The Value Of A Non-Disclosure Agreement

By Amy E. Feldman

PHILADELPHIA (CBS) - Dip and squeeze is neither a form of sexual harassment nor a shady stock deal - but it's a lawsuit nonetheless.

A Michigan man said he came to food manufacturing giant Heintz in 2008 with the greatest thing since ketchup on sliced bread - his so-called "Little Dipper" - a package for ketchup that allowed a person either to squeeze it by tearing off the top or dip something into it in the tray, like the one for barbeque sauce dipping. After several meetings, Heintz contacted him in 2009 telling him they weren't interested.

One year later, Heintz came out with its Dip and Squeeze packaging that looks very similar to the little dipper. Heintz says the idea for packaging wasn't novel and they'd already worked on their design. The man sued, and his case will go to trial soon.

Here's the thing. He never had a written contract with Heintz before he showed them his idea. And while it is possible to create an enforceable contract that's not in writing when both parties understand the terms and come to an agreement, as they say, an unwritten contract is not worth the paper it isn't printed on. That's because it's harder to prove.

If you have a great idea, get a lawyer or go to the Internet to get a nondisclosure agreement before you show anyone your idea so they can't put the squeeze on you down the road.