Stop, Thief!
A joint venture with a big company sounds like a dream--until the company backs out, takes your idea with it and leaves you in the dust.
The year 2000 started out well for Doug Augustine. His more than 75-employee San Diego company, Bidland Systems, had developed software for online auctions and was pursuing a joint-venture deal with multinational telecom company Telefonica for Spanish-speaking markets outside the United States.
The good times ended when Bidland sued Telefonica in 2000 for breach of contract, alleging that Telefonica promised a joint venture to access Bidland's marketing strategy and technology--information Telefonica then used to start its own auction site, Katalyx.com. The case was settled in November 2004 for an undisclosed amount, but Bidland didn't live to see that day--unable to raise funds or sell the business with the lawsuit in progress, the company ceased operations in 2001. "At least we got our investors their money back," says Augustine, 47. "[But] it's a hollow victory."
4th of July Subscription Sale - Unlock this subscriber exclusive article and more for 20% off today.
Access all Entrepreneur content with no ads, unlock discounts, and get exclusive advice only available to our subscribers. Plus, our magazine delivered straight to your door.
Get 20% off an annual subscription today. Just use code SAVE20 at checkout.
Entrepreneur Editors' Picks
-
Formerly Enslaved Black Man Nearest Green Taught Jack Daniel Everything He Knew About Whiskey. Today, the Founder of Uncle Nearest Premium Whiskey Celebrates His Legacy.
-
Leadership Lessons From the Exclusive Creativity School That 'Packs 5 Years Learning Into 5 Days'
-
3 Expert-Backed Strategies for Staying Calm in Times of Confrontation
-
The CEO of Wayfair Has Helped Revolutionize Digital Shopping for 20 Years. Here's How He Handles Rocky Economic Conditions.
-
This Founder Went to Prison When He Was 15 Years Old. That's Where He Came Up With the Idea for a Company Now Backed By John Legend.
-
3 Signs You're Letting Pride Get in the Way of Being Successful
-
Chip and Joanna Gaines and Shonda Rhimes Found Incredible Success By Using This One Entrepreneurial Strategy. Here's How You Can Too.
