Comments on: When NDA is A Four Letter Word http://www.ipitch.com.au/public/when-nda-is-a-four-letter-word/ Follow Australia's Startups Wed, 08 Feb 2012 21:34:17 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Malcolm Burrows http://www.ipitch.com.au/public/when-nda-is-a-four-letter-word/#comment-151 Malcolm Burrows Thu, 03 Dec 2009 02:36:30 +0000 http://www.ipitch.com.au/public/?p=671#comment-151 Whilst an NDA may act as a detirent for an investor, it also says to the investor that you as the founder are doing things properly. In my experience it shows preparation and professionalism. Additionally, it give an investor the impression that you have valuable intellectual property and aren't prepared to give it away. I have seen the opposite position where investors do take the time to read a confidentiality agreement and sign it, but care should be taken to ensure that a potential investor is presented with a short document. Theres no reason why a short document cannot create enforceable rights. There is a significant volume of case law in this area, see for example Coco v A N Clark (Engineers) Ltd [1969]. However in the start up environment it may be more more problematic because of the extent (or lack thereof) of actual intellectual property. I agree with Alan Jones. An idea generally has no value. "This comment is general in nature and cannot be regarded as anything more than general comment. It is not legal advice. Readers of this comment should not act on the basis of this comment without consulting a legal practitioners who will consider their particular circumstances". Whilst an NDA may act as a detirent for an investor, it also says to the investor that you as the founder are doing things properly. In my experience it shows preparation and professionalism. Additionally, it give an investor the impression that you have valuable intellectual property and aren’t prepared to give it away.

I have seen the opposite position where investors do take the time to read a confidentiality agreement and sign it, but care should be taken to ensure that a potential investor is presented with a short document. Theres no reason why a short document cannot create enforceable rights.

There is a significant volume of case law in this area, see for example Coco v A N Clark (Engineers) Ltd [1969]. However in the start up environment it may be more more problematic because of the extent (or lack thereof) of actual intellectual property.

I agree with Alan Jones. An idea generally has no value.

“This comment is general in nature and cannot be regarded as anything more than general comment. It is not legal advice. Readers of this comment should not act on the basis of this comment without consulting a legal practitioners who will consider their particular circumstances”.

]]> By: Alan Jones http://www.ipitch.com.au/public/when-nda-is-a-four-letter-word/#comment-69 Alan Jones Mon, 02 Nov 2009 09:07:33 +0000 http://www.ipitch.com.au/public/?p=671#comment-69 Very useful insight:"if all your NDA is protecting is an idea you're wasting an investor's time." It bears repeating, thanks. Very useful insight:”if all your NDA is protecting is an idea you’re wasting an investor’s time.” It bears repeating, thanks.

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