Contacted by a competitor, any possible advantage to dealing with them?

[E-Sharp]

I was contacted recently by a company who asked me to produce content for them for a lump sum payment. I'm already working on my own product, same thing they want me to develop for them. They would sell this product online, as I would. They're further ahead of me as far as having systems in place to market,etc.

Of course I won't agree to do this for them, but I also wondered about whether there's a better strategy than just saying "no thanks". Like, maybe it's possible to license some portion of my content to them, except they're not based in the U.S. and I'm clueless about enforceability of international agreements and not sure where to begin looking into that, or if it's even worthwhile to do so.

I guess more generally, I'm just wondering if there's another way to look at being approached by a competitor than just reflexively saying 'no', which is my instinct?

I probably posted this in the wrong subforum so feel free to move it, mods

 

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[Jon L]

I was contacted recently by a company who asked me to produce content for them for a lump sum payment. I'm already working on my own product, same thing they want me to develop for them. They would sell this product online, as I would. They're further ahead of me as far as having systems in place to market,etc.

Of course I won't agree to do this for them, but I also wondered about whether there's a better strategy than just saying "no thanks". Like, maybe it's possible to license some portion of my content to them, except they're not based in the U.S. and I'm clueless about enforceability of international agreements and not sure where to begin looking into that, or if it's even worthwhile to do so.

I guess more generally, I'm just wondering if there's another way to look at being approached by a competitor than just reflexively saying 'no', which is my instinct?

I probably posted this in the wrong subforum so feel free to move it, mods

Do they know that you're a competitor? Seems really odd that they'd come to you for this.

 

[E-Sharp]

Do they know that you're a competitor? Seems really odd that they'd come to you for this.

They don't know I'm a competitor. The reason they came to me was they lack the experience/knowledge to develop the product on their own.

 

[OldFaithful]

They don't know I'm a competitor.

This requires clarification on your part. If they knew you were building a competing product, they might never have approached you. They will likely have a non-compete clause in their Non-Disclosure Agreement and if you sign that...you're sunk!

No matter how difficult or easy it might seem to enforce a legal document, the bigger and more well funded entity typically has the upper hand. If they are the big fish, then you will find it quite difficult to force them to adhere to any agreements! Lawyers, bureaucrats and more lawyers...especially if national borders are being crossed! Can you tell that I've been shafted by an international agreement before?

My suggestion is to tell them who you are and what you do. Then either sell them the content they need in a typical B2B arrangement, without agreeing to a non-compete, or let them choose to walk away. If you tell them no, then you miss the opportunity to make a sale. Make them say no.

Best wishes.

 

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[Jon L]

I'm in software development myself (custom business software). I've thought about your situation over the weekend...I'd definitely say No, and explain to them that you're actually in the process of developing a competing product. I'd do this in an email so you have proof of the conversation if they sue you later. (not that they'd win, but lawsuits suck)

 

[E-Sharp]

This requires clarification on your part. If they knew you were building a competing product, they might never have approached you. They will likely have a non-compete clause in their Non-Disclosure Agreement and if you sign that...you're sunk!

No matter how difficult or easy it might seem to enforce a legal document, the bigger and more well funded entity typically has the upper hand. If they are the big fish, then you will find it quite difficult to force them to adhere to any agreements! Lawyers, bureaucrats and more lawyers...especially if national borders are being crossed! Can you tell that I've been shafted by an international agreement before?

My suggestion is to tell them who you are and what you do. Then either sell them the content they need in a typical B2B arrangement, without agreeing to a non-compete, or let them choose to walk away. If you tell them no, then you miss the opportunity to make a sale. Make them say no.

Best wishes.

Thanks, I appreciate this perspective. That's what I was wondering about re. lawyers and bureaucratic hassles. I also like the "make them say no" idea, will consider further.

I'm in software development myself (custom business software). I've thought about your situation over the weekend...I'd definitely say No, and explain to them that you're actually in the process of developing a competing product. I'd do this in an email so you have proof of the conversation if they sue you later. (not that they'd win, but lawsuits suck)

Thanks Jon. They provided me with free, unsolicited intel about their business when making contact initially. So I can see it would make sense to disclose to them what I'm doing if they could in theory sue later based on similarity of offerings.

 

[ZCP]

Price high. If they squawk, tell them you sell the product and ask if they would like to license or wholesale for you.

Do not miss an opportunity to joint venture if they are ahead of you!

 

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