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- Open the record and make edits using the Tools menu.
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Initial confidentiality agreement
how do inventor confidentiality agreements work well suppose inventor John Doe comes up with a new way of making bagels he wants to sell his idea to Joe's bagel factory now John Doe can ask Joe's bagel factory to sign an agreement called a confidentiality or non-disclosure agreement often abbreviated as an NDA this is an agreement where John's bagel factory will agree to review john doe's idea and keep it a secret typically Joe's bagel factory will also promise not to use the idea without first paying John Doe if Joe's bagel factory is honest John Doe has nothing to worry about what if John's bagel Factory wants to steal the idea and not pay John Doe after the lawsuit John Doe would be entitled to a judgment for money damages to compensate him for Joe's bagel factory breaking the contract but what if the people at Joe's bagel Factory are smart enough not to take the idea themselves let's take this scenario from the beginning John's bagel factory signed a contract with John Doe this is a confidentiality non-disclosure agreement John Doe then explains his idea to Joe's bagel factory the folks that Joe's bagel factory are smart enough not to steal the idea themselves so they simply leak the idea to an affiliated company of theirs or perhaps a close friend or even an acquaintance what's called an bob's bagel Factory now when John Doe sues Bob's bagel factories for breach of contract what happens Bob's fatal bagel factory will have a valid defense they have no contract with John Doe in fact they can legitimately say that they never spoke to John Doe never correspondent with him never met him and have absolutely no idea who John Doe is in most cases it will be virtually impossible for John Doe to trace and prove that the idea that bob's bagel factory is using originated with him so even having a bulletproof confidentiality agreement prepared by a lawyer is only enforceable against parties to the contract and if your idea is leaked to a third party or someone that didn't even sign the agreement you have no recourse as such it's best to use a nondisclosure agreement as a second line of defense and only after a patent application has already been filed this concludes my review of confidentiality agreements until next time this is John Rizvi the patent professor signing off and wishing you the best with your new ideas
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