Legal Question in Business Law in Arizona

Intellectual Property Protection

What comments do I need to add to a business proposal to ensure that the addressee does not turn around and use my proposals for their own profit, thereby cutting me out?


Asked on 7/19/09, 7:08 pm

2 Answers from Attorneys

Donald W. Hudspeth The Law Offices of Donald W. Hudspeth, P.C.

Re: Intellectual Property Protection

First, is there a Request for Bid or Proposal(RFP)? If so you may have signed on to their use in that. (We can review if you like).

Second, is common problem. Everybody shops everything. No absolute remedy that I know: You can try two things:

1. At top of proposal put something like: "This proposal contains proprietary and confidential information and its author claims copyright protection thereunder. It is for the exclusive use of the intended recipient only. Any unauthorized disclosure or use of the contents thereof may have legal consequences to both the disclosure and user." (This may or may not be enforceable but if you can send the other party to the library it is usually enough to do some good.)

2. And/or have them sign a Non-Disclosure Agreement (NDA) on top of proposal. Simple to prepare and legally enforceable.

But, party seeking bid may not accept your proposal with these protections so may have to do by trial and error.

Good luck.

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Answered on 7/21/09, 2:40 pm
Donald Scher Donald T. Scher & Associates, P.C.

Re: Intellectual Property Protection

You need a Confidential Disclosure Agreement signed by all those to whom you will disclose your ideas. If this agreement is not well drafted, you will have no protection. Even with a well drafted agreement, you must be prepared to sue in order to enforce your rights of ownership to the ideas. Be sure you know who you can trust before you disclose, and then be sure that all parties sign the agreement.

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Answered on 7/19/09, 9:33 pm


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