https://minnesotalawyer.com/statutes/chapter-325a/Recent content in Chapter 325A — Invention Services Act on MinnesotaLawyer.comHugoen-ushttps://minnesotalawyer.com/statutes/chapter-325a/325a.01/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-325a/325a.01/This section defines the key terms used in the Invention Services Act, which regulates companies that offer to help inventors develop or sell their ideas. An ‘invention developer’ is a company or person paid to promote or develop inventions, but the term does not include patent lawyers, government agencies, nonprofits, or businesses that get less than ten percent of revenue from invention services. ‘Customer’ means anyone who seeks or contracts with an invention developer.https://minnesotalawyer.com/statutes/chapter-325a/325a.02/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-325a/325a.02/Every contract for invention development services must be in writing and must be given to the customer in fully signed form at the time of signing. If the invention developer plans to use multiple contracts or perform services in stages, they must tell the customer this upfront and provide a summary of all planned contracts and their total cost before the first contract is signed.https://minnesotalawyer.com/statutes/chapter-325a/325a.03/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-325a/325a.03/A customer who signs a contract for invention development services has an unconditional right to cancel the contract for any reason within three business days of signing and receiving their copy of the contract. Cancellation can be done by mailing or hand-delivering a written notice. Within ten business days of receiving the cancellation, the invention developer must return all money paid and all materials the customer provided.https://minnesotalawyer.com/statutes/chapter-325a/325a.04/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-325a/325a.04/Contracts for invention development services must include specific required disclosures on a separate cover sheet in bold type, including the right to cancel, the services to be performed, any prototypes to be built, estimated earnings, how many customers have received more money than they paid, the expected completion date, whether the developer will take any ownership interest in the invention, and the developer’s identity and bonding status.https://minnesotalawyer.com/statutes/chapter-325a/325a.05/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-325a/325a.05/Before a contract is signed, an invention development company must provide the customer with written disclosures in either the first written communication or the first in-person meeting. The disclosure must state the median fee charged in the past six months and how many past customers received more money back than they paid. The disclosure must also include a standard statement warning that the developer cannot give patent legal advice and will not obtain patent protection for the customer.https://minnesotalawyer.com/statutes/chapter-325a/325a.06/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-325a/325a.06/Every invention development company must maintain a continuous surety bond equal to at least $50,000 or ten percent of its prior year Minnesota gross income from invention services, whichever is higher. The bond is filed with the attorney general and protects customers who are harmed by the developer’s fraud, dishonesty, insolvency, or willful law violations. A customer or the state can sue both the developer and the surety company to recover damages.https://minnesotalawyer.com/statutes/chapter-325a/325a.07/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-325a/325a.07/An invention development company can only accept a personal check from a customer as proof of payment. They cannot take promissory notes or other negotiable instruments. If a company does take an improper negotiable instrument, any third party who receives it cannot claim to be a holder in due course and is subject to the same defenses the customer would have.https://minnesotalawyer.com/statutes/chapter-325a/325a.08/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-325a/325a.08/Every invention development company must keep all records and correspondence related to each contract for at least three years after the contract ends. Customers have the right to review and copy these records at the company’s office during normal business hours, with seven days written notice. This ensures customers can verify what work was done on their behalf.https://minnesotalawyer.com/statutes/chapter-325a/325a.09/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-325a/325a.09/A contract that does not comply with the Invention Services Act is unenforceable against the customer, unless the developer proves the violation was an honest mistake and corrects it. Contracts based on fraud or deception are also void. Customers may sue for actual damages plus attorney’s fees, and a court can triple damages up to $10,000. These remedies are in addition to any other legal rights the customer has.https://minnesotalawyer.com/statutes/chapter-325a/325a.10/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-325a/325a.10/Sections 325A.01 through 325A.10 together form the ‘Invention Services Act,’ which governs companies that charge fees to help inventors develop, promote, or commercialize their ideas. This citation section gives the chapter its official short title for use in legal documents and references.