Business legality

[nickjb]

Hi,

I've been doing some small IT consulting jobs over the last couple of years now and again when they pop up. I'm in full time employment and have been looking for business opportunities to start out properley on my own, but have so far not found anything that really could lead anywhere i want to go, or simply require to much initial investment.
The company I work for is seriously downsizing and in the next 4-5 months i think i will be on my way out.

Recently a company contacted me about doing a job which was essentially automating their backend systems, their backend systems are very integral to their business and not having this system will either cost them hugely in staff costs or simply stop them from expanding any further.

I took a substancial amount of time out and studied their business processes, produced a set of requirements (which they should have done) and then a proposal in addition to making a number of suggestions that could give them significant cost savings and enhance their business.
I asked a very reasonable amount for the work and a very very small share of their ongoing revenue which would cover any support and enhancment requests they may have. The support and growth of the systems are likely to require signicant work especially if the business really takes off.
They haven't got back to me and i think they are going to go with someone else having used my requirements and suggestions as their own.

As i mentioned before, I'd like to start a business, and i can see the low entry cost of their business model is an attractive proposition and I have some further ideas that i'd like to add which will change the business completely. However, if i used their business model for the basis of my business with my improvements would they have any legal rights to such an end that they could sue me. Their business is fairly unique but not original and I know others will soon copy it. They are a small company in a different part of the country, so my business will not effect theirs unless they expand hugely.

I realise that from a personal perspective it's not the most honest thing to do but business is business right? If it were anything else over half of my collegue's who have worked bloody hard for the company would not be getting the sack.

I'd be grateful for your opinions on my liability if I were to go ahead with it?
Thanks

 

[Alpha]

Nick

From a legal perspective it all depends on whether you signed any confidentiality agreements when you performed your system analysis and specifications. If not then I do not believe they would have a leg to stand on. However if they decided to take legal action anyway it could end up costing you money as you would have to employ a solicitor simply to reply. This tactic has been used on numerous occasions.

From a purely moral point of view you would not take clients ideas and use them to your advantage as the message that you send out to others would be that you are not trustworthy and I believe that with the majority of us in business that still counts.

Thirdly as you say business is business and if you can take on a business model, improve on it and not impact upon the other company well go for it.

 

[VeryMark]

Nick, if they haven't paid you and there is no contract then they have no right to copy the material you have prepared and neither has anyone else they employ - it's an infringement of your copyright otherwise.

 

[MikeH]

Just my 2 pennies worth but if you think that you can replicate and improve on what they are doing then go for it. As you say you are in different geographic locations so your activity will not impinge on their business initially.

Mike.

 

[nickjb]

I'm really greatful for all your input and advice. I've decided to go ahead and do a trial with a small number of customers to see if it will be viable with my rather limited business skills. Thanks again

 

[Alpha]

Nick

If your business skills are limted but you have the idea, time to input and enthusiasm, the rest you can get from here. (After all thats the main reason this forum is here.........I think)

 

[Ozzy]

:nod: Yes it is
So, what is it anyway? You may have some potential customers on here afterall

 

[David Harris]

Hi,

They haven't got back to me and i think they are going to go with someone else having used my requirements and suggestions as their own.
However, if i used their business model for the basis of my business with my improvements would they have any legal rights to such an end that they could sue me.

I realise that from a personal perspective it's not the most honest thing to do but business is business right?
Thanks

There are no intellectual property rights in a business idea. If you were the first person to think of bottled drinks then the World would be in a very sorry state if you were the only person entitled to sell them.

I dont think it is at all immoral to copy someone elses business idea. To the contrary its at the core of free commerce: if you copy it and you are rubbish, you'll go out of business. If you copy it and they are rubbish, you will thrive. The customer benefits.

What you propose is entirely lawful since you entered into no agreements with them. Indeed as someone else said they may have infringed your copyright.

Cheers
David Harris

 

[bwglaw]

My initial views.

Most of the comments made are indeed correct but without knowing the nature of the work involved or what was discussed, whether verbal or in writing, there could be an implied duty of confidence.

As someone correctly stated that if they use any aspect of your work they may be in breach of copyright, but this depends on what you actually gave them because some things cannot be protected by copyright

 

[woopi]

It may be legally right.

But is it morally right?