3.

Protecting Your Idea

So you want to get feedback on your business idea,

but how do you share it safely?
Maybe you decided on a catchy business name and
slogan. How do you protect them from being stolen
by a compe=tor?
In this chapter I walk through how and when to
protect your intellectual property, including
trademarks, copyright, trade secrets and patents.
We will also explore NDAs (Non-
Disclosure Agreements), and how
they can help you rest a liGle
easier when sharing your idea
with other people.
Keep your ideas safe,
and keep your mind
at ease!

Intellectual Property

Type of work

Examples

1. Copyright

a work of
authorship

literature, source
code, a musical
composi=on

2. Trademark

a sign or indicator
associated with a
brand

logos, slogans,
or brand images

3. Patent

a work of
inven=on

a machine,
process or
physical product

4. Trade Secret

a process or
formula that
retains value by
remaining secret

the Coca Cola

recipe

Chapter 4: Protect Your Idea

Intellectual Property is ownership of something intangible, such as an

idea, design, concept or formula. Entrepreneurs use intellectual property
to protect their business, here are its 4 forms:

Copyright

Symbol:

Copyright applies to original works of authorship such as a book or a

play, but it also covers crea=ve art including photographs, pain=ngs,
drawings and sculptures.

Some people seal and mail works of authorship to themselves in

order to create a clear date stamp. You can also register with the US
Copyright Oce for about $35 per work. This allows you to more
easily sue those who infringe upon your copyright for damages.

Trademark

Pending: Symbol:

Trademarks apply to logos, slogans and other clear designa=ons of a

brand or individual. For example, both the word docstoc and our
logo are trademarked. You can trademark a single word, or an en=re
phrase, like Nikes renowned Just do it.
Trademarks can be led with the government for about $300 at the
US Patent and Trademark Oce. Like a copyright, ling a trademark
is a fairly simple process, and can most likely be done on your own.

Chapter 4: Protect Your Idea

Legally, your content is copyrighted upon crea=on. That means, the

poem or doodle you scribbled into your notebook automa=cally
belongs to you under copyright law. The important trick in cases of
dispute, however, is proving that you created the work rst.

Patent

It is for this reason that I advise 99% of

business owners to not focus too intently
on gecng a patent immediately. You
should direct that energy on gecng
customers and building out your product.

Quick Tip
You can check if
your idea for a
business name, a
domain or patent
has been taken yet
by searching
Trademarkia.

I oden come across people whove put =me into gecng several
patents, but s=ll havent goGen any customers. In this case,
priori=zing patents ended up being detrimental to their business.

Trade Secret
Trade Secrets are processes, formulas or designs that must be kept
secret in order to retain their value.
The classic example is the Coca Cola formula. If its formula were to
be released, compe=tors could reproduce their classic taste and
Coca Cola would have a case for lost damages.

Chapter 4: Protect Your Idea

Patents apply to new and useful inven=ons,

and are more complicated to le than
copyrights or trademarks. They are also
led through the US Patent and Trademark
Oce, and many cases it is advisable to
involve an aGorney in a patent applica=on.

Non-Disclosure Agreements

Whether your idea is original or an improvement of whats out there,

you may be interested in keeping your product or approach secret
while its in development.

Quick Tip
NDAs are great, but
keep in mind that
almost no investors
will be willing to
sign an NDA, so
dont expect that
when sharing your
idea with a venture
or angel investor.

One way to maintain some level of

security when you share your ideas
is through an NDA (Non-Disclosure
Agreement).
The NDA details the sensi=ve
material being discussed, and
legally requires conden=ality from
all par=es involved.
In the case of business deals or
partnerships, where both en==es
are sharing classied informa=on,
par=es usually sign a mutual NDA,
which means both companies share
and keep the informa=on secret.

Chapter 4: Protect Your Idea

I men=oned in the Idea=on sec=on that sharing your idea with

others is a great way to vet it. It can be helpful to share your concept
or design with a poten=al partner before youve launched it, or
someone in the eld who can provide helpful feedback.

Vocabulary: Other Terms to Consider

Blurring: When an adver=sers dis=nc=ve mark is used on
unauthorized products

Inventors Notebook: Used by inventors, scien=sts and engineers

to record their inven=on process to help establish dates of
concep=on for patent contesta=ons
Parody: An imita=ve work created to mock or comment on a
target, protected under the First Amendment
Sa>re: A funny piece of literature or art lined with sarcasm and
irony to cri=que a target, where use of trademarks are not legally
protected under the First Amendment
Subpoena: A request to provide tes=mony or evidence to the
courts
Tarnishment: When a mark becomes linked to products of inferior
quality, or is portrayed in an unsavory context
Term: Amount of =me IP is protected (for example, a patent term
is 20 years)

Chapter 4: Protect Your Idea

Dilu>on: Lessening the capacity of a famous mark to iden=fy and

dis=nguish a business

Resources Recap
US Copyright Oce
US Patent and Trademark Oce

Intellectual Property Agreements (legal document package)

How to protect your idea (course)
Safely start a business while youre employed (video)(video)
NDA (custom legal document)
Copyrights
What is a copyright? (video)
Copyright Licensing Agreement (custom legal document)
Trademark
What is a trademark? (video)
Trademark Licensing Agreement (custom legal document)
Patents
What is a patent? (video)
Parts of a patent applica=on (video)
Cease and Desist: re: Patent (custom legal document)

Chapter 4: Protect Your Idea

Trademarkia