GoFuckYourself.com - Adult Webmaster Forum - View Single Post - What if an outsourcing company "borrows" the idea you pay them to implement?

Taboo · 09-06-2004, 07:28 AM

Try to use only US-based companies. Have iron-clad contracts, NDAs, NCAs and sue them if they breach... that's only if you're lucky enough to catch them. It doesn't matter if you outsource or insource, there is always a risk. Even with family and friends who may "borrow" the idea or unknowingly tell your future competition. As soon as you find out someone has stolen your concept, and have proof, make it known to everyone... not just your lawyers.

This happened to me in mainstream with a programmer I hired who took my idea, passed it along to his cousin to market it to my client-base. But they were greedy and stupid. He got caught when he bragged to a bartender who was a close friend of mine. He told her that he was starting a "new" business, and she thought the circumstances were strange so she informed me. Thank goodness for "loose lips". so my lawyer handled it, but I made sure to let my target clients and his customer base, know that any info or ideas they shared with him were at risk of being stolen. That did the trick, but I'm sure the shark is still out there under a different name. He's since moved to CA, and I lost track of him out there.

Now, I try to avoid this problem by offering a tiny equity stake in my projects (up to 5%, but usually less than 1.5%). I sell the dream and if they like the idea, we move forward. The end result being that the people I work with are more productive and trustworthy because they are getting paid plus the bonus. In fact, sometimes they will share more ideas, add more features, and go beyond the call of duty because in their eyes, it's their baby too. They don't over-charge, in fact they under-charge now because of the equity. This solution's not for everyone, but in my case, this prevents people from trying to steal the whole pie because I've already given them a slice.

Your mileage may vary.

09-06-2004, 07:28 AM
Taboo Confirmed User Join Date: Jul 2004 Location: I'd rather be networking than not working. Posts: 3,700	Try to use only US-based companies. Have iron-clad contracts, NDAs, NCAs and sue them if they breach... that's only if you're lucky enough to catch them. It doesn't matter if you outsource or insource, there is always a risk. Even with family and friends who may "borrow" the idea or unknowingly tell your future competition. As soon as you find out someone has stolen your concept, and have proof, make it known to everyone... not just your lawyers. This happened to me in mainstream with a programmer I hired who took my idea, passed it along to his cousin to market it to my client-base. But they were greedy and stupid. He got caught when he bragged to a bartender who was a close friend of mine. He told her that he was starting a "new" business, and she thought the circumstances were strange so she informed me. Thank goodness for "loose lips". so my lawyer handled it, but I made sure to let my target clients and his customer base, know that any info or ideas they shared with him were at risk of being stolen. That did the trick, but I'm sure the shark is still out there under a different name. He's since moved to CA, and I lost track of him out there. Now, I try to avoid this problem by offering a tiny equity stake in my projects (up to 5%, but usually less than 1.5%). I sell the dream and if they like the idea, we move forward. The end result being that the people I work with are more productive and trustworthy because they are getting paid plus the bonus. In fact, sometimes they will share more ideas, add more features, and go beyond the call of duty because in their eyes, it's their baby too. They don't over-charge, in fact they under-charge now because of the equity. This solution's not for everyone, but in my case, this prevents people from trying to steal the whole pie because I've already given them a slice. Your mileage may vary.