Steps involved in selling process in NDAs

How to create outlook signature

I am not a lawyer and this video is intended for entertainment purposes only that being said let's talk about ndas [Music] slide 3D is a contract manufacturer so every year we have hundreds of clients come to us and ask us to produce their part might be 100 pieces might be a hundred thousand pieces and as a contract manufacturer one of the first steps in the process is for the client to send across an NDA which is standard practice and we are absolutely open to doing that for anybody that needs to have it done however there is an issue with this many of our clients since they are avoiding the cost of injection molding are often startups or inventors who are looking to have their first product manufactured and this video is really for them if we're dealing with somebody like some Fortune 500 company then of course we have to sign an NDA because there's so many lawyers and they have so much protection in such a long product lead time that they have to keep it all locked down but they also have the resources to enforce it which is why this video is more for the independent company or Creator who is trying to protect their idea an NDA is only really enforceable if you enforce it much like patents if you get a patent your idea is not protected it is only protected if you then take the infringer to court the same thing kind of goes for an NDA if you go to a contract manufacturer and you have them sign an NDA and then they break that NDA and they either steal your idea or share it with somebody else or something along those lines the only recourse you have is to sue them and then you have to hope that you have more resources than they do in order to win the lawsuit because very rarely and very unfortunately most of the time these decisions are not made based on the Merit of the argument but who runs out of lawyers first and this is the fundamental problem with ndas if you start up a relationship with the contract manufacturer and they are dishonest and take your idea then if you are a poor inventor you really don't have any recourse there and there's very little that can be done so why would you want to rely on that document for much of anything the other issue is if the NDA does not protect you against a larger organization that might steal your idea why would you open up the relationship with a moment of distrust again it's totally understandable as an independent Creator you're working to protect your idea and that is important but if you do not trust the organization that you're working with to have their own credibility and their own ethics to protect your idea as a part of their business and you just distressed them right off the bat you are creating a nasty relationship right off the bat if you're working with a local independent machine shop who's also a small business and the first thing you say is you walk in and say I don't want you to steal my idea sign this NDA there's an immediate animosity between the client and the service provider and you do not want to go into a business relationship and a business partnership with that type of attitude because it damages it remember the manufacturer is there to help you they want your product to be successful and to sell a bunch because that means they're going to make a bunch of your product they have no incentives to steal your idea also with that going down the route of does the manufacturer have incentive to steal your idea very often not ninety percent of new products fail if any manufacturer is in the business of ripping off someone then they are probably going to go out of business anyway because ninety percent of the time they're going to be wrong and that is not a sustainable business model that being said a lot of ideas are stolen but only after they're successful not when they're starting up ideas are not stolen when you're at a napkin sketch ideas are stolen when you have sold a hundred thousand dollars worth of it or a million dollars worth of it which at that point you now have power you're able to hire lawyers and protect your idea at a better level than before but ultimately what I'm trying to get to is that while an NDA is necessary if it is a hill to die on for you and if that NDA is so necessary that you cannot have a handshake and good relationship with a service provider why are you using a manufacturer who is so dishonest that you cannot trust them with your idea and if you do trust them why do you immediately start with an action of distrust again do get the NDA but be aware of how you use it because when you are early on it is much more of an insult than it is an aid it creates an immediate negative relationship with your number one partner in bringing your product to Market this is not an indictment of ndas and they are necessary and they should be used but you need to be aware of how you use them because you are working with a partner and if you do not trust that partner you should not work with them have a great day everybody [Music]