As your business grows, you will undoubtedly develop ideas to enhance your current products and services, allow you to meet your customers’ needs more effectively, and reach untapped markets. And while it might be tempting to run out into the street yelling “Eureka!” when you come up with a stroke of brilliance that will solve all of your problems, you also know that it’s important to play your cards close to vest. While you might think that no one is paying attention, there are always people who are looking to cash in on your great ideas.
According to the FBA, intellectual property theft — the stealing of your ideas, inventions, and creative expressions — is a growing problem. This is in large part because intellectual property theft can take so many forms. The most common form of this crime is copyright violations, in which one company uses a copyrighted image, phrase, or other aspect of an existing product on their own products. However, idea theft is always a concern, especially given that in order for any idea to come to fruition, you need to share it with others.
You can take steps to protect your ideas from them and keep them secure, though. This doesn’t mean that nefarious individuals won’t attempt to steal your intellectual property, but you can stop most attempts — and if someone does take your ideas, you have some recourse.
Insist on Nondisclosure Agreements
The most important part of keeping your ideas safe is to share them with trustworthy people only, both inside and outside your company. If you tell the wrong person about your idea, there is a good chance he or she will take it and run with it — or sell it to a competitor. Avoid telling anyone who doesn’t need to know about your idea, and insist that anyone who is involved with business development sign a nondisclosure agreement (NDA.) An NDA is a legally binding document that prohibits those who are involved with your company from sharing any information with a third party. Most NDAs have no expiration date, so they can be useful in protecting your property in the long term, while also giving you recourse in case your idea is stolen.
In addition to nondisclosure agreements, non-compete and work-for-hire agreements can protect you from employees who may take your ideas elsewhere. A non-compete agreement prohibits an employee from working for a competitor or within the same industry, or from starting a similar business; in most cases, these agreements have time limits on them. A work-for-hire agreement protects your ideas from contractors who may wish to cash in on your ideas. Essentially, the contract gives you ownership of any improvements or additions that the contractor makes on your idea or product.
Document Your Work
Should there ever be questions about the true owner of an idea, the burden of proof will be on you to provide evidence that it is yours. For that reason, documentation is vital to protecting your ideas. Put everything that you do in writing. This includes any conversations you have about your idea; noting the date, time, and place of every discussion can go a long way toward proving your ownership of an idea.
Secure Your Network
Intellectual property theft is a major driver of cybercrime. One of the reasons that small businesses are so attractive to hackers is the potential to gather intellectual property. Sometimes, stolen IP is just a crime of opportunity – many hackers attempt to breach networks just to see what they can find, and will sell files and data to other hackers or companies.
For that reason, even if you just run a small office, you need to invest in comprehensive network security. This means relying on more than your typical antivirus software, and using firewalls, encryption, and server virtualization security solutions to protect your data both in transit and at rest in the cloud. Most businesses focus on the impact of customer information being exposed in a data breach, but the risk of your company intellectual property being stolen is just as great — and can be just as devastating.
Get to Know Your Competitors
The business world can be cutthroat, but that doesn’t mean you need to treat your competitors like the enemy. If you can establish a relationship that benefits both of you, and work in the same space with respect and collaboration, there’s less of a chance that your ideas will become their next big product.
Again, there is no way to keep criminals and competitors from trying to steal your ideas, but you don’t have to make it easy for them to do. Instead of fearing what could happen if your idea is stolen, protect them as best you can — and watch as your business grows.