How to Keep a Consultant from Stealing Your Idea
John Edwards, Technology Journalist & AuthorMay 16, 20255 Min ReadSkorzewiak via Alamy Stock PhotoA great IT idea is as good as gold. That's why an unscrupulous consultant may decide to take one of your organization's original methods or practices to another client -- perhaps even a rival -- without first asking for permission. While most consultants play fair, issues do sometimes come up, observes John Pennypacker, a vice president at AI technology firm Deep Cognition. "Someone working at your office learns your methods on Monday -- by Tuesday those same tricks might help another client," he says in an online interview. Tech companies face the biggest danger. "Your special formula or unique program code gives you your market advantage." Most consultants are professionals who play by the rules, but idea theft still happens, says Adhiran Thirmal, senior solutions engineer at security service and technology provider Security Compass. "Some consultants work across multiple companies in the same industry, and the temptation to reuse a good idea is real," he warns in an online discussion. "It's not always malicious -- sometimes they don't even realize they're crossing a line." That's why ensuring legal protection and building clear communication channels upfront are important. Proving Originality It’s all about holding onto detailed documentation, Thirmal says. "Keep track of emails, meeting minutes, whiteboard sketches -- anything that shows when and where the idea was created," he advises in an email interview. If it's a major innovation, consider filing for a patent, copyright, or trademark to establish official ownership. "Even small things, such as internal Slack messages or version histories, can serve as proof, if needed." Related:Before engaging a consultant, be sure to put protections into place, recommends Iliyan Paskalev, founder of MyHumanoid, a robotics and humanoids information website. "Clearly define within the contract that all ideas, strategies, and materials shared remain the property of your organization," he notes in an online interview. Paskalev also suggests closing any loopholes by using work-for-hire agreements explicitly stating that any contributions made by the consultant belong to your company. Preventive Steps The best defense is a good offense, Thirmal says. Before sharing any sensitive information, get the consultant to sign a non-disclosure agreementand, if needed, a non-compete agreement. "These legal documents set clear boundaries on what can and can't do with your ideas." He also recommends retaining records -- meeting notes, emails, and timestamps -- to provide documented proof of when and where the idea in question was discussed. "If possible, develop key parts of the idea internally first before bringing in outside help." Related:Control what the consultant can see, Pennypacker advises. "Share only what they must know to do their job," he says. Document everything. "Keep emails, notes from meetings, and early drafts -- they prove where ideas started." Pay close attention to what the consultant or consulting team do daily. "Make sure they follow the rules you set." Move fast when you see your ideas being stolen, Pennypacker says. "Look for certain danger signs." Has a product like yours appeared after your project ended? Did your methods show up in competitors' offerings? Has the consultant broken the secrecy agreement? These signs all indicate it may be time to consult a lawyer. Remediation Actions If a consultant takes an idea and commercializes it, or shares it with a competitor, it's time to consult legal counsel, Paskalev says. The legal case's strength will hinge on the exact wording within contracts and documentation. "Sometimes, a well-crafted cease-and-desist letter is enough; other times, litigation is required." If you suspect a consultant has taken your idea and used it elsewhere, gather all of the evidence -- emails, agreements, and meeting records, Thirmal recommends. Then, try to address the matter informally. "If that doesn’t work, and the stakes are high -- such as lost revenue or competitive advantage -- it’s time to bring in a lawyer," he suggests. "If they broke an NDA or misused proprietary information, you may have legal grounds for action." Related:Compensation depends on the amount of damage inflicted. "If the theft results in a loss of market advantage, organizations can demand licensing fees, royalties, or outright financial damages," Paskalev says. "In some cases, businesses have successfully negotiated settlements or forced a buyout of their stolen IP rights." Last Thoughts The best way to protect ideas isn't through contracts -- it's by being proactive, Thirmal advises. "Train your team to be careful about what they share, work with consultants who have strong reputations, and document everything," he states. "Protecting innovation isn’t just a legal issue -- it's a strategic one." Innovation is an IT leader's greatest asset, but it's also highly vulnerable, Paskalev says. "By proactively structuring consultant agreements, meticulously documenting every stage of idea development, and being ready to enforce protection, organizations can ensure their competitive edge." Pennypacker has one final bit of advice: "Guard your company's thinking like you would guard its bank account." About the AuthorJohn EdwardsTechnology Journalist & AuthorJohn Edwards is a veteran business technology journalist. His work has appeared in The New York Times, The Washington Post, and numerous business and technology publications, including Computerworld, CFO Magazine, IBM Data Management Magazine, RFID Journal, and Electronic Design. He has also written columns for The Economist's Business Intelligence Unit and PricewaterhouseCoopers' Communications Direct. John has authored several books on business technology topics. His work began appearing online as early as 1983. Throughout the 1980s and 90s, he wrote daily news and feature articles for both the CompuServe and Prodigy online services. His "Behind the Screens" commentaries made him the world's first known professional blogger.See more from John EdwardsWebinarsMore WebinarsReportsMore ReportsNever Miss a Beat: Get a snapshot of the issues affecting the IT industry straight to your inbox.SIGN-UPYou May Also Like
#how #keep #consultant #stealing #your
How to Keep a Consultant from Stealing Your Idea
John Edwards, Technology Journalist & AuthorMay 16, 20255 Min ReadSkorzewiak via Alamy Stock PhotoA great IT idea is as good as gold. That's why an unscrupulous consultant may decide to take one of your organization's original methods or practices to another client -- perhaps even a rival -- without first asking for permission. While most consultants play fair, issues do sometimes come up, observes John Pennypacker, a vice president at AI technology firm Deep Cognition. "Someone working at your office learns your methods on Monday -- by Tuesday those same tricks might help another client," he says in an online interview. Tech companies face the biggest danger. "Your special formula or unique program code gives you your market advantage." Most consultants are professionals who play by the rules, but idea theft still happens, says Adhiran Thirmal, senior solutions engineer at security service and technology provider Security Compass. "Some consultants work across multiple companies in the same industry, and the temptation to reuse a good idea is real," he warns in an online discussion. "It's not always malicious -- sometimes they don't even realize they're crossing a line." That's why ensuring legal protection and building clear communication channels upfront are important. Proving Originality It’s all about holding onto detailed documentation, Thirmal says. "Keep track of emails, meeting minutes, whiteboard sketches -- anything that shows when and where the idea was created," he advises in an email interview. If it's a major innovation, consider filing for a patent, copyright, or trademark to establish official ownership. "Even small things, such as internal Slack messages or version histories, can serve as proof, if needed." Related:Before engaging a consultant, be sure to put protections into place, recommends Iliyan Paskalev, founder of MyHumanoid, a robotics and humanoids information website. "Clearly define within the contract that all ideas, strategies, and materials shared remain the property of your organization," he notes in an online interview. Paskalev also suggests closing any loopholes by using work-for-hire agreements explicitly stating that any contributions made by the consultant belong to your company. Preventive Steps The best defense is a good offense, Thirmal says. Before sharing any sensitive information, get the consultant to sign a non-disclosure agreementand, if needed, a non-compete agreement. "These legal documents set clear boundaries on what can and can't do with your ideas." He also recommends retaining records -- meeting notes, emails, and timestamps -- to provide documented proof of when and where the idea in question was discussed. "If possible, develop key parts of the idea internally first before bringing in outside help." Related:Control what the consultant can see, Pennypacker advises. "Share only what they must know to do their job," he says. Document everything. "Keep emails, notes from meetings, and early drafts -- they prove where ideas started." Pay close attention to what the consultant or consulting team do daily. "Make sure they follow the rules you set." Move fast when you see your ideas being stolen, Pennypacker says. "Look for certain danger signs." Has a product like yours appeared after your project ended? Did your methods show up in competitors' offerings? Has the consultant broken the secrecy agreement? These signs all indicate it may be time to consult a lawyer. Remediation Actions If a consultant takes an idea and commercializes it, or shares it with a competitor, it's time to consult legal counsel, Paskalev says. The legal case's strength will hinge on the exact wording within contracts and documentation. "Sometimes, a well-crafted cease-and-desist letter is enough; other times, litigation is required." If you suspect a consultant has taken your idea and used it elsewhere, gather all of the evidence -- emails, agreements, and meeting records, Thirmal recommends. Then, try to address the matter informally. "If that doesn’t work, and the stakes are high -- such as lost revenue or competitive advantage -- it’s time to bring in a lawyer," he suggests. "If they broke an NDA or misused proprietary information, you may have legal grounds for action." Related:Compensation depends on the amount of damage inflicted. "If the theft results in a loss of market advantage, organizations can demand licensing fees, royalties, or outright financial damages," Paskalev says. "In some cases, businesses have successfully negotiated settlements or forced a buyout of their stolen IP rights." Last Thoughts The best way to protect ideas isn't through contracts -- it's by being proactive, Thirmal advises. "Train your team to be careful about what they share, work with consultants who have strong reputations, and document everything," he states. "Protecting innovation isn’t just a legal issue -- it's a strategic one." Innovation is an IT leader's greatest asset, but it's also highly vulnerable, Paskalev says. "By proactively structuring consultant agreements, meticulously documenting every stage of idea development, and being ready to enforce protection, organizations can ensure their competitive edge." Pennypacker has one final bit of advice: "Guard your company's thinking like you would guard its bank account." About the AuthorJohn EdwardsTechnology Journalist & AuthorJohn Edwards is a veteran business technology journalist. His work has appeared in The New York Times, The Washington Post, and numerous business and technology publications, including Computerworld, CFO Magazine, IBM Data Management Magazine, RFID Journal, and Electronic Design. He has also written columns for The Economist's Business Intelligence Unit and PricewaterhouseCoopers' Communications Direct. John has authored several books on business technology topics. His work began appearing online as early as 1983. Throughout the 1980s and 90s, he wrote daily news and feature articles for both the CompuServe and Prodigy online services. His "Behind the Screens" commentaries made him the world's first known professional blogger.See more from John EdwardsWebinarsMore WebinarsReportsMore ReportsNever Miss a Beat: Get a snapshot of the issues affecting the IT industry straight to your inbox.SIGN-UPYou May Also Like
#how #keep #consultant #stealing #your
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