The best defense

Entrepreneur, Feb, 1999 by Tomima Edmark

Resources to protect yourself against seams and legal thieves

Once someone comes up with a great idea, mistrust and suspicion of others usually follow. And for good reason: You've got something others could steal from you. How can you protect yourself against would-be partners looking to rip you off? There are numerous sources you can turn to for help.

FEDERAL TRADE COMMISSION

The Federal Trade Commission (FTC) is a government agency that accepts written complaints from consumers and will investigate a company if enough complaints are filed against it. Complaints should be sent to the Correspondence Department, Federal Trade Commission, Sixth and Pennsylvania Aves. N.W., Washington, DC 20580.

The FTC also has the power to enforce the Freedom of Information Act. If you submit a written request for any public document, such as a company's filings with the state or records of court proceedings, the FTC will provide a copy to you if it has not been exempted by law. Include in your request the company name, the product or service they provide, and a requested time frame for receiving the document. The FTC should send you a written response within 10 working days. For more information, call the FTC hotline at (202) 3262222. Requests for documents should be sent to the Deputy Executive Director for Planning and Information, Federal Trade Commission, Sixth and Pennsylvania Aves. N.W., Washington, DC 20580.

ATTORNEYS

It's an unfortunate fact that business today is fraught with legal potholes. It's therefore a good idea to find an attorneys you can turn to when needed. In the beginning, look for someone skilled in the art of patent protection. Known as intellectual property attorneys, this type of legal advisor can assist you, step by step, with the patent and trademark filing processes, patent searches, patent law issues and more. An attorney can also act as your intermediary, speaking with thirds parties for you, if you are unable or unwilling to do so.

To find a reputable intellectual property attorney, get a referral or contact the U.S. Patent and Trademark Office (PTO) and ask about an attorney's status. The PTO's office of Enrollment and Discipline provides information about the status of licensed patent agents (attorneys registered to practice before the PTO). Contact the PTO at (800) 786-9199 or visit its Web site at www.uspto.gov.

THE INTERNET

You can find just about anything on the Internet, using any one of dozens of search engines. If the company you're looking up doesn't have a Web site, however, take heed: These days, any company without a Web presence is either too poor to afford one or woefully behind the times.

BETTER BUSINESS BUREAU

The Better Business Bureau (BBB) is a helpful resource for entrepreneurs who want to check out a particular agent or company. But many people don't understand what the BBB really is or how it operates. Companies pay membership fees to be a member of the BBB and must meet certain standards in order to be accepted. When a complaint is filed against any company, the BBB informs that business. The company is then given 30 business days to resolve the problem. If the complaint is not resolved, the problem goes on the company's record. The BBB can even rescind a problem company's membership. When you request a report on a company, the BBB doesn't tell you the total number of complaints filed, only the number of unresolved complaints. Thus, the information you receive isn't the whole story, but it's a good place to start. To check a prospective company, call the BBB in the city in which the business is located.

DUN & BRADSTREET

Another information resource is Dun & Bradstreet (D&B). D&B is a business reporting service and, for a nominal fee, will provide you with information on most companies.

D&B offers several types of reports at various prices. They include such information as a company's legal history, operations data and payment history. For more information, call D&B at (800) 879-1362, ext. 9712, or visit its Web site at www.dnb.com.

NONPROFIT ORGANIZATIONS

There are many nonprofit organizations that can help you in your research. They're a great resource and many times will help you for free or for a small fee. Finding groups in your area is as simple as contacting your local chamber of commerce. Some groups provide a way for inventors to gather and exchange information, give advice, and get together to trade ideas.

The SBA frequently offers workshops and seminars on a variety of topics, including inventing. The majority of its services are free. Most cities have SBA offices, so check the phone book for your nearest branch.

Funded by the SBA, the Service Corps of Retired Executives (SCORE) is designed to help small businesses. More than 12,000 retired executives in 389 chapters across the United States volunteer their time to help entrepreneurs. SCORE can put you in touch with a successful inventor who can give you business advice. To find the SCORE office nearest you, call your local SBA office or the national SCORE office in Washington, DC, at (800) 634-0245.