When you concoct an idea for a start-up business, it’s natural to be excited and blurt out your concept to family and friends. Indeed, many successful businesses have been shaped by the early advice and support of people close to the founder. However, tread carefully.
“I’ve seen a few cases where someone has told friends and family an idea and the idea has found its way to a competitor,” says Joe Seisdedos, senior associate at law firm Griffith Hack.
“You have to be careful even when talking to friends and family. Once an idea is out there, you can’t really draw it back in. Generally, the law says that if you disclose an invention to others, even if they are friends and family, your ability to get a patent may be seriously compromised.”
Seisdedos advises start-ups to talk to an attorney before discussing any innovative business idea and demand that non-disclosure agreements are signed by potential business partners.
Even if they won’t sign NDAs, an agreement in principal, agreed over email for example, should be enough to protect you.
The internet may be a wondrous tool for businesses, but it can create countless headaches in terms of intellectual property.
Where once you would merely worry that a rival in the next suburb may copy your brand and business model, IP theft can now take part in any corner of the world, by anyone who has the ability to log onto your website.
IP law is slowly playing catch-up, with the Madrid Protocol allowing businesses in 80 countries – including Australia – to file a common trademark across different international markets.
It’ll cost you around $800 initially, with individual fees for each country or territory you hope to trade in.
After making sure you are protected in Australia, it’s worth looking into how your IP can extend overseas.
Some start-ups can get sucked into the web of larger rivals that promise to expand their business. Without proper IP protection, the start-up can find that their ideas are stripped away without recourse. Even a patent won’t deter some large corporates.
Paul Brennan, of Brennan Law, says: “Some large companies say to a small firm ‘come with us, we’ll take you with us and franchise you’. You can get merged in and once you lose everything else, all you have is your IP.”
According to Seisdedos, big business will usually attempt to get your product or idea under license rather than crush any patent entirely.
“Many larger companies would rather talk to you with a view to licensing the technology,” he explains.
“If they knock over the patent entirely, then it’s available to all of their competitors, so it’s in their best interests to work with you rather than against you.”
