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An invention non-disclosure agreement is a written promise to keep your invention private. A non-disclosure agreement for inventions and patents is not used to prevent disclosure of a patent as the name suggests. Instead, it is used to prevent the disclosure of confidential information in a pending patent or innovations and strategies that may become patents. Nothing that was public information before the patent was signed is protected by this NDA agreement.
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Inventors often need to talk about an idea before it is ready for the public. An invention NDA gives you a written way to keep those details private when you meet with investors, contractors, and manufacturers.
Just as with any other non-disclosure agreement, an invention NDA protects information that you do not want to be shared with others. Patent applications are public information but what they are used for is not. An invention non-disclosure agreement covers that information and keeps everything protected until it is ready for the public.
An invention, by definition, is something new that improves a process. This can be a product, strategy, or software. If it can be used to improve business operations or even for everyday people, it can be protected by an invention non-disclosure agreement. New ideas and developments are made every day and you want to be sure that they are adequately protected.
An inventor may use an invention confidentiality agreement to work with investors, contractors, and manufacturers to discuss what the patent will do without the risk of information becoming public. Knowing what a patent is intended to do can create problems for the inventor when other people are trying to do the same thing.
An inventor often shares an idea with people such as:
A patent’s intended purpose can fall under trade secret regulations and is protected by an invention NDA. An idea can prove to be an important aspect of how a business is run and everyone who understands how the invention works should understand what they are not allowed to talk about.
Having an invention confidentiality agreement will define what is protected information in regards to the patent. An inventor will want to use an invention non-disclosure agreement with all receiving parties to keep their idea and invention safe before the patent is ready to be revealed.
A non-disclosure agreement template will provide a foundation of how to define and categorize the different aspects of what the patent does. The template will provide the layout of what to expect if the contract is breached and what information is protected. It’s easier for most people to work from a template to make sure that everything is covered and that information will be protected.
Without using the nda template, it will be difficult to establish what different parties knew at what time and if the contract was broken. This can create an expensive and time-consuming court process to determine if any secrets were disclosed and what the penalties should be. Having everyone sign an invention non-disclosure agreement will help simplify the process for everyone.
A template gives you a clear starting point to:
A non-disclosure agreement template will include the basics of what to have in any non-disclosure agreement. Much of this information will cover what needs to be for an invention non-disclosure agreement and you can add the necessary information as needed.
Using a non-disclosure agreement template will make many aspects of writing the confidentiality form much easier. With this agreement, all parties will have a firm understanding of what is covered under the agreement and how the idea protected will be kept secret until the inventor is ready to disclose it.
Every invention NDA has two sides. The disclosing party is the inventor who shares the idea. The receiving party is the person who sees it, such as an investor, a contractor, or a manufacturer.
Invention NDAs usually come in one of two forms:
Write each person's full name the way it appears on their ID. Give each person who will see the invention a copy to sign.
Two terms often come up when you protect an invention. They are proprietary information and inventions assignment agreements. Knowing what each one means helps you write a clear NDA and ask good questions before you sign it.
Proprietary information is confidential information concerning a group’s business affairs and any matter concerning the business and third parties. It does not include public information or information that one learns about through legal means. Proprietary information has a similar definition to trade secrets and can be used interchangeably.
Proprietary information covers:
Any information that a business uses to understand and plan its business strategy better is covered under proprietary information and can be protected with a non-disclosure agreement.
With an invention non-disclosure agreement, the inventor will want to establish what proprietary information is included in the agreement. This can range from the idea of the product to what the product or service does. Proprietary information can cover a broad range of ideas and services and your invention confidentiality agreement should cover the definitions you are using.
When working for an employer, you may be asked to sign an inventions assignment agreement. This agreement establishes that any intellectual property of an employee belongs to the employer. Seven states have statutes concerning inventions assignment agreements with similar legal requirements. If drawing one up you should closely follow those statutes to ensure that they are enforceable.
This is a complicated legal matter when it comes to developing new ideas and products for a company. An invention NDA will not protect your ideas if you are working for an employer with inventions assignment agreements.
A signed agreement works best when you also share your idea with care. Avoiding these common mistakes makes it easy to show what you shared, who saw it, and when.
Store the signed copies in a safe place, along with your sketches, notes, and test results.
Inventors often have the same few questions before they share a prototype, drawings, or plans with another person. These short answers cover the basics of invention non-disclosure agreements and how inventors use them.
It is a written agreement between an inventor and another person. The other person agrees to keep the invention private. Inventors use it before they show a prototype, drawings, or plans.
No. An NDA is a private agreement between you and the person you share your idea with. A patent is a separate step. Many inventors use an NDA while they get ready for a patent.
Have it signed before you share any details. That makes it clear what you shared and when.
Ask anyone who will see details of your invention to sign, such as:
Each person gets their own copy.
Describe your idea in general terms, such as what it does and how it works. List anything you plan to share, like drawings, a prototype, test results, or a business plan.
General information, not legal or tax advice.
