In Part 1 I laid out the three-step invention protection plan I encourage inventors to use to help prevent their invention from being stolen. In part 2 I discussed the first step of the plan, applying for patent protection. In part 3 I discussed the second step of the plan, the use of non-disclosure agreements. In this fourth and final part, I explain the last of the three elements of the invention protection plan- limiting how much information you disclose.
Step 3) Disclose only as much as necessary
Why patent applications and NDAs alone are not enough
Non-disclosure agreements and patents only act as a deterrent to those who would take your invention from you. They give you legal remedies in case they are breached or infringed upon, but they cannot proactively stop someone from taking your idea. If they want to, they can. They just are likely to end up owing you a lot of money. But, you might only collect that money years later, after a drawn-out court battle.
Consider the case that inspired the movie “Flash of Genius.” The big automobile companies stole an inventor’s new designs for improved windshield wipers after he went to them to work out a partnership, even though the inventor had patents covering the new designs. Only after a decade-long court battle was the inventor able to recover. The inventor received tens of millions of dollars in damages, but the long court battle cost him his health and disrupted his family.
Of course those events took place years ago. Nowadays it is a little easier to enforce your patents by arranging to sell your patent to a firm that specializes in patent infringmenet litigation, or by working out a contingency fee arrangement. Nevertheless, collecting damages in court is never a fast, easy, or certain process. Much better to make it impossible for a company to steal your invention by never disclosing the details at all!
How much information should you provide?
Do not disclose anything unless you have a reason to. At first, disclose your general idea. If the party shows genuine interest and has legitimate questions, you can answer them with further appropriate disclosure under an NDA. Substantial disclosure is always going to be necessary to seal a deal, and you should not be afraid to do so with the first two safeguards in place. But do not send anyone all the details of your invention without a good reason.
So, that’s it, my three-step plan for inventors to safeguard their ideas from misappropriation. Anyone have ideas for additional safeguards, or disagree with one that I have listed?
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