Share This Post

Startup

Comic: NDA Obsessions

“I’ll tell you about my business, but first sign my NDA.” 

If I got a dollar every time someone told me to sign an NDA (non-disclosure agreement), I’d retire right now. The irony is that NDAs, trademarks, patents and copyrights are very expensive to defend for a small business. Many aspiring entrepreneurs are concerned that their startup will come across predators who will steal their idea, so they invest in these legal tools as a precaution. Little do they realize that protecting their idea could cause them to go out of business!

Last year, we were sued by a Fortune 500 company for a trademark application that we naively filed. Although lawyers said we had a fighting chance, we couldn’t justify the $250K in fighting dollars to take the case to court. The Fortune 500 company shut down our operations. The moral of the story is that NDAs/trademarks/patents/copyrights are great in theory, but unless you have the pockets to defend them, they are nothing but an expensive hobby.

You’ve heard of FOMO (fear of missing out)? Let’s introduce you to FOSO (fear of stolen opportunities), which is an #entrepreneurfail. Entrepreneurs need to overcome this fear. There is no way the business or product will be successful while in extended stealth mode. The iterative feedback needed to create value only happens when the entrepreneur is an “open kimono”, laying all the vulnerabilities out on the table. Many seasoned entrepreneurs can attest to this. As the CEO of Skillshare, Michael Karnjanaprakorn, mentioned once, it didn’t matter if others were copying his company’s ideas because his vision and execution were always farther ahead. And today Skillshare is leaps further than its competitors.

For a simple business idea, skip the NDA, get the work done, launch and you’ll be one step closer to success. (Of course: it’s probably best to get the final word from a lawyer since this is just our opinion!)

We’d love to hear your thoughts. Did you create an NDA? If so, what were your experiences? Tell us in the comments below!

(Enjoyed this comic? Get more comics at https://www.entrepreneurfail.com/ and sign up to take the exclusive Wantrepreneur test).

**********

You can find other comic reads by Kriti here!

************

 

 

Comments

Share This Post

7 Comments

  1. once a Mumbai based e-com wanted us to integrate a monthly payment system in their site , head of website wasn’t allowing us to see codes even after signing NDA ..!! 

  2. Great Information !!!!!

    Also .. the comic is really attractive 😀

  3. How frustrating Nitish!

    Did it eventually get resolved?

  4. Glad you enjoyed it! Would love to hear what you think of my other comics on http://www.entrepreneurfail.com.

    Any feedback is always helpful. 

  5. This is really helpful Rahul!

    I think the big problem is many entrepreneurs attempt to use these legal strategies without the help of a professional!

  6. You’ve hit the nail right on the head as far as my business is concerned! Once we came across an NDA so complex that we thought we may as well enroll in law college if this how business is to done!

  7. Thanks Madhavi! And yes, so true!

Comments are now closed for this post.

Lost Password

Register