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America Invents
February l, 2006
Ron Riley
Director
lnventorEd, Inc.
1323 West Cook Road
Grand Blanc, MI48439
Dear Mr. Riley:
I am writing to introduce myself and America Invents
("AI") and also to start what I hope is an open discussion about your
website www.inventored.org and some postings on the site relating to me
personally and to my company, America Invents.
Inventor's Publishing & Research
My name is listed in conjunction with IP&R
and America Invents on the lnventorEd website at the following URL:
http://www.inventored.org/caution/extreme/. I assume you listed my
name because I used to work with Inventors Publishing & Research ("lPR").
It is important to understand that I did not sign an employment
agreement with IPR and would not accept any position and agreed to work
with them only on a trial basis. After I left IPR, two clients filed
complaints with the USPTO in which my name was innocently mentioned. I
would like to address these two complaints specifically. But first let
me tell you about my time at IPR.
I started with IPR in late 2001. They were a couple of
years old and had little history. I brought in several of my respected
friends and colleagues in the invention community, whom you and Dave
Pressman know well, to assess the situation at IPR and their response
was neutral, nothing bad but nothing great either. IPR brought me in to
help the marketing team market and license products. I had no control
over how the company was run. They
promised many things, including that I would evaluate prospective
products to determine which projects they worked with. When I tied to
implement the evaluation system, I was told by Ajay Gupta that IPR would
take on any project provided the client could pay. I left
soon after.
After I joined IPR, Ajay Gupta was made President and he
ran the company and handled all sales (that is the selling of IPR'S
services to inventors). Ajay quickly ramped up the prices to nearly
$20,000. When I saw that no changes were going to be made, and that IPR
was content making their money from inventors, I left. Much like your
colleague and Executive Director of the United Inventor's Association,
Bob Lougher, I learned quickly and was able to
walk away from a company that was not reputable.
USPTO Complaint 1
Now I would like to address the two complaints. The first complaint was
from Terri Medeiros (http://www.uspto.eov/web/offices/com/iio/complaints_508/ipl49dq!Ieqb!!)
(copy attached, see Exhibit A). My name was mentioned because Ms.
Medeiros contacted me to find out why her patent was not licensed. I
explained that her patent, a design patent, was not very strong in that
it covered only one specific design. Nevertheless, I contacted a friend
who is in the Halloween and Novelty business to get his opinion.
Unfortunately, his opinion was as I expected - the patent did not offer
much protection and was not worth a royalty fee.
Ms. Medeiros wasn't upset with me. She was upset because
she was told by Mr. Gupta and the sales staff that her patent was great
when in fact it wasn't. I was never the subject of the complaint. IPR
and Ajay Gupta are the subjects of the complaint. Ms. Medeiros mentioned
my name because I attempted to help her. After finding out that my name
was mentioned on the USPTO website, Ms. Medeiros wrote a correction
letter and sent it to the USPTO, but it
was not published, nor was my name removed from the complaint. A copy of
her complaint correction is attached (see Exhibit B).
(*)
USPTO Complaint 2
The second complaint was from another client that I tried to help,
Robert E iquez
(http://www.uspto.qov/web/offices/cor/iip/complaints 508/ipr effiquez,htm)
(copy attached, see Exhibit C). Again, Mr. Enriquez called me wondering
why his patent had not been licensed. I was honest with him and told him
that the product managers were only
instructed to spend two hours per month on each client (this is from
Steve Barbarich the CEO) and that the product managers had more than 50
clients each. Mr. Enriquez was not upset at me, but rather at Ajay
Gupta, who had told him IPR spends between 150-200 hours on each
project. Again, I was never the subject of the complaint. IPR and Ajay
Gupta are the subjects of the complaint. I never though that being
honest with a client would land me in the middle
of a complaint. lf you look at the context of the complaint, my name was
listed because I provided Mr. Enriquez with the facts he needed to learn
that he had been misled. My whistle blowing hardly made me popular with
Mr. Gupta, but I wasn't about to lie. After I left IPR, I followed up
with Mr. Enriquez to offe! additional assistance.
After leaving IPR, I helped many of IPR's clients get
their money back by providing facts about IPR'S operations and motives.
I also filed a complaint with the District Attorney's Office, but
according to John Calvert, they have bigger fish to fry. After leaving
IPR, they
continued to use my name and my individual experience and successes to
promote their company, without my consent. It is false to assume that
IPR promotions were in any way associated with me, even the ones using
my name, picture and products. On three occasions I had to bring in
counsel to request IPR to stop. Each time IPR would agree but they did
not stop their mailings, which falsely named me as an officer. The third
time, and at sizable
expense, I retained a leading law firm to force IPR and their mail house
to cease and desist.
America Invents
In early 2003 I joined America Invents, LLC. America Invents dillgenty
screens each product it sees before deciding whether or not to work with
the product. America Invents works with 5% of the products we are
presented with. We specialize in a few categories and have an expert
product manager that focuses on each category. We make our profit from
licensing royalties and sales commissions from retail product sales. The
majority of our clients work with us on a partial contingency basis,
meaning we share the cost of the project with our clients. We also leave
room in our budget so we can bring on clients on a full
contingency basis. About 20% of our clients are on a full contingency
program where America Invents pays for all marketing and licensing
efforts. Furthermore, we require that each client warrant that their
income is at least $50,000 per year or that they have assets in excess
of$100,000. This assures us that they are not getting in over their
heads financially. We always emphasize the risky nature of product
development and licensing before anyone
becomes an AI client. We encourage everyone to do their homework on
every company they are considering working with, including us.
(*) America Invents
is in good standing with the state, federal and private regulatory
agencies, including the Secretary of State and the City of San
Francisco.
America Invents has been in business over 20 years and is
a member in good standing with the (*)
Better Business Bureau. America Invents is a member in good standing
with the United Inventors Association.
I invite you to learn more about myself and America
Invents. I would be happy to share any information you may need in order
for you to feel comfortable about me and my company.
My background and Experience
I have known Dave Pressman over 20 years. In the last 24 months, he has
referred several
people and clients to America Invents and me. Dave has been an attorney
for two of my toy companies, a guest speaker in several of my classes,
and a co-presenter and panel participant at several conferences where we
were both speakers. In fact, I have a signed original manuscript of
Patent It Yourself complete with hand written notes. He also lists
America Invents in the latest edition of Patent It Yourself.
I write for lnventors' Digest and have for three years.
Joanne originally questioned the publication of my name on
InventorEd.org, but after learning the facts of the matter and speaking
with several of my colleagues, she dismissed it. Furthermore, America
Invents has been advertising in Inventors' Digest for 12 years and, as
you know, she will not take advertising money from invention promotion
companies.
Maurice Kanbar, the creator and founder of Skyy Vodka and
a prolific inventor, references America Invents in his Secrets from an
Inventor's Notebook. Along with America Invents (page l7l) Maurice lists
only (*) Arthur D. Little
Enterprises and Battell Development Corporation.
I am personally referenced and acknowledged in Stand
Alone Inventor, the best-selling grassroots invention book by Bob
Merrick, and I traveled with Bob to Puerto Rico in 1993 at the request
of Don Kelly to speak at the USPTO Innovation Conference.
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My efforts in education at the university level span over 20 years. I
taught, wrote and instituted classes on innovation, entrepreneurship,
marketing innovation and product development at UC, Berkeley and San
Francisco State.
I co-authored Commercializing Federal Laboratory
Technology with Larry Udell and we consulted with the National
Laboratories on implementing these strategies. I am a court approved
expert witness for product and marketing litigation and I addressed the
California
Senate on marketing issues as a court-approved authority and expert.
For over 20 years I have been freely providing valuable
information to everyone from Games Magazine and Dan Rather to literally
thousands of inventors. I have managed the marketing and innovation for
great entrepreneurs such as Nolan Bushnell, founder of Atari and father
of the Video Game Industry, and leading innovators such as Robert
Warden, co-founder of the Infomercial Industry. And I have worked with
leaders in marketing such as Jay Levinson, author of the Guerrilla
Marketing series, and business visionaries such as Michael Gerber,
international speaker and author of the E-Myth Business books, for whom
I was VP of
Marketing and Producer of his radio shows. And I continue to provide
valuable information on a daily basis to those who request it.
Next Steps
Rather than posting this correspondence as an Error of Fact on your
website, I wanted to write to you directly so that we can begin a
dialogue. I feel that the facts regarding the nature of my role at IPR
have been taken out of context. I realize you have not heard from me and
thus probably do not have a full and accurate picture of me or America
Invents. I would like to rectify that.
Obviously I would like to have my name removed from the
InventorEd website as well as that of America Invents. Much like Bob
Lougher, I briefly worked with a company that was not
reputable, but I was fortunate to realize so and walk away. In my short
time there I was
responsible for several of their licenses and helped more than 20
clients recover monies paid to IPR.
You have noted that America Invents
(*) filed a SLAPP suit against a
client. This is an error of fact, as we have never filed suit or
threatened to file suit against any client. lf you have reason to
believe otherwise, please provide me with the facts so I can address
them.
We are aware of a client that wrote an email to
InventorEd around July of 2005 because they had a dispute. The client
followed with a letter dated October 15, 2005 stating the dispute had
been resolved. Due to confidentiality requirements, I will only say the
client was a limited liability company located in **City, State**
("Company"). The Company retained America Invents ("AI") to renegotiate
an existing license on a contingency basis. The company offered AI a
bonus if we were able to renegotiate the license. AI successfully
renegotiated with the licensee. We were able to remove the fields of use
that the licensee was not pursuing. We were also able to get a higher
royalty rate and an advance at signing for the Company. After the
license was successfully renegotiated, the Company reneged, tried to
terminate our agency agreement and directly contacted the licensee and
tried to get them to
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withhold our commission. When this failed, the Company
filed for mediation. AI won every point of contention in the mediation.
We did not counter sue, place a gag order on the Company, nor did we
file or threaten to file a SLAPP suit. (*)
America Invents does not deserve to have its name in any
context on the Extreme Caution List. America Invents has had no legal
action taken against it by the FTC and has had no government or civil
action against it. According to your "How the 'Extreme' list was
complied" those are your criteria. America Invents fits none of the
criteria. (*)
I am also asking you to place America Invents on your
Marketing Service Providers list. I think if you do a little background
research on me and America Invents, you will find that we are a
reputable marketing, licensing and wholesale sales firm, as well as
inventor advocates.
For each inventor we choose not to work with, we explain
the problems we see with the project and try to educate them as best we
can. Many products we turn down we refer to Gerald Udell's WIN program
and other knowledgeable individuals. We would like to refer them to the
InventorEd site, but for obvious reasons we do not.
I look forward to speaking with you regarding these matters. You can
reach me at 866.503.1717 x223.
Sincerelv.
Bill Seidel
President & CEO
CC: Dave Pressman
Exhibit A.
COMPLAINT REGARDING INVENTION PROMOTER
DATE OF CORRESPONDENCE: November 5, 2002
Name of the Invention Promotion Company: IP & R Inventors' Publishing &
Research
Invention Promoter's Addressr 1550 Bryant, Suite 770, San Francisco, CA
94103
Complainad's Name: Teni Lee Medeiros
Complainanl's Addrcss: l8l Beattie St., Fall River, MA 02723
Customer'sName: TeIri Lee Medeiros
WHAT IS YOUR COMPLAINT?
Name of mass media invention promoter advertised in: BLANK
Invention promotion services offered to be performed: BLANK
Explanation of complaint between customer and invention
back o!er $?.000 00 because of 5 years of empty promises
: Knowing that another Invention Co. gave me Ajay Gupta of IP+R called
me many times and wrote often trying to get me to sign with IP+R. He
promised that he was not like the other company! He offered to pay half
my air fair to San Francisco to sit down and talk with him and some
people that were already interested. We talked over the phone and he
told me it would be $4650.00 in six month's time and for the second time
I asked my mother in law to borrow it he knew I could not afford this! I
asked him if their worked started after I paid in full he said "no we
get started right away", but in letter I was told huny and pay so they
could get started. I received letters saying "Excellent Opportunity" you
cant afford to wait "Do you want to make good MONEY". Also my marketing
department say they have an excellent chance of being licensed. So I
signed after almost 2 years of them bugging me. I was hoping, dreaming
once again, I suppose! He also told me the contact is for life when it
was only six months. Now my brochure comes in with pictures of Halloween
bags that I made. He wanted me to send it to him. I told him before I
sent them that they were store bought fabrics that I didnt think you
could use them because they don't have my design. He was trying to
license someone else's designs.
I also received a letter from IP+R saying they submitted my idea to over
40 companies and bought then to trade shows and they loved them and
would get back to me. (No proof they even got these letters. On
5-17-02 I received a letter saying that my marketing manager has been
changed (*) to I called to rouih ua'..
- leiu Sidell told me he had a best friend that owned a Halloween
company to call him in two weeks. I called and he said that he checked
with him and all the companies the lP+R said liked my idea, said
dont want anything to do with itl Because it was designed parent. So
going into this Ajay knew this was going to happen! How can you sell a
product without proper prototype? I filed a complaint with Consumer
Services in Fall tuver Mass. Ajay denies everything; excuse was he told
me to get a sfiorger patent before he signed me knwoing I could not
afford this. Also states he told me to contact my patent attorney about
it but the only reason he told me to contact my attorney is when I told
him I kept getting post cards there were people coping my patent- I have
proof of everything in writing.
Thank you,
Terri Lee Medeiros
181 Beattie St. FR. Ma 02723
Nov 5,2002
renil8l@aol.com
Exhibit B. Terri Lee Medeiros
Terri Lee Medeiros
l8l Beattie St.
FR., MA 02723
April 5, 2005
Mail Stop 24
Director of the U.S. Patent and Trademark Office
Alexandri4 VA 223 l3-l 450
To the US patent and Trademark Office
Complaint Collection
Dear Sir or Madam;
Three years ago November 5, 2002 I filed a complaint with your office
against jl].lgT l-"!,fb:".r e Resesrch (rp&-R) bsscd "t r jso s,y;
3;ii;;i;.*"",
ii*T:TgliiF#:,3ff ffi ::,:ffi1"#ii1f,'i.ri,:iffi :1rl,tr; "oy,Yt:":.d
F:{ made bi g promises, nonc of which they Jer-;J;;.
"
_ -- .r
am,writrns rhis tertcr to ( olrect tbe $4,650 p"id tt;; ;;;; iii.,io .u_i.o
tr',.o.vrded and !o corect the !e( ord. when I call,:d IpdR in i-.p,"Jd
"i)dij r ,p"t. ," Dur sldel, who told me that my Daient was Dol
something that cauld be licrn!ed because rt was a very nanow aod
specific desicn patenr. lle tried to get my Doney refunded, ttr uctobe-r
of.2002 BiU Sidel war no lonlcr at tp&R.
*.. :::ttn':. tb"t ho p-assed. Mr. Sidet cont'cted mc bccause I
mentioned his name n II^l-o,T1,"r", p.ro* otficc asainst rp&R in
Nou"_rc.oilooi. i,i.t"iiirttro ." ir r-'vould conecr tbe complEint to
reflect whar actua y occuned. M;l;;;; _, ," a{mage Mr. seidet buto ser
lry morcy retuna.a. 6rir i"ia"iui"i riiiio?. _0.o,0 m: thal my patent
coutdn'r be iicenscd when he first saw ir. a.s i*ii, frriiiaa ** senrue
and tricd to 8et my money rcftuded. tdr. seidet;;J;"rii.iJili,o ogr.o
aly eDployment agreement wih anv of tbese cornpalies and refised to tate
8ny positliD! wth atry ofthese companies. I0 hi;brief time rhe"e he ,rus
,espon"iti, i"rlii"i"rg se /erar,mventors producrs and rerpiog ao refuoa
i"r"nto.r,'olq.' ei"ri" iit r,"
i:l,jyd tnany iuve ors with direcriois to I"gA ,e*i"", "r,a ["droa. a.r*"ll
n rO, ro! I to ttns compatry.
,^ .I_would
like to tbank the pa rnt Office for pubtishing my complaint ard I would
likc to JlaDk you in advance for the :onection or the r@ord.
Sircerely,
Terri ke Medeiros A -77*,^'t'7a fur;'.
t/rf t;{
Exhibit C.
COMPLAINT REGARDING INVENTION PROMOTER
DATE OF CORRESPONOENCE: November '18. 2002
Name ofthe Invention Prcmotion Company: lnventors Publishing & Research
Invention Promote/s Address: 1550 Bryant Street Suite 770 San Francisco,
CA 94103
ComDlainants Name: Roberl Endauez
Complainant's Addressr 2435 Zandia Avenue Long Beach, CA 90815
Custome/s Namer Robert Enriquez
WHAT IS YOUR COMPLAINT?
Name of mass media invention prcmoter adveriised inr Direct Mail
Invention promotion seNices offered to be performedr Product
development, marketing, licensing negoliations.
Explanation of complaint between customer and invention promoter:
lP&R or lnvenlorg Publighing & Research m6de many promises of
deliverables and proof of perfomance. They
cleim lo have a 2596 success ete in orofitablv licensino those that thev
sion on. I gened wrth lhem afrer a
oay'ong n"gouuuon rnun - tAray \'uprar or wnar was ro oe penormeoi wnar
was Lo oe
delivered and discussing hot{ long the proiect could take. lt was
estimated that tho projoct would take aboul
170 man hou6 to go through the pfocess offinding a licensee. Yet when I
was demanding proof of
performance and markethg collalee|, lBillSeidell inforned rne that they
only spend one
moming on each proiect every 2 weeks; lhat is a total of 8 hours per
month and 48 hours ovor six month
contract. There se6ms lo be no realgoelto license anything quickly.
Since I refused to pay lhe second halfof
the agreod amount. They refuse to gend the prototype thal I did pay to
have built. I found thal my second and last representative was new to
the company and hed 40 accounlsl They showed my product wilhout prior
approval pdor to my signing an agreement and informed that they had two
companies interested in my product;
the companies were never disclosed. Thglqsearch they provided was only a
SIC listing of manufadturers
commonly provrcec uyE. The information on the best:ft oompany ivas
outdated and
inaccurato. The marketing collateralconsisted ofa one-pag6 flyer they
consider to be a brochure and the
refused to do anymore. They touted many diffeenl marketing channels (producl
brochures, d6monslralion
videos, CO ROMS, web marketing, Plblic relations, and Power Poinl
presentation) but only utilize the phone
and email. They signed an oxclusive contract as lP&R, but tired to
market my product through a sister company
called absolutelynew.com. When I brought to their attention thal the
absolulelynew.com website touted a 180
day launch plan, they told me my agreement was not with
absolutelynew.coml
Signedr /3/ Robert Enriquez Date: November 18,2002
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