One of the biggest risks in protecting your intellectual property is when it is outsourced. It is natural to feel concerned when outsourcing for your company, however, it is important to put trust in the client. Here is a range of strategies to help you feel more comfortable about partnering up with an outsourced company, and the steps you should take to protect your IP.

Is it the best option for you?

Before beginning the process, do research into the costs of initiating, negotiating and monitoring an agreement, and weigh up the potential risks to your IP. Make sure that the risks and time put into outsourcing is worth the savings you anticipate. Outsourcing is extremely beneficial, but may not be completely necessary for every situation. Once you have decided whether it is worth it, continue to work through the rest of the procedures below to protect your IP.

Rights and Contract

Rights protecting your IP vary between countries, so make sure that you conduct research in relation to this before outsourcing. Ideally, it would be best to have your own contract set up to make sure all bases are covered.

Non-Compete Agreement and Non-Disclosure Agreement

An NCA should be put in place to stop the outsourced company from giving your ideas to competitors. An NDA is also needed which is a basic measure protecting intellectual property. It is signed by developers or any staff who have access to your code/IP, so you are completely protected. This is really important, and so ensure you are provided with one.

Letter of Intent

It is advisable to have non-binding letters of intent from both sides, to indicate the reason for cooperation. This is less formal than the agreements and contracts discussed above and is more of a mental agreement of what is hoping to be achieved in the project.

Server Access

Restricting access to the servers so that only selected employees are in contact with your IP will make sure that it is only in the hands of those who you feel comfortable with.

Trusted Company

One of the best ways to protect your IP and to also ensure you feel comfortable that you’re working with the right people is to choose a company with a proven track record. Research the most trustworthy providers, by looking at their references and portfolio.

Trained Staff

When you are outsourcing, you will need to have at least a competent IT manager and a project manager to oversee the transaction. If possible, it would be extremely useful to have a security person to help prevent any breaches of security. As well as this, you need to have a plan in place in the eventuality that the relationship deteriorates. This can happen for many reasons, so need to have staff who are aware of a detailed exit strategy to continue to protect your IP.

There will always be risks surrounding IP, but just be thorough and sensible and hopefully, these guidelines may help you reduce the risks and successfully outsource - it is also always worth it to seek the help of qualified corporate solicitors.