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Invention Promoters Will Pay $10 Million to Settle FTC Charges


This is a settlement for the Consumer and Financial Fraud lawsuit.

The owners of an invention promotion operation have agreed to pay $10 million in consumer redress to settle Federal Trade Commission charges that they deceived consumers across the country. The settlement includes a cash payment of $6.9 million, plus other property valued at $3.1 million. According to the FTC, the defendants charged up to $12,000 to evaluate and promote consumers' inventions. The defendants enticed consumers with false claims about their selectivity in choosing products to promote, their track record in turning inventions into profitable products, and their relationships with manufacturers. They also deceptively claimed that their income came from sharing royalties with inventors, rather than from the fees consumers paid.

Under the proposed settlement, in connection with providing research, patent, marketing, and/or invention promotion services, the defendants cannot misrepresent that they're selective in accepting inventors, and that they have a stake in an invention because they "work for free" and/or receive significant income from royalties. They also can't misrepresent how many consumers have contracted with them, how many of those consumers realized a net profit, or how many product licenses they obtained for consumers.

The settlement also bans the defendants from misrepresenting that they've helped inventions become products without disclosing whether consumers have profited from the product, and that they have a vast network of corporations with which they regularly negotiate licensing agreements. They also can't misrepresent that their services are necessary for consumers to license their ideas, and that they prepare objective and expert analyses of the marketability or patentability of ideas.

The defendants are Davison Design and Development, Inc., formerly known as Davison & Associates, Inc., and its principal, George M. Davison III; Manufacturer's Support Services, Inc. and its principal, Gordon M. Davison, and his wife, Barbra M. Davison; and relief defendant Barbara L. Davison, who is George M. Davison's wife. The settlement ends the litigation between the FTC and the defendants.

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Published on Jul-18-08


READER COMMENTS

Posted by

on
I paid 15000 to Davison INC to develop and produce and license my idea.I first gave them a chunk of change to get it started.I got my own patent and had it certified. The first real thing I got from them was showing how it would be packaged. I didn't like the concept of how it looked like and ask if I could change it with my input and he said I would have to patent it again and pay to start over. It was a long time before I heard from them again. They said that they could do a infor commercial for me to take to trade shows and put it on a loop for people to see it. I thought that would be a great ides to put on Kickstarter or an online commercial. It took a long time to get it and when I finally did receive it I was astonished at what my invention looked like. It didn't look like anything that I had in mind. It looked like a 1st graders attempt at making something. I was so mad that I wanted to know how such a product could be marketable to the public and where was the company that you said would be interested in my invention. I ask if they presented it to them and they said no and that the company didn't have a budget to work with. For some reason I already knew that there really wasn't a company interested in my invention, it was a lie. So I asked what happen now and the licensing department told me that they would put it on the shelf until some one asked for a product like mine. They didn't even try to promote it because no one would buy that ugly useless product that they came up with. Needs to say I called every day and called them every name in the book for taking my money and giving me a piece of garbage that was useless and couldn't be sold.. So yes I will do my research anad they will be hearing from me in due time again.

Posted by

on
As an inventor who was charged $12,000 for an idea in 2017, I was given tons of paper full of info on how Davison works to help the inventors' dreams come true, with videos on CDs as well. However, I have never been given anything solid at all by them, such as the finished prototype of my invention as shown on their info pages.

Now, one year later, when I am asking Deborah Watson, the lady in charge of my invention project at Davison, for one finished prototype of my invention, she never does respond my emails nor returns my phone calls, as if she had vanished in the thin air. So, I now wonder if Davison really produced the prototype of my invention as shown on paper, or just faked it with a computer-generated image without really making that prototype into existence at all. In other words, it is a scam to rip people off.

Posted by

on
I want to know if i can still get a claim for davison invention because i submitted a invention idea back in 2006 they said there was no use for my idea then the same year there was this break through solution to a idea that was had problems but still had not found a solution until 2006 when they finally found the answer and to my surprise it was exactly what i had sent in to davison inventions that they told me was no use for and to top it off in 2015 they wanted me to send my idea to them so they could get it on the market when i told them i had already sent my idea in and that they rejected it they asked what it was and gave them a hint of what it was and they said that they would have never turned down a product for the automotive industry especially one of what i submitted and they was going to check there records because they would have the paper work from me that i submitted and it took a week to get back to me and i was told they searched there records over and over and i must have sent my idea to a different company i said no i have the origanal paperer work signed by mr davison himself the confidential agreement, They was shocked and said you still have the origanal paperwork from 2006 and you did not just throw it away ,I said yes im good at keeping my important paperwork and something told me to, So they wanted me to send them the origanal saying i would get it back all i had to do is let them look it over and see what kind off deal they could offer me so idid not send it to them and they wanted to meet in kansa city to view it i refused because i felt like it was some kind of setup so do i have a way to collect from them

Posted by

on
I have an invention with Davisons and they have my invention on hold promising me that I have a manufacturer that wants my invention, here it is 10 years later with over $5000, in debt and all I have is paperwork and false return of the true. I seek all my information on my invention and compensation for the time and money loss from having my invention out on the market.I have all the proof

Posted by

on
I paid over $18000 over a six year period and never given a success rate book. I requested a refusal letter for the alleged company and the only response I got is Davison will repair my prototype if damaged and then if it was damaged with the company they wouldn't repair it. In the contract it says Davison was responsible for the cost of the presentation. I paid $2495.

Posted by

on
Does anyone know any way of getting my full investment with Davison back. Before I signed up with Davison, I did specifically ask what there product licensing and payment of royalties was. They said that they license products and get paid royalties almost every day. Then years later, they send me the actual success rate book, I believe in error, and their success rate was much below 1% as per this report. If they had told me the truth on day one, I would not have investment my hard earned money and wasted my time. I can't get an answer from Davison to get my investment back. They know that what I am saying it true. Does anyone know a way to get my money back? Thanks,

Posted by

on
This company davison designs inventegration has taken over 5000 of mt monies and has kept my idea concept patent and I need to know how I can sue them so I can get my things back and to sue them for unlawful business practices an extortion.

I have all of the documents corresponding documents from the beginning since December 17th 2007

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