Both Sides of the Table

JANUARY 21, 2010

Shame about not getting it in legal writing that you owned the original IP. Forget to get around to setting up that Employee Stock Option Plan and want to be able to give the early guys their options at a low strike price? Anyone who does IP law in Southern California seems to use Knobbe Martens.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Both Sides of the Table

FEBRUARY 23, 2015

Equally, it could be that as a mid-level employee you prefer to see the company try to get to a $1 billion exit where you could make substantial money but the CEO sells early because she is sitting on 10x the equity as you and can earn well on a $50 million exit. There is often money to be made in finding places with under-valued IP.

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

Both Sides of the Table

MAY 2, 2015

And it turns out that employee reviews matter. Stock option top-ups after a few years are vital retention mechanisms. Didn’t have employees sign non-solicitation agreements? Didn’t have employees sign non-solicitation agreements? Legal threats from other IP holders? Shame on you. Shame on you.

Operations 150

Operations Metrics Early Stage Non-Compete 150

Both Sides of the Table

SEPTEMBER 18, 2014

Less than you’ll probably grant your most junior employees in stock options? Stock Option plans. How do you think they’ll feel if your next round is at a $50 million post money valuation and their hard-earned $25,000 is worth 0.05% of your company? Him: Not so good. Obviously he’d be pissed off.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Scott Edward Walker

NOVEMBER 2, 2011

Button-down IP ownership and assignment issues (see post here ). If you hire any employees, make sure you don’t misclassify them as an independent contractor or fail to pay them at least the minimum wage (see post here ). Set-up vesting schedules for the founders (see post here ) and file 83(b) elections with the IRS (see #3 here ).

Accredited Investor 111

Accredited Investor Stock Options Delaware Silicon Valley 111

Both Sides of the Table

AUGUST 17, 2009

To the best of my knowledge US law allows you to work on your own resources and in your own hours and let you personally own your IP. In some countries outside the US (the UK for example) employers can specify in an employment contract that ANY IP you develop while you’re employed by that company is owned by them.

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365

Gust

DECEMBER 8, 2011

Determine the allocation of equity among co-founders, early employees or other service providers, and future contributors as applicable, as well as the vesting schedule , if any, that will apply. Offer letters for employees. Pick a name for the new legal entity (e.g., Newco, Inc.”) Independent contractor or consulting agreements.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139