13 Comments

1. Well, look at their website: “Our research-based approach reveals critical insights about your product. The needs, hopes, desires. In the end, they are helpless. We put the right tools in your hands, and they buy the stuff you want them to. Isn’t that why you invented the product?”

   What more can I say? I’m helpless…

   Comment by Mike Brown — August 8, 2007 #

2. Hello,

   Yes, we know Pacific World Marketing…we were wondering when something might pop up about them…they contacted our company (we’re a manufacturing and product development company) and subsequently sent us several very nice inventions for submission to automotive aftermarket for licensing.

   We were very impressed with the drawings and photographs/patents, but that’s about all they were…they apparently had charged their clients monies (I’m assuming $K’s) for services to be rendered??…this Ken told us his job was to get these “products” on the market but had no substantial prototypes that were thoroughly tested or in small manufacturing at all…

   We were very interested in two of them for pickup trucks…once our fees came into question, we never heard back from him and he’s already collected probably $15K from EACH of these poor inventors with wonderful designs but no real product. We could have put these products in a box, fully tested and in small manufacturing and possibly licensing for less than that.

   These guys are rip offs…they claim to know it all but the only thing they know how to do is bullsheet people and take their hard earned money.

   Ken, if you see us at SEMA in Vegas, WALK THE OTHER WAY. If you see two big white boys walking toward you with that look on their faces that you’ve been ripping people off, WALK THE OTHER WAY. You owe us money for the time we wasted on your scam. We only deal with serious companies, and obviously you’re only serious about one thing, ripping people off.

   And you’re going to exhibit at SEMA? What exactly are you exhibiting? I’ll make sure everybody knows that you’ll be there exhibiting your products…I don’t see you in the member directory?…

   Comment by CargoCatch — August 9, 2007 #

3. 1. COMPANY BACKGROUND “PWM”:
   According to legal docs Pacific World Marketing is owned and operated by Kenneth “Ken” J. Maghuyop who signs “those” letters to inventors, President. His wife Michelle Waufle (Titles: Product Manager and/or Director of Product Licensing) works with him.

   2. EMPLOYEES:
   Virtually “every” inventor spoken with alleges PWM employs between 12-19 people per Ken though inventors have only spoken to Ken or Michelle. On the flip side, a third person surfaced in the last three weeks stating she is “Ken’s Assistant” named Ingrid Gregerson.

   3. OFFICE LOCATION:
   Their corporation address is 1570 Riverlake Road, Discovery Bay, California 94514. It was registered April 12, 2007 and is their home. Their website copyright notice states - Copyright notice 2001-2002 indicating they have been in business longer than this year. Their office is at
   50 Sand Creek Road, Suite 236, Brentwood, CA 94513. It is a small office complex located in the corner of what appears to be an agricultural field.

   (a) Link to corporate registration:
   http://kepler.ss.ca.gov/corpda.....0710210262

   (b) Link lookingdown onto the roof of the office complex. X-out the address label then switch to Satellite view to see an actual photo of the building and parking lot. Zoom in/out using navigation arrows on the left side of the screen (for those not used it):

   http://www.google.com/maps?q=5.....p;ct=title

   (c) Link showing their and other lake-front homes with single/double boat docks on Riverlake Road in Discovery Bay, California. First will appear a Hybrid (map/street names) view with a green arrow pointing to the house - just x-out the green arrow so the address label disappears. Now switch to a Satellite photo showing the actual homes and boat docks by clicking the “Satellite” button along the top of the map frame causing the map to disappear. Then use the navigate arrows on the left to zoom in/out or move views north, south, east, west for more precise views.

   http://www.google.com/maps?q=1.....p;ct=title

   4. KEN’S BACKGROUND AND CREDENTIALS:
   From what I can tell based on reports thus far he wears two hats: (a) agent seeking patents to license, and (b) distributor.

   No one has asked to see his Resume or CV yet. Many have paid enormous sums of money sold on how he sounds/comes across in phone conversations as a “nice man” who “really knows what he’s talking about.” From the long list of products he currently represents not including those dropped from the list (one surmises because contracts ran out) he has to be very persuasive and in fact, personally speaking I might label him a “born again salesman.”

   We’ve heard he was formerly employed by “Absolutely New” a subsidiary of IP&R in San Francisco as a salesman (see links below). Business comments allegedly made to inventors about his former employer include: “IP&R stole my Contract” (I’ve read a few PWM contracts and frankly it astounds me anyone would sign one in the first place as it’s full of “deems appropriate” statements) and “IP&R is my competition.”

   A quick Google search produced the following links about IP&R:

   (a)
   http://www.inventored.org/caution/IP&R
   (b) http://www.uspto.gov/web/offic.....laints.htm
   (c )
   http://www.msnbc.msn.com/id/4863987
   (d) http://www.ripoffreport.com/re.....241288.htm
   http://www.ripoffreport.com/se.....rch=Search
   (e)
   http://loneinventor.com/ftopicp-555.html
   (f) http://patents.uspto.gov/web/o.....ckenna.htm

   Note: A Resume should be asked for since he’s acting as an “agent” seemingly experienced at “negotiating licensing agreements” and managing tens of thousands and more likely millions of dollars of inventor funds. Plus, PWM accepts royalty checks. We’ve been asked if PWM has an Escrow account for Royalty checks. We’ve no idea maybe someone else does?

   5. PWM SERVICES (a-h below cost $8,700 - $18,000 plus 35%). Here’s what one gets for all that dough:

   (a) Single webpage: (an inventor with no prototype claims the “thing” represented on his webpage is not a true likeness of the invention; plus, Ken continues to ignore his many requests to return animation to the page to show what it does!)
   (b) Brochure: a sheet of paper (copy of the webpage showing product) [referred to as a one page “full color marketing brochure.”]
   (c) “Cover Letter” : a sheet of paper titled, “Introduce the Invention.”
   (d ) Portfolio: a sheet of paper (copy of the web page) and inventor’s patent.
   (e) Trade show representation: available contracts stipulate PWM attends trade shows it “deems appropriate” (in other words if it “deems nothing appropriate” it doesn’t have to attend!) An inventor claims a list of tradeshows was given Ken to attend but he had other plans. Another inventor claims Ken does not rent booth space merely walks the aisles. On the flipside, he was observed at this year’s Truck Show in Vegas inside the booth of Panelite.com. The source who gave it added, “industry trade shows do not allow booth sharing.” If anyone has any evidence to support PWM directly renting a booth at an “industry” trade show let us know.

   Note: the term “deems appropriate” appears in several places not just “deemed appropriate” trade shows but mailing a brochure as “deemed appropriate”; introductory letters as “deemed appropriate”…….

   (f) Contact of “key industry personnel”: contracts on file stipulate “by telephone or in person to discuss possible commercial uses for the Invention.” which begs a question: why does PWM *spam (*not pre-requested by companies) emails and/or mail to companies? What happened to “phone calls and personal appearances?” An inventor read us many email responses from companies stating they were (a) not interested, or (b) do not accept submissions (why on earth send an email to a company not thoroughly pre-qualified “by telephone” to receive it?)
   (g) Progress Reports: Appears to be a true statement and does take place including personal phone calls to clients. On the flipside, an inventor claimed in 2005 Ken told him, “if I had to call you all the time with progress reports I’d never get any work done.” Another claimed no “marketing” actions sent to anyone and part of the reason Ken was fired coupled with his bungling a lead interested in licensing the product requiring the inventor hire an attorney to “get it done.” Additionally, contracts on file stipulate “if the client has not received such a report for any given month (which failure shall not be deemed a material breach hereunder), Client may contact Pacific World Marketing to request a copy.”
   (h) Negotiation and management of Royalties: how many have actually occurred since 2005? (see statistics below)

   6. STATISTICS AS OF MAY 2007:
   A PWM document mailed to us by an inventor whose own letter is dated May 30, 2007 disclosed the following (wonder why it’s not on their website!):

   Start:
   “ADDITIONAL DISCLOSURES” 2005-Febrary 2007:

   Number of clients 36
   Active Clients 35
   Completed Projects 1
   Licensed Agreements completed 1
   Licensed agreements negotiated 5
   Royalty Percentage 6%
   Clients receiving payments in Excess of Fee Paid 3

   PWM has retail products in Toys R US, K&B Toys and Napa Auto Parts

   For the purpose of commercial potential Pacific

   World Marketing LLC has evaluated 136 products.

   1) Inventions that have received a positive evaluation: 37
   2) Inventions that have received a negative evaluation: 99

   End

   Run the numbers in comparison to numbers of products listed on their site and those that have dropped off it over the years (not available now). No wonder he can afford a Jesse James custom bike and allegedly drive a Ferrari as well as own a lakefront home with a boat dock and keep a separate office and we don’t even know what his wife drives —-> YET! LOL!!! (Just joking).

   Note: We spoke to an inventor selling his game from off of his website. He told us Ken is a distributor for it and did get it into a local “Toys R US” plus has plans secured to put the game in another store over the holidays.

   Note: After contacting an inventor who turned out to be a PWM client who then contacted Ken about my call, I received a phone call from “the man himself” in the last couple of days. He claims to have licensed patent 6576823 “Musical instrument leg support device” to “Hot Picks” (owned by Stephen Key and Rob Stephani in San Francisco) though it’s not on the market yet. So, we have evidence of one (1) licensed product not on the market yet. Does anyone know of any other
   product(s) he’s licensed “on” the market? (Considering he’s been in business several years and is collecting an awful lot of money from inventors I don’t think it a tasteless question to get answered).

   INVENTOR ALLEGATIONS:
   There are so many complaints it’s hard to know where to start so below is a quick summary:

   1. Ken was fired for bungling a licensing deal. He was handed a lead to the nation’s largest saddlery corporation received from off an inventor’s private website in order he negotiate a contract. According to the inventor Ken has little if any experience negotiating licensing agreements. An attorney was hired “to get the job done” for $2,350. He got it done. So, for $14,350 the inventor alleges only receiving a “Portfolio” (described above) stated to be “a Joke!” Worse, it arrived months after the 60-days promised.
   2. Another inventor referred to the Portfolio arriving in a “clear plastic Wal-Mart cover” something “children make at vacation Bible school to send back to their parents.” Also alleged, after paying $10,000 toward an $18,000 contract and receiving unprofessional material and no qualified responses such as (read to me over the phone) “we don’t accept submissions” (the inventor questions why Ken didn’t pick up a phone before emailing “unqualified” companies in the first place?). There was also the promise of a “full color brochure” which turned out to be a computer-generated sheet of paper of her web page! Worse, animation was removed from the web page so it no longer demonstrates how the invention actually operates to its full potential. Ken has been asked numerous times to put it back but has not.
   3. Another inventor alleges his invention was promoted at a tradeshow NOT in the product’s direct market. Asked why the inventor was told, connections might be made.
   Wrong trade show! Wrong market! Wrong Answer!
   (4) Many ask why they were not told Michelle Waufle is Ken’s wife.
   (5) Another inventor alleges when Ken first got started he offered him a 50/50 split but was told “we don’t work that way.” Ken allegedly offered the following counter offer: “if” you write a testimonial for PWM’s website I’ll agree to a 50/50 split. The inventor agreed and wrote what was a phony testimonial –a link to it follows :

   Link:
   http://web.archive.org/web/200.....nials.html

   (6) An overriding question inventors ask is why Ken states he only accepts five (5) to six (6) new inventions per year so he can focus on them when it’s obvious from the growing list of products on his website this is not true and these do not include all those falling from due to contract expiration.

   As an aside: Two inventors asked if Ken still drives his custom-made $75,000 “Jesse James” motorcycle. Another wants to know if he is “still driving his Ferrari?” If anyone knows please respond and let’s take these inventors out of their misery.

   In closing, there are so many complaints I don’t have time to include that I have to question why inventors are not pounding on the patent office, FTC, local Attorney General, BBB, Ripoffreport.com with complaints? Some claim not to realize such options are available so here are links for anyone who wants to become proactive:

   Patent Office Complaint Page: (instructions in writing a complaint and mailing address toward the end of the page) http://www.uspto.gov/web/offic.....laints.htm

   Federal Trade Commission: File a compliant online. Go to “Complaint” link at the bottom of their home page - http://www.ftc.gov

   BBB San Francisco: http://www.oakland.bbb.org/complaint.html

   Attorney General of California: http://ag.ca.gov/contact/compl.....p?cmplt=CL

   Visit http://www.ripoffreport.com to file an online complaint.

   Please, feel free to correct any Errors of Fact and records will be amended accordingly after evidence, as applicable, corroborates it. If anyone has any other first-hand — in their files evidence — let us know?

   Regards to one and all and may the Sword of Justice never swing in your direction (especially if I’m on the handle end of it!) LOL!!!

   Penny

   Comment by Penny Ballou — August 9, 2007 #

4. Today I received a phone call from an inventor who allegedly paid Ken $11,000 on a $14,750 contract. The inventor stopped paying for many reasons deemed “deceptive trade practices”. For one it was alleged he was not told Michael Waufle was Ken’s wife. He thought he was dealing with the organization’s Director of Licensing “not the guy’s wife!” Ken told him he didn’t tell him because the inventor “never asked.” And, those 14-19 employees turns out to be (quote) “nieces Ken hires when he gets behind to answer phones.” Also alleged, the inventor had to personally pay to attend the National Hardware Show in Orlando because Michelle stated, “it is not that good.” It is this inventor’s contention only trade close to Ken’s home state he attends namely in Nevada.

   Additionally invention details were sent to two manufacturers “not” in the field of his invention and he (inventor) can’t get a straight answer why they were sent the information in the first place though Ken claimed one company was thinking of expanding its product line but when the guy was fired they were dealing with the “deal” went into the drink - assuming any deal was under foot in the first place.

   Does anyone have a copy of PWM’s “rough draft of a web campaign” per chance? It is not mentioned in their contract so I’d like to see just what it is about.

   Finally, the inventor claims not getting a fair return for all monies spent and furious he paid in the first place believing they had a huge organization rather than it being a husband and wife working out of their home. He feels duped and made a fool of after putting down $11,000 and paying $535 per months for months and months believing it was a large professional organization he was dealing with.

   Regards,
   Penny

   Comment by Penny Ballou — August 10, 2007 #

5. Today I had a conversation with a gentleman who is still under contract with PWM. He paid $15,000 to them.

   I asked him, “What is your biggest complaint?” He answered, responses coming back “not in their product line.”

   I then asked him what his second biggest complaint is, “not getting to the right companies.”

   Above sums up what inventors calling me have stated or me calling them.

   Penny

   Comment by Penny Ballou — August 13, 2007 #

6. In the interests of making a complete disclosure, this evening I received a call from the inventor of the musical device mentioned above. He was very upset at my stating I had spoken to him when in fact he pointed out I never had.

   He is right. He misread what I wrote and was yelling at me so loudly I had to hold the phone away from my ear but we both weathered the storm, thankfully. After he calmed down and realized “the man himself” mentioned above was NOT him but Ken Maghuyop we were able to speak in normal tones and what a joy he was. A good man. A realistic man. He also pointed out his contact was Rob Stephani and not Stephen Key, partners in Hot Picks. He is very hopeful when his invention gets to market it will do very well and I second his motion too. He noted that Rob Stephani presented it at a music show this year and took over one hundred orders for it. Well done Rob!

   One other point, the inventor thought I was a competitive marketing company and didn’t realize I don’t care one way or other and definitely am on no one’s payroll. My goal is to present facts as provided to me by inventors and post them. If I see a trait I personally deem unhealthy, I will list facts as presented to me and let inventors make up their own minds.

   My interest is not how nice someone sounds on the phone or how many times he/she calls inventors
   and mails reports but how many, in this case, licensed products are in the marketplace compared to inventors having paid money to the company from the day its doors opened. It would appear PWM’s only licensed product since 2005 is the music device when comparing its disclosed statistics sent to an inventor in May attached to a PWM contract. Personally speaking I find that rather pathetic in light of numbers of clients.

   I wish the inventor well and thank him with an after thought: next time hold it down a bit eh? (just kidding).

   Regards,
   Penny

   ERRORS OF FACT ARE INVITED - POST THEM HERE.

   Comment by Penny Ballou — August 13, 2007 #

7. BUNGLED POTENTIAL LICENSING AGREEMENT #2:

   Unlike the first agreement allegedly bungled by Ken (above) from off of a lead provided by an inventor resulting in the inventor having to hire an attorney “to get the job done”, today is evidence of a second bungled project.

   This afternoon an inventor alleges found in a pile of papers from PWM dated May of last year is a “Memo of Agreement” from a manufacturer to PWM seeking detailed info toward what the inventor deems a licensing deal. The “Memo of Agreement” was read to me. I advised the inventor to Bypass PWM and contact the manufacture directly since PWM had let it slip through the cracks. In other words, take back control and “get the job done!” The inventor called the manufacturer speaking with an administrator (boss was out of the office). Low and behold files indicated the manufacturer had requested details be sent to it right away. None had been forthcoming so files were closed.

   Sidebar: If the above is true and I have no reason to doubt it since the MOA was read to me, we now have not just a mad inventor but one who wants to get even.

   Frankly I’m not even dumbfounded based on what inventors are telling me. Why? Focus is obviously not on securing licensing deals but on keeping the lights on, in my personal opinion. What else could it be?

   The above two “bungled” projects coupled with claimed responses from manufacturers indicating (a) not interested, or (b) not in product category all point to (a) being understandable but (b) is NOT understandable but sloppy failure to “pre-qualify” companies before communications emailed as I see it.

   Inventors are paying far too much money for what they are getting especially when PWM is not even taking the time to pre-qualify who they email offers to?! Duhhh!!!

   Regards,
   Penny

   Comment by Penny Ballou — August 15, 2007 #

8. PUBLIC NOTICE:

   ERRORS OF FACT ARE INVITED IN REGARDS TO THIS TOPIC. FEEL FREE TO POST THEM. ANY WILL BE TAKEN UP AND ADDRESSED ACCORDINGLY.

   Comment by Penny Ballou — August 16, 2007 #

9. In the interests of a full disclosure, Ken Maghuyop called me this morning. He wanted to know what he has to do to make things better for his company. In essence I told him to call a spade a spade by:

   1. Add a Definitions preamble to his contract clarifying what a “brochure” (sheet of paper copied from a one page webpage) is. Calling it a brochure gives a false impression as far as I’m concerned.
   2. Add a definition for their Portfolio. State it is #1 plus a copy of the inventor’s patent.
   3. Conduct “audits” to determine how happy or not inventors are with the quality/quantity of his services and if they are getting value for dollar throughout the contract process.
   4. As to his 12-19 employees he insisted he has them. However, I was not convinced. I told him I’m talking payroll employees not vendors such as graphic artists, website designer, etc. He also said he only has one niece.
   5. I told him I don’t like his sloppy work of not pre-qualifying potential licensees especially in light of vast amount of monies being collected upfront (too many companies stating “not in our product category” from emails he sends out). I told him I thought he was buying mailings lists and using the free ThomasRegister.com to find leads. He had no response which does not mean he is…merely he had no response.
   6. He does drive a custom made Jesse James motorbike and a Ferrari but insisted they are not high end and cost much less than available models.

   He plans changes to his site soon and some sort of new service shortly. Like I told him, I have no axe to grind I just want inventors to get what they think they paid for. He was pleasant and social as always which was to be expected.

   Regards
   Penny

   Comment by Penny Ballou — August 17, 2007 #

10. Well dear readers it would appear “Pacific World Marketing” has just surpassed the Stratosphere (approx 30-35 miles up) in terms of pricing soaring into the Exosphere (approx 62,000 miles up)!! We just received an email indicating an inventor was recently asked for $26,500 for their “services.”

    I guess my words and advice to him went by the wayside. What should one expect, afterall.

    Regards,
    Penny

    ERRORS OF FACT ARE APPRECIATED AS LONG AS THEY ARE PROVABLE BY FIRST-HAND EVIDENCE.

    Who is kidding who?!

    Comment by Penny Ballou — August 22, 2007 #

11. I just ran upon this blog today and contacted Penny regarding PWM shortly thereafter. I am the inventor she mentions that received an estimate for $26,500 to market my invention. In their ONLY defense, they asked for $14,000 up front which seemed very high given they did not have a written “plan”.

    Upon asking Ken for a tangible, written marketing plan, he never contacted me again. Shortly thereafter, I googled his name which brought me to this blog. Sadly enough, I definitely felt fortunate hearing about his enthusiasm for my inventions and his willingness to market them. Upon stumbling upon this blog, I realized that I was not fortunate, nor was my invention any more special than the others he has also represented or pursued.

    I can say that I was not taken advantage of PWM (outside of my time spent speaking to him) but I can also say in the same breath that the enthusiasm I felt through his smooth sales pitch about my invention was not genuine. It seems he reserves the same treatment for all of his potential “assets” after reading other testimonials.

    After Penny posted her comments above today, Ken called me to ask why I had given her the $26,500 estimate and that he was only asking for a portion of the sum up-front. He was trying to lessen the blow. The invention he was so fired-up about a week and a half ago was never even mentioned in the conversation. One can only assume that it was part of a scam.

    I am just another entrepreneur trying to market my patents. I, along with other inventors, am very receptive to outsiders interests. It is very sad that people prey on people of our profession. We have spent well earned money to pursue our passions. Although I did not have a necessarily negative experience with PWM (because my money wasn’t taken), I highly advise other inventors to take heed to the opinions stated on this blog. I would advise others to ask the same leading-questions about PWM and other submission companies and see what reactions you receive.

    Karma will prevail, Ken. In time, you will spend time in jail (it’s inevitable) and be aquainted with Bubba and his patented (utility patented)idea about your rectum. Try marketing that idea when you get out. I will charge you $40,000 to market it. By the way, I need $40,000 up front.

    Sincerely,

    Goose Lopez-Torres
    Gooseneck Enterprises, LLC

    Comment by Goose Lopez-Torres — August 22, 2007 #

12. Hi Goose,

    After studying your two patents I would strongly and urgently advise you NOT to entertain any invention marketing company or respond to their (what I like to call) PACL’s (patent ambulance chaser letters).

    You’ve an invention outside of the norm of let’s say a consumer item. Make contact with manufacturers of plumbing equipment fittings typically sold to installers of urinals/toilets.
    Those are the minds and pocketbooks more likely than not you should reach.

    Pick through the below link to find leads who could refer you to who you should be contacting:

    http://www.thomasnet.com/nsear.....plisting=2

    Regards,
    Penny

    Comment by Penny Ballou — August 24, 2007 #

13. Hello Goose,

    I work in product development for the auto aftermarket industry. The most important thing I did for my product’s development (now licensed and manufactured overseas), was to become involved in the specific industry and to also become a member of the largest automotive aftermarket industry organization in the world SEMA. http://www.sema.org Specialty Equipment Market Association.

    I suggest you nail down who that is for your industry and start there, maybe do a trade show with your product and bring some pricing.

    Cheers and if you have questions, you can contact me directly at 619-884-8563.

    CargoCatch
    http://www.cargocatch.com

    Comment by CargoCatch — August 25, 2007 #

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