How to Protect Your Idea During a Pitch

After you have your light bulb moment, the next logical step is to get it to market. To do this you’ll need money for startup and production costs, which can add up quick. If you don’t happen to have the cash on hand you’ll need investors.

When you go to meetings with potential investors, it’s natural to be excited and nervous. Don’t let your nerves get the best of you though, you need to protect your idea. The last thing you want is for the investor to steal your idea and beat you to market.

 

If you’re looking for investors follow these five steps to protect your ideas when you’re pitching to investors.

1. Get a patent– Make sure you own the patent, copyright, and trademark before you meet with the first investor. You may not need all three, but get as many as apply to your idea. An Arizona patent lawyer can help figure out what you need for adequate protection.
2. Choose Wisely– Just because they have money, doesn’t mean you should meet with them. Be selective and do research before you set up the meeting. If the investor has a shady background, don’t meet with them. It also might be a bad idea to meet with someone who could be a direct competitor.
3. Don’t Say Too Much– Only say what you have to in the meeting. There’s no reason to reveal the secret ingredient before you have a signed contract. Try to find a way to prove your idea works without letting the investor know how to do it themselves.
4. Document Everything– The longer paper trail you leave, the better off you’ll be if you do have to sue for infringement. Keep a detailed record of who you meet with, when you meet with them, and what you told them. Record the conversation if possible. Check your local laws regarding recording conversations.
5. Non-disclosure– One of the best things you can do is have everyone you meet with sign a non-disclosure agreement. This legally binding agreement should stipulate that investors can’t use the ideas you reveal in the meeting as well as specific financial repercussions if they violate the agreement.

At Parsons & Goltry, we’ve been helping inventors prepare for pitch meetings for many years now. As a Scottsdale patent lawyer, we pride ourselves on providing unmatched care and guidance to all of our clients.