The requirement for disclosure may have negative repercussions on intellectual property protection (patentability) and on bargaining with potential suppliers. For example: “Quest did not have contracts already in place before he went on Kickstarter - a novice mistake. Once the Hanfree was funded, Quest says, he began contracting with accessories manufacturers in China, Singapore, and Los Angeles. But be- cause those manufacturers were able to see precisely how much money Quest had raised on Kickstarter, Quest says they gained too much leverage in negotiations, chipping away at the product’s margins. It soon became too expensive to create the product with the funds raised.” (Markowitz, 2013)
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