Often, an inventor would like to rely upon the 'non-disclosure agreement' or NDA. The step in the process is very popular – and the reason that it is so is clear. The NDA may be free, (you can download many versions on the internet including this one: Preferred NDA); it is easy to use; seems like a great idea. Wrong.

It has been explained: "If I were an unscrupulous manufacturer, I'd sign any NDA anyone brought. I hear them out – and them kick them out. Then, I'd make their idea. First I'd make it, then I'd make it better and wouldn't pay them a dime. Just let them bring their NDA to court asking for relief. You think deciphering what is protected by a carefully prepared patent is complex? Well let me tell you, determining the true scope of an NDA which likely contains nary a definition of anything, let alone a detailed legal definition invention which might be entitled protection – is far more complex."

In addition, a non-disclosure agreement usually means the party won't disclose. That says nothing of making, using and selling the idea.
There are more than 20 other important failure mechanisms for the NDA. How can we be sure this is true? Ask yourself the following question: If an NDA actually did work – then why don't they simply close down the patent office? An NDA cannot do the work of a patent. We love it so much because it is free – and we want to believe it will actually provide some protection to our ideas. I wouldn't risk it.

The very best NDA is one you don't have to sign. You must carefully choose your partners – and do your business with good honest people. Good honest people don't steal ideas. When you are uncertain whether a person is good and honest, then you are going to require a patent. Using the NDA won't hurt your position when you are doing business with good honest people and it is sometimes a nice reminder to those good honest people of their agreement to you – but an NDA will do nothing at all when used to bind those persons who are less than 100% honest.