Confidentiality NDAs etc..

**pboychuk** · 10-07-2008 08:00 PM

So,

At my school there is this "top entrepreneur" comptetition. I have always been one to do all the work myself, use my own money etc. But I have an idea which I want to enter into this competition. Today was the orientation, and i asked one of the people who run the competition if there would be any protection offered for the submitted ideas. This is my first competition of this type so i dont really know how they work, but i assume they are all very similar. basically he said NO, the judges, investors etc.. will not sign an NDA. He said angel investors and venture capitalists would laugh if you asked them to sign an NDA before pitching your idea.

So what I want to know is:
Is this common? Should I be worried?
Do investors refuse NDAs?
Has there ever been a "leak" in a competition like this?

Also,
What can I do on my own to protect my idea, I believe I can patent a process, I am not sure if my idea would be patenable or not. Otherwise, I just want to make sure me and my idea are safe.

**Iamnotsatisfied** · 10-07-2008 08:58 PM

There is always a chance of a leak if it's a great business idea.

Most investors, banks or even grants organizations won't even consider signing a NDA. If they did, they probably would have to employ a lawyer to keep all the agreements they signed in check... This is going to cost them extra money; which is what they are trying to avoid.

However if you submitt a small summary of the idea and impress them enough then maybe they'll sign it if it's in their interest.

Not sure about this competition though...

P.s. You cannot patent an idea.

**armenh** · 10-07-2008 10:57 PM

Originally Posted by Iamnotsatisfied

P.s. You cannot patent an idea.

This is new to me, what do you mean you can't patent an idea?

**pboychuk** · 10-07-2008 11:04 PM

Originally Posted by armenh

This is new to me, what do you mean you can't patent an idea?

Maybe when I said idea it was to broad of a term, i meant to say, patent a business process, for example, the "telemarketing" process was patented and whoever did that made tons from royalties, basically you are patenting a new or more efficient way of doing something <---- what i was trying to say. Anyways, as far as my original questions, I believe my best bet is to just keep the idea as close to myself and partner as possible. I just wanted to make sure i wasnt getting bullshitted when he said investors wouldnt sign an NDA, and in any case it would be basically useless.

**StealYourDreams** · 10-08-2008 02:14 AM

Originally Posted by Iamnotsatisfied

There is always a chance of a leak if it's a great business idea.

Most investors, banks or even grants organizations won't even consider signing a NDA. If they did, they probably would have to employ a lawyer to keep all the agreements they signed in check... This is going to cost them extra money; which is what they are trying to avoid.

However if you submitt a small summary of the idea and impress them enough then maybe they'll sign it if it's in their interest.

Not sure about this competition though...

P.s. You cannot patent an idea.

Institutional investors won't sign an NDA because It potentially prevents them from investing in something comparable. Face it, many things people think are novel ideas or processes have been done before.

It doesnt have anything to do with the cost of drawing up the agreements or keeping track of them.

**Visalus Sciences** · 10-08-2008 03:12 AM

Yes venture capitalists will laugh in your face if you ask for a NDA b/c these people have entrepreneurs pitch them several business plans a day. So for them to sign a NDA for every single one would be a waste of their time. And they dont play when it comes to their time or their business. My school puts on something similar and no, we dont have the venture capitalists sign NDAs.