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Nuts & Bolts of Intellectual Property for New Startups

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Having covered all the bases to ensure that your corporate name is available, the domain name can be acquired, and the name doesn’t infringe any existing trademarks (as we discussed last week ), now is a good time to look at the categories of intellectual property (IP) that are relevant to most startups. Intellectual property.

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Do It Right The First Time: Avoiding “Janitorial” Legal Work

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Nevertheless, choosing to defer basic corporate housekeeping items can be disastrous in some circumstances, as when the failure to spend a few thousand dollars on legal fees to clarify IP ownership and equity arrangements comes back to bite a successful company to the tune of millions of dollars on the eve of a liquidity event. Good stuff!

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Bad Notes on VC

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If you’re wildly successful early on or if they help you achieve a great valuation they actually pay a significant price for their eventual stock even though they took much more risk than a future investor and backed you early. Less than you’ll probably grant your most junior employees in stock options? Stock Option plans.

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Do It Right The First Time, Part II: Visit the Doctor or House Call?

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Enter into agreements between Newco and founders, early contributors, outside advisors or service providers under which they contribute or assign all intellectual property related to the company’s business to Newco in exchange for the issuance of founders’ stock (Common Stock). Make escrow arrangements for restricted stock (i.e.,

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Knowledge Is Power: Convertible Note Financing Terms, Part V

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Common examples include papering founders’ stock issuances, catching up on Board minutes, and ensuring that all members of the team have entered into IP agreements with the company assigning rights in their work to the startup.

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