Ask HN: Conflict of Interest while freelancing

#1

Post by throwaway642012 » Sun, Mar 25, 2018, 9:11 AM UTC

I'm a freelancer in Germany, and I'm waiting for the new project to be finalised. Meanwhile I'm working on a ML based app, and a startup approached me to do some hourly work. The startups is in the same space as my product, and is similar in some ways to my app. We've not signed a contract as I'm planning to work only 10-16 hours for the startup. I've not yet started the work (for the startup) yet.

Will there be potential conflict of interest/ legal issues in the future if I launch my product?

Should I take some steps to indemnify me from the other startup?

Any help is highly appreciated.

Re: Ask HN: Conflict of Interest while freelancing

#2

Post by muzani » Sun, Mar 25, 2018, 9:52 AM UTC

Put it in the contract. Get a lawyer to double check. Make it clear to them as well. I usually triple check the anti-competition and the IP clauses in all contracts.

This kind of thing happens all the time. People who are experts in a field get hired by competitors in the same field.

Re: Ask HN: Conflict of Interest while freelancing

#3

Post by CyberFonic » Sun, Mar 25, 2018, 9:54 AM UTC

Your client is most certainly going to view your work as encroaching upon their intellectual property. That is simply how managements think. Regardless of the merit of their beliefs.

It might be possible to avoid future problems by having a contract where you disclose that you are working in the same space as the startup and that you will not use your code in their product, nor their code in your product. It is of course, difficult to prove that down the track.

If I was in your situation, I would decline the work. 10-16 hours doesn't generate enough revenue to pay for lawyers in the future.

Re: Ask HN: Conflict of Interest while freelancing

#4

Post by CyberFonic » Sun, Mar 25, 2018, 9:55 AM UTC

muzani wrote: post #2

Put it in the contract. Get a lawyer to double check. Make it clear to them as well. I usually triple check the anti-competition and the IP clauses in all contracts. This kind of thing happens all the time. People who are experts in a field get hired by competitors in the same field.

Agree with your suggestion, but the cost of lawyers is probably too much in light of it only being 16 hours work.

Re: Ask HN: Conflict of Interest while freelancing

#5

Post by Tomte » Sun, Mar 25, 2018, 10:51 AM UTC

So even in your opinion it's in the same space and similar.

Don't work for them, don't have them send you anything remotely technical (specifications, code, documentation).

Re: Ask HN: Conflict of Interest while freelancing

#6

Post by throwaway642012 » Sun, Mar 25, 2018, 12:48 PM UTC

Tomte wrote: post #5

So even in your opinion it's in the same space and similar. Don't work for them, don't have them send you anything remotely technical (specifications, code, documentation).

They're a scrappy startup, and don't have much legal firepower. They're having hard time find people, so I agreed to help them. But after reading the comments here, I think it's better to back out instead of having potential future legal troubles.

Re: Ask HN: Conflict of Interest while freelancing

#7

Post by mchannon » Sun, Mar 25, 2018, 3:08 PM UTC

Since you're working on what could converge into one product suite, have you considered offering a formal partnership instead of a strict hourly arrangement? They might be able to bring a steadier stream of work to you, and help provide you a more robust company platform to launch your own project (by sharing it).

You could always put an escape clause into your agreement that indemnifies any and all of your projects if the alliance fails to take off financially.

The only reason I suggest this is because you're actively considering doing the work for money, suggesting that your own project is underfunded (and less financially urgent than doing the work of others). They can obviously help you with this problem if they're offering to pay you.

A lot of deals are better than 100% of nothing.

Re: Ask HN: Conflict of Interest while freelancing

#8

Post by chrisked » Sun, Mar 25, 2018, 4:35 PM UTC

Decline the work or make it transparent to both parties via a contract. 10-16 hours is not worth the potential legal trouble as well as burning bridges.

Re: Ask HN: Conflict of Interest while freelancing

#9

Post by DoreenMichele » Sun, Mar 25, 2018, 6:02 PM UTC

throwaway642012 wrote: post #6

Tomte wrote: post #5

So even in your opinion it's in the same space and similar. Don't work for them, don't have them send you anything remotely technical (specifications, code, documentation).

They're a scrappy startup, and don't have much legal firepower. They're having hard time find people, so I agreed to help them. But after reading the comments here, I think it's better to back out instead of having potential future legal troubles.

They're a scrappy startup, and don't have much legal firepower.

And if your project becomes big money, they may sue because they are still struggling to get by and you aren't.

So I think your impetus to turn it down is the correct one.

Re: Ask HN: Conflict of Interest while freelancing

#10

Post by BjoernKW » Sun, Mar 25, 2018, 7:52 PM UTC

The way I see it you have two options:

1. Make what you're working on explicit and transparent in the contract you draw up with that startup. This has to be made / checked by lawyer in order to avoid any ambiguity.

2. Don't work for the startup.

If option #1 is worth it depends on how much profit you expect to make from the contract.