You no sooner have a great idea when someone tries to steal it from you. Or claim that it was their idea first and you stole them from them. Or perhaps they were in the room when you thought of it so that makes them a co-owner.
A good idea can be worth big money, and many people can’t resist a slice of that pie. Or even just a taste of it. You only have to watch The Social Network or catch the news most nights to know that hugely expensive battles are fought over the ownership and revenue of massively popular ideas. The fallout can shatter friendships and important family relationships, and even undermine the success of your business.
Coming up with an idea – be it a recipe, a software program or a new kind of rocket fuel – does not mean you legally own that idea. You must take steps to protect your idea and get the legal rights of ownership.
In the business and legal worlds, ideas are called ‘intellectual property’. Intellectual property (IP) represents the property of your mind or intellect.
Intellectual property can be the all-important edge that sets your small business apart and drives its success. With markets becoming increasingly crowded and competitive, it’s essential to guard this precious asset like it’s the crown jewels!
Not even to close friends and family. The closer they are to the idea, the greater the potential for trouble! Also, it takes just one friend to tell another friend and next thing you know that person’s wily Uncle is out in the back shed knocking up a prototype. What’s more, demonstrating, showing or talking about your idea in public (and that includes the Internet) could prevent you from getting legal right of ownership.
You can talk to employees, business partners or advisers about your idea but only on a confidential basis. Get written confidentiality agreements signed by these people, and non-disclosure agreements with suppliers and manufacturers. You could ask a solicitor specialising in this area to prepare these documents.
To be even safer, you could use a variety of suppliers, ones that aren’t connected to each other and so therefore unlikely to discuss your idea.
IP Australia administers Australia’s IP rights system, specifically patents, trademarks, designs and plant breeder’s rights. You have to apply for these rights. They don’t happen automatically.
Different IP rights provide different kinds of protection. Often, more than one type may be necessary to fully protect your creation. Also note that International protection is applied for separately. Find out more about IP protection strategies.
Prototypes can help support your claim to ownership of your big idea. Check out our article on Prototype Design for more information.