Losing Your Idea Through Social Media

Before presenting an idea to an investor, companies usually ask them to sign a Non Disclosure Agreement (“NDA”). The NDA is viewed as critical to protect the company or individual,and their idea. In the small world of entrepreneurship, the fear of losing is a cashable idea is daunting.

And then, an entrepreneur decides to take his idea to every social media platform that she/he can find.  They leak seemingly simple information such as, “working on my new idea!” and “can’t wait to get investors interested in bio tech in Eastern Europe.”  Suddenly, coupled with a series of other posts on the same topic, another person puts the pieces together and voilà – the idea is gone. There is no protective NDA, no contract, and no proof that it was your idea that was stolen.

The desire to engage with others throughsocial media has tapped into the excitement of sharing every brilliant idea you have with your closest online friends – all 800+ of them.  However, if you were to put all of those people into a room, you would be more secretive about your idea – afraid of losing it to someone else.

So next time you want to post on a social media platform about you newest business idea… Remember that you are giving a green light to the loss of your idea – and no NDA to prevent it.

by: Benish Shah, Esq. & Sheheryar Sardar, Esq., Sardar Law Firm LLC

For more information, contact: Sardar Law Firm at sardar@sardarlawfirm.com.

Follow Sardar Law Firm on Twitter:http://twitter.com/sardarlawfirm

When do Preliminary Contracts Bind?

In a constantly evolving financial climate, it is likely that parties will seek to avoid agreements reached with other parties that are no longer profitable or commercially viable.  Such refusal to abide by agreements leads to disputes between parties, often over one issue:  whether the agreement was binding and enforceable.

Amcan Holdings v. Canadian Imperial Bank of Commerce

In a recent case in New York, Amcan Holdings, Inc. v. Canadian Imperial Bank of Commerce, 2010 NY Slip Op 00786, (“Amcan”), the Appellate Division of the Supreme Court of New York concluded that an executed “Summary of Terms and Conditions,” which delineated a proposed financing between lender and borrower, was not a formally binding agreement – but an “agreement to agree.”

Read more here.