SECTIONS 22379 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 22379

22379. Every contract for invention development services shall set
forth in at least 10-point boldface type, or equivalent size if
handwritten, all of the following:
(a) The terms and conditions of payment required by Section 22373.
(b) A full and detailed description of the acts or services that
the invention developer undertakes to perform for the customer. To
the extent that the description of acts or services affords the
invention developer discretion to decide what acts or services are to
be performed by the invention developer, the invention developer
shall exercise that discretion to promote the best interests of the
customer.
(c) A statement whether the invention developer undertakes to
construct one or more prototypes, models, or devices embodying the
customer's invention.
(d) A statement whether the invention developer undertakes to sell
or distribute one or more prototypes, models, or devices embodying
the customer's invention.
(e) The name of the person or firm contracting to perform the
invention development services, the name under which said person or
firm is doing or has done business as an invention developer, and the
name of any parent, subsidiary or affiliated company that may engage
in performing the invention development services.
(f) The invention developer's principal business address and the
name and address of its agent in the State of California authorized
to receive service of process.
(g) The business form of the invention developer, whether
corporate, partnership, or otherwise.
(h) A statement of the fee charged, a statement that a portion of
the fee charged will be paid as a commmission or other similar
payment, if in fact it is intended to be so paid, to a person
inducing, directly or indirectly, a customer to contract for the
services of the invention developer, which statement shall specify
the names of the person or persons receiving said payment; and a
statement of the approximate portion of the fee charged, if any, that
will be expended for services relating to patent matters.
(i) A statement that the invention developer does not intend to
expend more for the invention development services than the fee
charged the customer, if, in fact, it does not, and if it does, a
statement of the estimated expenditures of the invention developer in
excess of the fee received from the customer.
(j) If any oral or written representation of estimated or
projected customer earnings is made, a statement of such estimation
or projection and the data upon which it is based.
(k) A single statement setting forth both (1) the total number of
customers who have contracted with the invention developer provided,
however, that the number need not reflect those customers who have
contracted within the last 30 days, and (2) the number of customers
that have received, by virtue of the invention developer's
performance of invention development services, an amount of money in
excess of the amount of money paid by such customers to the invention
developer.
(l) A statement that the invention developer is required to
maintain all records and correspondence relating to performance of
the invention development services for that customer for a period not
less than three years after expiration of the term of the contract
for invention development services.
(m) The name and address of the custodian of all records and
correspondence relating to the performance of the invention
development services.
(n) A statement that the records and correspondence required to be
maintained by subdivision (m) above will be made available to the
customer or his representative for review and copying at the customer'
s expense on the invention developer's premises during normal
business hours upon seven days' written notice, said time period to
begin from the date the notice is placed in the United States mail
properly addressed first-class postage prepaid.
(o) A statement of the expected date of completion of the
invention development services.
(p) A statement as follows:
"Your potential patent rights may be adversely affected by any
attempt to commercialize your idea or invention before a patent
application covering it is filed. Nonconfidential disclosures of your
idea or invention may also trigger certain statutory deadlines for
filing a patent application in the United States and would prevent
you from obtaining valid patent rights in countries whose law
provides that patent applications must be filed before there is a
public disclosure.
"This contract between you and the invention developer is
regulated by law. The invention developer is not qualified or
permitted to advise you whether protection of your idea or invention
is available under the patent, copyright or trademark laws of the
United States or any other law. This contract does not provide any
patent, copyright or trademark protection for your idea or invention.
If your idea or invention is patentable, copyrightable or subject to
trademark protection, or infringes an existing valid patent,
copyright or trademark or a patent, copyright or trademark for which
application has been made, your failure to inquire into these matters
may affect your rights to your idea or invention."