What Should Founders Know About IP Before Launching?

Starting a business is exciting for obvious reasons. In many cases, founders are spending nearly all their time thinking about product development, branding, raising money, marketing, hiring employees, building websites, and trying to get the business off the ground as quickly as possible. Unfortunately, while all those things are important, intellectual property concerns are often pushed to the side. That being said, if you’re preparing to launch a startup or any other type of business, you have several IP considerations to keep at the top of your mind. Continue reading and reach out to Lemler IP to speak with a seasoned Orleans Parish, Louisiana intellectual property lawyer and to learn more about what founders should know about IP before launching their businesses. Here are some of the questions you may have:

What types of intellectual property should founders think about first?

Many people hear the phrase “intellectual property” and immediately think only of patents. Though patents are certainly important in many cases, the truth is, intellectual property is much broader than that, and depending on the type of business you are starting, you may need several different forms of protection simultaneously. Some of the most common forms of intellectual property are as follows:

• Trademarks: To protect your startup’s name, logo, and core brand identity.
• Copyrights: To protect your creative works, marketing copy, and software source code.
• Patents: To protect your unique functional inventions, processes, and products.
• Trade Secrets: To protect your confidential algorithms, client lists, and business methods.

Why should founders address IP issues before launch instead of afterward?

There are several reasons why founders should address intellectual property concerns before launching their business. In many cases, waiting too long can create legal and financial problems that are far more difficult to fix once the company is already operating publicly. Because the U.S. patent and trademark systems generally prioritize the first person to formally file an application, delaying protection means a competitor could legally claim your name or invention before you do. For example, before launching, founders should strongly consider doing the following:

• Conducting trademark searches before officially selecting a business or product name.
• Ensuring there are written agreements establishing ownership of logos, software code, and creative work.
• Having employees, contractors, and developers sign confidentiality agreements.
• Determining whether patent protection may apply before publicly disclosing an invention or creation.
• Creating clear internal agreements regarding ownership rights between co-founders.

How can intellectual property mistakes affect a growing business?

Intellectual property problems can impact a business at nearly every stage of growth. This is especially true when startups begin seeking investors, partnerships, or acquisition opportunities. Investors frequently want to confirm that the business actually owns the intellectual property associated with its products, branding, and operations before committing money to the company. Some common consequences of intellectual property mistakes can include the following:

• Trademark infringement disputes
• Expensive litigation
• Loss of exclusive rights to inventions or creative work
• Ownership disputes between founders or former employees
• Delays involving investments, partnerships, or acquisitions
• Cease-and-desist letters forcing a company to stop using certain branding or materials (which often requires a startup to spend its limited runway completely rebranding its website, packaging, and marketing from scratch)

The bottom line is that in many ways, intellectual property protections help form the foundation of a successful business, and if you have additional questions about IP considerations before launching your business, please don’t hesitate to contact Lemler IP today.