Why Confidentiality Is Critical (and Often Overlooked) in Innovation

Unlike a patent, a good idea can’t be “claimed” just by thinking it up. If you share details publicly—at a pitch event, over coffee with a potential partner, or even in an email—without a confidentiality agreement in place, you may lose the right to file a patent in some countries. Worse, you may hand your roadmap to a competitor.

Trade Secrets Lose Value Without Secrecy

Some of the most valuable intellectual property never gets patented—it’s protected as a trade secret. Think Coca-Cola’s formula or Google's algorithm. But the moment you reveal that secret without protections in place, you risk losing legal rights. Confidentiality is what gives a trade secret its power.

Investors Expect You to Be Smart About IP

It’s a red flag to investors if you’ve been pitching your invention without any confidentiality safeguards. One of the first questions I ask startup founders is:

“Have you shared your invention with anyone—and if so, under NDA?”

If the answer is no, it signals a lack of IP awareness. That can delay or derail a deal.

NDAs Don’t Have to Be Complicated

You don’t need a 15-page legal document to protect your idea. A clear, well-drafted NDA (non-disclosure agreement) is a simple and effective tool—and every founder should have one ready when sharing confidential information with partners, freelancers, or collaborators.

Key Takeaways

  • Don’t share technical or business details without a signed NDA

  • Avoid public disclosures until you’ve filed a provisional or utility patent

  • Protect trade secrets through access controls and written policies

  • Keep a record of what was disclosed, to whom, and when

  • When in doubt, talk to a patent attorney

Final Thought

Confidentiality might feel like red tape when you’re moving fast. But protecting your ideas early can mean the difference between owning your innovation—or watching someone else run with it.


Previous
Previous

How Startups Can Use ChatGPT to Supercharge Their Patent Strategy

Next
Next

Before You Pitch, Read This: The Patent Strategy That Impresses Investors