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Why your technology startup needs Intellectual Property Protection


The field of intellectual property protection is important for all industries and all sectors. In this article we address the implications of intellectual property protection for technology startups.

The challenges for technology startups

Your startup may face a number of challenges. The most significant of these are:

  • Product development;
  • Recruiting expert professionals with the necessary qualifications;
  • Increasing your firm’s capital;
  • Management of issues related to intellectual property.

The ability of your startup to withstand these challenges depends largely on two factors. The first is your ability to anticipate and avoid these problems, the second is your ability to manage challenging situations and prevent them from deteriorating.

The value of intellectual property rights to technology startups

When you first begin your technology startup, intellectual property management may seem like an unnecessary expense that reduces the efficiency of your business. However, that viewpoint is counterintuitive – intellectual property management is amongst the most important aspects of developing any business.

It’s essential that you don’t ignore intellectual property rights. Whether they be for software, trade secrets, trademark protection, or something else, intellectual property rights can exponentially increase the value of your business should the issue of intellectual property theft arise. What’s more, intellectual property is highly instrumental in the acquisition of venture capital, which protects your business by preventing unfair competition.

What action should you take to protect your startup?

Entrepreneurs make several common mistakes when it comes to intellectual property management. These include:

  • Trying to manage IP related issues without expert help
  • Creating ineffective IP documents
  • Failing to create and implement a comprehensive, legally-binding IP strategy

Should a member of your business succeed in creating a piece of intellectual property, it is highly advisable to transfer this intellectual property to the company via a written agreement between the natural person (the author/creator of the IP) and the company itself. Even if the natural person is a consultant or business partner, several confidentiality agreements should be signed to ensure that all parties agree on the obligation to assign intellectual property rights to the company. If your confidentiality agreements are not watertight, they could be subject to a successful legal challenge, causing your business significant financial and growth losses.


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