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NDA for research?

 
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Elizabeth83

posts: 3

Jul 23, 2008 7:02 PM ET    Quote  Report Abuse
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I`m in the preliminary stages for my business and I`d like to gather pricing from independent seamstresses, however I`m nervous of disclosing my business idea.  This is probably very similar to other posts, but I`m really confused!  I`m meeting with SCORE at the beginning of August and will probably review this with them, but I`d really like to get going on my analysis to see if this business would even be profitable for me.
Do I have an attorney put together an NDA for them to sign?
Thanks!
 
DeenaEsq

posts: 40

Jul 24, 2008 8:48 AM ET    Quote  Report Abuse
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You certainly can, but in my experience both as an intellectual property/internet attorney and as a business owner who has used independent seamstresses for my babycarrier business, it`s unlikely that they`ll care.   I have found that laypeople are often wary about signing a document that they really don`t understand.  You may have a problem getting seamstresses to work with you if you insist that they sign a legal document before they do. 
If it makes you feel better, have an NDA, but make sure you`ve got a good one.  Without the proper language it won`t be useful or enforceable.  That being said, you don`t really need one.  The pattern that you`re providing to the seamstresses holds common law copyright and you can always protect your rights that way. 
 
Hope that helps.  Let me know if you have other questions.
 
Deena 
_________________________________________________________________
 
Any opinions are offered without knowledge of the specific law of your jurisdiction and with only the limited information provided in your post.  No advice given here should be reasonably relied upon by you or any third party without consulting an attorney who is aware of all of the facts and law surrounding your situation.  Any advice given here is not intended to create an attorney-client relationship in any way.


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Deena B. Burgess, Esq.
www.ebusinesslawgroup.com
Offering Affordable Legal Solutions to Online Businesses
Check me out at Twitter and Linked In
besthealth

posts: 277

Jul 24, 2008 10:11 AM ET    Quote  Report Abuse
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Congratulations on going forth on exploring and taking that step to get your business up and ready for the consumers. I can relate to wanting to protect your idea as you don`t want it exposed to someone who may have the resources to run off with it........... What I would suggest for you to do is find a way to explain your business concept enough to make it stand out without giving out all of your details.

In any case, you want to let your counselor know your idea which in most cases are quite secure. I am not sure that you will need to go that far as they are retired business owners who are willing to mentor/guide you through their own level of expertise.

I wish you great success!!!!!!!



-------------------------

Take each day, mold it and make it yours.......

http://www.solutionshealthnwellness.com
Aug 07, 2008 10:00 AM ET    Quote  Report Abuse
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I have found that laypeople are often wary about signing a document that they really don`t understand. You may have a problem getting seamstresses to work with you if you insist that they sign a legal document before they do. The pattern that you`re providing to the seamstresses holds common law copyright and you can always protect your rights that way.

I don`t expect anyone to think my opinion carries any weight, it just doesn`t seem to around here but I am compelled to comment nonetheless. Deena`s advice is the ONLY advice I`ve ever read on StartUpNation that is on target in this aspect.

However, I would qualify the reasons for one`s reluctance to sign -based on my 25+ years providing pattern and prototyping services in the garment industry. Keep in mind the below applies to people like me with a long history in the business (the people you most need to hire). The top ten reasons we don`t want to sign are:

1. The DE (designer-entrepreneur) is using intellectual property that does not belong to her/him. Iow, they`re using a home sewing pattern or a product belonging to someone else.

2. The DE has lifted the idea from someone else. It is far more common that startups copy each other, people on their same level, than it is for established firms and services to do it. It is arrogant for them to expect us to be ethically bound to hide their unethical behavior.

3. The item is usually ubiquitous and can`t be protected. Lots of eye rolling (a sign of contempt) goes on when you`re not around and you`ll never get the best work out of people who don`t respect you.

4. The DE broadcasts information I would consider to be highly proprietary to the world, yet they expect us to be liable if it gets out? This is ludicrous. Unfortunately, most -and I do mean most- startups have NO CLUE what is proprietary. It is never what they think.

5. It`s insulting on many levels.
    a. It`s just not that great; it wouldn`t be worth the hassle of going broke over and we would go broke. Word gets out (see below). It`s insulting that someone would think their product idea is worth ruining lifetime careers, reputations and credibility. NO ONE on the planet has an idea that valuable. Our integrity is not for sale at any price.
    b. You are not how we get business. Except on my private forum, a designer will never tell a potential competitor who makes their patterns, where they buy fabrics, or who does their sewing so we get no referrals from you. We rely on our peers (usually "competitors") for business. We will not refer our colleagues who have the slightest whiff of impropriety. There are enough bad apples in the business who make us look bad.
    c. It implies we are unethical. People tend to expect from others what they are themselves. If your paradigm is that everyone else is usually unethical, it tells me you are yourself and worse. My reputation is in part, determined by yours. No thanks.
    d. It implies we are incompetent. The person designing the pattern or making the product most likely knows more about the product than you ever will (trust me). Why would you insult someone who is more competent than you are?

6. We don`t care about the same things you do. We don`t care about things that are truly proprietary (customer lists, sources, reps etc) and only rarely have need to know them (exceptions would be troubleshooting your sizing strategy as per retail base).

7. It says a lot about your psychological health. You`re operating and motivated by fear. Fearful people make poor decisions pulled every which way by whim and the latest perceived threat. Fearful people don`t prioritize and strategize well.

8. DEs try to limit the sort of work we do. This is beyond annoying and insulting. You`ve hired someone because they specialize in your product type. How is your product so valuable that you could expect others to cease working in their specialty just for you? Are you going to pay all our bills for the lifetime of the contract? I didn`t think so.

9. NDAs are useless to protect you. If you`re placing your confidence in protecting your idea in this way, you don`t know enough to know which other ways are effective in protecting your product. That means you also don`t know much in other respects and you`ll be a lot of hassle, need hand holding or consulting that you`re most likely not paying us for.

10. It says the client lacks imagination. People who are obsessed with NDAs have typically had only one idea in their lives so they must protect it. Problem is, we only make money on repeat customers. If you only have one idea, you won`t last and won`t stick around to pay our bills. It`s not worth investing our time to educate you if you won`t be around. We only make money on you over the long term.

Frankly, I love it when someone whips out an NDA. These people are usually really hard to work with, they don`t know anything about the business so I`m glad to know at the outset so I can send them on their way. This isn`t how you protect your idea but they won`t listen and if they won`t listen, there`s a jizillion other things they won`t hear either.

Personally, I`d be much more inclined to hire someone who refused to sign an NDA over one who would. Experienced professionals know these are useless (for all intents and purposes) to protect you; they don`t need a threat of sanctions hanging over their heads to operate ethically. Many who will sign, know this gives you a false sense of confidence so they can`t lose either way.


-------------------------

~Nurture people, not products~
http://www.fashion-incubator.com
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