Nondisclosure agreements, or NDAs, are commonly used to allow parties to have initial discussions about a prospective business relationship. However, if you plan on protecting your ideas through patents, copyrights or trademarks, it is a very good idea to file before you disclose them, even if you have an NDA. The reason is most NDAs exclude information that the receiving party had developed on its own. If you end up with an unscrupulous venture capital firm, they could use your ideas and claim they had the ideas first and may even file for their own patent or copyright protection. In that case, you end up with a breach of contract action which can be very difficult and expensive to prove. If you filed before you disclosed, then you have a great deal more protection.
Answered on Oct 28th, 2012 at 10:51 AM