Question: Did you see the TNT movie, “The Pirates of Silicon Valley?” It was a real eye-opener for me. It scared me to death thinking about whether my new products and ideas could be ripped off. How does a young entrepreneur/inventor protect against that type of pirating?

Answer: First, I must share an old saying my father used: “I believe half of what I see and nothing of what I hear.” Who knows how much of that show was truth versus fantasy?

But even if we give them the benefit of the doubt, your point is still well taken. Of course you have to be careful of pirating. How do you protect yourself? There are a number of ways you can at least give yourself some sort of legal recourse.

? Before sending out any new ideas or data, get the party receiving it to sign a confidentiality agreement.

? Don’t show your whole hand in any case.

? Try to create a software program that will not allow duplication.

? Patent or copyright your material whenever possible.

When you’re dealing with intellectual property, you must be incredibly careful. There are many specialists who can advise you in this area.

I would recommend you contact one as soon as possible, before you even consider marketing your products to a larger firm, and in most cases, a smaller one as well.

Q: So, I’ve listened to your advice. I gave out equity to some of my key employees and made them partners as an incentive. And what do I get in return? Three of them left to start their own competitive business! Now what?

A: Equity can be the glue in today’s business world, but you must be clever on how the glue is applied. It’s difficult giving advice in a vacuum, but let me at least give you a few pointers for the future.

When you dole out equity, you should do it in a way that vests over time. For example, it should take five years to vest 100 percent of the individual’s options, 20 percent the first year, and then 10 percent every year thereafter. Before giving out equity or other long-term perks in the company, you may want to ask key employees to sign a non-compete letter so they either don’t jump ship and work for a competitor or as in your case, leave to start up a competitive business.

It’s so hard to protect yourself against everything. You have to trust your own instincts, hire the best people, motivate them, and hope that you’ve chosen wisely.

Q: My eldest daughter has become my right hand so to speak for the last 10 years. I’m getting ready to retire and I want to turn the business over to her completely. She deserves it. My problem is, none of my other three children are in the business. How do I make sure they get a fair share of the business I built as an annuity for them while protecting my eldest daughter’s interests?

A: It’s almost a nice problem to have, isn’t it?

I’d like to be able to give you specific advice, but I’m afraid you should get personalized, professional help.

You can obviously stipulate your wishes in your will or living trust. You should discuss all of these and other financial issues with a financial adviser, business planner, lawyer and maybe even a life insurer.

What I would do in any and all of these cases is bring your eldest daughter into the discussions. Treat the talks like any other business deal. This will make her feel like part of the process and if she has any animosity, you can deal with it in person and not have to be fearful later on that you have left a conflict.

After you draft up these arrangements you should let your other children know what you’re thinking. Again, include them in the process. Now that doesn’t mean they have something to say about the outcome. It just means they can hear from you now and not from a stranger later on.

I don’t know your relationship with your kids, but I know that this is the way I would handle it with my own children. I think when your children understand why you’re doing something and you can have the opportunity to explain it to them yourself, that helps ease some of some of the jealousy and confusion when things may be more emotional.

Q: My brother and I run an information database company. We have been in this business together for about 20 years and have had the opportunity to work with a diverse group of clients. We feel we have a lot of experience to share. We’re considering writing a book, but that’s a lot of work and it’s so far out of our main business we can’t even access whether it’s a good idea or not. Any thoughts?

A: Yes, do it! A book sharing your ideas is a marketing brochure for your business. Just a lot more words.

Here are some of my thoughts on how to get it done and the advantages of doing it, without giving up your day job:

? It gives you the chance to call all of your old clients and reestablish relationships by telling them you’d like to include their story in the book.

? It gives you the opportunity to reflect on your business both the positives and negatives and provides perspective on the future.

? It will give your employees a sense of who you are, where you’re coming from, and hopefully where you’re heading.

? It’s a marketing tool for new business.

? If you are a great writer and excellent speaker you might even be able to make money from the sale of the books and from speaking engagements.

You never know. This could be a whole new career path.

Lorraine Spurge is a personal finance advisor, author of “Money Clips: 365 Tips That Will Pay One Day at a Time,” and business news commentator. She can be reached at (8I8) 705-3740 or by e-mail at [email protected].