SOLOWAy | Schwartz
Technology Law Experts
Continued: Why Start-ups Shouldn't Skimp on IP Documentation
Step four: Do you protect your IP rights when you go out and license your technology? It seems fundamental, but don't make the needlessly common error of using words like "sell" and "puchase" in contracts when you only want to license the technology. Avoid giving away "exclusive" rights without very carefully considering the consequences and writing adequate contract terms. If a customer pays you to expand your product, tread extremely carefully and make sure you don't give away ownership of something that you need to own yourself. When you partner with another company to create something jointly, you need to define carefully the ownership rights in the work product.
Step five: Defend your IP rights when you learn that someone else is infringing. If you don't, you could lose those rights.
If you don't take care of these things, beginning literally on the first day of your company's operations, you will have holes and broken links and clouds -- choose whatever metaphor of dread you'd like -- afflicting your IP portfolio. And when your prospective investors and buyers see this, you could see millions of dollars in value disappear.
© 2013 by Robert G. Schwartz, Jr. All rights reserved Disclaimer: This summary is provided for educational and informational purposes only and is not legal advice. Any specific questions about these topics should be directed to an attorney.