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NDA

mmmbopingmommy's Avatargold

I had a major company ask me to complete an NDA about one of my ideas. This is the first time this has ever happened to me. Is this a good sign? Any advise?

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sprinklerbuddy's Avatar

Most major companies want you to sign their NDA, it protects them not you, if this is the case.

Advise---- Read the fine print before signing on the dotted line.

paul ortega
James Chapman
erin hoff
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freyinnovations's Avatar

Why would the company ask for an NDA for YOUR idea?  Are you sure they weren't asking you if you had an NDA for them to sign?

But to answer your question, you should ALWAYS have NDA's in place. Just read it to make sure it protects your rights and ownership of your ideas.

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mmmbopingmommy's Avatargold

Steven, it's actually a CDA. I'm looking at it right now. He said NDA on his email to me, however, the actual form says CDA. Still hoping this is the beginning of something great.

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sprinklerbuddy's Avatar

CDA and NDA are the same thing.

I hope it ends up being something great for you! Good Luck!

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mmmbopingmommy's Avatargold

Thanks, Leo. As you can tell I don't know much about these things. Steven had me confused on why they would ask me for an NDA. lol

Leo Gauthier III
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mmmbopingmommy's Avatargold

Fortunately I have had better luck on my own. I always get rejected by EN and have to spend money for the rejection. This company is very receptive of inventors. I just emailed the ceo, and hopefully, the rest will be history. All I did was put together a simple animation of how it works. Nothing will probably come of it, because I am realistic. However, I am excited that they want to review it and are taking the time with me.

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rogerbrown's Avatargold

Them asking you to sign an NDA/CDA is a good sign. Yes, I agree NDAs from companies in most cases cover themselves more than you, which is why you need to read it carefully and make sure you understand and agree with what you are signing. The good sign is that they are not just telling you to send them all your information, which could result in public disclosure. So, at least they are covering themselves but also you in that respect.

One reason most companies ask you to sign their NDA/CDA is because it has gone through their Lawyers so they are confident in what it says and covers. When you send them yours they  have to have their lawyer review it for content and make sure they are not opening themselves to any issues. And in most cases their NDA/CDA states in it if there are any issues it would be resolved in their state and under the laws of their state. Again, because they know what their state covers and don't for your state. And if you plan on suing them you have to do it in their state. All of this makes it convenient for them, not you.

NDAs and other documents you get from companies are some of the least read by Inventors. Mainly because they find them confusing, boring and to many pages. I have seen NDA/CDAs that were one page to as many as 22 pages. You need to read every word to make sure what it states.

I was sent an NDA by a company that had a clause in it that stated that by them agreeing to reviewing my product I would agree not to show it any other company for review in the same market. They did not want you going to a competitor if they decided to pass on your product. I would never sign that document.

As with any document you get, if you are not confident in what it says you should have a lawyer review it.

erin hoff
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mmmbopingmommy's Avatargold

Thanks, Roger, that was very useful information. No, there wasn't anything in there about going to a competitor, thank goodness. I would never sign that. This company is based out of Toronto. I hope they have good laws there to protect inventors. Honestly, though, I trust this company. They are one of the most popular companies out there. I'd like to think they would have integrity.

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rogerbrown's Avatargold

Erin, I see all the time where Inventors only bothered to read what they signed AFTER they run into an issue. I hate legalese as much as the next person, but it is a necessary task to ensure you get what you agreed too.

I had a contract on one of my licensed products that initially left out royalties on international sales. Once I pointed that out to the company it was corrected quickly. Had I not thoroughly read and read again the contract this could have been easily missed. The product ended up being sold in the U.S, Japan, and in Europe. So I could have missed substantial royalties. 

I go with the Trust but verify method. Things can be missed accidentally and on purpose. It is your job to protect your interests. 

erin hoff
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mmmbopingmommy's Avatargold

Thanks, Roger, I may have to save for a lawyer and have them look at it if things procede any further. I guess the initial excitement got to me as I've never gotten this far with anybody.

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