A lot of entrepreneurs and startup clients are understandably concerned about disclosing proprietary information in conversations with third parties, such as potential business partners, manufacturers for their prototypes, VC’s and angel investors. These folks are going to want to look under the hood before they do a deal with you, and there’s nothing you can do about that (although if you know anybody is willing to give out money with no questions asked, you can get my e-mail address and office telephone number right off the site!).
Seriously, protecting your idea in business discussions is critical, and it’s all about timing, covering your steps, and controlling the manner and scope of the disclosure. I’ve written a guide for entrepreneurs on how to approach these issues and some tools and tips to keep in mind. You can find it here. Of course, you should also consult a business and IP attorney.