Inventions and NDA: What Do They Share? Articles | Invention

By: J.Morgan

When talking about inventions you may come across a NDA. What exactly is a NDA; it is an acronym for non-disclosure agreement. This is a contractual agreement between two parties to protect confidential information related to business. This is a legal binding document that can be used in any type of business and may result in arbitration if the NDA is broken

There are two kinds of NDA, mutual and directional. The mutual NDA is used for meetings in which private or confidential business information is discussed. These are usually between two people and both will sign the contract agreeing not to share the information with anyone. This includes but is not limited to the press; they also will not be able to use the information for monetary or personal gain.

NDA and Inventions

When dealing with patents you will most likely use a directional NDA. The nature of the patent process is such that many people will see all or part of your idea before you are granted a patent. A good way to protect your invention is to have everyone involved sign a non-disclosure agreement with you. This way you are assured that no one will try to steal the idea as his or her own or profit from it in any way.

A directional NDA is prudent here because the confidential information is only going one direction, and that is from you. The patent practitioners, marketers and distributors are not sharing any private information with you that needs protecting. Therefore, while trying to get your invention through this patent process you will want to have everyone involved sign a directional NDA.

Signs to Be Aware Of

While going through this important process there are some red flags to be aware of. If while working to obtain your patent you come across someone who will not sign a NDA, you should run quickly in the other direction. Do not do business with this person or corporation because they cannot be trusted. The only one hurt by the NDA is the person who would break it and steal your idea.

You will have no legal recourse should someone take your invention as his or her own, without the NDA, you are powerless to prevent it. Go the extra mile and make sure the NDA you do have provides you with adequate protection. The only thing worse than no NDA is to have one and feel secure only to find out later a key provision was missed. Read the whole thing very carefully and ask a patent attorney about anything you do not understand.

Not all NDA documents are created equal. You do not want to find out a crucial moment that all the confidential material you just shared was not protected information. Know exactly what you need in a NDA and be sure you have it.