As we discussed in our
inaugural posts in this series, after management, the most
valuable asset for most startups can be their intellectual property
(IP). And as such, it is important for a startup to own its
intellectual property. That sounds simple enough, right? Wrong!
In the early stages of a startup, individuals typically
collaborate informally to develop their ideas and a business plan.
A company may not be formed yet. There may be no formal agreements
among the individuals. Additionally, some of the collaborators may
be employed by other companies while waiting for the startup to
launch. As part of employment with such companies, certain
collaborators may be obligated to assign his or her contributions
intended for the startup to their current employer. Without any
formal agreements or even a formal entity to own IP, any IP
generated or derived from an informal collaboration may be owned by
individuals personally or worse yet, depending on the
circumstances,
