Effective 28 Aug 1995

417.403. Disclosures required to be made in writing by invention developer to customer, content. — In the first oral communication with a customer or in the first written response to an inquiry by a customer, other than an oral communication or written response the primary purpose of which is to arrange an appointment with the invention developer for presentation of his invention development services, the invention developer shall cause the following disclosures to be made in writing and delivered to the customer:

(1) A statement of the fee charged, if known, or a statement of the approximate range of fees charged;

(2) If it is the invention developer's normal practice to seek more than one contract in connection with the invention developer's services to a given customer or if the invention developer normally seeks to perform services for a customer in more than one phase with the performance of each phase covered in two or more contracts, a statement describing that practice with a summary of the normal terms of each such contract including the fee for the service to be performed under each such contract as set forth in subdivision (1) of this section;

(3) A statement which in reasonable detail summarizes the services which the invention developer intends to provide under the initial contract and each succeeding contract with the customer. If the invention developer's services are limited to mailing notices to a list of potentially interested parties and then awaiting their response, the statement shall make this fact clear;

(4) A statement that sections 417.400 to 417.436 require the invention developer to keep confidential and not use for his benefit or for the benefit of others any information disclosed by the customer except as provided in section 417.427. If the invention developer intends to disclose any of such confidential information to others, he shall include a statement as to the nature of the information to be so disclosed, including the fact that the customer will be required to waive such confidentiality obligation to the extent necessary to permit such disclosure;

(5) A statement setting forth the total number of customers who have contracted with the invention developer and the number of those customers who have received, by virtue of the invention developer's performance of invention development services, an amount of money in excess of the total fee paid by those customers to the invention developer pursuant to a contract for invention development services. The numbers entered in such statement need not include those who have first contracted with the invention developer during the six months immediately preceding the date of the written disclosures nor those who have contracted with the invention developer prior to August 28, 1995; and

(6) A statement as follows:

"Any contract for invention development services between you and ourselves is regulated by law. We are not qualified or permitted to advise you whether protection of your invention is available under the patent laws of the United States or any other laws. If your invention is patentable or infringes an existing valid patent, your failure to inquire into these matters may affect your rights to your invention or make you liable to others for patent infringement. Furthermore, disclosure of your invention to others on a nonconfidential basis may also adversely affect your rights. We urge you to seek the counsel of an attorney or agent registered to practice before the United States Patent and Trademark Office.".

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(L. 1995 S.B. 80 & 88)