How do you avoid infringing on other startups' IP when pitching to investors?

1 Know your IP assets

Before you pitch, you should have a clear understanding of what your IP assets are and how they add value to your business. IP assets include patents, trademarks, copyrights, trade secrets, and any other proprietary information or technology that gives you a competitive edge. You should also know the status of your IP protection, whether you have registered, applied for, or are planning to apply for any IP rights. Having a solid IP strategy will help you communicate your value proposition and differentiate yourself from other startups.

2 Sign an NDA

One of the simplest ways to protect your IP rights when pitching is to sign a non-disclosure agreement (NDA) with the investors. An NDA is a legal contract that binds the parties to keep confidential any information that is disclosed during the pitch. It also defines the scope, duration, and obligations of the confidentiality. An NDA can deter investors from stealing or sharing your idea, or from investing in a competing startup. However, not all investors are willing to sign an NDA, especially at the early stages of the pitch. Some may see it as a sign of distrust or lack of confidence. Therefore, you should be selective about who you ask for an NDA, and be prepared to pitch without one if necessary.

3 Share only what is necessary

Another way to protect your IP rights when pitching is to share only what is necessary to convince the investors of your potential. You don't have to reveal every detail of your product, service, or technology, especially if it is not protected by IP rights or if it is still under development. You can focus on the problem you are solving, the market opportunity, the customer feedback, and the traction you have achieved. You can also use general terms, diagrams, or mockups instead of specific technical specifications or code. The goal is to demonstrate your value proposition and your competitive advantage, without giving away your trade secrets.

4 Monitor the market

Finally, you should monitor the market and the activities of the investors you pitch to. You should be aware of any new entrants, products, or services that may be similar or related to your idea. You should also keep track of any investments, partnerships, or acquisitions that the investors make in your industry or domain. If you notice any signs of IP infringement or conflict of interest, you should consult a lawyer and take appropriate action. You should also update your IP protection as your idea evolves and matures, and as you enter new markets or jurisdictions.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?