--- kind: "section" citation: "35 U.S.C. § 297" title: "35" title_heading: "Patents" number: "297" heading: "Improper and deceptive invention promotion" release: "119-102" url: "https://uscodex.org/usc/35/297" units: - "Part III — Patents and Protection of Patent Rights" - "Chapter 29 — Remedies for Infringement of Patent, and Other Actions" --- # §297. Improper and deceptive invention promotion - (a) **In General.—** An [invention promoter](#c-3) shall have a duty to disclose the following information to a customer in writing, prior to entering into a contract for [invention promotion services](#c-4): - (1) the total number of [inventions](/usc/35/100.md?p=a) evaluated by the [invention promoter](#c-3) for commercial potential in the past 5 years, as well as the number of those [inventions](/usc/35/100.md?p=a) that received positive evaluations, and the number of those [inventions](/usc/35/100.md?p=a) that received negative evaluations; - (2) the total number of customers who have contracted with the [invention promoter](#c-3) in the past 5 years, not including customers who have purchased trade show services, research, advertising, or other nonmarketing services from the [invention promoter](#c-3), or who have defaulted in their payment to the [invention promoter](#c-3); - (3) the total number of customers known by the [invention promoter](#c-3) to have received a net financial profit as a direct result of the [invention promotion services](#c-4) provided by such [invention promoter](#c-3); - (4) the total number of customers known by the [invention promoter](#c-3) to have received license agreements for their [inventions](/usc/35/100.md?p=a) as a direct result of the [invention promotion services](#c-4) provided by such [invention promoter](#c-3); and - (5) the names and addresses of all previous [invention](/usc/35/100.md?p=a) promotion companies with which the [invention promoter](#c-3) or its officers have collectively or individually been affiliated in the previous 10 years. - (b) **Civil Action.—** - (1) Any customer who enters into a contract with an [invention promoter](#c-3) and who is found by a court to have been injured by any material false or fraudulent statement or representation, or any omission of material fact, by that [invention promoter](#c-3) (or any agent, employee, director, officer, partner, or independent contractor of such [invention promoter](#c-3)), or by the failure of that [invention promoter](#c-3) to disclose such information as required under [subsection (a)](#a), may recover in a civil action against the [invention promoter](#c-3) (or the officers, directors, or partners of such [invention promoter](#c-3)), in addition to reasonable costs and attorneys’ fees— - (A) the amount of actual damages incurred by the customer; or - (B) at the election of the customer at any time before final judgment is rendered, statutory damages in a sum of not more than $5,000, as the court considers just. - (2) Notwithstanding [paragraph (1)](#b-1), in a case where the customer sustains the burden of proof, and the court finds, that the [invention promoter](#c-3) intentionally misrepresented or omitted a material fact to such customer, or willfully failed to disclose such information as required under [subsection (a)](#a), with the purpose of deceiving that customer, the court may increase damages to not more than three times the amount awarded, taking into account past complaints made against the [invention promoter](#c-3) that resulted in regulatory sanctions or other corrective actions based on those records compiled by the Commissioner of Patents under [subsection (d)](#d). - (c) **Definitions.—** For purposes of this section— - (1) a “contract for [invention promotion services](#c-4)” means a contract by which an [invention promoter](#c-3) undertakes [invention promotion services](#c-4) for a customer; - (2) a “customer” is any individual who enters into a contract with an [invention promoter](#c-3) for [invention promotion services](#c-4); - (3) the term “invention promoter” means any person, firm, partnership, corporation, or other entity who offers to perform or performs [invention promotion services](#c-4) for, or on behalf of, a customer, and who holds itself out through advertising in any mass media as providing such services, but does not include— - (A) any department or agency of the Federal Government or of a State or local government; - (B) any nonprofit, charitable, scientific, or educational organization, qualified under applicable State law or described under section 170(b)(1)(A) of the Internal Revenue Code of 1986; - (C) any person or entity involved in the evaluation to determine commercial potential of, or offering to license or sell, a utility patent or a previously filed nonprovisional utility patent application; - (D) any party participating in a transaction involving the sale of the stock or assets of a business; or - (E) any party who directly engages in the business of retail sales of products or the distribution of products; and - (4) the term “invention promotion services” means the procurement or attempted procurement for a customer of a firm, corporation, or other entity to develop and market products or services that include the [invention](/usc/35/100.md?p=a) of the customer. - (d) **Records of Complaints.—** - (1) **Release of complaints.—** The Commissioner of Patents shall make all complaints received by the Patent and Trademark Office involving [invention promoters](#c-3) publicly available, together with any response of the [invention promoters](#c-3). The Commissioner of Patents shall notify the [invention promoter](#c-3) of a complaint and provide a reasonable opportunity to reply prior to making such complaint publicly available. - (2) **Request for complaints.—** The Commissioner of Patents may request complaints relating to [invention promotion services](#c-4) from any Federal or State agency and include such complaints in the records maintained under [paragraph (1)](#d-1), together with any response of the [invention promoters](#c-3). ## Source credit (Added Pub. L. 106–113, div. B, § 1000(a)(9) [title IV, § 4102(a)], Nov. 29, 1999, 113 Stat. 1536, 1501A–552.) ## Notes ### Editorial Notes ### References in Text Section 170(b)(1)(A) of the Internal Revenue Code of 1986, referred to in subsec. (c)(3)(B), is classified to section 170(b)(1)(A) of Title 26, Internal Revenue Code. ### Statutory Notes and Related Subsidiaries ### Effective Date Pub. L. 106–113, div. B, § 1000(a)(9) [title IV, subtitle A, § 4103], Nov. 29, 1999, 113 Stat. 1536, 1501A–554, provided that: “This subtitle [enacting this section and provisions set out as a note under section 1 of this title] and the amendments made by this subtitle shall take effect 60 days after the date of the enactment of this Act [Nov. 29, 1999].”