Misappropriation of an Idea as a Cause of Action in New York

New York law recognizes a cause of action for misappropriation of an idea under limited circumstances. While ideas themselves are generally not protected as intellectual property unless they are patented or copyrighted, the law offers protection when certain criteria are met. In New York, a plaintiff alleging misappropriation of an idea must establish two key elements: a legal relationship between the parties and that the idea was both novel and concrete. Each of these elements plays a critical role in determining whether the claim can move forward.

A Legal Relationship Between the Parties

The first requirement is that there must be a legal relationship between the person who shared the idea and the person who allegedly misused it. This does not always mean a formal written contract, although having one helps. The legal relationship can arise from an implied contract or a confidential relationship, such as a partnership, joint venture, or discussions where there is an understanding that the idea is being shared in confidence with the expectation of compensation or fair use.

For example, if someone shares a business concept during a pitch meeting where the listener is expected to either compensate the idea originator or not use the idea without permission, a legal relationship may be implied. This requirement prevents random claims of idea theft by people who disclose their ideas without any agreement or context suggesting legal protection.

The Idea Must Be Novel and Concrete

The second element requires that the idea be both novel and concrete. An idea is novel if it is original and not already widely known or used by others. Courts will not protect ideas that are obvious, commonly known, or already in the public domain.

The idea must also be concrete, which means it must be specific enough to be acted upon. Vague concepts, general themes, or undeveloped thoughts are not sufficient. For instance, an idea to create a reality TV show about cooking is not concrete, but an idea that includes a unique competition structure, character dynamics, and format may qualify.

Conclusion

A claim for misappropriation of an idea in New York is challenging but viable when the proper elements are present. The person bringing the claim must show there was a legal relationship with the defendant and that the idea was both novel and concrete. This legal protection encourages creativity and fair dealing, especially in industries like entertainment, media, and product development, where ideas often form the foundation of valuable ventures.

Find the Law

“For an idea to be susceptible to a claim of misappropriation, two elements must be established. First, a requisite legal relationship must exist between the parties, and second, the idea must be novel and concrete (McGhan v Ebersol,608 F. Supp. 277 [SD N Y 1985]; see also, Vantage Point v Parker Bros.,529 F. Supp. 1204 [ED N Y 1981], affd 697 F.2d 301).” Oasis Music v. 900 U.S.A, 161 Misc. 2d 627, 631 (N.Y. Sup. Ct. 1994)