NDAs vs. Patents: Promises vs. Rights

Here’s the truth: an NDA is just a promise between two parties. It’s only as strong as the relationship, and it binds only the people who signed it. If someone breaks it, you’re in court arguing over damages—and meanwhile your idea may already be in the wild.

Patents are different. They don’t rely on a handshake or a promise. Once granted, they apply to everyone—competitors, copycats, and companies you’ve never met. A patent gives you enforceable rights backed by the USPTO.

The Startup Pitfall

The mistake I see over and over: founders treat NDAs like they’re bulletproof and delay filing because “we have everyone under NDA.” That’s a recipe for disaster. Independent development is always possible, competitors won’t wait for you, and investors know the difference.

When Each Tool Makes Sense

• Use NDAs early for initial discussions, vendor quotes, and limited disclosure. They reduce gossip—not risk.
• File patents when the core is ready so your key features and variations are actually protected against the world, not just a meeting attendee.
• Time matters: delaying a filing can lose rights in first-to-file systems and invite “we built it first” surprises.

Simple Rule of Thumb

NDAs are training wheels. Patents are the bike. If you actually want to go somewhere, you’ll need more than promises.