Agreement on invention with NDA, $785,000 search cost, tech health design.

Question

I signed an agreement with a Non-Disclosure Agreement (NDA) concerning my invention, which involves tech health and custom design. The person I signed with is charging $785,000 to conduct a full search to find out if there are any ideas similar to mine. There was no prior agreement or clause about the cost or obligation of such a search in the NDA. Is this a reasonable cost for the search, and what should I do to ensure my invention is protected and fairly assessed?

James L. Arrasmith · Answer

$785,000 for an invention search is extraordinarily high and raises serious red flags about the intentions of the person you've signed with. Normal patent searches or prior art investigations typically cost between $1,000-$5,000, with complex searches rarely exceeding $20,000, making this quoted amount dramatically inflated and potentially predatory. 
 
You should immediately consult with an independent intellectual property attorney who can review your NDA and advise on your legal position. The absence of any clause mentioning search costs in your NDA means you likely have no obligation to pay this amount, and you might want to consider terminating the relationship with this individual while ensuring your invention remains protected under the existing NDA terms. 
 
For long-term protection, consider filing a provisional patent application which provides a year of protection while being relatively inexpensive, giving you time to explore legitimate commercialization paths. Remember that legitimate business partners interested in your tech health design would never demand such exorbitant fees upfront before proper valuation or development begins, so trust your instincts when something feels wrong in business dealings around your valuable intellectual property.

Q: Agreement on invention with NDA, $785,000 search cost, tech health design.