In times when start-up companies are generating high revenues and it is easier than ever to turn mere ideas into money, the main question is: How can I protect myself against any “copycats” or “idea stealers”?

The most effective thing would probably be not to tell anyone your thoughts in the first place. It is obvious that this approach is not possible in practice. In very few cases, however, will the person who initially has the idea ultimately be able to implement it one hundred percent. This of course implies that you share your concept with other people involved in the implementation. At the latest when recruiting investors, you will probably have to tell them about your business model and the idea.

Several different laws can serve as a basis for protecting your intellectual property. In Austria, these include the Trademark Protection Act (MSchG), the Design Protection Act (MuSchG), the Patent Act (PatG), the Utility Model Act (GMG) and the Copyright Act (UrhG). At an international level, the European Patent, the so-called EU design and the European Union trademark, for example, come into question.

The problem is that merely abstract ideas are generally not covered by the aforementioned laws and regulations. Section 1 of the Patent Act, for example, stipulates that “plans, rules and methods for mental activities” are not considered inventions within the meaning of the law and are therefore not patentable. The solution to this problem is called a “non-disclosure agreement”.
A non-disclosure agreement (NDA), sometimes also called a confidential-disclosure agreement (CDA), is a non-disclosure agreement or confidentiality agreement. Such an agreement is intended to guarantee the confidentiality of negotiations and their results. It can also cover certain documents that are handed over in the course of the business relationship. With such a contract, the obligated party agrees to keep information that is made available to them secret. In this context, the Supreme Court states: ” A non-disclosure agreement on genuine business secrets and trade secrets is not a non-competition clause within the meaning of Section 36 AngG and is not subject to its restrictions, particularly in terms of time. The purpose of such an agreement is not only to protect against betrayal to third parties, but also to protect against the use of the secrets as a competitor ” (RIS-Justiz RS0044166).

It is advisable to stipulate a contractual penalty in such a non-disclosure agreement. The advantage of the contractual penalty is that in the event of a breach, the actual occurrence of damage or the actual amount of damage does not have to be proven. Such proof, especially of the amount of damage, is usually almost impossible anyway when disclosing secret information about products that are not even on the market yet.
With the types of contract just mentioned, nothing should stand in the way of any investor talks and the like. Until then, in the words of an old proverb: talk is silver, silence is golden.