Welcome to the Thunder Founder Newsletter Issue #29!
IP is not just a legal term. It is the lifeblood of your startup. It is what makes you unique, innovative, and valuable. It is what attracts customers, investors, and partners. It is what protects you from competitors and copycats.
But IP is also complex, dynamic, and challenging. It requires careful planning, execution, and maintenance. It involves different types of rights, such as patents, trademarks, copyrights, and trade secrets. It involves different types of agreements, such as NDAs, founder agreements, employment contracts, and licensing contracts. It involves different types of actions, such as registration, enforcement, and defense.
Here are a number of common pitfalls founders can find themselves in. If you've done any of these, you may want to speak with a lawyer.
Pitfall #1: Working on your new idea while employed by someone else
If you are still working for another company while developing your new idea, you may be putting your IP at risk. Most employers require their employees to sign a Confidentiality and Invention Assignment Agreement, which means that anything you create related to the employer’s business belongs to them. Unless you have express permission from your employer to work on your side project (and they don’t claim any ownership rights), it is best to keep your employment work separate from your new idea.
Pitfall #2: Sharing your IP with others without proper agreements
It is natural to want to discuss your new idea with friends, co-founders, investors, or potential customers. However, without proper agreements, you may expose your IP to theft, misuse, or disclosure. Before sharing any confidential information or trade secrets, ensure you have a Non-Disclosure Agreement (NDA) signed by the other party. Before you collaborate with anyone on developing your IP, ensure you have a Founder Agreement or a Consulting Agreement that clearly defines who owns what and how the IP will be used.
Pitfall #3: Failing to register or enforce your IP rights
Registering and enforcing your IP rights can be costly and time-consuming, but it is also essential for securing your competitive advantage and attracting funding. Depending on the type of IP you have, you may need to register it with the appropriate authorities (such as trademarks for brand names and logos, patents for inventions, or copyrights for software) or assert it through contracts or litigation. Failing to do so may result in losing your IP rights or allowing others to infringe on them without consequences.
We know how complicated it can be to work with IP, so we wrote a longer blog post to cover the topic here. IP Blog Post
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Fundraising Demystified Episode #4
San Diego-based founder raises $48M for his startup disrupting a legacy and manual business.
In the latest episode of Fundraising Demystified, we uncover the untold stories of successful founders. In this episode, host Jason Kirby interviews Daniel Goldstein, CEO and co-founder of Trust and Will, a company building what you'd imagine as the TurboTax for estate planning.
Here are some key takeaways from the episode:
- Trust and Will is a San Diego-based company that started with Techstars and has grown to help more than half a million families with their estate planning.
- The market opportunity for estate planning is huge, with six to eight million people doing a net new estate plan every single year.
- Building a network of investors takes time and effort, but it's important to hone your story and pitch to as many investors as possible.
- When choosing investors, don't just go for the money, but also consider who you'll be working with for the next ten years.
You can listen to the full episode on our website or wherever you get your podcasts. The podcast equips entrepreneurs with the knowledge and inspiration to conquer the fundraising landscape. So, whether you're a first-time founder or a seasoned entrepreneur, this episode is a must-listen. Listen Here
What the Experts Have to Say
Intellectual Property for Startups: Everything You Need to Know
When talking to an IP lawyer it is always a good idea to have a background in the subject area. Read More
Protecting intellectual property: What every startup founder needs to know
Knowing what to protect and finding a good way to protect it are two separate tasks. This helps walk through ways that you can protect the IP. Read More
How and Why Startups Must Protect Their Intellectual Property at All Costs
IP is often the core of the business and it is important to protect it from other companies looking to undermine and copy you. Read More
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Written by Jason Kirby - https://www.linkedin.com/in/jasonrkirby
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