In May 2003, I received a internet banner regarding patenting and production, seeking INVENTORS. I responded to the banner and within a very short time received a phone call response from a sophisicated sounding man - Jason Zerbach, Director of New Products *I'll now fondly call him "Zeroback", because that's exactly what I got "Zeroback".* His direct telephone number is 1-800-544-3327 ext. 2412, you will get a receptionist running interference for him, but if you ask for his voice mail you can leave a message.
He might answer, or even return your calls , if he fells like it. Any way he was quick to mail me a "Confidential" packet, in which I was to draw my idea in a 4"x4" grid on a paper, provide a basic description of the idea, and how I came up with the idea. I felt silly, it's kinda like that filling out that Art school thing on match book covers. - Jason assured me that this "Confidential" document was just that Confidential between myself and Davison. I thought that was pretty simple. Jason then mailed me an agreement document -with the name of my idea throughout spelled wrong -,which required a $685.00 retainer fee to Davison to initiate research my design, conduct a patent search and compile a portfolio to deliver to me.
In mid May 2003, I wrote this following letter to Jason. He conveniently claimed he never got the letter.
Dear Mr. Jason Zerbach:
I received your agreement packet yesterday, and was immediately dismayed. I couldn't believe receiving your documents with the name of my idea grossly misspelled. The spelling should have been THERAPEUTIC,not THEREAPUTIC. If you will note on my original fax, the word was correctly spelled. I'm not a big corporation, but I at least do a spell check on items I send out. It was probably a secretary typo, but you signed , and forwarded it anyway, causes me considerable concern.
I realize it cost $3.85 to for you to send me the misspelled original documents express mail. If you expect me to sign any agreement documents, they will have to be re-delivered spelled correctly. I did notice in the documents a portion saying nothing in the agreement will be changed without agreement from both parties. I'm sure you realize, I don't need the embarrassment or the hassle trying to market something not spelled correctly, just because of a clause on any document.
Additionally, you didn't include in your letter anything how the $10.00 fee for the Disclosure Document Deposit Request gets paid. Is that part of the $685.00, or is that an extra $10.00. It says right on the document mail to: Assistant Commissioner for Patents. Were you going to forward the document to them?
You also didn't explain about the additional costs regarding client responsibility of protecting the idea, invention. I guess my initial understanding was, Davison would be assisting with the process .The agreement also says Davison won‘t talk to any corporation until client “hires” Davison. How much does the “hiring” cost? The agreement goes on about the client providing a virtual reality prototype of the idea with whatever materials. And what is the expense of a separate contract for assistance by Davison to provide such a service?
Your agreement, also has a disclaimer , that you do not guarantee any client gains. I could get looped into this for a small fortune, have no product designed or developed within 6 months to market, then at the end of 6 months Davison disappears when the contingency agreement expires. Explain this.
By your the wording in client relationship document, prior oral and written representations on this subject are considered null and void. It appears by that my initial CONFIDENTIALITY, signed document becomes null and void, upon signing the client relationship document. Explain this please!
I'm a little apprehensive with this. Before I commit the initial investment of $685.00, and potentially several thousands of dollars more, I'd really like to know alot more about what appears to be a mounting checklist of client costs. Could you be more specific what dollar amount I could expect to be looking at to get this idea off the ground.
Sincerely,William
Well, to make a long story short, I was very apprehensive at the beginning. In the course of several phone conversations with Jason,I attempted to ascertain - exactly what the bottom dollar was on this venture. Jason in a carefully constructed script always knew the right things to say to make this whole deal my responsibility. He repeatedly said - Were not offering a "Pie in the sky or get rich over night." Jason also frequently said "We are both going to have responsibilities in this agreement." I kept inquiring exactly what the end amount was going to be for my financial obligation. Jason said "At this point theres no way to know. In my last phone call to Jason in May 2003it was on a Friday morning 10am my time, he basically coerced me with words to the effect -I need your reply on your idea today,I'm scheduled to be in a meeting shortly and have your idea on the agenda to be discussed at that meeting. You need to decide to make the commitment,or you don't it's your decision, if you you make the commitment Davison will stand with you throughout the agreement. I felt so pressed and pressured at that time, that I broke weak and against better judgment, I obtained the Davison bank routing number from Jason, so I could wire the $685 directly from my bank at a cost of $25 to the Davison account. Jason advised me that the account number was to be kept Confidential. I even called him back from a pay phone to let him know the money was wired from my bank. Jason over the next month or so, Jason would stage telephone appointments with me to keep me informed of the progress. These telephone calls were all basically the same - Jason speaking "Our research is continuing on your idea,we've had quite a bit of progress,it's coming along ahead of schedule." About 3 months ago I received the promised Portfolio. To my suprise, whom ever did it spelled "Therapeautic" correctly. What a shocker!!!! I was dismayed at the contents however, it just had page after page of legal mumble jumble, and photocopies of a bunch of product in the field of my idea. Big deal!!! I'm just interested in what I want to produce, Right!!! Jason would call me 1 or 2 times per month, this went on for 4 months. About 21/2 months ago the president of Davison, Mr.Davison sent me a letter also with the name of my idea spelled wrong, that they had secured a prospective manufacturer for my idea. In another later telephone call Jason, attempting to sound suprised claimed - "I understand that Mr. Davison let the cat out of the bag when he named the prospective manufacturer interested in production of your idea. When I mentioned Mr. Davison's letter and the misspelling , Jason goffed with - "Spelling isn't Mr. Davison's forte, but making people successes is." In yet another phone call near mid October 2003, Jason staged an important phone call to discuss our responsibilities. Jason then mentioned that he was working on my project and determined that the responsibility from me was going to be in the area of "6 to 10", I gasped,you mean $6,000 to $10,000. Jason said "I'm having the numbers put together and will be mailing them to you." Jason also inquired "Have you done your homework?" He was referring to my checking the website of the prospective manufacturer of my product.
On 10-24-03, Jason mailed me another $3.85 postaged envelope with of course my idea spelled wrong once again. This time he included 20+ pages from the prospective manufacturer's website - this was the homework he asked about earlier- ,and some Production sample agreements for me to sign with Retainer and Royalty. I was to now select from 4 options to compensate Davison as the inventor - Option 1 $165.00 per hour plus expenses, Option 2 $13,406.00 and 10% royalties, Option 3 $11,331.00 an additional 5% - makes it 15% royalties- Option 4 $9,217.00 an additional 10% - makes it 25% royalties. I figured if my idea was sold at $200.00 each
I was suppose to speak with Jason on Monday the first week of November 2003, but I was unable to keep the call, I left a message on Jason's voice mail - I also mentioned that there was no way for me to come up with the figures quoted in the Executive Agreements. Jason I could tell from his voice on my machine that he was upset. Well, over the next week we played phone tag and finally connected. Jason attempted to sweeten the deal when he told me that had I been available for the missed call, Davison was in a position to let me in for $1,000 on a one time offer, and then at 40% of the agreement,but that offer dissolved when I wasn't available for the call. I told Jason that I didn't even have the $1,000, or the 40%, and I wasn't about to take out of my son's college fund for this venture. Jason said he could understand that I wasn't a business that could undertake this calibre of venture, that he would let the President know that we will be closing our agreement. That he would soon mail me a "Termination of Agreement" for me to sign and return as soon as possible. I asked Jason, Well, what about my $685.00? He said "It's been spent on all of the research,the application for patent,patent search, and the Portfolio sent to you. I can assure you that Davison doesn't just take every idea that comes along and put what we've put into your idea. Davison gave you a drastically reduced agreement fee on your "Confidential", to get you started. Davison, I can say has spent several thousand dollars above your fee researching your idea for production." I told Jason, Too bad you guys lost money. Jason said "In business you always take that chance of losing money, that's just doing business." Jason said "It would behoove me at this stage to not drop the ball now." I told Jason that there's no way I can come up with money like they want. Jason said "You don't know a third party that would invest in your idea." I told Jason that everybody thinks it's crazy to put out that kind of money and not know what's going to happen. Jason said " If it was easy, they'd have a line of wanna be's all the way to Maryland." Jason assured me that my invention idea will remain "Confidential", and in their inactive files." Jason also cautioned me that- In this world it's not a matter of how a product from an idea comes to be, it's a matter of when someone else will come up with the same product idea." When I received the "Termination Agreement", it was in an unsealed envelope, and the insult on injury was when I opened the agreement Jason still had "Therapeutic" spelled wrong as "Thereputic", isn't that something. I sent the Termination Agreement signed back about 2 weeks ago. I haven't heard another peep from Davison or Jason Zerbach. -Zeroback- I'm still laughing a month later at being duped out of $685.00 and these prices. Jason even attempted to assure me that these 4 options was the bottom line, unless I wanted to select additional manufactures.
William
Somerton, Arizona
U.S.A.