Legal Principles for Tech Startup & IP Development
IP development for technology startup companies hosts many challenges – some obvious, and other hidden opportunities for tech startup mistakes. There’s no “free pass” for the consequences of business startup mistakes made in early stage tech startups. Your early stage building blocks form the core of your business product, service, or solution, so it’s important to seek advice from an IP attorney to structure your intellectual property protection, IP licensing, and to protect you in employment law related intellectual property issues.
Intellectual Property, Confidentiality Agreements & NDAs
A technology startup company that is too eager for business partnerships or financing often discloses proprietary information prematurely. An effective non-disclosure agreement (NDA) and non-compete agreement drafted by an IP attorney precisely for the needs of your business startup is critical to protecting intellectual property rights. However, it’s important to use a nondisclosure agreement wisely. Even with an NDA, you should disclose information through neutralizing filters calibrated to relevant factors.
Employment Contracts & Due Diligence
Strong employment contracts protecting intellectual property is an important key to tech startup success, but it is not enough. You must fully investigate the work history of your employees and contractors, including previous or current employment agreements, to make sure that other employers don’t have a claim for breach of non-compete agreement, tortuous interference with contract, or claims of intellectual property infringement. Even if your tech startup doesn’t get into a conflict or lawsuit, IP development “spoiled” this way can kill your prospects of selling a business when a buyer is conducting due diligence at a later time.
Intellectual Property Development & IP Licensing
Structuring the link between IP development and IP licensing is one of the most nebulous and difficult challenges of running a technology startup company. Intellectual property development and engineering should be implemented in balance with IP licensing models advised by an intellectual property attorney. IP development and IP licensing must also be balanced with marketing and sales, as well as product or service support. Striking the right balance between these elements is what drives successful technology startup companies.
Our Austin law firm advises tech startup companies and business investors in a range of IP law, IT law, and other tech startup matters. To speak with a Texas IP lawyer, call our law firm today.
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