Offshore Outsourcing: How to Protect Your Intellectual Property

Today’s business is growing dependent on mobile devices which are used not only to communicate with costumers but also to directly engage them. As a result, outsource mobile apps development is becoming a very popular way for many companies around the world to do business more effectively.

Outsource development comes with lots of advantages such as fixed costs for a specific scope and delivery, the ability to choose experienced developers and suitable technologies, etc. But every coin has two sides. In this article, we will try to explain how to deal with the main concern of outsourcing mobile app development - protecting your intellectual property.

Of course, it is nearly impossible to eliminate completely the risk of your intellectual property being compromised, but when you are familiar with the existing measures of IP protection you can reduce the risk to a minimum and be sure you own every bit of the software you are paying for.

So let’s get started! We hope this article have provided you with the understanding of legal regulation in the field of mobile apps transferring and will help to avoid IP rights violence. If you have any questions contact us for more information.

Protect your intellectual property

Patent protection

Despite the fact that developers who work on your app implementation create a new intellectual property for you, you have to share with them the information and data you already have. Patent protection can be used to protect this data and information. It’s not cheap, though. So does your mobile app really need a patent? The answer to this question is quite complex.

If you are entering a crowded market which has a lot of similar products then getting a patent issued will be a goal that is hard to fulfill. If your product idea is innovative and has little in the way of competitors a patenting process may have some sense but it is not going to make your business successful.

First of all, make sure that your product is really worth the attention of your target audience. A patent on a product that no one wants to use will only incur costs and time spent without any return to the idea owner. The experience told us that even for big companies it is better to focus on building a business rather than on filing a patent. So think twice before taking a decision regarding patenting your mobile application.

Non-disclosure agreement

Non-disclosure agreement between you and an outsource development team is a widely spread practice to prevent your ideas from being stolen. But a signed NDA is a very weak protection that is easy to break. Despite this fact, a lot of startups and established companies refuse to share their ideas with developers without NDA even at the early stage of an app’s estimation process. In most cases their ideas are not innovative and signing an NDA makes no sense.

So when does it really necessary to sign an NDA? First of all, make sure that you can explain your ideas to developers without disclosing your secret sauce in order to get a proper estimation on time and budget.

It may seem to be simple but, in fact, a lot of idea owners facing a challenge when it comes to explaining their idea at a high level. After you have an estimation and agree to start working with a development team it is time to ask them to sign an NDA. But as we mentioned above NDA is unable to protect your ideas completely, so it is good to use NDA in addition to trademark or patent protection.

NDA and outsourcing development

IP Legislation

In IT industry, intellectual property is the most weighty asset you have. So when you start working with an offshore outsource development team it is very important to make sure that you know their country's intellectual property legislation even though the offshore team will be working under the laws of your country. A good idea is to have a local consulting company that has knowledge of IP and labor legislation. This will help you to avoid possible unpleasant surprises.

Summary

Protecting your intellectual property is far the most important thing if you want to create a really good product. Unfortunately, many entrepreneurs don’t understand the importance of it and IP protection is not always a first thing that crosses their minds when they start an app development. The intellectual property protection is a basis on which you should build your business.

In this article, we tried to highlight the main approaches to IP protection. Of course there a lot of other options you can choose from, but we hoped these lines have given you a basic understanding of intellectual property protection. If you have any question please contact us. We will be glad to discuss this topic further.

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