Attorney Vincent LoTempio answers these questions:
What are the benefits of Non-Disclosure Agreement (NDA)?
When should you use NDA?
What happens when you have an idea, and you’d like to tell friends or other professionals about it? Is there anything preventing people from stealing your idea?
Obviously, a patent would protect your idea. But quite, often, inventors don’t have patents before they want to talk to manufacturers, marketers, distributors, or investors. Patents can take several years to get approved.
So how do you make sure these people don’t steal your idea? The best way is probably through a non-disclosure agreement or NDA. A non-disclosure agreement is a contract that says if the party to the contract steals your idea you can sue them for breach of contract damages.
Non-disclosure agreements are great for inventors to use during the initial feeling out stage. It probably makes sense to see what investors and manufacturers think, generally, about your idea before you go all in on pursuing a patent.
It’s always best to work with trustworthy, reputable individuals. Before you sit down and talk to another professional about your invention, do your homework and search on the internet and see what people are saying about them.
Sometimes these other companies you’re dealing with will offer you a non-disclosure agreement of their own. Be sure to read these documents carefully, though. A lot of times manufacturing companies will draft NDAs that are heavily weighted in their own favor. Don’t sign an NDA that provides the inventor with little or no protection at all.
It’s, also, important to make sure you’re picking the right individuals in these companies to talk to. Do your homework, and find the person in these companies who can say, “yes, we want to move forward with you and your invention,” not the person who is only authorized to say, “no.”
When you find yourself in this meeting, make sure you have your presentation down and are ready to go.
Please feel free to contact Vin LoTempio with any and all questions at (800) 866-0039
Invention Help Video Series – Learn how to protect & profit from your good idea. In easy to watch & learn videos I will help you learn how to protect your idea, identify the right kind of patent for you, how to license your invention and much more!
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