn’t even answered the complaint,” Plitt said.
Porter did eventually receive a $500 check from another company affiliated with InventHelp.
“We believe that this $500 was a ruse in order to suck her into spending even more money with InventHelp,” Plitt said.
In their complaint, Porter and two other inventors accuse InventHelp and affiliated companies of running a “deceptive and fraudulent invention promotion scam that has bilked thousands of aspiring inventors and entrepreneurs into paying millions of dollars to Defendants for invention promotion services that Defendants do not and never intend to provide.”
When Action News Investigates called InventHelp’s PR office for comment, the voicemail was full. An email to the PR office bounced back as undeliverable.
Eventually, company spokesperson Lark Blasi responded, calling the lawsuit allegations “empty and frivolous” and saying, “We very much stand by our efforts on behalf of all of our clients, are pleased that a third party has shown interest in this individual’s idea, and are puzzled by the various inaccuracies in the amended complaint.”
In a letter to the court, InventHelp says it plans to file a motion to dismiss the lawsuit.
On its website, InventHelp says from 2015 to 2017 it signed submission agreements with 6,564 clients. But it says just 166 clients have gotten license agreements for their products, and only 49 clients — less than 1 percent — received more money than they paid InventHelp.
“In fact, all these people got was a large debt and dashed dreams,” Plitt said.
“I don’t take throwing money away lightly and that’s exactly how I feel, that I just threw that money right out the window,” Porter said.
In addition to the case filed by Porter in New York, a lawsuit making similar claims about InventHelp has been filed in Philadelphia. The company said it has not yet had a chance to review the allegations in the Philadelphia case.
When a company copied their invention, Natasha and Fred Ruckel began investigating — and got an inside look into how products are ripped off.
On Valentine’s Day in 2015, Natasha Ruckel and her husband, Fred, were sitting in their living room in Gilboa, N.Y. Natasha was improvising on the piano, and Fred was listening while messing around with the couple’s cat, Yoda. Fred noticed a ripple in the living room rug, forming a half circle on one side. Again and again he tossed toys into the ripple and a delighted Yoda darted in and out. Natasha looked up from her playing. “That’s when we came up with the idea for the Ripple Rug,” she says.
The Ruckels, who had spent around 25 years earning their living in marketing and advertising for brands from PepsiCo to ESPN to Hasbro, were already in the midst of creating their first venture: an app that provided a way for amateur photographers to monetize online images. But they both agreed that the Ripple Rug was a better bet.
A couple of days later, Fred went to Home Depot and bought some cheap pieces of carpet, and they got to work on a prototype. When they had that, they launched a Kickstartercampaign in May 2015, pricing the American-made product at $39.95, to test the market. Within 30 days, they received $15,000 in backing. They had the products made in Georgia for $15 each, and filled the orders.
The Ruckels were weighing their next step when, that fall, the opportunity of a lifetime hit. QVC, in conjunction with the Today show, hosted an ongoing competition called the “Next Big Thing” for entrepreneurs with new retail products. Participants presented their offerings on the TV program, and the winning products received an order from QVC.
Following an arduous vetting process — including proof of a multimillion-dollar insurance policy, a guarantee of having 1,500 items available for sale and sample videos of the Ruckels in pitch mode — Ripple Rug made the cut. “We drove into New York City, and at every exit, we practiced the pitch,” Fred remembers. “We were there by 5 a.m. and hardly slept the night before.”
They sold a few hundred units immediately. QVC bought 1,500 more and Ripple Rug became a top seller. “It was pretty damned amazing,” says Fred. “We were profitable out of the gate, which is virtually unheard of. It felt like a great moment.”
It was, and it wasn’t. Over the next 14 months, the Ruckels learned that coming up with a truly original innovation attracts not only devoted customers but also the kind of highly organized, deep-pocketed bootleggers who rip off products and systematically grind their inventors into the ground — both financially and emotionally. “It creates so much discord that you are willing to give up the dream of entrepreneurship and go back to your day job,” says Fred.
In the thick of battle, however, the Ruckels learned critical lessons: the importance of copyrighting assets before launching; the reality that people will steal everything from your marketing pitch to your product to your advertising photos; the need to continually patrol for ripoffs and take action. They also got a darkly fascinating glimpse of how ruthless, well-funded, deeply sophisticated bootlegging operations work — and how, with tenacity, vigilance, a good lawyer and the right strategy, they can be beaten.
To read how they won, here is the rest of the article:
Read the Fine Print before you sign.
It all sounds so good, and easy. You have spent hours and perhaps years creating your product. You have spent money making prototypes and patents. We know those are not cheap and can take years to get. You see an ad on TV and it sounds great! They can do it all! You meet with someone and they love your idea as much as you do, or so they say.
Here is the kicker. They are in it for the money. I am not saying they aren’t entitled to be paid for their work. The problem is, they rarely do work. Inventors do not ask enough questions or talk to enough people about the company they are choosing. It is based on pure emotion. They sign a contract to pay and they don’t know what they are getting in return.
Inventors are easy pickings for a lot of companies. They tell the inventor what they want to hear and the inventor jumps at the chance. Their credit card is out so fast, they forgot to read the fine print.
Here is another inventor who fell into the trap:
Don’t be the next one to get burned. If you have questions, or need help, email us at email@example.com
Inspiration is a funny thing. Sometimes it comes when we least expect it.
For me, the “a-ha!” moment often hits in the dead of night, or when I’m in the middle of a meeting or driving. We Americans are a nation of problem-solvers, and it’s no wonder that we’ve come up with some of the world’s best ideas. The list of world-changing inventions dreamed up by Americans is astounding.
Sometimes, what you or I think of as a revolutionary idea has already been tried; other times they’re not practical, not marketable or are hamstrung by red tape and competition. But every once in a while, somebody comes up with something amazing and makes millions. It’s this quest for fame and fortune that drives many people to take their idea for a “better mousetrap” and go for it.
TV shows such as “Shark Tank” have propelled many inventors to riches and glory, as celebrity investors decide whether the ideas are worth a shot. An industry has even sprung up around the potential profit in new inventions, promising to help get your idea patented, protected and marketed.
But, as some budding Edisons have discovered, many “invention promotion” companies are nothing but scams, designed to hook the hopeful into spending big bucks with dreams of getting their products to market.
Back in March, the Federal Trade Commission busted a Miami Beach, Florida-based company called World Patent Marketing, which had allegedly promised would-be inventors it could help its clients successfully develop and market their products. Instead, the FTC told a federal court, all but a few consumers found themselves shelling out big bucks with nothing to show for it. In all, the FTC’s complaint alleges, the scheme bilked consumers out of more than $10 million. The complaint also accused parent company Desa Industries and its CEO Scott Cooper of involvement in the scheme.
The company is accused of using a variety of tactics to lure new customers and reassure existing ones, such as made-up “success stories” about people the company had helped. Adding insult to injury, some customers claimed that when they tried to complain or wrote negative online reviews, the company used intimidating tactics to shut them down, including threatening them with lawsuits.
One potential inventor told the Broward County, Florida, Sun-Sentinel that he had given $300,000 to the company to promote his idea for a net device that could be attached to a cellphone case to hold keys and other small items, only to come up empty-handed.
For its part, Cooper’s legal team has noted in court filings that the invention-promotion business is risky, and that fact is made clear on its website and promotional materials as a warning to potential clients.
If you do come up with an extraordinary idea, the U.S. Patent and Trademark Office advises that you proceed carefully. The agency has a brochure at https://www.uspto.gov/sites/default/files/documents/ScamPrevent.pdf that lists some of the warning signs of an invention-promotion scam, and notes that the law requires invention promotion companies must disclose the following information:
If you want to find out more, visit https://www.consumer.ftc.gov/articles/0184-invention-promotion-firms, as well as http://ipwatchdog.com.
Contact Bill Moak at firstname.lastname@example.org.