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Debunking davison design development inc
Davison Design & Development, formerly Davison & Associates and often referred to as simply Davison is an invention promotion firm. The company is based in Pittsburgh and was founded in 1989 by George McConnell Davison. Davison’s workplace, Inventionland, has been likened to The Willy Wonka Candy Company and is noted for its 16 life-sized themed sets, including a motor speedway, sewing cottage, cupcake, log cabin and others. The company is the subject of a reality television show on the History Channel called Inventionland.
Contents
- Debunking davison design development inc
- Davison design development can pump pour
- Business
- Inventionland
- Awards
- Misrepresentation of services
- Lawsuit alleging unpaid overtime
- References
The Federal Trade Commission (FTC) has described Davison as a typical invention promotion scam. In 2006, following a complaint filed by the FTC, a court ordered Davison to pay $26 million in consumer redress for misrepresenting its services to inventors. The court set a list of restrictions on Davison's activity, prohibiting Davison from presenting new product development services to inventors unless they clearly state that these services will most probably not lead to a profitable or marketable product. Davison ultimately reached a $10.7 million settlement with the Federal Trade Commission in 2008, but the guidelines and restrictions set on Davison in the original 2006 court ruling were maintained.
Davison design development can pump pour
Business
Davison provides new product development services to inventors, corporations and entrepreneurs using a nine-step process intended to bring new products and inventions to market. Davison services include research, industrial design, virtual reality, video, animation, product prototypes, packaging, presentation to manufacturers and royalty management. Their annual revenue is about $25 million.
Davison does not provide any evaluation of the commercial potential of a product or invention. As of 2 July 2015, only 16 people have earned royalties greater than Davison's fees out of 62,000 who purchased product development services in the preceding 5 years. Their fees range from $800 for a patent search to $10,000 or more to build a prototype. The percentage of Davison's income that comes from royalties on products is 0.001% or about $250.
Davison-designed products include the Hover Creeper, Meatball Baker, Bread It breading stations, the BikeBoard, Pugz Shoes and the HydroBone for dogs and the 360° Wrist Therapy Brace. Davison says that it produces approximately 200 prototypes per month, and its products have been sold in 1,000 retail stores and online venues. The firm has received several International Design Excellence Awards from the Industrial Designers Society of America (IDSA), formerly sponsored by I.D. Magazine and BusinessWeek, now sponsored by the Annual Design Review online only via F+W Media. For example, the firm received an honorable mention in I.D. Magazine's 2007 design review competition.
The company was founded in 1989 by George M. Davison. He has expressed a preference for patenting ideas only after a product that uses them is ready for manufacturing.
Inventionland
Inventionland is a 61,000-square-foot (5,700 m2) design facility that houses 16 themed sets, including a pirate ship, tree house and giant robot. Within Inventionland, which opened in 2006, Davison’s creative teams work to develop new consumer products and inventions. Types of goods include automotive, holiday, kitchenwares, children's and babies' products, pet products, consumer electronics (audio and video), hunting, fishing and sporting goods and others.
Awards
Misrepresentation of services
In 1997, Davison was one of eleven companies named in a Federal Trade Commission consumer protection operation called "Project Mousetrap" - for protecting inventors against invention promotion scams. In 2006, Davison were ordered to pay $26 million in consumer redress for misrepresenting its services to inventors and the FTC said Davison were typical of invention promotion scams.
Davison appealed, and ultimately settled with the FTC in 2008, agreeing to pay $10.7 million in cash, real estate and investment assets. In keeping with the requirements of the American Inventors Protection Act of 1999, the judge set out the details of an "affirmative disclosure statement" to be issued to future clients. Such disclosure statement must specify, among other things, the number of consumers in the last five years who have made more income in royalties or sales proceeds than they paid the company. As of 2 July 2015, the statement says that 16 people have earned royalties greater than Davison's fees out of 62,000 who signed a pre-development agreement or similar contract.
Lawsuit alleging unpaid overtime
In July 2013, the Pennsylvania Department of Labor filed a federal lawsuit saying that Davison failed to pay overtime to at least 214 current and former sales representatives, arguing that Davison's business means they are covered by federal wage laws requiring them to do so. The lawsuit calls for Davison to start paying overtime and to pay employees' unpaid back wages.