Legal Question in Intellectual Property in California

Rights Concerning a Business Model

Hi there. I am a Network Administrator, ......and a bit of an MP3 fiend, and so I follow the news closely regarding Napster, Gnutella, and other peer-to-peer file-sharing services and/or programs. I am aware of the dubious nature of 'intellectual property', and could reasonably argue that downloading top ten singles isn't much different than recording them off of the radio.

Sorry to ramble, but my point there is, that the RIAA (The Recording Industry Association or America) is never going to be able to stop media piracy in its entirity. However, in my wonderings on how to fix this problem, I came up with an idea/business model to sell music over the internet that I believe would appeal to both the RIAA AND Audiophiles.

My question is this: If I were to pitch such a model to, we'll say Universal, for instance, are there any laws guarunteeing that I would be compensated for my idea? What would prevent a company from hearing an idea, dismissing it, then having a payroll employee 'come up with' the idea a few weeks after I pitched it? What about other music-producing companies adopting a similar model?

Thanks for your time,

--name removed--


Asked on 10/03/02, 9:42 pm

3 Answers from Attorneys

Amy Ghosh Law Offices of Amy Ghosh

Re: Rights Concerning a Business Model

You have to make them sign non-disclosure agreement. These days there can be business method patents as well!!!

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Answered on 10/04/02, 12:14 am
Keith E. Cooper Keith E. Cooper, Esq.

Re: Rights Concerning a Business Model

There is really very little you can do to prevent an unscrupulous person from stealing your idea if they are determined to do so. Even if you have copyright or patent rights, enforcing those rights against an infriger is extremely expensive and often unsuccessful.

So, FIRST, be careful of who you do business with and deal only with people you trust.

Most business people will not sign non-disclosure agreements with author/inventors who come to them unsolicited. So, even though it may be a good idea, don't count on it being available to you.

SECOND, keep a paper trail. Present your full idea only in written form that you have mailed or delivered with a receipt, so you can prove a date when you presented the idea. You should send this written information only to people you have spoken with and trust, and who have requested more information. After you speak with someone, send a follow-up written confirmation (preferably by fax with confirmation) of the conversation.

The good news is that successful people and companies in the entertainment industry are accustomed to listening to pitches and paying for ideas they use, even without written agreements to do so. These people will be out of business very quickly if they steal other people's ideas, so generally don't do it.

This response is not to be construed to create an attorney-client relationship, is provided for general information only, and does not constitute legal advice on which you can rely. If you need specific legal advice, you should consult with an attorney.

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Answered on 10/05/02, 6:09 pm
Karla Shippey Law Offices of Karla Shippey

Re: Rights Concerning a Business Model

Before you approach ANY companies or even tell anyone about your idea, you should FIRST begin to record your idea in a format that is on media (e.g., in writing, computer, etc.) and dated--most inventors keep a journal that is dated so as to provide SOME evidence of the first date they came up with the idea and then the development dates thereafter. (Mailing it to yourself is popular but not all that helpful in terms of court evidence). Next, you should protect your idea as a trade secret by getting non-disclosure agrteements, labeling it confidential and proprietary, treating it as confidential--don't tell just anybody, and keeping logs of meetings/people where you disclose it. The third step is to protect your idea with a business method patent--including a "provisional" patent if you think you might need time to develop it and don't mind paying a little more money. Finally, you must AFFIRMATIVELY ASSERT your rights against what you perceive as infringement. This takes determination and money sometimes; other times a cease & desist letter can be effective and cost-efficient. If you would like information about trade secret and patent protection, feel free to visit our law firm's website www.lawwords.com or contact us toll free at 800-693-9110.

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Answered on 10/04/02, 3:19 pm


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