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Manufacturer's Reps./Non-Disclosures
avillastanton's Avatargold
A.J. S
avillastanton
51,500
Insider Points

Hi,

I am new at this and have a patent pending for a product. I am currently researching and getting quotes on the costs to produce.

I am working with a Manufacturer’s Rep.for thermoset plastics/melamine to made in the US, that I found through Thomasnet.com. I am cautious, because my product is very easy to knock off.

How much can I trust the manufacturer’s reps? I did not sign a non-disclosure. My attorney advised me not to. Should I have my own non-disclosure signed as well as theirs?

Any input is much appreciated. Thanks.

posted March 27, 2009 18:53 (
)

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pnutgalaree's Avatar
Sir Edward
pnutgalaree

My
worth…

Well, generally speaking, any “manufacturers’ representative” is merely a glorified sales agent, which can be an individual or someone that represents a sales agency or company. So, when a manufacturer hires a manufacturers rep or firm, this will usually mean that there is a contract between the two companies, which basically empowers the rep to sell the manufacturer’s product(s) as an agent…The products, in this case, the production and/or materials being Thermoset plastics/melamine. Your manufacturers’ rep usually orders directly from the manufacturer, who then pays a sales commission to the manufacturers rep or firm…Again, a glorified sales agent!

Regarding the issue of the NDA (non-disclosure agreement)…Since you obviously have a Provisional Patent Application (PPA) filed and claim “Patent Pending” status, while an NDA would provide some level of “protection” not yet afforded to you by the patent application, you could proceed without one. But, keep in mind, that without a granted patent or NDA, someone can still copy what you have disclosed to them and you would have few, if any legal arguments to stop them.

Since you do have a patent pending, and only if you fully expect that it will mature into a full fledged patent with reasonably broad claims that cover what you disclosed in the application, any potential infringer could be barred from selling their version of your product or be forced to pay you royalties after the patent is granted. For these reasons, if someone knows that you have a “patent pending,” they will usually avoid any impropriety.

You should also be very careful to not disclose any new, useful, or non-obvious improvements not disclosed in the provisional application. For such improvements, an NDA can be executed, or if necessary, you could file another patent application. Lastly, you should try and avoid showing anyone the actual patent application, unless there is a good reason to do so.

posted March 27, 2009 23:00 (
)
romiei's Avatar
Rose Marie Iskowitz
romiei

Curious to know why your lawyer advised against an NDA … Thanks!

posted March 28, 2009 05:27 (
)
avillastanton's Avatargold
A.J. S
avillastanton
51,500
Insider Points

I think my attorney thought that they can come back to haunt you later? Also, he thought that not many manufacturers would be willing to sign them? Any thoughts?

I found lots of them online, but wasn’t sure if any were right for me. Some state that the agreement is good for 1 or 5 years? I think I will feel more comfortable proceeding with one.

Does everyone use them to speak to manufacturers and get quotes?

posted March 28, 2009 18:32 (
)
avillastanton's Avatargold
A.J. S
avillastanton
51,500
Insider Points

Sir Edward,
Thanks for the input on the Reps.and NDA. My rep. works for 7 or 9 different companies so I thought I should even tread more carefully. The Rep wanted me to sign a mutual NDA and I didn’t (because I wasn’t sure). I did not send in drawings yet either. Maybe I am being too paranoid.

posted March 28, 2009 18:46 (
)
pnutgalaree's Avatar
Sir Edward
pnutgalaree

“The Rep wanted me to sign a mutual NDA and I didn’t (because I wasn’t sure). I did not send in drawings yet either. Maybe I am being too paranoid.”

Well, generally speaking, the ‘Mutual’ Non-Disclosure Agreement (NDA) form is a confidentiality agreement between two parties concerning the sharing of proprietary or sensitive information and/or transactions. The recipient of the information is obligated to keep that information confidential and not to use it for any purpose other than the evaluation of the proposed transaction…It is a legally binding document! Although there are standard NDAs that could be used, it would probably be in your best interest, if you create your own NDA that speaks specifically to your particular situation.

posted March 30, 2009 12:33 (
)
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