1. 1/6/2015 A True Crowdfunder's Nightmare: The Importance of Safe Crowdfunding
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A True Crowdfunder's Nightmare: The Importance of Safe
Crowdfunding
Posted by Mike Willee on Fri, Jan 2, 2015
To say that entrepreneurs work hard on their business is an understatement. They pour untold
hours into their work, whether it's getting their venture off the ground or reaching for that next
rung on the ladder of success. It would be fair to say that for most, it is their life's passion.

2. 1/6/2015 A True Crowdfunder's Nightmare: The Importance of Safe Crowdfunding
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rung on the ladder of success. It would be fair to say that for most, it is their life's passion.
Given that level of commitment, there are likely no more frightening, wake-up-in-a-cold-sweat
scenarios about the theft of your idea. Unfortunately for one entrepreneur, she was forced to
live that nightmare.
Dawn Sole had put in considerable time crafting her invention, spending four years on the
Pluck N' File, a device that includes tweezers, eyebrow comb, nail file, and buffer. She had
procured a patent and trademark on her creation, developed a prototype, and even reached
an agreement with a manufacturer to produce the Pluck N' File. Needing to raise money to
begin production, she did what many entrepreneurs do and created an Indiegogo campaign
to raise the funds.
But to her dismay one day, Sole noticed that someone had stolen her campaign. While her
page was still up and running, scammers had created an exact replica of her campaign,
copying her name, product images, and descriptions word for word. Sole and her attorney
took immediate action, sending Kickstarter a cease-and-desist letter regarding the fraudulent
campaign. Kickstarter immediately listed the fake page as "suspended," though the page had
raised £17,000 in yet-uncollected funds to that point.
While the copycat page has been suspended, it is still up at Kickstarter which is worrying for
Sole. "When people see it on Kickstarter, they're going to see Pluck N' File and assume it's
me," she told the South Florida Business Journal. "They're going to think, 'OK, why was it
suspended? What did Pluck N' File do wrong?'" While such a blatant ripoff would seem to be
a clear violation of Sole's intellectual property, the lack of regulation for non-equity
crowdfunding makes it unclear what punitive measures Sole might take. Kickstarter policy
states they are not responsible for projects on their site beyond those that are misrepresenting
themselves, leaving inventors to determine whether a campaign can actually deliver what it
promises. Kickstarter has also hedged on providing information on the individual who
created the fake Pluck N' File account, according to Sole's attorney.
Until then, Sole is continuing on with her campaign until it closes on January 2. "I know this
has definitely happened to other people because I could see the loopholes. If I could make a
difference with my story, I have no problem being the example of what could happen if you're
not careful and you're not doing your homework," she said.
Take great care when crowdfunding any project. Practicing safe crowdfunding (i.e.,
protecting your idea before you disclose it in any public forum), whether it be with the
necessary patents, trademarks, or NDAs, could be the difference between your success, and
the success of your competitors. For more information on crowdfunding, check out our

3. 1/6/2015 A True Crowdfunder's Nightmare: The Importance of Safe Crowdfunding
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the success of your competitors. For more information on crowdfunding, check out our
resources page.
Before you set out to crowdfund, be educated. We packed the best info into our
Ultimate Startup Toolkit.
Topics: Crowdfunding, Media and Online Presence in Business, Legal
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