Non Disclosure Agreements (NDAs), sometimes called Confidentiality Agreements, are often used by innovators when approaching third parties to discuss a new, or unpatented product. However, not everyone will sign an NDA. Why not?
Many large corporates have their own R&D teams and do extensive patenting around specific technologies. They may be working on something similar or in related fields, so signing an NDA may severely limit their current activities and curtail their future developments.
Similarly, professionals in the innovation field, such as IP attorneys and commercialisation specialists see new ideas every day. Signing a restrictive NDA would impact on their ability to work with other clients with similar or related ideas or even to have discussions with them.
Likewise, investors regularly evaluate new ideas and get inundated with pitches from innovators seeking funds. Insisting on an NDA makes it easy for an investor to pass on to the next less paranoid founder. Trust is an important factor if you want an investor’s money.
Keep in mind that ideas themselves aren’t worth much. It’s the execution and the ability to turn the idea into a workable, viable product or a profitable business that makes them attractive to investors or third parties. Sharing your idea can result in constructive feedback and get you the expertise you need to bring it to market. So don’t be too paranoid!
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Do you need help to develop your idea and get it to market? Do you need to find grants, get a design or prototype? INNOVIC provides a full range of commercialisation services. We do zoom and telephone consultations and provide services nation-wide. Check out our newsletter – it has with all the latest grants, free resources and useful information for innovators and entrepreneurs. Call us now on (03) 8060 3504 to find out how we can help you.
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