Invention promotion companies vs product development firms
They sound alike and cost about the same. One sells you a submission package, the other builds a product. Here is how to tell which one you are talking to.
August 29, 20262 min read
Written by Konstantin Dolgan, Ph.D., NPDP
Founder & CEO, Product Development Engineer
Published August 29, 2026
An invention promotion company sells you a package of documents and the promise of licensing your idea. A product development firm designs, engineers and builds the product itself. Both charge real money. Only one leaves you holding something that works.
What is the difference?
Invention promotion company | Product development firm | |
|---|---|---|
What you buy | Research report, submission package, marketing to companies | Design, engineering, prototypes, manufacturing files |
Deliverable you keep | Documents and a list of contacts | CAD, drawings, working hardware, a BOM |
Typical first fee | $800 - $1,500 for an evaluation | $1,500 - $8,000 for a scoped first phase |
Typical total | $8,000 - $25,000 | Varies with scope, tied to work performed |
How success is defined | Your idea was submitted to companies | The product exists and can be made |
Required by law | Must disclose success statistics under 35 U.S.C. 297 | No such disclosure exists, because nothing is being promised |
What the law requires promoters to tell you
The American Inventors Protection Act requires invention promoters to disclose, in writing and before you pay, how many clients they have had, how many received a net financial profit, and how many licensed their invention. Ask for that disclosure in writing. A company that hesitates, changes the subject or says it does not apply to them has already answered your question.
Red flags
- An enthusiastic evaluation that arrives quickly and finds no meaningful problems with your idea.
- Pressure to move to a second, much larger phase within days.
- A pitch centered on licensing to major brands rather than making the product.
- No engineer on the call, only a sales representative.
- Refusal to name past products or clients you can look up.
- A fee schedule that is not connected to specific deliverables.
Is licensing ever the right path?
Yes, and it happens. It happens far more often when you hold a filed patent and a working prototype that a licensee can pick up and use. The order matters: prove the product, then license it. Paying to be marketed before anything exists is the version that rarely pays back.
Frequently asked questions
How do I tell an invention promotion company from a development firm?
Ask what you receive and what you own. A development firm hands over CAD, drawings, prototypes and supplier files that you own outright. A promotion company mostly sells submission and marketing packages with no engineering deliverable.
Are invention promotion companies legal?
Yes, but the American Inventors Protection Act requires them to disclose their success statistics in writing before you pay. If the disclosure is missing, vague or hard to get, treat that as a warning.
What should a legitimate first engagement cost?
A scoped concept and feasibility phase is typically a few thousand dollars, with a functional prototype following it. Large upfront fees for evaluations, submissions or marketing packages are the pattern to avoid.
Where LA NPDT fits?
We are a development firm. You own everything we produce, phases are quoted against deliverables, and we will tell you when an idea is not worth building. Start with our free idea analyzer , read the inventor stories , or see how to choose a prototyping partner . Proof from our own work: the Hand Tennis Glove shows what an inventor actually receives from an engineering engagement — parts, drawings, and a path to production.
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