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Running a startup your time is limited. Founders are constantly having to prioritize, focusing their attention on what’s important. In this busy environment, it’s easy for things like intellectual property protection to get overlooked. But this could prove to be a major mistake. Let’s look at some of the reasons why startup intellectual property protection should be on top of your to-do list.
Intellectual Property Sets You Apart
The world of business is cutthroat. Standing out from the pack is going to be difficult. This is especially true for startups. You might need to put up with competition from established businesses. Your startup intellectual property strategy should include elements like distinctive logos and memorable slogans. These are the things that will stick in a customer’s mind and help you stand out.
Intellectual Property Contributes To Your Company’s Value
Many startups have a limited number of resources, at least initially. Sales tend to be limited. You need something to show investors to prove that your business has growth potential. That’s where your startup intellectual property comes in.
Investors will look at your product designs and inventions that you have made. These are the things that they will base their decision to invest on. For them to give you cash, they’ll often have to see that you have taken steps to protect these ideas.
Protecting Yourself From Copycats
As we mentioned, your unique ideas should lie at the heart of your startup. But, without adequate startup intellectual property protection, they can be stolen. Coming up with the idea first doesn’t mean anything in the court system. You need patents and protections to prove that you own the rights. Without these critical documents, it will be tough to get your copycats shut down. Expect a long and expensive legal battle.
This type of case can end up costing millions. For many startups, this is such a drain on their resources that the founders risk shutting down. Or they might be forced to go deep into debt to get the required money.
Keeping Your Company Secrets Safe
All businesses have information that needs to be kept secure. This could be the financial health of the company. Or you might be planning an exciting marketing campaign. Sometimes, you might be planning to expand your product lines or enter a new industry. If the details of these meetings get leaked, it could be disastrous for your company. A simple non-disclosure agreement could help eliminate this problem.
Planning For The Future
If you don’t take intellectual property for startups seriously, and something happens to the business, you could be facing a convoluted mess. Imagine that you hired a freelancer to collaborate on the project. But they don’t sign any intellectual property documents. Later, they try to assert ownership over the material they created. Even if the claim is dismissed in court, you’ll still need to hire lawyers and waste time preparing the case.
Things can get even messier if the startup fails. Even though the business might be gone, the intellectual property hasn’t vanished. This raises a big question. Who owns the intellectual property when a partnership startup goes under? There are two distinct possibilities. First, you might not have any intellectual property agreement in place. In this case, the intellectual property would be returned to the founders. But this comes with issues. In the wake of a startup failure, emotions might be running high. This can easily spill into protracted legal cases, as the founders fight over the right to use the intellectual property.
The most common solution, though, is that the founders agree to attribute the intellectual property to the business. If the business fails, it’s normal to try to sell as many assets as possible to recover the costs. This can include the sale of intellectual property.
Intellectual Property Protection Isn’t Difficult
Many startup founders choose to put off intellectual property protections because they fear the process is long and convoluted. You don’t have to worry. In reality, the process is fairly simple. You can find plenty of resources online. There are standard non-disclosure agreements that you can customize to suit your business. This will ensure that your employees respect your privacy. You can fill these out yourself and get the lawyers to review them. Or you can hire a patent attorney. They will help you protect your inventions.
Another option is to use an intellectual property assignment agreement template for startup. These can also be found online and customized to suit your company. These are used when you want to transfer the ownership of intellectual property from one business or person to your startup. Signing this document will make it crystal clear that your startup owns the intellectual property.
Conclusion
Your ideas are the most valuable things that your startup owns. Taking steps to protect this intellectual property is critical. If done right, you’ll save yourself a lot of legal headaches while safeguarding your company from competitors.