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Learn everything you need to know about contracts including NDA’s and partnership agreements. Dont relax when it comes to contracts and be sure to get professional legal advice.

June 8, 2012

Non Disclosure Agreement

A Non-Disclosure Agreement (NDA) is also known as a confidentiality agreement which is a legal contract between you and another party which prevents them from sharing your information with others. To be able to share new knowledge and original work it required a lot of trust. It is essential to consider confidentiality before seeking a company to develop your ideas. You will typically get an NDA signed when speaking to new manufacturing suppliers and rapid prototype companies. Basically whoever you choose to disclose information to you should get a NDA written up and signed.
June 8, 2012

What is a NDA?

A Non-Disclosure Agreement (NDA) is a low cost way to protect your business. When you and another party sign a NDA its an agreement that allows you to openly talk about the idea you have without them disclosing the idea to anyone else. So you have an idea of a new product and you need to get it manufactured. Before you send the manufacture any details of your product or idea you need to get them to sign a NDA.
June 8, 2012

What will NDA cover you for?

Its a good idea to get an NDA signed by other parties to cover you for the following: Business Plans or Strategies Mathematic and chemical Formulae Trade Secrets Technical Drawings, Designs and Specifications Physical Devices and Articles Processes Customer Lists
June 8, 2012

Key terms used in NDA’s

I have made a list of key terms used in NDA’s that may help you understand: Confidentiality Legal principle that maintains secrecy between parties. Owner or disclosure Name of the owner, business disclosing the information. Recipient The name of the person company receiving the information. Statement of Reasons Paragraph defining the context  in which the information will be disclosed and why the parties want to make the information the subject of the contract. Subject This is the information and documents that will be the subject of the confidentiality agreement. Penalty Clause A fixed amount of compensation should the recipient breach […]
June 8, 2012

Issues when signing an NDA

The NDA is a binding contract  which allows parties to share information.  If a party breaks the contract and leaks information they can be taken to court for damages. You can however get an injunction from a business partner if you feel he is about to breach the agreement. This is also a good reason to get a Patent Pending application.
June 8, 2012

Inventors and business partners

Business partners often join together in business with very little paperwork and planning which tends to cause problems in the long run. Most of the time these partnerships end in tragedy due to anger, frustration and most importantly unmet expectations. To avoid the issues mentioned above and ensure a smooth working relationship there are a few things I would suggest you clear up from the start. Financial Goals Are you both working toward the same goals? Be sure to discuss where you see your product going and more importantly how much you are going to sell your product for. You dont want the scenario of one […]
July 9, 2012

What is a Trade Secret?

NDA’s won’t give you permission to protect anything that is already known publicly. A trade secret is information that has been kept secret since it was conceived and will spend the rest of its life in concealment only released to parties who are bound but a confidentiality agreements. A trade secret must have some economic value or provides a competitive advantage. Trade Secret examples Product Design Specification Product Development Agreements Patent Pending Applications Cost and Pricing Information Business Plans Financial Projection or Plans Data of Sales Customer Contacts or Lists Any unpublished material Trade Secrets that cannot be protected Failure […]
July 9, 2012

NDA as part of Trade Secret

The key to identifying what information is trade secret in your company is the first step to a protection program. What gives you that edge over competitors that puts you one step ahead, this is your secret and you need to protect it. Remember Trade Secrets doesn’t have to be a highly classified document it can also be written down on paper on a computer or even in your memory. Don’t get too carried away with Trade Secrets, I wanted to highlight that if you have an idea that is going to give you that edge then its a trade […]
July 9, 2012

Types of NDA’s

Typically there are two types of NDA’s, a unilateral or one sided agreement and a mutual agreement. One Sided Agreement Most NDA’s are one sided and used by the inventor to protect themselves from any information that is disclosed to another party. Mutual Agreement Im sure you could guess this one. A mutual NDA is written to protect both parties who need to disclose information to each other. This mutual NDA is typically used when 2 parties are looking to merge or form a joint venture.
December 25, 2014

Protect your invention ideas without a patent

You might be thinking, “How do I make my idea a reality without sharing it with others?” At some point, you will need to share your ideas with designers, manufacturers, distributors and marketing experts. The most common way of protecting your idea is, of course, to obtain a patent. This process, however, can be costly, not to mention time consuming as they can potentially take years to be approved. There are other cost effective strategies that you can use to protect your idea from being stolen. Agreements There are a few legal tools to help protect your idea. These tools […]