How do I protect my brilliant idea when I’ve got to tell investors?

Dear Aunty B,

I have been working on a new product that will revolutionise the industry and SmartCompany will write about it, believe me. But if I told you what it was I would have to kill you.

I am making people sign confidentiality agreements. How else do I go about protecting my trade secret while telling the people that need to know about it (like investors)?

Simon,
Adelaide

Dear Simon,

I haven’t met you so I am unable to establish if you are a nutcase or not. The reason I say this is that I do meet nutcases who trot out word-for-word the world domination spiel followed by the Jason Bourne killing bit.

But just for the hell of it, I’ll pretend you are a genius with the world’s new Google. In which case, you would know that the best way to protect your secret is to keep it a secret. The fewer people you tell the better. And those that you do tell should sign confidentiality agreements so that you have legal options if they are breached.

Your staff should also sign non-disclosure agreements. But check all this out with a lawyer. Too often I see people who think their idea needs to be protected when it is easy to copy and is a waste of time protecting it. In that case you need to get to market fast and build in barriers to entry.

Good Luck,
Your Aunty B

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