Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek


Filed under: News | Technology News


Should Developers Sign An NDA Before Hearing Your Idea?

Feb 6 2014, 9:43am CST | by

1 Updates
Should Developers Sign An NDA Before Hearing Your Idea?


Full Story

Should Developers Sign An NDA Before Hearing Your Idea?

The Non-Disclosure Agreement (NDA) is an extremely common form of “protecting” entrepreneurs’ ideas from being stolen. Each day on matchist, people looking for developers ask me how they can ensure their idea is protected. They ask me whether developers will sign an NDA.

For the most part, these folks need to face a cold, hard truth- an idea in its purest form is not worth anything in the business world. It’s the execution that matters. Unless entrepreneurs have some intellectual property to protect or code already written, an NDA is usually a sign of amateurism. Why? Here are a few reasons to consider:

1) Can you explain your idea at a high level?- Without disclosing your secret sauce, can you talk to developers in order to understand how much time and effort your idea will take to build? Most of the time, the answer is yes- until you start developing the actual technology, their is not much inherent value in the idea itself. Once you agree to start working with a developer, it’s completely fine to have them sign an NDA. Better yet, make sure the contract you execute has solid terms to protect your code and ensure ownership. Attorneys who work with entrepreneurs and startups will have good experience knowing which clauses to put in.

2) Are you starting the relationship off right?- An NDA is an inherent sign of mistrust. It’s certainly a form of protection, but in an informal environment when you are just starting to seek out technical help, having a developer sign an NDA before even talking to them indicates you don’t trust them. The best professional freelance developers often take this to heart, and many will not work with entrepreneurs who require an NDA up front because it’s a signaling mechanism to them that the entrepreneur isn’t sophisticated and not worth his/her time.

3) Can the developer really sign an NDA?- Professional freelance developers obviously spend most time coding, but a lot of time is spent finding new clients. They are speaking with entrepreneurs all day long, and if they have to sign an NDA before speaking to each one, it is highly likely they will infringe on someone’s NDA because ideas are very often repeated. This is especially true in times of fads. Take for example, a developer who has built a few daily deal sites (imagine this is a few years ago when daily deals were all the rage). If the developer could not speak to other potential clients who had ideas for daily deal sites, he/she would be out of projects very quickly. It’s simply not a practical business step.

4) Can you enforce the NDA?- Let’s say someone does run off with your idea after you have them sign an NDA. What do you do? Well get ready for some fun times and lots of money ahead. To actually enforce the NDA, you’d have to hire a lawyer, acquire evidence, determine what legal claim you can make, and consider criminal prosecution. Now, I’m not a lawyer, but that sounds like a lot of money, time and wasted resources. So if you can’t (or won’t) enforce an NDA, what’s the point of having developers sign it in the first place?

I want to emphasize, that NDAs are absolutely appropriate when there are trade secrets and other intellectual property at stake. Talk to your attorney about the appropriate time and place to use NDAs. The situation I am exploring is the entrepreneur who is too afraid of his/her idea being stolen that they have multiple developers sign NDAs before even talking to them about their idea and the cost to build it.

Entrepreneurs- remember, ideas aren’t worth much…it’s all about the execution. And you can’t execute if you don’t have a product.

Source: Forbes


You Might Also Like


Sponsored Update

Update: 1

Centurion Corp acquires Penang land to develop workers dorm

Source: The Edge Singapore

Centurion Corporation said it has agreed to acquire a piece of land located at Seberang Perai Selatan in Penang, Malaysia, for RM6.3 million ($2.45 million). This marks the group’s first acquisition in another state of ...
Source: The Edge Singapore   Full article at: The Edge Singapore Aug 12 2014, 9:21am CDT


More From the Web

Shopping Deals


<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.




blog comments powered by Disqus

Latest stories

Nexercise App Review
Nexercise App Review
Nexercise is a fantastic workout app that can bring your body back into shape or tone it further if you are already having a good body. This useful app is literally for everyone who is a fitness freak. Nexercise appeals most to the people who are busy in their professional life and don’t get time to go to a gym for workout or may be to a work for running. Nexercise absolutely eliminates all these conditions and can make you fit right from your home.
Twitter to remove images of deceased upon request
Twitter to remove images of deceased upon request
Twitter will remove imagery of deceased individuals in certain circumstances
Sony is making a selfie camera that looks like a perfume bottle
Sony is making a selfie camera that looks like a perfume bottle
The top of the selfie camera features a large camera lens inside a gold-tinted transparent brick, giving the device its perfume bottle look.
Parallels Desktop 10 Is Out
Parallels Desktop 10 Is Out
Desktop 10 brings Support For OS X Yosemite, iCloud Drive and more

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.