For young companies, intellectual property (IP) can be their most valuable asset. Yet, many inadvertently put this crucial asset at risk by making common, avoidable mistakes. In this vital video, Phil Crowley, founder of Crowley Law LLC and an experienced corporate lawyer for startups, outlines two frequent errors businesses make in protecting their IP.
Learn how to avoid these critical IP protection mistakes:
Engaging Outside Vendors Without Proper IP Agreements:
When an outside vendor (like a freelancer, contractor, or consultant) creates anything that could be considered intellectual property – such as reports, graphics, marketing materials, or especially computer code – a verbal agreement or simple invoice is not enough.
The Risk: Without a clear written agreement assigning all rights, title, and interest to your company, the IP created may legally belong to the vendor, not you!
The Solution: Always have a written agreement in place before work begins, ensuring that your company secures full ownership of all intellectual property developed by external parties.
Not Having Written Employee Agreements Covering IP and Confidentiality:
Even though many state laws dictate that work created by employees within the scope of their employment automatically becomes the property of the employer, relying on this alone is a gamble.
The Importance of Written Agreements: A formal employee agreement serves to put employees on explicit notice regarding company ownership of IP.
Crucial Confidentiality: These agreements must also include strong confidentiality clauses. You don't want potentially patentable information or valuable trade secrets entering the public domain prematurely. Such disclosure can prevent you from obtaining patent protection or maintaining a competitive edge.
Protecting your intellectual property from day one is fundamental to building a defensible and valuable business. Don't learn these lessons the hard way.
If you're a founder or involved with a young company, understanding and implementing these IP protection strategies is non-negotiable.
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.
