SECTIONS 22380-22381 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 22380-22381

22380. Every invention developer who charges a fee or requires any
consideration for his invention development services must clearly and
conspicuously disclose such fact in every advertisement of such
services.

22381. In the first oral communication with a customer or in the
first written response to an inquiry by a customer other than an oral
communication or written response, the primary purpose of which is
to arrange an appointment with the invention developer for
presentation of his or her invention development services, the
invention developer shall cause the following written disclosures to
be made and given to each customer at the time of the disclosure:
(a) A statement of the fee charged, if known, or a statement of
the approximate range of fees charged; a statement that a portion of
the fee charged will be paid as a commission 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; and a statement of the
approximate portion of the fee charged, if any, that will be expended
for services relating to patent matters.
(b) 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.
(c) A single statement setting forth both (1) the total number of
customers who have contracted with the invention developer; however,
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 those customers to the invention developer.
(d) 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. Any contract for invention development services
between you and our firm will be regulated by law. Our firm 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. The 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."