Tips for Protecting Your Invention While Seeking Crowdfunding
It is not uncommon for entrepreneurs to seek crowdfunding for their inventions. Crowdfunding websites help new businesses take off and inventors bring their products to market. But, despite all of the benefits, there are some serious risks involved when you crowd fund your invention. So, before you start offering up your invention on crowdfunding websites, you may want to consult with a trade secrets lawyer and follow these tips for protecting your product.
File for a Patent FirstIt is in your best interest to file for a patent before you offer up your product to crowdfunding websites. Patent trolls are known for monitoring crowdfunding sites — hoping to pick up on an invention that isn’t patented. By filing a patent, even if it is not yet approved, you will have proof you came up with the invention first — and that will matter in court.
Control the Information You Give Out About Your InventionYou are in control of the information regarding your invention. Protect valuable trade secrets that can give away how you made your product or what makes it unique. While you obviously have to give potential investors enough information to make them want to fund the project,
you don’t have to share trade secrets, recipes, techniques, etc. that are unique to your product. If someone does invest in your product and requests further information, consult an attorney to draft a non-compete or non-disclosure so that you can ensure they do not use those trade secrets to set up a competing product.
Make Good on Your PromisesYou are likely to offer people perks for their funding. Even if your product doesn’t succeed, make good on the promises you make to your investors. Everyone invests at their own risk, but those who invest a significant sum of money will expect you to still do what you promised — even if your product fails.
Consult an AttorneyIt is in your best interests to consult an attorney before offering your product up for crowdfunding. A trade secrets attorney can help you create a crowdfunding campaign that doesn’t give away too many trade secrets. Also, an attorney can provide you with advice regarding how much information to give to investors, how to draft NDA agreements, and more.
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