As a patent attorney, we speak with clients who have great ideas, but are afraid to take them into the world for fear that they might be stolen. This, unfortunately, is a very real dilemma. For the inventor or creator of a product or idea, they often need to be able to sell the idea to another company or to investors so that they can enter the production phase. Many entrepreneurs and inventors hesitate because they are afraid that they could reveal too much of their idea and have it stolen or duplicated. Fortunately, there are ways to protect yourself from such fears becoming a reality.
Even with a good attorney, getting a patent takes time and money. If you need to pitch your idea to a buyer or an investor today, in order to get the orders or capital you need to be successful, this can create an immediate challenge. There are, however, two methods of protecting yourself from either of these eventualities and giving yourself the breathing room you need to grow.
The first option is to file a provisional patent application. Typically you will need to meet certain criteria, the most important of which is that your invention has to be patentable. As a patent attorney, we can tell you whether or not your invention can be patented or submitted for a provisional patent. Additionally, within one year of filing for a provisional patent, you must also file a regular patent application.
Filing a provisional patent application has three distinct advantages:
- It is easy to prepare
- There is very little cost associated with it
- It gives you the right to use “patent pending” which can deter knockoffs.
The second options, and if done right the more viable option, is to have the parties sign a non-disclosure document. A non-disclosure agreement, sometimes called a confidentiality agreement, is a legal document that prevents the signer from using your secrets without permission. There are a variety of different forms of a non-disclosure agreement (NDA) can take, but all of them contain these three elements: –
- The definition of what is and what isn’t confidential: Every NDA provides a clear definition of what elements are considered secret information or trade secrets. They also specifically outline those elements that are not considered proprietary and relieve the signer of any obligation to protect information that is either not proprietary or can be found from a source other than the inventor.
- Obligations of the signer: The basic premise of an NDA is that the signer, or receiver of the information, must hold the information in confidence and agrees to never share it without the express approval of the inventor. Other provisions like agreeing to never induce someone to share this information, agreeing to never breach the agreement, and agreeing never to attempt to acquire information by improper means are relatively standard language for any non-disclosure agreement.
- Time: Agreements are almost always bound by time limitations, and NDA’s are no exception. Typically an NDA will be for five years unless otherwise negotiated by the parties. The rule of thumb is that within five years it is likely that the invention and its secrets will probably be available to others outside the room.
For more information on how to keep your invention safe, speak with a patent attorney.