This post is part of our ‘Ask a Lawyer’ series where Nilan Johnson Lewis, a Minneapolis-based law firm, answers your startup questions.
Q: Our startup wants to discuss our business ideas with potential partners. How do we protect our intellectual property?
A: We all hate to think that someone might steal our ideas, but you can alleviate some of that worry by entering into a non-disclosure agreement (NDA). NDAs are a relatively simple and practical way to protect your intellectual property. An NDA is an agreement between parties to classify certain information shared between them as confidential and to prohibit its disclosure to others. NDAs can be mutual or unilateral, depending on the nature of the relationship.
And a well-written NDA should define confidential information so that both sides are on the same page with regard to what information must be kept confidential. NDAs are not necessary if the information exchanged is already known or publicly available; however, they work well for intellectual property and other proprietary information.
Examples of information that you may wish to protect include product designs, financial information, trade secrets, and client information. Worried about maintaining an array of NDAs indefinitely? No worries—NDAs generally have a term of 3-5 years, and can be tailored to fit the needs of your business.
Starting a business can be an exciting and overwhelming endeavor. While the prospect of discussing your new and novel ideas may be exciting, make sure to protect these valuable assets.
This post does not constitute legal advice and does not establish an attorney-client relationship.
