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NDA vs Patents

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(@jonyekwere)
Posts: 27
Eminent Member
 
Posted by: @fo3

As learned this week, it is important to protect our ideas and inventions and to do so in the appropriate legal manner. Part of the lesson discussed Non-disclosure agreements, or contracts, and how they can help protect our ideas.

Based on what we know about patents, is an NDA a substitute for a patent? What is the difference between the two, and when is either one needed? One could say that both working together can give you the ultimate protection, but there should be cases when one isn't necessary.

An NDA is not a substitute for a patent. Patents offer protections for IP, products, and services that far exceed the the protection from disclosure offered by an NDA. One example is this can be seen when two competitors produce an identical product without any disclosure between the two competitors. Both organizations could have NDAs, but the organization who first patents the product will be the organization whose exclusivity to product commercialization is protected.

 
Posted : 21/08/2019 10:05 am
(@lmathis)
Posts: 10
Active Member
 
Posted by: @fo3

As learned this week, it is important to protect our ideas and inventions and to do so in the appropriate legal manner. Part of the lesson discussed Non-disclosure agreements, or contracts, and how they can help protect our ideas.

Based on what we know about patents, is an NDA a substitute for a patent? What is the difference between the two, and when is either one needed? One could say that both working together can give you the ultimate protection, but there should be cases when one isn't necessary.

From my understanding, I don't think an NDA is a substitute for a patent. A patent is a federal document basically protecting your ownership of an idea, while an NDA is an agreement/contract between two people. For instance, an inventor can apply for a patent to prove he invented the "idea". But the inventor would need an NDA if they were to work with a company. 

 
Posted : 23/08/2019 4:18 pm
(@sam-doksh)
Posts: 115
Estimable Member
 

NDA  Anon disclosure Agreement or Confidentially Agreement is a written agreement where one or more parties agree to keep information that is disclosed confidential. It will be used one  party wants to disclose confidential information to a second party. a patent offers you rock- solid, legally binding, enforceable by stiff penalties proof of idea ownership. Having an written NDA signed is an important first step before disclosing confidential information to others before a patent application is filed.

 

 
Posted : 25/11/2019 1:43 pm
(@jordankayal)
Posts: 82
Trusted Member
 
Posted by: @fo3

As learned this week, it is important to protect our ideas and inventions and to do so in the appropriate legal manner. Part of the lesson discussed Non-disclosure agreements, or contracts, and how they can help protect our ideas.

Based on what we know about patents, is an NDA a substitute for a patent? What is the difference between the two, and when is either one needed? One could say that both working together can give you the ultimate protection, but there should be cases when one isn't necessary.

An NDA and a patent are not the same thing. An NDA is an agreement companies have their employees sign to ensure if that employee were to leave the company and go work for one of their competitors, they wouldn't disclose any proprietary information about the work being done at their previous company. This is something companies do to maintain a competitive edge over their competitors. Patents on the other hand are granted for innovative, breakthrough technology, inventions, etc. Once a patent is filed, it is public information, but the idea is legally protected from being copied. Patents can be filed based on work being done at a company, or also from work being done on an individual's own time. 

 
Posted : 25/11/2019 9:46 pm
(@aniketb)
Posts: 78
Trusted Member
 

A patent is when we do/think of something unique and has not been done yet, only then we are eligible to apply for a patent. While an NDA is something that can be applied to the thing in which you own a patent or not.
An NDA is when you sign a non-disclosure agreement stating that you will not share it with anyone else.
I think NDA works everywhere when you want it to be kept safe while a patent keeps it safe from making copies of the same product.
I don't think both of them go hand in hand as the patent has to be shared and should be known by everyone so as to not be copied.

 
Posted : 26/11/2019 1:28 am
(@as934)
Posts: 78
Trusted Member
 

A patent gives the company legal ownership of an idea or design. This allows for the owner of the patent to have exclusive ownership of the idea or design, and gives them the right to sue for patent infringement if someone else is using what is protected by the patent without the permission of the owner. However, patents must be described in technical detail in order to be reviewed and granted, and the information is out in the world for people to look at. The life of a patent can last 14-20 years, and once it expires other people can start making it (think of name brand drugs, then the generic version). One way to keep the main market share longer than the life of a patent is to decide to keep it a trade secret instead of filing for a patent. A trade secret is (obviously) a secret, and there is no need to disclose the information like in a patent. The trade secret is maintained through the use of NDAs. NDAs protect the confidentiality of the secrets revealed to employees to keep it from getting into the wrong hands. However, if a competitor can come up with the "secret formula", there is nothing that keeps them from being able to sell it.

 
Posted : 27/11/2019 9:49 pm
(@yifan-tao)
Posts: 39
Eminent Member
 

In my opinion, NDA and patent are two different things. In many works, we will encounter the situation that we need to sign NDA, because this is a company's confidential project or major internal matters, etc., but these contents may not be enough to become patents. Patent is another independent matter, which cannot be discussed together with NDA. So in most cases, before a new product development, it is required to sign NDA, but patent application is generally done after the successful product development.

 
Posted : 29/11/2019 6:48 pm
(@prateekch18)
Posts: 42
Eminent Member
 

NDA and patents are different and they varies case to case, an NDA is a document between two or more people/entities which confirms that the parties will not share the document details and will not recreate it on its own, whereas a patent is of an idea which gives you ownership of the idea and no one can duplicate it. Thus I believe for a successful medical device both are absolutely necessary.

 
Posted : 29/11/2019 7:02 pm
(@sameer-rana)
Posts: 78
Trusted Member
 

In reference to the first question, I believe an NDA is not a substitute for a patent, but rather a viable solution for circumstances in which a patent is not desirable or cannot be obtained. For example, an NDA may be a more desirable approach to protect trade secrets such as the recipe to make Coca Cola. Since a patent results in public information, it would not be desirable for Coca Cola to file for a patent that would make public the recipe or the process by which their product is made. On the contrary, an NDA is also not a substitute for a patent because it can be used to protect general company details or information that cannot be patented at its current state. For instance, if a company just has an idea for a new product they want to launch, an NDA can help assure that information related to it doesn’t leak to competitors as they work to develop it. Similarly, it can be used to protect other information such as company changes, purchases, future directions, etc. Overall, a patent is obtained by companies to gain a period of time in which they can recover their losses and hopefully make a profit without replicas from competitors being in the market.

This post was modified 4 years ago by sameer-rana
 
Posted : 30/11/2019 5:46 am
(@tulikadasp)
Posts: 39
Eminent Member
 

Patents represent rock-solid proof of ownership of an idea. And this is important because an idea is intangible. There are only two ways a court of law recognizes ownership of an idea - NDA and Patent. 

Whereas a patent is a federal document proving ownership of an idea, an NDA is simply a contract between two people. NDA can provide some level of protection. But they are bad when you attempt to use an NDA as your sole protection, especially when disclosing your idea to people you don’t know and trust fully. If patent protection is available, just having filed for a patent prior to disclosing the idea to a company will put you in a much better position. Filing the application will establish your priority and can prevent them from attempting to patent the idea themselves.

 
Posted : 01/12/2019 7:35 pm
(@christoph)
Posts: 44
Eminent Member
 

An NDA is definitely not a substitute for a patent.

1. The scope of  a NDA's application is limited to the  two parties explicitly included in the NDA. A patents scope of  protection implicitly includes any party or person within the whole of the USA. So that is a huge difference. The NDA offers no protection from another person 3rd partys infringing on the NDA since that other person is not included in the NDA. So if the NDA was breached by a party included in the NDA by telling a 3rd party. The that 3rd party use information to begin and exchange of product  or services there would be no legal recourse since the the 3rd party was not included in the NDA.

2. A patent requires specific detailing of claims regarding what is included for protection. A NDA does not requires specification of claims. It delineates its idea boundary of  protection in a much more generalized manner. Example, "anything  product or service association with the company in some specific industry." No attempt to specify exactly what the ideas that are being protected is required.

3. The duration of enforcement of the NDA is set by the parties included in the NDA.
 The duration of a patent enforcement is set by a third party, namely the US government.
Again this is a huge difference.

I think an NDA may be required in the leadup to getting a patent.
Like suppose some service like a drawing, prototyping, data analysis is desired to support claims included in the patent. These service would need to be rendered under a NDA since the patent is not yet ready.

 

 

 
Posted : 01/12/2019 10:11 pm
(@darshannayee)
Posts: 40
Eminent Member
 

NDA, Non-disclosure agreements, can be used when discussing your idea with other person and when you don't what that person to tell it to other people so when you go to patent it you don't have to worry about someone else making the product before you patent it. NDA is used when you talk to company who makes concepts or finale products before you patent your idea. I would say if you patent your idea then you don't have to worry about NDA because your idea is public information now. Also NDA is used to protect your idea from becoming public before you patent your idea.

This post was modified 4 years ago by darshannayee
 
Posted : 02/12/2019 12:03 am
(@anvitha)
Posts: 40
Eminent Member
 

The difference is that a patent is a federal document proving ownership of an idea, and an NDA is simply a contract between two people. NDA is a contract and not a law. Contracts are interpreted in different manners depending on the state law and interpretations vary from state to state. Patent law, which is federal, is interpreted uniformly throughout the United States. An NDA protects you from other people that get involved in the project.  A patent, as described above in the posts by others, will ensure that no one can replicate your ideas. Filing a patent prior to disclosing any ideas to a company or individuals you do no trust will put an individual in a better position. 

 
Posted : 24/11/2020 9:22 pm
(@nikhil-nagarjun)
Posts: 78
Trusted Member
 

To answer the above it is important to know what is NDA. In business relationships, one or both parties may want to make sure some information stays confidential. By signing a non-disclosure agreement (NDA), the parties agree to keep certain information private. NDAs are legally binding contracts, which means that disclosing the information identified in them could result in legal action. Companies often require new employees to sign an NDA if the employee’s position gives them access to sensitive information. A company also might use an NDA if they’re entering negotiations with another company about going into business together. The NDA allows one or both parties to protect confidential information from getting out.

 
Posted : 25/11/2020 9:35 pm
(@jmeghai)
Posts: 79
Trusted Member
 

For one I would say both a patent and an NDA are needed to sign and secure your ideas and invention in a contract. NDA is simply a contract between two people. While Patent is a federal document proving ownership of an idea. 

Also, you cannot use an NDA to protect the contents of a patent granted by the U.S. Patent and Trademark Office (USPTO). That’s because as part of the grant process, the patent is published and incorporated into the USPTO’s public database.

NDA’s only recognize the signatures on the contract. Say you signed an NDA with some unscrupulous person or company and such a person takes your idea and invention, sure you can get the person sue. However, suing the party in breach does not retract the disclosure. If public disclosure has occurred, it may be an obstacle to your patent protection. Further, the process of going to court is both costly and time-consuming. For these reasons, an NDA should not be viewed as a foolproof method of protecting your intellectual property rights. NDA is not a substitute for a patent application but an optional additional tool to use while bringing your invention to market. Since a provisional application is maintained confidentially by the Patent Office after filing, you may wish to use a NDA even after you have filed a provisional patent application to prevent dissemination of the details of your invention more broadly until such time as you commercially release a product to the market.

In summary, Patents provide proof that you own the idea entirely. Patent is way more powerful to back and claim ownership of an idea than an NDA. Patents are the only way to guarantee your idea is protected while NDA is just a sign document of an agreement to share your ideas with another party. 

Reference: 

https://www.heerlaw.com  

 

This post was modified 3 years ago by jmeghai
 
Posted : 28/11/2020 10:04 pm
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