Unveiling the True Costs of Unprotected Intellectual Property
"What happens if you don't protect your intellectual property?" It's a question every innovator and business owner should take seriously. The consequences can be far-reaching and incredibly costly, potentially derailing your company's future.
In this crucial video, Phil Crowley, founder of Crowley Law LLC and an experienced intellectual property and business lawyer, shares some of the "sad stories" he's witnessed when companies fail to safeguard their valuable IP assets:
External Collaborations: Protecting IP Created by Third Parties
The Common Pitfall: Unclear Agreements
Companies often engage independent contractors or third-party developers to work on key elements of their projects, particularly computer software, without a clear written agreement defining who owns the resulting intellectual property.
The Shocking Reality: No Automatic Ownership
Even if you've paid for the work, without a specific written assignment, you may not automatically own the software code or other IP created for you. It could still legally belong to the contractor.
The Expensive Scramble: Last-Minute Negotiations
This critical oversight often comes to light during crucial moments, like a financing round or acquisition. You may then be forced to go back to the original creator and negotiate (and pay, potentially a premium) for the rights to IP that is essential to your business – an incredibly expensive and risky position, especially when investors are watching.
Internal Risks: Protecting IP When Employees Depart
The Risk: Departing Employees and Confidential Information
When employees leave your company, they may take valuable knowledge, trade secrets, or other IP with them, potentially to a competitor.
The Protective Measure: Essential Non-Disclosure Agreements (NDAs)
Having robust Non-Disclosure and Non-Use Agreements in place with your employees is vital. These agreements serve as a clear reminder of their ongoing obligations to protect your company's confidential information and intellectual property, even after their employment ends.
Secure Your Future: Proactive IP Protection Strategies
Don't let these preventable IP disasters happen to your business. The failure to proactively protect your intellectual property can lead to lost ownership, expensive legal battles, and missed opportunities.
Phil's advice is unequivocal: Interact with an experienced business lawyer sooner rather than later to establish proper IP protection strategies from the outset.
If you're developing innovative products or services, this video is a must-watch.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
