These startup mistakes can mean the death of your business before it even gets off the ground. Avoid them at all costs, and make sure you get sound legal advice at the beginning even if it makes a dent in the budget.
1. Prior Employer 's Workplace
When starting their own company, many startups might work at their employer 's facility or on their employer 's computers. If you work in an industry that has intellectual property rights, and you signed an agreement when you started at your job, your employer might have the rights to your ideas or company. They could sue for patent infringement or theft of intellectual property.
Make sure that none of the startups ' work was done at an employer 's workplace. The employer has no rights if the …show more content…
If you 're creating something revolutionary like a cure for the commond cold, a patent will protect your product and allow you to pursue infringements on that patent. The cost of a patent might be prohibitive for those starting out as a new business. Consider whether a patent will be the best use of your budget. A patent lawyer can help with the process since it can be long and complicated as well as expensive.
Copyrights cover books, music and software, which can be a work product of your new company. It 's important to have a copyright to cover original works so they cannot be duplicated. Trademarks protect a word, name or symbol associated with the business so other companies can 't copy or infringe on the rights of the company.
5. NDA and other contracts
From employee contracts to client contracts, it 's vital that you have a contract in place to protect the rights of your company. Clearly spell out pricing in the client contract as well as penalties and interest if the payments are not made on time. The contract should have a section on how disputes will be handled.
While you don 't have to reinvent the contract from scratch, you should have a lawyer view a standard contract and make adjustments based on your business to personalize it. A good lawyer should have a standard contract that he or she can adjust to suit your
1. Prior Employer 's Workplace
When starting their own company, many startups might work at their employer 's facility or on their employer 's computers. If you work in an industry that has intellectual property rights, and you signed an agreement when you started at your job, your employer might have the rights to your ideas or company. They could sue for patent infringement or theft of intellectual property.
Make sure that none of the startups ' work was done at an employer 's workplace. The employer has no rights if the …show more content…
If you 're creating something revolutionary like a cure for the commond cold, a patent will protect your product and allow you to pursue infringements on that patent. The cost of a patent might be prohibitive for those starting out as a new business. Consider whether a patent will be the best use of your budget. A patent lawyer can help with the process since it can be long and complicated as well as expensive.
Copyrights cover books, music and software, which can be a work product of your new company. It 's important to have a copyright to cover original works so they cannot be duplicated. Trademarks protect a word, name or symbol associated with the business so other companies can 't copy or infringe on the rights of the company.
5. NDA and other contracts
From employee contracts to client contracts, it 's vital that you have a contract in place to protect the rights of your company. Clearly spell out pricing in the client contract as well as penalties and interest if the payments are not made on time. The contract should have a section on how disputes will be handled.
While you don 't have to reinvent the contract from scratch, you should have a lawyer view a standard contract and make adjustments based on your business to personalize it. A good lawyer should have a standard contract that he or she can adjust to suit your