How should start-ups protect intellectual property?

If start-up owners do not protect their intellectual property from the beginning, they run the risk of losing their chance at developing a successful business. That's why it's so important for them to work with a Phoenix business attorney with the knowledge and experience to help them navigate intellectual property law.

Recently, Inc.com contributor Chas Rampenthal offered three tips for start-ups seeking to protect their intellectual property.

First, he suggests controlling which employees have access to confidential information through their contracts, by adding "assignment of inventions" clauses. In addition, it helps to keep a log of who is viewing what information, especially if it is of a particularly sensitive nature.

It's also important to use nondisclosure agreements (NDAs) when sharing information with individuals who are not employees. Even so, entrepreneurs should do their best to limit access so that only those who need to know certain pieces of information actually get them.

"Sometimes an NDA won't happen," Rampenthal wrote. "Venture capitalists almost never sign them, as they manage hundreds of thousands of IP. In the end, you'll just have to balance the advantages of collaboration—investment, sharing R&D resources, outsourcing, or a potential deal—against the risks of having the other side disclose your information."

Finally, start-ups should be fully prepared to defend their intellectual property in court. If another company is using the same brand name, for example, it's not enough to send a cease and desist letter and wait for compliance. Owners must be willing to take legal action. Otherwise, they are not acknowledging the value of their property.

Categorised in: Intellectual Property Law

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