Page:United States Statutes at Large Volume 113 Part 2.djvu/1071

 PUBLIC LAW 106-113—APPENDIX I 113 STAT. 1501A-553 its officers have collectively or individually been affiliated in the previous 10 years. "(b) CIVIL ACTION. —(1) Any customer who enters into a contract with an invention promoter and who is found by a court to have been injured by any material false or fraudulent statement or representation, or any omission of material fact, by that invention promoter (or any agent, employee, director, officer, partner, or independent contractor of such invention promoter), or by the failure of that invention promoter to disclose such information as required under subsection (a), may recover in a civil action against the invention promoter (or the officers, directors, or partners of such invention promoter), in addition to reasonable costs and attorneys' fees— "(A) the amount of actual damages incurred by the customer; or "(B) at the election of the customer at any time before final judgment is rendered, statutory damages in a sum of not more than $5,000, as the court considers just. "(2) Notwithstanding paragraph (1), in a case where the customer sustains the burden of proof, and the court finds, that the invention promoter intentionally misrepresented or omitted a material fact to such customer, or willfully failed to disclose such information as required under subsection (a], with the purpose of deceiving that customer, the court may increase damages to not more than three times the amount awarded, taking into account past complaints made against the invention promoter that resulted in regulatory sanctions or other corrective actions based on those records compiled by the Commissioner of Patents under subsection (d). "(c) DEFINITIONS. — For purposes of this section— "(1) a 'contract for invention promotion services' means a contract by which an invention promoter undertakes invention promotion services for a customer; "(2) a 'customer* is any individual who enters into a contract with an invention promoter for invention promotion services; "(3) the term 'invention promoter* means any person, firm, partnership, corporation, or other entity who offers to perform or performs invention promotion services for, or on behalf of, a customer, and who holds itself out through advertising in any mass media as providing such services, but does not include— "(A) any department or agency of the Federal Government or of a State or local government; "(B) any nonprofit, charitable, scientific, or educational organization, qualified under applicable State law or described under section 170(b)(l)(A) of the Internal Revenue Code of 1986; "(C) any person or entity involved in the evaluation to determine commercial potential of, or offering to license or sell, a utility patent or a previously filed nonprovisional utility patent application; "(D) any party participating in a transaction involving the sale of the stock or assets of a business; or "(E) any party who directly engages in the business of retail sales of products or the distribution of products; and

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