My attorney attempted to negotiate a settlement with this company in order to avoid court and attorney costs for both parties. We asked for roughly 40% of what I paid to this company to be returned to me. Mr. McGuire placed the following conditions on us, which we agreed to:
1. Drop my complaint with the Michigan A.G. (The A.G. did not take the case and recommended going to a lower court)
2. Remove a complaint I filed on Ripoffreport.com.
Mr. McGuire then drew a line in the sand and demanded more conditions.
He wanted me to give him photos of the prototype for my invention PLUS the paperwork that a patent agency (a legitimate one) filed on my behalf with the USPTO for a utility patent. The patent belongs to me, and thus Mr. McGuire and his company is not entitled to this documentation. In addition, the patent filed contains another item which Mr. McGuire wanted to charge me separately to file. Thus, based on his broker agreement, he is also not entitled to the paperwork because it contains items in which he is not contracted to broker.
Lastly, all contracts and agreements are null and void under the
American Inventors Protection Act of 1999, Section 297. Mr. McGuire claimed from the beginning of our relationship that he is a patent agent. He's on record in a radio interview as claiming to be a patent agent. A friend of mine at a fast food retail company had a phone conversation (which he will verify) with Mr. McGuire in which he claims to be a patent agent. However, the USPTO has no record of him on file at their office. Thus, although Mr. McGuire denies it, he is an invention marketer, and, by law, must present full disclosure of the following information to potential clients PRIOR to signing any contracts or agreements:
Required information disclosure from invention promoters/promotion firmsIf you decide to use the services of an invention promoter/promotion firm, keep in mind that the firm must disclose specific information to you regarding their past business practices. This mandatory disclosure form is required by law and is intended to help you make an informed decision whether or not the firm will meet your needs.Specifically, before an invention promotion contract can be established between you and the firm, each invention promotion firm must disclose to you in writing each of the following items of information:
- The total number of inventions evaluated by the invention promoter for commercial potential in the past 5 years, as well as the number of those inventions that received positive evaluations, and the number of those inventions that received negative evaluations. In other words, how much experience does the promoter have? What is their track record? Do they generally give mostly positive or negative evaluations, or is there a balance between their positive and negative evaluation history?
- The total number of customers who have contracted with the invention promoter in the past 5 years, not including customers who have purchased trade show services, research, advertising, or other non-marketing services from the invention promoter, or who have defaulted in their payment to the invention promoter. This information will give you an idea of just how experienced the promoter or firm is and the volume of services they provide.
- The total number of customers known by the invention promoter to have received a net financial profit as a direct result of the invention promotion services provided by such invention promoter. What financial impact, if any, has the promoter or firm actually made to its customers?
- The total number of customers known by the invention promoter to have received license agreements for their inventions as a direct result of the invention promotion services provided by such invention promoter. Like item (3) above, this information will also enable you to gauge the effectiveness of the firm in evaluating its direct impact on its customers. Note the key words in the last two requirements--"as a direct result of the invention promotion services provided by such invention promoter". Be aware that just because a license agreement was eventually secured for a given invention does not necessarily mean that it was a "direct result" of the promotion activities of the firm.
- The names and addresses of all previous invention promotion companies with which the invention promoter or its officers have collectively or individually been affiliated in the previous 10 years.
http://www.uspto.gov/inventors/scam_prevention/index.jsp
Mr. McGuire has suggested to my attorney that he may sue me for breach of contract. All he has to do in court is provide documentation that he complied with the above mentioned guidelines of this law. Violations of this law require ALL money be refunded plus a penalty of up to $5,000 for damages can be rewarded.