Back in Jan I went to a person well respected in the startup community (PG knows her) in BOS. She was a friend of a friend, I've known her for years..she previously had a high profile startup that crashed in the dotcom era. I wanted to bounce the idea off her and get her feedback. So I sent a presentation (marked confidential) and followed up with an hour long chat, which was helpful. She moved to the west coast the day after we talked and 2 weeks later I find that she taken my 90% of my idea, mixed it up with social network and gotten seed funding from a small west coast VC. I've been developing this idea on a shoestring and on the side for 6 months. I've got a lot invested in this. She's hired a indian development firm and been spamming blogs with her site name to get registrations. I've applied for a patent, but not sure it can be of any help right now. What action should I be taking? (besides wanting to run her over)
Doesn't help much, but one thing you can do is feel good that you have good ideas. The second thing you can do is launch a competitor immediately. If she's using an outsourcing firm and isn't actually doing the development herself you've got a huge advantage. Use it.
I'd be willing to bet that since it was your idea, you have a much better understanding of the problem and how you're solving it than she does. Use that too. See where she falls down in her offering and exploit it.
"Here's another way to look at it. If merely telling someone your idea means that it can be ripped off, then you hardly have a defensible product. If secrecy is your main weapon, then it will be hard to find investors. By the way, what happens when you ship? Are you going to ask every customer to sign a nondisclosure too?" And what about your first employees?
And if you think the fact that her seed-funded team of 5 developers gives her an indomitable advantage, think again.
It's not what you do, it's HOW YOU DO IT.
So what action should you be taking? I'd say to look real hard at what she's doing. If she nailed it and has built something great, find another idea. They're everywhere. If she hasn't nailed it and you can make a better product, make it.
And, if you're feeling vindictive (I wouldn't bother with this), you could plant a few seeds within your shared network-- tell your mutual friends/contacts what she did.
Everything that's said about ideas being worthless is true most of the time, but not always unfortunately. So... next time don't reveal everything to a potential partner/VC. Keep some important bit of your idea secret. Something that isn't obvious, isn't on the surface, yet important for the implementation.
'... You may advance and be absolutely irresistible, if you make for the enemy's weak points; you may retire and be safe from pursuit if your movements are more rapid than those of the enemy ...' ~ http://classics.mit.edu/Tzu/artwar.html
I read all the comments and can't believe no one gave you some concrete advice. Sure, ideas are worthless until they are implemented but that does not JUSTIFY someone STEALING your idea and breaching the confidentiality! Just because you haven't implemented your idea fully, does NOT mean someone's JUSTIFIED to STEAL it!
Here's what you should do: expose her! That's right, start a blog, start the website for your idea and tell everyone how this person got the idea from you and breached the confidentiality. Post email exchange, provide a timeline of your conversaton with her, provide what you provided her with. Get it out in the sunlight. Investors and VCs will shun away from her since who wants to invest into a person that's a THIEF and invest into a company that might get sued by somoene (you)?! Startups have a low probability of success and these legal issues could just sink it. It's easier to invest into a "clean" startup.
Get the word out about her! Learn about SEO and work on getting your page to show up on the first page results when someone searches for her name. Talk to journalists (TC, GigaOM, etc) and get them to write about what happened to you. Expose her and get some publicity about your site in the process! Destroy her reputation! NEVER forget: in business, reputation is everything! Worst thing you can do is keep quiet about it.
Why waste the energy on revenge? Even if you succeed at destroying her startup, you'll be left with nothing. She won't have anything either, but that's pretty cold comfort.
Implement the idea yourself and do it better than she does.
I think you should launch your idea ASAP to compete with hers. Since she's using an off-shore dev team you might be more nimble in execution than she is. It's harder to explain to a bunch of guys over the phone exactly what you need done. I wouldn't advice partnering with her. You wouldn't want such a close business relationship with someone you can't trust.
Don't feel bad. Just think of the original guy who came up with the idea for facebook. Zuckerberg was PAID to work on his friend's version of facebook, and he simply went off and created his own.
If its any consolation, Google announced plans to emulate a lot of the functionality planned for our new email client, Litepost, days after we started announcing and exploring our ideas with the public and users:
I'm not saying they ripped us of course (who could possibly prove that?) but I will say that the timing is awfully coincidental, given that the overall ideas behind our program have been in development for almost a year (and we just started publicizing our ideas recently)!
Personally I take it as a compliment, and am grateful/flattered to have such a large competitor emulating plans we've had in development for a while. (The main thing we heard while pursuing this idea was "How can you possibly improve upon Gmail?" Well now Gmail itself recommends recommendations upon its service.)
All this, however, corresponds directly to what PG says and some of you echo below:
(I'm new to this whole arena, so it's taken us a while to a) find the right developers and b) get up to speed before launch.)
If anyone's interested in weighing in, I wonder if open sourcing our project might help it or be of general interest/utility... is anyone interested in "an Open Source Alternative to Gmail that You Can Install and Run on Your Own Servers"? If so, I could use some help.
I am actually interested in ultimately duplicating _and open sourcing_ a lot of the functionality of Google generally, in order to decentralize it (the operation and its power, which after all is only algorithms + horsepower) and nullify the negative privacy implications of Google. What do you think? Any takers?
I think the only possible contender to Google is an open source alternative. Let's Open Source Google!
PS From another news.YC article: "In Silicon Valley, Google-as-the-giant talk is deafening. As others have noted, startups used to get the question "What are you going to do when Microsoft does this?" and today, it's "What are you going to do about Google?"
Source: http://andrewchen.typepad.com/andrew_chens_blog/2007/04/google_a_tale_o.html
hey nathan - glad to find you on here. (it's Shanti)
I've been meaning to tell you... is your model a hosted one?
One space that Google (nor Sprout) will ever dominate is a software model where you allow clients to install your app on their own servers or VPSes. (i.e. a JumpBox)
Clients then get the best of both worlds:
1) Your killer UI
2) Privacy/Security/Control of their companies email data on their own server
Sure you've thought of this, just thought I'd give it a plug.
Pissedoff, stop worrying and do your work and get your thing launched. if people are copying your idea, it means its a great one. Second thing is, world is full of copycats and even if she had not steal u r idea, some one would have become your competitor pretty fast. so think her as your competitor and kick start to get her out of business.
Are you pissed because you know that this woman has the contacts and industry experience to execute on the idea better then you?
A presentation and an hour talk surely hasn't given her much of an advantage. Go off and build your idea into a successful company. The day after it hits Techcrunch you'll have 50 competitors anyway.
I'd go straight to #3. #1 won't work because he trusts her much less than before. #2 isn't bad, but lawyers = $$$ right? and that $$$ and time could be spent doing #3 no?
So she's outsourced the development and is spamming blogs to get registrations. Doesn't sound like too formidable a competitor to me. If you can code, you can develop your app and launch in less than than the time she's wasting trying to communicate with Indian developers in the middle of the night. Her industry connections won't matter so much if you launch a better product first.
You can either do the idea better than she does, or you can start working on another idea. Given that she's outsourcing the development, either one should be feasible.
Suing over ideas is just a waste of effort; the only people who come out ahead in the end are the lawyers.
Leverage the 53,651 meme to your advantage: contact all the Web 2.0 startup sites (Techcrunch, GigaOm, Webware, etc.) and tell them that her service is a rip-off of your idea.
What are your options ... you can launch something better? Unless you have a patent, there is no point trying to talk to her .... What is your background and what is this idea? I would like to evaluate it better ...
In order to stealyour idea you first must have owned it. Thing is, ideas cannot be owned, patnents (processes) can.
In conclusion, no one stole a thing from you.
Lots of people say that, but I don't think it's true. Just because an idea is simple doesn't mean it's a bad or unprofitable idea.
MySpace was a really simple idea, most of which had been done before, just not all on the same site. The reason they were successful wasn't because of the strength of the idea, it was because they got their site out there when the only real competition was Friendster, and since their site relies on network effects for much of its usefulness, it has been difficult for others with the same idea to be successful.
She screwed you over, but I doubt there's much you can do about it except try to beat her. Also, people who do things like that should have to pay with their reputation, but if your idea is too obvious, people will just think you're lame when you tell the story.
depends on what he told the friend. Having a long drawn out chat over several weeks could be possible. But i guess its the idea itself which is to be questioned
I'am interrested in this story because I might find my self in the same situation. Here is the strategy I applied so far.
1. Keep key aspects secret. One always has to release some info, at least to get some feedback on the pertinence of the general idea or when we sell it. But keep some trump cards hidden in your pocket. This is often related to the 'how' aspect of the idea where you could make a difference with a "stealer".
2. Proceed in a way allowing you to prove that you shared the idea with X or Y. This is one of the purpose of an NDA (non disclosure agreement). If you can proove that, then you have a leverage on the stealer's investors because you may publish it and it will call back into question their honnesty and fairness. If they ripped you, they could rip clients. This is why public opinion frowns uppon stealing ideas even if it's not illegal.
3. If option 2 is not possible, then another leverage you have is that you can publish the idea and put the investors at risk to face many competitors and eventually freeware versions of it in a very short time. This is even more effective if the product is not out yet.
Be aware that you represent a direct threat to investment when comming up with such kind claim and want to use these leverages. So prepare your negation before using those leverages. This means that directly after presenting the problem to the investors, present the different options you have at hand. First present the options that would require some sort of cooperation from their side, second the only options left to you if they refuse (the one I presented above) and third that you are open to any other options that they may want to suggest and that would respect everybody's interrests.
Be aware that there are things that can't be undone and also that it is better to have half of something than all of nothing. You can remind this rule while argumenting your cause, but keep in mind that it applies to you too. So be ready to accept an arrangement if possible. Keep a very open mind about the options you will consider. For instance you could ask them to invest in another idea you might have, but be very carefull to not blackmail them into that. Just say that this would be an acceptable outcome for you if they agree to it and that you would then drop the case because you don't bite the hand that feeds you. Of course this suppose you have a valid alternate idea to show them when you say that. But be carefull with this because VC can easily get you out of your founded business if they want to. What you have to sell to VC is your capacity to create value by your inspiration or vision. This is what they are looking for.
There is alot more to say, but PG is much better than me at it.
[+] [-] pissedoff|19 years ago|reply
[+] [-] jkush|19 years ago|reply
I'd be willing to bet that since it was your idea, you have a much better understanding of the problem and how you're solving it than she does. Use that too. See where she falls down in her offering and exploit it.
Just my two cents.
[+] [-] webwright|19 years ago|reply
"Here's another way to look at it. If merely telling someone your idea means that it can be ripped off, then you hardly have a defensible product. If secrecy is your main weapon, then it will be hard to find investors. By the way, what happens when you ship? Are you going to ask every customer to sign a nondisclosure too?" And what about your first employees?
(quote from an Old Guy Kawasaki Column) http://www.forbes.com/columnists/2005/06/16/entrepreneur-venture-capital-kawasaki-cx_gk_0616artofthestart.html
And if you think the fact that her seed-funded team of 5 developers gives her an indomitable advantage, think again.
It's not what you do, it's HOW YOU DO IT.
So what action should you be taking? I'd say to look real hard at what she's doing. If she nailed it and has built something great, find another idea. They're everywhere. If she hasn't nailed it and you can make a better product, make it.
And, if you're feeling vindictive (I wouldn't bother with this), you could plant a few seeds within your shared network-- tell your mutual friends/contacts what she did.
[+] [-] gibsonf1|19 years ago|reply
[+] [-] litepost|19 years ago|reply
[+] [-] mojuba|19 years ago|reply
[+] [-] bootload|19 years ago|reply
[+] [-] eposts|19 years ago|reply
http://www.paulgraham.com/startupmistakes.html 8. Slowness in Launching
[+] [-] omouse|19 years ago|reply
[+] [-] pg|19 years ago|reply
[deleted]
[+] [-] nickb|19 years ago|reply
Here's what you should do: expose her! That's right, start a blog, start the website for your idea and tell everyone how this person got the idea from you and breached the confidentiality. Post email exchange, provide a timeline of your conversaton with her, provide what you provided her with. Get it out in the sunlight. Investors and VCs will shun away from her since who wants to invest into a person that's a THIEF and invest into a company that might get sued by somoene (you)?! Startups have a low probability of success and these legal issues could just sink it. It's easier to invest into a "clean" startup.
Get the word out about her! Learn about SEO and work on getting your page to show up on the first page results when someone searches for her name. Talk to journalists (TC, GigaOM, etc) and get them to write about what happened to you. Expose her and get some publicity about your site in the process! Destroy her reputation! NEVER forget: in business, reputation is everything! Worst thing you can do is keep quiet about it.
[+] [-] cwilbur|19 years ago|reply
Implement the idea yourself and do it better than she does.
[+] [-] chandrab|19 years ago|reply
[+] [-] budu3|19 years ago|reply
[+] [-] marketer|19 years ago|reply
[+] [-] pissedoff|19 years ago|reply
[+] [-] Leonidas|19 years ago|reply
Who cares if she was 'first' to do it...just make one that is better.
Someone mentioned partnering up with her - don't do it. "Fool me once, shame on you, Fool me twice, shame on me"
What a shame, a friend messing up another friend. This industry is definitely more cutt-throat than I thought.
[+] [-] litepost|19 years ago|reply
http://mail.google.com/support/bin/request.py?contact_type=suggest
I'm not saying they ripped us of course (who could possibly prove that?) but I will say that the timing is awfully coincidental, given that the overall ideas behind our program have been in development for almost a year (and we just started publicizing our ideas recently)!
Personally I take it as a compliment, and am grateful/flattered to have such a large competitor emulating plans we've had in development for a while. (The main thing we heard while pursuing this idea was "How can you possibly improve upon Gmail?" Well now Gmail itself recommends recommendations upon its service.)
All this, however, corresponds directly to what PG says and some of you echo below:
http://www.paulgraham.com/startupmistakes.html 8. Slowness in Launching
(I'm new to this whole arena, so it's taken us a while to a) find the right developers and b) get up to speed before launch.)
If anyone's interested in weighing in, I wonder if open sourcing our project might help it or be of general interest/utility... is anyone interested in "an Open Source Alternative to Gmail that You Can Install and Run on Your Own Servers"? If so, I could use some help.
I am actually interested in ultimately duplicating _and open sourcing_ a lot of the functionality of Google generally, in order to decentralize it (the operation and its power, which after all is only algorithms + horsepower) and nullify the negative privacy implications of Google. What do you think? Any takers?
I think the only possible contender to Google is an open source alternative. Let's Open Source Google!
PS From another news.YC article: "In Silicon Valley, Google-as-the-giant talk is deafening. As others have noted, startups used to get the question "What are you going to do when Microsoft does this?" and today, it's "What are you going to do about Google?" Source: http://andrewchen.typepad.com/andrew_chens_blog/2007/04/google_a_tale_o.html
[+] [-] sbraford|19 years ago|reply
hey nathan - glad to find you on here. (it's Shanti)
I've been meaning to tell you... is your model a hosted one?
One space that Google (nor Sprout) will ever dominate is a software model where you allow clients to install your app on their own servers or VPSes. (i.e. a JumpBox)
Clients then get the best of both worlds: 1) Your killer UI 2) Privacy/Security/Control of their companies email data on their own server
Sure you've thought of this, just thought I'd give it a plug.
[+] [-] mukund|19 years ago|reply
[+] [-] orlick|19 years ago|reply
A presentation and an hour talk surely hasn't given her much of an advantage. Go off and build your idea into a successful company. The day after it hits Techcrunch you'll have 50 competitors anyway.
[+] [-] veritas|19 years ago|reply
1. Partner with her if possible.
2. Get a lawyer's opinion. There may be legal actions you can take, but I can't provide any advice on this.
3. Build faster and launch faster than her.
[+] [-] omouse|19 years ago|reply
[+] [-] brianmckenzie|19 years ago|reply
[+] [-] cwilbur|19 years ago|reply
You can either do the idea better than she does, or you can start working on another idea. Given that she's outsourcing the development, either one should be feasible.
Suing over ideas is just a waste of effort; the only people who come out ahead in the end are the lawyers.
[+] [-] juwo|19 years ago|reply
The fact that you emailed her the presentation, IF any ideas are patentable, is proof enough.
This also proves those wrong who say that "Ideas are worthless".
[+] [-] dpapathanasiou|19 years ago|reply
[+] [-] AF|19 years ago|reply
In fact, her ripping off his idea could end up being better publicity than he would've gotten anywhere else.
[+] [-] zaidf|19 years ago|reply
[+] [-] theoutlander|19 years ago|reply
[+] [-] Shepherd|19 years ago|reply
[+] [-] ralph|19 years ago|reply
[+] [-] dawie|19 years ago|reply
[+] [-] pissedoff|19 years ago|reply
[deleted]
[+] [-] drudru|19 years ago|reply
1. launch now 2. start a blog about the event
nice-side-effect: get the rest of the world tuned into the idea and create a ton of competition in the space.
[+] [-] zaidf|19 years ago|reply
[+] [-] natrius|19 years ago|reply
MySpace was a really simple idea, most of which had been done before, just not all on the same site. The reason they were successful wasn't because of the strength of the idea, it was because they got their site out there when the only real competition was Friendster, and since their site relies on network effects for much of its usefulness, it has been difficult for others with the same idea to be successful.
She screwed you over, but I doubt there's much you can do about it except try to beat her. Also, people who do things like that should have to pay with their reputation, but if your idea is too obvious, people will just think you're lame when you tell the story.
[+] [-] sharpshoot|19 years ago|reply
[+] [-] chmike|19 years ago|reply
1. Keep key aspects secret. One always has to release some info, at least to get some feedback on the pertinence of the general idea or when we sell it. But keep some trump cards hidden in your pocket. This is often related to the 'how' aspect of the idea where you could make a difference with a "stealer".
2. Proceed in a way allowing you to prove that you shared the idea with X or Y. This is one of the purpose of an NDA (non disclosure agreement). If you can proove that, then you have a leverage on the stealer's investors because you may publish it and it will call back into question their honnesty and fairness. If they ripped you, they could rip clients. This is why public opinion frowns uppon stealing ideas even if it's not illegal.
3. If option 2 is not possible, then another leverage you have is that you can publish the idea and put the investors at risk to face many competitors and eventually freeware versions of it in a very short time. This is even more effective if the product is not out yet.
Be aware that you represent a direct threat to investment when comming up with such kind claim and want to use these leverages. So prepare your negation before using those leverages. This means that directly after presenting the problem to the investors, present the different options you have at hand. First present the options that would require some sort of cooperation from their side, second the only options left to you if they refuse (the one I presented above) and third that you are open to any other options that they may want to suggest and that would respect everybody's interrests.
Be aware that there are things that can't be undone and also that it is better to have half of something than all of nothing. You can remind this rule while argumenting your cause, but keep in mind that it applies to you too. So be ready to accept an arrangement if possible. Keep a very open mind about the options you will consider. For instance you could ask them to invest in another idea you might have, but be very carefull to not blackmail them into that. Just say that this would be an acceptable outcome for you if they agree to it and that you would then drop the case because you don't bite the hand that feeds you. Of course this suppose you have a valid alternate idea to show them when you say that. But be carefull with this because VC can easily get you out of your founded business if they want to. What you have to sell to VC is your capacity to create value by your inspiration or vision. This is what they are looking for.
There is alot more to say, but PG is much better than me at it.
[+] [-] Mistone|19 years ago|reply
my first suggestion would be to contact this person directly and discuss what has transpired.
Other issues aside, there might be an opportunity to partner, especially if she has funding and you provide the development expertise.