Have you ever paid Federated Institute for Patent and Trademark Registry for services rendered in acquiring a patent or mark? Hundreds of companies paid on phony invoices issued by this Florida company, a Florida court recently found, allegedly to the tune of $2.6 million.
The scheme: Companies applying for marks or patents from various government agencies received invoices from Federated Institute for Patent and Trademark Registry, indicating money was "due" for "charges of registration." The companies paid the invoices, believing them to be legitimate charges associated with their intellectual property. According to official reports, Federated Institute did not render a service or pay fees with monies it collected, but rather spirited its booty across the sea into Swiss bank accounts.
The Florida court considered testimony provided by a WIPO PCT expert and held this behavior violated Florida's Deceptive and Unfair Trade Practices Act. Full restitution is being sought for targets of the scheme.
We recommend that all IP holders be aware that hoaxers are looking to the lucrative IP field for potential targets. More information about schemes to mislead or cheat IP holders is available at http://wipo.int/pct/en/warning/pct_warning.htm.
Vol. 53, June 2010