California CodesBusiness and Professions Code - BPCDivision 8 — Special Business RegulationsChapter 17 — Invention Development Services ContractsArticle 5 — Financial RequirementsSection 22389
Every invention developer rendering or offering to render invention development services in this state shall maintain a bond issued by a surety company admitted to do business in this state. The principal sum of the bond shall be 5 percent of the invention developer’s gross income from the invention development business in this state during the invention developer’s last fiscal year, except that the principal sum of the bond shall not be less than twenty-five thousand dollars ($25,000) in the first or any subsequent year of operations. A copy of such bond shall be filed with the Secretary of State prior to the time the invention developer first commences business in this state.
The invention developer shall have 90 days after the end of each fiscal year within which to change the bond as may be necessary to conform to the requirements of this section.
Notes
Requires every invention developer offering or providing services in California to maintain an admitted-surety bond equal to 5% of prior-year California invention-development gross income, with a $25,000 minimum in every year. Requires filing a bond copy with the Secretary of State before first doing business and allows 90 days after each fiscal year to adjust the bond as necessary.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 22389 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-8/chapter-17/article-5/section-22389