Starting a new company is an exhilarating journey filled with innovation and excitement. Yet, many start-ups make critical intellectual property (IP) mistakes in their early stages. These errors can lead to significant legal issues. Here are three common IP mistakes and how to avoid them.
Choosing the wrong names for products and services
One of start-ups’ earliest mistakes is not vetting their product and service names. Founders often focus on marketing appeals, neglecting legal implications. This can cause big problems if the chosen names are similar to those of other companies.
To avoid this, companies should have trademark experts check their product and service names. This screening should also extend to related marks like logos and domain names. After approval, the company must register the trademark with the proper agency.
Failing to document ownership of technology
Start-ups often use technology developed by founders before the company’s formation. Without proper documentation, the company might not own this technology. The law usually grants ownership to the creator.
To secure their rights, companies should make sure consultant agreements give all developed technology to the company. These agreements should also protect confidential information.
Failing to identify intellectual property
In the rush to develop start-ups often neglect IP protection. This can have irreversible consequences. For example, companies must file U.S. patent applications within a year of revealing or selling their product.
Missing this window forfeits the ability to protect the invention under patent law. Start-ups should put in place an IP protection plan early on. Consulting an experienced attorney can help create a plan to protect valuable IP assets.
Protecting intellectual property is crucial for the long-term success of any start-up. By avoiding these common mistakes, new companies can position themselves for sustained growth.