Confidentiality Agreements and the NDA

Early-stage businesses and start-ups are often too quick to "hit" potential investors with an NDA (i.e., a Non-Disclosure and Confidentiality agreement).  While an NDA seeks to protect intellectual property, including ideas and concepts related to your proposed business or project, one must balance the "pros and cons" of sending an NDA too quickly, without strategically considering your audience or particular investor.  For example, many investors, especially sophisticated investors, are unwilling to spend money to negotiate an NDA.  Moreover, many investors refuse to sign an NDA for fear that a dispute (or litigation) may arise should the investor ultimately form a relationship with one company over another.  Therefore, whether to send potential investors an NDA is a decision that should be analyzed carefully in light of the investor's background and level of sophistication. 

Buying a Business- Transfer Those IP Rights!

If you purchase or otherwise acquire a business, be sure to properly transfer or assign any existing intellectual property rights, including trademarks, copyrights, and/or patents. This is often overlooked by individuals and companies who purchase an existing business or the assets of a business. This is an important step that will spare you issues and potential disputes down the line.