Innovating a new product idea or concept is a long-drawn process where you’ve likely invested sheer hard work, money, and effort to turn your vision into a workable prototype. To monetize the invention, you must partner with a manufacturer who will develop the concept, advertise, and market it to end-users. Licensing a business for production runs the risk of intellectual property theft, and you could lose the rights along with any royalties you should earn.
Although the law has several provisions that inventors can use to protect their inventions, navigating loopholes is best left to patent attorneys who can guide you in the best direction. Here’s some valuable advice you’re sure to find helpful.
File a Provisional Patent Application (PPA)
If your invention meets the legal criteria, it could be eligible for protection under US patent laws. Patents can be categorized into plant, utility, and design patents. Provisional Patents are easier to obtain, costing inventors only a few hundred dollars. You’ll acquire the status of “patent pending,” which is valid for 12 months. Having a provisional patent effectively deters potential theft and warns infringers that you’ll protect your rights under the law.
During this time, you can safely exhibit your prototype or concepts to interested developers and explore the commercial viability of the products. However, inventors must gain adequate funding and licensing within these 12 months, since the protection is temporary and cannot get an extension.
Get a Non-Disclosure Agreement (NDA) Signed
Before revealing your invention, you could get interested licensees to sign an NDA or Non-Disclosure Agreement. NDAs are legally binding and also called Confidentiality Agreements. These papers entitle you to recover damages in case of a breach or leak of information according to the terms that are specified in the contract. Although getting the NDA notarized is not mandatory by law, you could contact online notary services to authenticate the signatories’ identities and maintain an official record of the document.
Your attorneys will draw up the NDA with precise wording that indicates the exact information that is deemed confidential. The contract also outlines the parties’ obligations to maintain complete secrecy and the exact interval for which the NDA is applicable. Penalties in case of breaches are also specified in the agreement. Your lawyer will advise you to get an arbitration provision added to the NDA to resolve any violations and damages out of court.
Vet Your Potential Partners Carefully
Vet the manufacturers carefully by researching their backgrounds and exploring their relationships with other inventors and businesses in the past. In case they have faced litigation before, find out the details. You should also maintain a complete record of the emails and other communication you have with the interested parties. These records can prove to be invaluable in case of violations of the terms of the NDA. If they are willing to sign the NDA, that could indicate good faith and reliability.
Enter into a Confidential Relationship
A Confidential Relationship is “implied” and not a written agreement, which makes it difficult to prove in court. But it does provide some measure of protection. Several criteria can indicate a confidential relationship, like if the partner solicited the concept from you. If the inventor clearly suggests that they expect monetary compensation for sharing their intellectual property and requests that it be kept secret, that is again an implied contract. You’ll also indicate that your idea is a trade secret unknown to competing businesses and has commercial value.
Having developed an innovative concept, it is reasonable to want to safeguard it from theft. Consult an experienced attorney to advise you on the steps to take.