You’re an entrepreneur with a big idea and you’re poised to disrupt your target industry. Intellectual property is key to your success. To get your company moving, you might have to bring in others such as co-founders, employees, consultants, advisors, developers and creative talent. This creates potential issues with intellectual property. Be sure that all they are bound by a written agreement stating that all intellectual property created in connection with the services performed for the startup is assigned to the company. Absent a written agreement, the individual or entity providing the services will generally have ownership rights in such intellectual property, which will cause problems for the startup when it is looking to raise capital or be acquired. You have to set yourself up for the future by making sure that all of the intellectual property developed along the journey belongs to the company.
” You have to set yourself up for the future by making sure that all the intellectual property developed belongs to the company.”
Sign Up for The Free Daily Perspective
If you are not already getting our free daily Perspective to your inbox, sign up below.
Here are some common protective measures undertaken by start-ups:
- Patents are the best protection you can get for a new product. A patent gives its inventor the right to prevent others from making, using, or selling the patented subjected matter described in words in the patent’s claim.
- Copyrights cover original works of authorship, such as art, advertising copy, books, articles, music, movies, software, etc. A copyright gives the owner the exclusive right to make copies of the work and to prepare derivative works (such as sequels or revisions) based on the work.
- A trademark right protects the symbolic value of a word, name, symbol, or device that the trademark owner used to identify or distinguish its good from those of others. Some well-known trademarks include the Coca-Cola trademark, American Express trademark, and the IBM trademark.
- Confidentiality Agreements. These are also referred to as Non-Disclosure Agreements or NDAs. The purposed of the agreement is to allow the holder of the confidential information (such as a product or business idea) to share it with a third party. However, the third party is obligated to keep the information confidential and not use it whatsoever, unless allowed by the holder of the information.
Your intellectual property is part of the special sauce that makes your business unique. Take some of these steps to make sure that your company/idea is protected.
Follow Us on Social Media
Follow The Lonely Entrepreneur on social media