Most of us have great ideas for new products or services that can boost our profit margin. Unfortunately, we do not have quality resources to get them to market. Instead of small companies, we often look for an established product manufacturing company to help us. If our idea is so unusual, that it is patentable, then before we show it off, we want to have that company sign a nondisclosure agreement promising it will not steal our idea. If you are going through the same kind of threat for your new product idea, then here are some tips to protect your ideas when pitching it to any product development company.
Tips to Protect Your Idea
Hire a local lawyer experienced in your specific industry to help write agreements. Some agreements spell out strict financial penalties, if the signer is found to have breached the agreement. You don’t want to have such harsh agreements that nobody would sign it; hence, hire an experienced lawyer to write it.
Without such protection, winning an infringement claim against your hired product development company may be difficult. If you do come upon a copycat, it may be worth contacting a lawyer to examine the merits of your case. If a product manufacturing company replicated your product and its packaging to the point of creating customer confusion or copied something that is protected under trademark or copyright law, you might have a solid legal case.
However, it is possible that a company would modify your product or design just enough to escape any legal charges. In addition, keeping in mind, applying those legal protections in court can be too expensive. In some cases, a lawyer will first send a cease-and-desist letter, telling the believed offenses and demanding the offender to stop manufacturing the product and possibly pay damages. If the offender ignores the letter, the next step is usually a lawsuit.
Always remember, a lawsuit can be expensive, costing thousands of dollars in legal fees and may take a lot of time from your business. Additionally, there is no guarantee you will win the lawsuit. To collect any money in court, you generally have to prove that you suffered financial damages from the alleged copycat’s action – a feat if your sales are rising.
At the end, the most effective method to protect your new product idea is by being extra cautious about whom you share with. It is worth talking extensively with others in your industry and getting referrals before disclosing your concept to anyone.
GID – A Product Manufacturing Company in California, USA
GID is a new product manufacturing / development company located in California. With years of experience, we love help our clients to design, prototype, test, and develop 100% originally developed products to meet their business needs. Being a reputed product development company, we love to preserve 100% client confidentiality – from concept to fully developed product. Our client confidentlaity is the only reason, why we have been in industry for more than 2 decades. We manufacture your concept only for you.
If you are planning to own a competitives edge over over your competitors by designing and manufacturing a profitable new product, then feel free to contact us at https://www.gidcompany.com/contactus