1. A contract shall set forth information required in this section in at least ten point type.
2. The contract shall describe fully and in detail the services that the invention developer
contracts to perform for the customer.
3. The contract shall state the following information:
a. If the invention developer contracts to construct one or more prototypes, models,
or devices embodying the invention of the customer, the total number of prototypes to
be constructed and whether the invention developer contracts to sell or distribute such
prototypes, models, or devices.
b. If an oral or written estimate of customer earnings is made, the estimate and the data
upon which it is based.
c. A single statement setting forth both of the following:
(1)The total number of customers who have executed co
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1. A contract shall set forth information required in this section in at least ten point type.
2. The contract shall describe fully and in detail the services that the invention developer
contracts to perform for the customer.
3. The contract shall state the following information:
a. If the invention developer contracts to construct one or more prototypes, models,
or devices embodying the invention of the customer, the total number of prototypes to
be constructed and whether the invention developer contracts to sell or distribute such
prototypes, models, or devices.
b. If an oral or written estimate of customer earnings is made, the estimate and the data
upon which it is based.
c. A single statement setting forth both of the following:
(1) The total number of customers who have executed contracts with the invention
developer, except that the number need not reflect those customers who have contracted
within the preceding thirty days.
(2) The number of customers who have received from the invention developer’s services
an amount of money in excess of the amount of money paid by those customers to the
invention developer pursuant to a contract. The amount received by a customer reported on
the statement shall only include payments for services performed by the invention developer
involving the development, promotion, licensing, publishing, exhibiting, or marketing of the
customer’s invention pursuant to their contract.
d. The expected date of completion of the invention development services.
e. The extent to which the terms of the contract effectuate or make possible the purchase
by the invention developer of an interest in the title to an invention.
f. A statement explaining that the invention developer is required to maintain all records
and correspondence relating to the invention development services performed for that
customer for a period not less than three years after expiration of the contract.
g. A statement explaining that the records and correspondence required to be maintained
pursuant to section 523G.8 shall be made available to the customer or representative for
reviewandcopyingattheexpenseofthecustomeronthepremisesoftheinventiondeveloper
during normal business hours upon seven days’ written notice from the date of delivery sent
by certified mail.
§523G.5, INVENTION DEVELOPMENT SERVICES 4
h. The name of the person contracting to perform the invention development services, all
namesunderwhichthepersonisdoingorhasdonebusinessasaninventiondeveloperduring
the previous ten years, the names of all parent and subsidiary entities to the person, and the
names of all entities that have a contractual obligation to perform invention development
services for the person.
i. The principal business address of the invention developer and the name and address of
its agent in this state authorized to receive service of process in this state.
4. a. The customer has an unconditional right to cancel a contract for invention
development services at any time before the third business day following the date the
customer receives an executed copy of the contract.
b. The customer must notify the invention developer of a cancellation by written notice
delivered personally or by certified mail. A notice delivered personally must be delivered to
the invention developer’s place of business by the end of the third business day following
the date that the contract was executed, and the cancellation shall take effect upon delivery.
Upon delivery of the personal notice, the invention developer shall return a receipt to the
customeracknowledgingreceiptofthecancellation. Anoticedeliveredbycertifiedmailmust
be mailed by midnight of the third day following the date that the contract was executed,
and the cancellation shall become effective upon the date the receipt is signed. A notice of
cancellation may take any form which indicates that the customer no longer intends to be
bound by the contract.
c. Within ten business days after receipt of the notice of cancellation, the invention
developer shall deliver to the customer, personally or by certified mail, all moneys paid, any
note or other evidence of indebtedness, and all materials provided by the customer. The
invention developer may condition payment upon a receipt by the customer acknowledging
personal delivery.
5. The following shall be included in the contract:
a. A disclosure statement in substantially the following form shall appear in boldface type
and be located conspicuously on a cover sheet that contains no other writing:
NOTICE
Thefollowingdisclosureisrequiredbysection523G.5oftheIowa
Code and is expressly made a part of this contract:
You have the right to cancel this contract for any reason at
any time within three (3) business days from the date you and
the invention developer sign the contract and you receive a fully
executed copy. To exercise this option you may use certified mail
or personally deliver to this invention developer written notice of
your cancellation. The method and time for notification is set forth
in this contract immediately above the place for your signature.
The invention developer must return by certified mail or personal
delivery, within ten business days after receipt of the cancellation
notice, all money paid and all materials provided either by you or
by another party on your behalf.
Unless the invention developer is an attorney, the invention
developer is prohibited from giving you legal advice concerning
patent, copyright, or trademark law, whether your creation, idea,
or invention may be patentable, or protected under the patent,
copyright, or trademark laws of the United States or any other law.
A registered patent agent may give advice as to patentability and
protection available under the patent laws.
A patent, copyright, or trademark protection will not be acquired
for you by the invention developer or by this contract. Your
potential patent rights may be adversely affected by any attempt to
commercialize your idea or invention before a patent application
covering it is filed. Nonconfidential disclosures of your idea or
invention may also trigger certain statutory deadlines for filing
5 INVENTION DEVELOPMENT SERVICES, §523G.6
a patent application in the United States and would prevent you
from obtaining valid patent rights in countries whose law provides
that patent applications must be filed before there is a public
disclosure. Your failure to identify and investigate existing patents,
trademarks, or registered copyrights may place you in jeopardy
of infringing the copyright, patent, or trademark rights of other
persons if you proceed to make, use, or sell your idea or invention.
b. A disclosure statement in substantially the following form shall appear in ten point
boldface type immediately above the place where the customer is to sign:
ATTENTION!
(READ CAREFULLY)
You have three (3) business days during which you may cancel
this contract for any reason. You must deliver written notice of
the cancellation by certified mail or personally to the invention
developer. This opportunity to cancel the contract will expire on
the last date that you are allowed to mail or deliver notice. If you
choose to use certified mail to deliver your notice, it must be placed
in the United States mail addressed to (insert name of invention
developer), at (insert address of invention developer’s place of
business) with first class postage prepaid before midnight of (insert
proper date). If you choose to personally deliver your notice to the
invention developer, it must be delivered by the end of the normal
business day on (insert proper date). You are advised to obtain
a written statement from the invention developer acknowledging
receipt.