5 Common Mistakes New Businesses Make Regarding Their IP

If your intellectual property (IP) is the most valuable asset of your start-up company, below are five common mistakes you will want to avoid:

1. Giving Rights to Prior Employer . Many founders unknowingly allow their prior employer to have a claim to the start-up’s IP because the founder was “moonlighting” while previously employed. It is important to understand that even a founder’s use of a prior employer’s space, computer, or telephone in connection with the start-up could cause trouble. It is imperative for each founder to review all contracts with a prior employer and the company handbook to determine if there are any clauses that may provide the prior employer with a claim to your new venture’s IP.
2. Failing to Assign IP to Start-up Company . Any IP that was created by a founder before the start-up company was incorporated should be properly assigned to the entity in writing.
3. Failing to Sign Protective Agreements . Your start-up can encounter significant problems regarding the ownership of the IP if you fail to protect the IP by having all founders, employees and independent contractors sign confidential information and invention assignment agreements.
4. Trademark Infringement . When selecting your logo, symbol or other identifying mark, it is important to understand that you cannot use an identifier that is “confusingly similar” to a name or mark that is being used by another entity. Don’t confuse registering your selected company name with the state of your incorporation as the same thing as legally having the right to use a trademark. You should conduct a search of the mark and register it with the USPTO.
5. No Strategy for IP Protection . If your start-up company’s most valuable asset is its IP, you must take action to protect it. Whether you need trade secret protection, a copyright or a patent (or possibly all three), it is important to figure out the best means for safeguarding your IP. You should confer with IP legal counsel and identify your start-up company’s IP and how to protect it.