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NDA - How Iron Clad Are They - Sm. Bus Dealing w Billion Dollar Corporation

MartinM

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So I have a unique opportunity that landed on my lap to develop out a very high-level business and system for a multi billion dollar company that is in the big data space. Apparently their CEO is really encouraging all of their employees to come up with new revenue streams, business models, and automated systems that can help them to expand their business. My question is it safe to just have them sign a general NDA prior to giving them some PowerPoint slides on how the system would work and be built? Or is there still something else that I should have them sign since this is my proprietary idea? Any advice would be really appreciated.
 
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Kruiser

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Are your slides high level stuff (that is available on your website, for example) or do they provide detailed info regarding your propriretary system? If it is only high level, publicly available stuff, you don't need an NDA (and an NDA probably wouldn't protect it anyway).

In general, if you truly have something of value that you want to share, then you need to engage an actual attorney and spend real money. An attorney who works in tech on a daily basis, not your friend's friend who handles DUIs and family law matters.

There is no such thing as a "general NDA." That's as weak as "legal boilerplate." Every word has meaning and can affect your rights.

If you send a big tech company your NDA, they will most likely laugh at you. Then they'll say "here's our form - sign it so we are each protected."

But it will be very one sided and will give you almost zero protection. What your contact says the NDA form says and does and what it actually says and does will likely be very different.

You likely won't have much negotiating power to modify the big company's form (unless it really, really, really wants what you have). Most likely your counsel will only get through a few relatively minor changes. The main value for you will be that he or she will be able to clearly explain to you what the NDA does and does not cover and what exactly you need to do to protect your information.

In the end, it will still be a risk acceptance exercise for you. And you will be balancing your desire to earn the business with the chance the company will rip you off. But you should know exactly where you stand legally (at least according to the terms of the NDA), what info and coversations are protected and which aren't, etc.

Basically, accept whatever risks you think are appropriate, but don't fly blind. Relying on a "general NDA" not reviewed by your own counsel could be very close to flying blind.
 

MartinM

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That’s about what I expected. I was just wanting someone’s advice before I contact a tech attorney that I worked with previously in LA. Thanks so much for your very detailed response. Is there anything that I can do for you? I own a digital web agency in Denver. If you ever need me to look at one of your digital assets for an outside professional opinion I’d be more than happy to do so for your help on this
 

Kruiser

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@JScott makes some great points.

The only thing I'd add is that the recent rise of litigation finance has really changed the game when it comes to high stakes commercial litigation. There are funds with billions of dollars looking to finance cases with a potential high payout (for a percentage of the judgment). So, if you TRULY have something unique and proprietary and a big tech company TRULY steals it and turns it into a big business, you MIGHT have all the litigation funding you need.

Anyway, we have few of the facts and you really should get individualized legal advice.
 
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MartinM

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Thanks so much for the quick response guys. I’m going to get in touch with my tech attorney in LA most likely tomorrow and I’ll let you guys know how things pan out if you are curious (later on this thread).
 

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