Startups and IP Ownership Issues

Scott Edward Walker

For many startups, intellectual property (IP) is their most valuable asset. Below are the three most common IP-related mistakes that startups make — the first of which I discuss in this brief video with Jason Calacanis. Any IP created or acquired by a founder (e.g.,

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Intellectual Property 101

Up and Running

If someone asked whether or not your business has Intellectual Property (IP) and your answer is “I do not know” or “I doubt it,” you are not alone. It is difficult to be in a business situation completely devoid of IP worth identifying and protecting.

Trending Sources

Legal Checklist for Startups

Scott Edward Walker

Button-down IP ownership and assignment issues (see post here ). Don’t issue stock options unless a proper option plan is in place and a valuation has been done in compliance with Section 409A of the Internal Revenue Code (see post here ).

Startup Blog: Think Ahead When You are Negotiating IP Rights

Taffy Williams

Tuesday, May 3, 2011 Think Ahead When You are Negotiating IP Rights In the last few weeks, I was having discussions with a group starting a company in the healthcare field. It is even possible that revenues from an early diagnostic could aid development of the therapeutic.

Someone Stole My Startup Idea – Part 3: The Best Defense is a Good IP Strategy

Steve Blank

Early on in my career I took a “we’re moving too fast to deal with lawyers” attitude to patents and Intellectual Property (IP.) Type of IP. _. Your intellectual property may be an additional revenue stream or may add substantial value to your company. That changed when I joined the board of a startup, and we sued Microsoft and Sony on the same day for patent infringement – and won $120 million.

Special: The 56 Israeli Companies Exhibiting in Mobile World Congress 2011

VC Cafe

Allot is a leading provider of intelligent IP service optimization and revenuegeneration solutions based on Deep Packet Inspection (DPI) technology, Allot Service Gateway solutions for mobile broadband are compliant with 3G.4G/LTE and WiMax networks and provide full cell awareness.

Shout Out to Seth Levine, or the In-N-Out burger startup

Scalable Startup

Investor groups are cutting out the management, bus dev, sales, and marketing professionals, trying to get raw, young engineering teams that have never negotiated a term sheet to give away their IP rights and equity for next to nothing.

4 Deadly Legal Mistakes That Startups Make

Scott Edward Walker

You also need to remember to file your 83(b) election with the Internal Revenue Service within 30 days after the grant/purchase date of the restricted shares (see tip #3 of my post “ Founder Vesting: Five Tips for Entrepreneurs ”). IP Ownership.

Google Going All In on Mobile

Venture Chronicles

The tech media, and general media as well, is all a flutter about Google acquiring Motorola Mobility (note that this is one part of Motorola, the other being their Solutions group which is 2x the size of Mobility in terms of revenue). I’m with Larry… this is about IP and what Google is doing is acquiring a massive IP war chest that they can use as currency for access to other people’s IP as well as protect their hardware partners with.

I-Corps @ NIH – Pivoting the Curriculum

Steve Blank

Next we teach Distribution Channels (how are you going to sell the product) and Customer Relationships (how do you Get/Keep/Grow customers) and Revenue Streams (what’s the Revenue Model strategy and pricing tactics.) We’ve pivoted our Lean LaunchPad / I-Corps curriculum.

Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

buy out an entire company for its revenue and profits. These include the product itself, the customer, the distribution channel, revenue model, how to get, keep and grow customers, resources and activities needed to build the business and costs.).

3 Ways Structure Can Take Your Tech Startup To New Heights


by Gadiel Morantes , chief revenue officer at Early Growth Financial Services. Look no further than Google and Oracle , and you’ll see that no company is immune from IP impasses. A Jenga tower is a precariously built one.

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How to Make Sure Professional Services Don’t Take Over Your Software Company

Both Sides of the Table

I think it’s important for enterprise startups to layer in professional services into your revenue stream. deliver profitable revenue that while on gross margins of 50% vs. software at 85-95% it is still profits to help you cover fixed costs. At a minimum co-ownership of the IP.

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Is This Startup Ready For Investment?

Steve Blank

The heart of the therapeutics IRL also required “Proof of relevance” – was there a path to revenues fully articulated, an operational plan defined. Since 2005 startup accelerators have provided cohorts of startups with mentoring, pitch practice and product focus.

StartupRoar - Great Content for Startups


This site aggregates and filters content from thought leaders who talk about topics such as Marketing , Sales , Design , Revenue , Hiring , Social Media , Business Models , Metrics , PR , Venture Capital , Angel Investors , Bootstrapping , Incubators , Agile and many others.

Should Startups Focus on Profitability or Not?

Both Sides of the Table

You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off. million in revenue three years later is, “So effing what?”

White-Label Mobile App Users: Who Owns Them?

The Startup Lawyer

If a startup gets paid via a revenue share arrangement, the potential exists for the large company to exercise their early-termination rights and get their white-label app’s users free-of-charge (or worse, the IP). But even if the white-label agreement vests the startup with all IP ownership, including both the startup’s mobile app and the white-label app, the large company could still receive the free benefit of the jointly-grown user base.

Fear of Failure and Lack of Speed In a Large Corporation

Steve Blank

They’ve figured out the revenue model (subscription, license, direct sale, etc.) They know the activities, resources and partners (manufacturing, regulation, IP, supply chain, etc.) – and the costs to deliver the product/service and have well defined product development and product management tools that emphasize the linear nature of shipping products to existing customers. Therefore, in a large company, failure to meet a goal – revenue, product delivery, service, etc.–

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How Would You Build a Movie Studio if You Started Today?

Both Sides of the Table

They told me that if you look at modern studios they have many diverse revenue streams: movies, TV, online media, toys, licensing, video games and so forth. They are doing tens of millions in revenue and the first product hasn’t even been live for 2 years.

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Why The Media Has Been Wrong About YouTube Networks

Both Sides of the Table

Along with Greycroft Partners we were the first investors in Maker Studios 3 years ago when the company had no revenue and limited infrastructure. but not that this justifies take a 45% revenue share. This revenue share comes after the YouTube split.

How to Avoid Innovation Theater: The Six Decisions To Make Before Establishing an Innovation Outpost

Steve Blank

Startups are developing IP relevant to the disruption. For example, Google’s acquisition of Nest (which had customers, revenue and a distribution channel) allowed it to enter the connected home market immediately.

Mojang growing strong: posts €234 million revenue


Mojang, the creators of Minecraft, tell the Wall Street Journal that their revenue has increased 38% over last year to SEK 2.07 Over 14 Million people in total have bought the €20 PC or Mac version of the game, which has accounted for 38% of last year''s revenue.

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What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

A great recent example of this was a successful group of entrepreneurs who had created a company that will do $10-12 million in revenue at their system integration business (read: services business) in 2011 after having done $5 million or so in 2010 and $2-3 million in 2009.

Notes on the acquisition process

Chris Dixon

Don’t use a banker unless your company is late stage and you are selling based on a multiple of profits or revenues. The most prominent one lately is “IP indemnification.” ” This is a complicated issue, but in short, as a response to patent trolls going after IP escrows, acquirers have been trying to get clawbacks from investors in case of IP claims. Ten years ago, startups financing was an insider’s game.

7 Lessons They Don’t Teach You In Crowdfunding School

Startup Professionals Musings

Project your costs as diligently as your revenues. Keep all IP details close to the vest. Crowdfunding is the hot new vehicle for raising money to support your entrepreneurial efforts, with over 1,250 website platforms around the world to help you, according to a 2015 industry report.

Anyfi Networks Introduces New Revenue Model For ISPs With Easy Wi-Fi Over IP Roaming


Anyfi compares the solution to VoIP: “The trick is combining Wi-Fi with IP, Internet Protocol, to break the tie between logical network and physical infrastructure, much in the same way as Voice over IP separates your phone service from the physical line.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. But those of us with longer memories remember that the revenue line can move south very quickly when the market overall turns south. You are particularly vulnerable if: You have revenue concentration (few customers each providing a large total of percentage of your revenue).

Understand the tricks Multinationals use to avoid paying tax

Start Up Blog

In case you don’t know, many of them of have the pleasure of only paying 1% tax on their revenue. Their ‘so called’ profit numbers are much lower than you’d expect them to be based on their revenues. You now pay 30c on $1 of actual revenue in your local market.

The Advanced Guide to Transactional Emails That Convert


The same report states that transactional emails also generate more revenue per email than promotional emails. When anticipated messages aren’t received, you not only lose revenue, but you also lose your customers’ trust. Use a dedicated IP for transactional emails.

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Social Change Through Social Media: Kip Solutions

Inc Startups

In the last few years, the use of social media has risen exponentially around the world, creating new communities and outlets for communication—something Patrick Ip, Sonia Chokshi and Kavya Shankar decided was an opportunity to trigger social change. ’” says Ip.

30 Machine Intelligence Startups to Watch in Israel

VC Cafe

This is done by enriching transaction data points such as name, email address, and billing and shipping address with around 2,000 extra data points, such as an IP latency check to measure the real distance from the user, IP connection type, distance between key strokes, and email name match.

10 Incredible Mobile Marketing Statistics Every Entrepreneur Must Know

Growthink Blog

And I was one of the early adapters of Voice Over IP. REVENUES & RESULTS 8. And mobile applications will continue to explode, and are not only a way for you to stay in front of customers, but they could be a huge revenue source for your company.

3 Ways to Grow Your Startup

The Startup Magazine

If you own the IP on a particular technology or information product, then you can create licensing agreements for other businesses to sell your product for you. Using licensees is an excellent way to boost your revenue without the need to hire and external sales force.

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Preventing Fraudulent Signups


Fraudsters often operate from foreign IP and physical addresses. IP Logging. When taking online signups, make sure to enable IP Logging.

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The Unbiased And Updated Guide To Selecting The Right Hosting Company


Evidence exists that your hosting IP address can affect your SEO and traffic from Google , particularly if your users are concentrated in a specific geo-location/country. by Matt Janaway, owner of Are you concerned about the speed of your website?

Retooling Marketing in a B2B Company

Venture Chronicles

A successful organization that fed impressive growth, reaching growth and revenue records year over year, the marketing organization relied on a proven B2B outbound marketing model that precisely measured lead capture rates.

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The investment that didn’t happen

K9 Ventures

While Zappos was doing diligence on Modista, the issue was brought up that one of other companies in this space — , founded by Munjal Shah — had filed for some IP in this area.

Venture Debt 101

Up and Running

Banks will loan to startups that have access to the pockets of institutional investors, like a well-known VC firm, or that are generating a certain amount of revenue that will foolproof their investment. If you’re generating a lot of revenue, you can get incredibly low-interest rates.

Anyfi Networks Introduces New Revenue Model For ISPs With Easy Wi-Fi Over IP Roaming


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9 Ways to Get More Out of Google Analytics

Inc Startups

Establish "e-commerce tracking" By enabling e-commerce tracking on Google Analytics and coding your shopping cart's receipt page, your sales revenue data is sent directly to Google Analytics and is available to you in a simple, straight forward report.