Don't
Give Away the Farm
Dear
Associate,
A
colleague named Doug sent me a link to a project that calls
for individual ideas to change the world by helping as many
people as possible. He was pumped and shared his business
proposal with me. I thought this was a brilliant concept and
began brainstorming my own proposal.
Then
I ran into a brick wall...
I
read the terms of service agreement and decided this wouldn't
work for me. The language favored the big money project originator
and did little for the idea originator. In fact, it seems
as if you'd be signing your idea away. Which can mean little
or no personal compensation to you for a project that's supposed
to change the world.
Here
is the section that was in question...
"Intellectual
property rights: You warrant and represent that any content
you submit is your original creation and does not infringe
any third party rights, including without limitation, copyright,
trademark, patent, trade secret, privacy, and publicity, and
that the content is not otherwise illegal or made or submitted
in violation of any contractual obligation you might have
with a third party.
"As
between you and XYZ, you retain ownership of any intellectual
and industrial property rights (including moral rights) you
have in and to your submission.
"As
a condition of participation, you grant XYZ, its subsidiaries,
agents and partner companies, a perpetual, irrevocable, worldwide,
royalty-free, and non-exclusive license to use, reproduce,
adapt, modify, publish, distribute, publicly perform, create
a derivative work from, and publicly display your submission
and the proposal provided therein (1) for the purposes of
allowing XYZ, the advisory panel and users to evaluate your
idea for purposes of the call for submissions, (2) in connection
with advertising and promotion via communication to the public
or other groups, including, but not limited to, the right
to make screenshots, animations and video clips available
for promotional purposes and (3) for the purposes of putting
your submitted proposal into effect.
"You
agree that XYZ has final authority regarding this call for
submission and the selection of the ideas to be considered
for implementation. You acknowledge that your submission might
be similar to ideas submitted by other participants and/or
proposals independently developed by XYZ, and that XYZ does
not need to recognize your submission should your idea not
be the source of the proposal or proposals ultimately implemented.
You further acknowledge that even if your proposal is selected
by XYZ, XYZ is not compelled to implement your proposal in
its entirety, or at all. XYZ reserves the right in its sole
discretion to incorporate your proposal or any other ideas
into the project or projects finally selected for implementation."
Can
you believe the audacity of this giant corporation? Use your
idea and then maybe compensate you. And if new profitable
programs develop from your idea your services may not be needed
any longer. They sound like business pirates not partners.
This
often happens when book authors sign contracts with major
publishers without reading the entire contract. They're so
excited to get a publishing deal they often sign their rights
away to the publisher. Once that happens the author gets zero
compensation from any ancillary products.
I
wrote Doug and stated I couldn't agree with the terms:
"XYZ
has a great concept. But they also have profit motives. And
that's okay too. But I will not agree to their intelligent
property rights section of their terms of service. It gives
them the right to manipulate the agreement in their favor.
And, at any given time, they may no longer want or need you."
He
wrote back:
"Right,
I see. There's always an out for the corporation. I have to
agree before anything happens so we'll see if I get a response.
I want to make money too but I can't give away the farm either.
Thanks for your insight and concern. If anything comes of
it, I will absolutely let you know so we can talk about it."
While
an entity like XYZ can bring your idea to the forefront quickly
you'd want to have some say in how you get compensated.
It should be fair for both parties. Not lop-sided as in this
agreement.
Warm
regards,
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