IP Protection Strategies for Startups

For most tech startups, their intellectual property (IP) is their most valuable asset. Yet, many founders delay securing their IP until they are in the middle of a Series A due diligence process, which can be a fatal mistake.

Assigning Rights Early

Founders and early employees often develop code or designs before a legal entity is even incorporated. Ensuring that all IP is formally assigned to the company is a primary concern for sophisticated investors.

Trade Secrets vs. Patents

Not everything should be patented. Strategic legal advice is needed to decide which innovations are best protected as trade secrets (under the Trade Secrets Act) and which warrant the public disclosure required for a patent application.

Startups should implement an "IP Audit" early in their lifecycle to identify, document, and protect the core technologies that drive their competitive advantage.