IP Software Review Stock Vesting 
Scott Edward Walker
OCTOBER 19, 2020
Over the past six months, my firm has been engaged by a number of startups with significant intellectual property (“IP”) problems. In a couple of cases, the founders played lawyer on their own; in the other cases, the founders either used (i) a Web service that did not address IP issues or (ii) an inexperienced law firm.
Scott Edward Walker
SEPTEMBER 28, 2011
Vesting Restrictions. The first deadly mistake relates to vesting restrictions. In addition, sometimes a portion of the shares will be deemed to be vested “up front” – meaning that they are not subject to vesting — particularly where a founder has made a significant contribution prior to the company’s incorporation.
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Austin Startup
AUGUST 20, 2017
Set any vesting schedules and expiration dates on roughly similar terms, if for no other reason just so you can track all of them correctly. Make your choices only after you’ve done some due diligence with other companies where they’ve served. More complicated enterprise software applications are a good example of that.
Scott Edward Walker
FEBRUARY 1, 2014
Mistake #2 : not buttoning-down IP ownership issues (at 10:20). Mistake #3 : not setting-up vesting schedules (at 17:19). Mistake #5 : not doing your due diligence on potential investors (at 38:36). C corp – “qualified small business stock” . Mistake #2: Not Buttoning-Down IP Ownership Issues.
Scott Edward Walker
FEBRUARY 1, 2014
i) Rule 506 preempts State law, which means all you have to do is file a Form D and pay a filing fee; and (ii) no disclosure requirement/PPM Possible to sell to “friends and family” (e.g., issues to address include: How have they treated their other portfolio companies?
maplebutter.com
JANUARY 8, 2013
Don’t wait to fill the void before letting him go (but obviously get all the code / usernames / password). Sometimes I use Balsamiq, sometimes I code a prototype, doesn’t matter – just create something, then tell the world. I think quick, do something, then review what I’ve learned. How I can find the right investor (software)?
www.metamorphblog.com
OCTOBER 23, 2010
Experienced, talented software engineers have lots of options in life, and most of them involve getting paid. Make sure you own all the IP created during this trial period, and make no promises for later. Huge upfront software licensing fees. Vest, young man. Imagine you’re a highly-trained software engineer.
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