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ARTICLE · 04 FEBRUARY 2026

Who Really Owns Your Startup's IP?

Weintraub Tobin Chediak Coleman Grodin Law Corporation
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Most founders assume their company owns what it builds. It doesn't, at least not automatically.

United StatesIntellectual Property

The Most Overlooked Mistake That Can Kill Your Company Before It Starts

Most founders assume their company owns what it builds. It doesn't, at least not automatically.

Under U.S. law, the person who creates intellectual property owns it unless they've assigned it in writing. That means your company may not own its core code, designs, or brand even if you paid for them.

I've seen financings delayed, acquisitions fall apart, and founders lose control of their own products because they never secured clear IP ownership. It's the single most common, and most avoidable, legal mistake in early-stage companies.

The Real-World Scenario

A SaaS company built a platform that was gaining real traction. The founders hired a freelance developer to build the initial backend and integrate several third-party APIs. By the time the company engaged Weintraub to negotiate its Series Seed, everything looked solid: strong revenue, low churn, and interested investors. Then the

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