Although Inventors Are Often Fearful When Presenting New Products, There's a Simple Tool That Can Help Alleviate the Worry.
By Mike Foley
Taking your new product to a reviewer or venture capitalist is like riding a motorcycle on rough or slippery terrain. You can do it, but you're better off wearing some good-quality protective gear. In a highly-competitive marketplace, it's no wonder so many inventors freeze at this stage of the invention process or (worse yet) develop so much paranoia that the product never gets off the ground.
The solution? Protective gear. Just as a motorcyclist might use protection, so should you when taking your product to the market. In this case, your protection is a Non-Disclosure Agreement that helps safeguard the inventor's products and ideas against infringement. And that's an important element in creating a sense of comfort in marketing.
"Inventors are normally very paranoid about someone stealing their ideas," says John Moreland, publisher of Dream Merchant magazine. "The Non-Disclosure Agreement helps dispel that fear. They can then relax a bit and discuss the product freely."
Moreland, whose company offers inventors a "Walk-Through" program that assists them in protecting and marketing new products, has utilized such agreements as part of the service for the past eight years. The agreement promises to keep all information, ideas, models, drawings, and discussions in strict confidence, also stating that no Dream Merchant employee will use the inventor's Intellectual Property for their own benefit or profit. In most cases, Intellectual Property covers such items as ideas, designs, prototypes, formulas, software, pictures, music, story ideas, business plans, etc.
Although many inventors may still be hesitant to share new products and ideas, it's important to remember that potential licensees or financial backers can't help you unless they know what your idea is and what you're trying to achieve. At some point, an inventor must let go of fear and allow the process to continue.
"If you feel uncomfortable with the situation or the person you're dealing with, you should definitely walk away," says Moreland. "But it also helps to look at things realistically. Products and ideas are stolen only rarely."
Moreland likes to cite Mark Twain, who said he was a "man of many fears, most of which never happened." In addition, Moreland reminds inventors that they aren't limited to a single idea. Most creative individuals have several products or ideas they're working on. That fact, says Moreland, can be a bargaining chip in trying to establish a working relationship with a company.
Before signing a Non-Disclosure Agreement, be sure the document contains the following:
* The full names of the inventor and the company reviewing the product
* A statement of what each party will do--the inventor will disclose the information, while the reviewer agrees to keep that information confidential
* A time frame (the agreement will terminate after a given time)
* An agreement by the reviewer (and employees of that company) that the information won't be used for their financial gain
* An enforcement provision outlining the actions an inventor can take in the event the agreement is broken (lawsuit, arbitration, etc.)
* A detailed description of the invention
Inventors should make copies of the agreement, keeping them in separate files at home, in the office, and in a safe deposit box at the bank. In addition, Moreland suggests that the Non-Disclosure agreement be used as part of a total package, to also include an inventor's notebook and registration with the U.S. Patent Office's Document Disclosure program.
"Keep as much power as you can," Moreland suggests. "You can even draw up your own Non-Disclosure Agreement to take with you. Then you can say, 'Fine, I'll sign your agreement if you sign mine.' That sometimes helps level the playing field."
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