Protecting Your Idea

So, let’s say you’ve got a great idea for a Facebook Application, Online Game, WordPress Widget, iPhone App, etc.  that you think has a lot of potential to make money.  But, you are not a programmer or software developer. What do you do?  How do you realize any money from just your idea since you personally do not have the skills to pull it off?

STEP 1 – Establish Ownership

Back when I was a young pup facing a similar circumstance, I had the good fortune to run into an old and wise attorney in my town who suggested that I do something fairly simple to prove that my idea was in fact mine.  He had me go home and write my idea down on paper and then come back to his office.  He added a small paragraph to the bottom of the document where I swore that it was my original idea.  He made three copies.  He had his secretary notarize all three copies. I kept one copy, he kept one copy and the other was mailed to me via certified mail with return receipt requested. The return receipt went to his office.

When I inquired as to what all this was about, he explained that this would clearly establish that it was my idea and when I had it.  He and his legal assistant were both witnesses to the whole thing and could also testify in court as to the authenticity of the documents should the need ever arise.   Plus, having the sealed certified letter containing an exact copy of the document would be “icing on the cake.”

Ever since that time, if I have an idea that I think has the potential to generate revenue and I elect to pursue it, these are the first steps I take to establish my idea and ownership of it.

Now, you can go even further and pursue a patent on your idea and concept. But this is costly and time consuming and is, in my opinion, only worth doing if there are millions at stake and you have some investors that can foot the bill for the patents.

STEP 2 – A Confidentiality Agreement

Once you have established your idea as yours, you’ll want to have a Confidentiality Agreement at your disposal.  This is a legal document which protects your idea even further.  In your search for a partner to help develop your idea for you, you are going to have to tell them what you want them to do.  But, BEFORE you tell them your idea, you have them sign a Confidentiality Agreement.  In essence,  it states that they will not use your idea for their benefit and will not tell anyone else about your idea.

Any competent developer with ethics and morals will have no problem signing such an agreement.  Especially if it has a few key clauses in it that protect their interests as well.  Remember that you may NOT be the only one who had such an idea.  What happens if, after you tell the person or company your idea they say, “We are already working on that.”  With the right clause in the Confidentiality Agreement, they are protected.

However, it’s been known to happen that they lied when they said, “We are already working on that.” They saw the huge potential and they wanted to claim the idea as their own. It’s happened more than once.  That’s where what you did in Step One really comes in handy.  Can they PROVE when they had the idea and started working on it?  Maybe not.  But YOU sure can!

In another post, I’ll give you some tips on finding the right developer to help bring your idea to reality.