It is unusual for institutional venture capitalists to steal trade secrets in a way that could harm a start-up, and you can manage patent disclosure risks with the right input from your legal counsel. For angels and unique investors with experience in your industry, the reputation disciplines are probably the same, but you may want to push a little harder to get the comfort you need to move forward. Normally, in situations where two startups are interested in working together, a mutual confidentiality agreement is used, as both startups probably have their own confidential information to protect them. Normally, even after the insanity of your formal working relationship, the receptive party is still required to protect confidentiality depending on whether the confidentiality requirement is presumed to go beyond the expiry date of the confidentiality agreement. While it is true that ideas are often less valuable than the founders of execution, innovation remains the heart of any successful startup. A useful first step in protecting your ideas is to form a legal entity and turn that intellectual property into a company`s (not a person`s) wealth. However, there are certain situations in which the use of a confidentiality agreement (NDA) can contribute for a long time to keeping a company`s confidential information out of public knowledge. Just as one company differs from another, each start-up has its own needs and differences. Sometimes companies add other provisions, such as non-competition clauses or prohibitions on recruiting staff. Once you and the contractor or the independent employee have both decided that you want to pursue a formal working relationship or that the venture capitalist wants to invest in your start-up, it makes more sense to require non-disclosure at this point. Reciprocal agreements mean that the two parties are bound by the conditions of the NDA. They are useful for partnerships in which both parties could have access to the other party`s confidential information.
They are more difficult to create and implement, so avoid them unless necessary. NDAs are useful for protecting only private information, not information considered universal. If you are trying to ensure the confidentiality of information that has already been disclosed to the public in one way or another (for example. B in public documents, speaking meetings or networks), you cannot force secrecy. « Don`t share information or other documents that you consider to be confidential or proprietary. Due to the large number of business plans and related materials we review, and the similarity of many such plans and materials, we cannot assume the responsibility to protect ourselves from the misuse or disclosure of confidential information or confidential documents or other materials if we do not give our written consent. In addition to describing the information (and the language of the play), the other important part of an NOA is the schedule of the agreement.