There are two similar but very different types of agreements: the IP contribution agreement and the ip allocation agreement. For important team members, like your founders, both types of agreements may be required. An IP contribution contract transmits to the company all relevant IP addresses you created before you join the company or even before the business is created. An IP assignment agreement assigns to IP that was created after you started working for the company. This document is intended to be used by the founders of a start-up in order to formally transfer to that company the intellectual property relevant to the company, products or services of the company. If Joe had asked John and Jane to assign the company all the IPs developed for the company, Jane would not be able to freely use IP in a separate company. If Jane does, the company could take legal action to outsource its use of the company`s IP. In addition, the value of the IP would not disappear if Jane leaves the company because the company retains ownership of the IP after the founder`s departure. Although there is a value related to a particular founder, there is usually much more IP-related value that the founder created. While you and your co-founders can see on an equal footing in the early stages of your business idea evolution, unfortunately circumstances can change. If your co-founder leaves the company and no IP allocation has been made, he may have reason to claim the IP address he developed before the company was founded. Potential buyers will want to confirm the value of the potential purchase. This also involves checking whether the company is on mentally stiff critical.
When the purchaser takes over, he will want to make sure that he can continue to manage and develop the business. Your potential buyer does not want to take the risk that you and other founders leave the company and take the IP with them. If your business is already founded and the founders have never signed an IP assignment contract, then let it happen immediately. The transfer of intellectual property rights gives the buyer the property and therefore the right to use the intellectual property. For trademarks, patents, copyrights and designs, the assignment must be written to be effective. When you join a new company, it`s a proven method of calling all previous inventions that are excluded from any task – PIs that aren`t transferred to the new company. This includes existing IP addresses you`ve created, for example. B a patent in which you are an inventor. The last thing you want is for your co-founder to take a valuable IP with you.
This would allow your business to move without the ability to move forward and perhaps a new competitor in the market. The most valuable asset of a startup is usually its intellectual property (IP).