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Will Write Code, Won't Sign NDA
itwbennett writes "John Larson hears a lot of 'ideas' from a lot of entrepreneurs who want his programming expertise, but says he 'will almost never sign an NDA.' He has plenty of reasons for refusing to sign, but one that really resonates is that, regardless of what your lawyer may say, demanding an NDA upfront starts the relationship off on the wrong foot. The bottom line: If you want a programmer to hear you out, don't start by assuming that they'll steal your great idea."
...want to know that anyone involved has been signed with an NDA before they consider giving you money.
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NDA is really no big deal. Anything you bring to the table is still yours. It's also a very good way to get acquainted with potent ideas. When someone lacks an NDA, on the other hand, I tend to think they are not very serious.
Cliche, but... Ideas are a dime a dozen. The actual implementation is what matters.
Yep, this well-known successful freelance programmer is clearly the naive one.
My personal reason for never signing one is, the only reason to want me to sign one is so that it's easier to sue me in the future. Regardless of whether your case has merit (it won't), I still need to defend against it. No thanks.
<xml><I><am><so><damn>Web 2.0</damn></so></am></I></xml>
Indeed, utterly petulant.
As an employer, I need to have NDAs in place with my employees to satisfy my upstream NDAs with other companies. That way, I sign that we won't disclose their proprietary tech, and by transitivity my employees are held to their end of the bargain. John Forever Alone Larson can stomp his feet all he wants, but he's clueless.
The trust thing aside, that seems like a very good reason to refuse.
I'd never choose to race someone to completion on an idea, but the last thing I'd ever need is for anyone to come after me, my future products, or business partners because (in someone's twisted, bitter mind) something is distantly reminiscent of something mentioned to me under NDA.
What a great counter argument. <paraphrase>He has a blog and is therefore a well-known successful freelance programmer, and because of that he's not naive about the common requirements for obtaining funding...</paraphrase>
so that it's easier to sue me in the future
- You're being naive as well. Trust me, a company will sue you whether you have an NDA or not simply based upon the premise that they will likely weather a legal battle much more easily than you. It's not always true, but it's a "well-known" tactic.
There are perfectly valid and logical reasons to have someone who can implement your idea sign an NDA. It isn't always necessary, but it often is.
Just make sure the NDA has a relatively short term expiry (12-18 months) and is VERY specific as to market.
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He's not talking about employer-employee relationships, or a business-client relationship... he's talking about signing an NDA before actually doing business is even on the table.
Sorry, but if you'd rather limit your employment options and increase liability without any real monetary recompense, it's just a case of the pot calling the kettle black.
I worked with a friend a while back while he was trying to scare up funds from VCs for an idea he wanted to turn into a company. He went in with the expectation that they would sign his NDA. They told him GTFO with your little NDA. He soon discovered that from the perspective of the VC's an idea itself is generally of very little value- it is the ability to execute and bring something to market based on that idea that has real value. At least this is what they explained to him as he tried to explain to them about his valuable idea and dire need for an NDA.
:)
The VC's were not interested in in his idea beyond the point of ensuring it was valid and had potential. They were really interested in whether HE could bring it to market. He didn't get the funds, so I guess not.
On the other hand though, I work for a software company where nobody will talk to us about the work they want us to do unless we sign an NDA. I can't speak for other companies, maybe it's just us. But for me, I kind of agree with the VC's. I have some good ideas too, but have I produced anything from them? Not yet!
The bottom line: If you want a programmer to hear you out, don't start by assuming that they'll steal your great idea.
Really? This is a business deal, not a marriage. You are agreeing to share trade secrets that can potentially lead to the loss of a huge sum of money if leaked to competitors. Assuming everyone is a nice guy and won't screw you over is a really poor strategic plan. MOST people won't, but you aren't going to spend a year or two dating beforehand to make sure your new-hire programmer isn't one of those people -- you are going to have a matter of hours in an interview or two in which to decide whether or not to trust each other. If you are going to get your feelings hurt when a business partner wants you to sign an NDA, then quite frankly you aren't mature enough for me to want to hire you after all.
MCSE? No, sir...I don't do Windows. Yes, I am an idealist. What's your point?
It usually goes something like this. Entrepreneur can't wait to tell you about his idea that wil "literally" change the world. It's the biggest thing since the big bang and he can't wait to get started on it and start raking in the combined GNP of all the countries on earth combined. The idea is so big you just HAVE to sign an NDA because if you didn't you would for sure steal it because it's so great.
So you sign the NDA.
Then you get the pitch: it's a website called myfreediscussionsite.biz where people can go and have discussion with each other on any topic. No, it's not just a forum because you only see discussions and profile of people you are friends with. Also, you can post status updates about what you're doing and people can comment on them or give them a thumbs up. No, it's not like Facebook because this one has a red theme instead of a blue theme. Also, Google is really successful so myfreediscussionsite.biz.co.uk also has a search engine where you can search for other discussions taking place on the internet and you can post on those discussions and invite people to continue them on myfreediscussionsite.org.co.uk.net.
Once users begin using the site, users are charged a small fee for each post - just a few cents. Facebook has a billion users, and the entrepreneur is sure that we can take at least half of them away to our new service within the first month. Also, pinterest and instagram are pretty cool so you will be able to pin things from around the web and add hipster filters to them. There's something that resembles twitter in there as well, but it's better because it gives you 150 characters instead of 140 and is therefore better. The best part is you don't have to do any of the design because the entrepreneurs buddy has a son who is a "design whiz" and even got the web design merit badge in boy scouts.
Also, the guy doesn't really have any money NOW to pay you, but you'll totally own a piece of the company and you'll get a a fleet of gold-plated Ferraris as soon as they go public which will be in under 18 months for sure, unless they get purchased first for ten trillionz(tm) of dollars by god almighty himself.
or else!
Ideas are a dime a dozen -- and most of them are worth far less than that.
Here's what "idea guys" don't realize: Their idea is very unlikely to be unique. If it is, it's very likely to be complete shit.
If you happen to have a stunning idea for something that will make a lot of money and need to hire a programmer, there's nothing to stop the programmer from thinking, "Hey, I could have thought of that!" and then build the software or website himself. This happens all the time.
Nonsense! The programmer in that situation says "Wow, what a moron! Lol, 'Just like facebook, but with pictures of feet instead.'! How did this guy manage to survive to adulthood?"
Most of the time what you get from "idea guys" is a deal where you work completely on my own for free and we'll 'split the profits' even though this moron doesn't have a business plan, doesn't have capital, and can't describe his idea without resorting immediately to an analogy e.g. "It should be really easy to make. It's like twitter but with pictures!"
I've got plenty of ideas of my own, thanks, and plenty of people telling me about their idiotic ideas without an NDA.
Required reading for internet skeptics
So, with that in mind, I'm curious how an expired NDA is more protection than not having signed the NDA in the first place.
It eliminates the possibility that there was an "implied" or "verbal" NDA, because instead: there is an explicit written NDA, with an expiration date.
Unless McD made that coffee over 100C.
You know, if you could bother to take 10 seconds to do some basic research, you would have found out that they did make their coffee at nearly double the temperature you make your coffee:
There are shills on slashdot. Apparently, I'm one of them.
The sheer amount of time required to just read NDA's required me to find a way to stop that, or at least get paid for it.
I charged an upfront fixed fee to evaluate all NDA's or other contracts. At the time, I also offered to refund the fee on completion of the first milestone of any project they pay for. (Now I'm a regular employee again.)
Then I offered the option to hear the idea for free with verbal promise to not steal the idea provided I had not already worked on it. Some people took the option.