Nov 4, 2009
How can I prevent a potential investor or collaborator from stealing my ideas?
Before disclosing proprietary information (including inventions, business plans, customer lists, etc.) to a potential investor or collaborator, you should require them to sign a confidential disclosure agreement (cda), also known as a non-disclosure agreement (nda), which obligates the recipient to maintain the information in confidence for a period of time (typically 3-5 years) and not use it for any purpose other than evaluating the business opportunity. A signed cda only gives you a right to sue for breach of contract. Since the recipient could still use or disclose the proprietary information in an unauthorized manner, even with an nda in place, you should disclose as little as possible initially and increasingly more when you are more confident that the investment or collaboration will actually happen. You should always file appropriate patent applications before disclosing an invention to a potential investor or collaborator- with or without an nda in place.
