Contracts: Friend or Foe?

As a professional services provider, your most valuable asset is your expertise.

Do you know the number one way we lose control of our most valuable asset? Contracts. Well, I should say, not using contracts or not understanding the contracts we sign. These are self-inflicted wounds.

Unlike physical assets, ownership of intellectual property has nothing to do with possession, whose idea it was, or even who paid for its creation.

Maximizing the value of your expertise requires (i) proper documentation and protection in order to (ii) control and get paid for its use.

The crucial first step that cannot be skipped → contracts.

You need contracts with your clients that limit their ability to reuse or distribute your proprietary materials. You need contracts with your contractors, assigning rights to everything they deliver to you.

Don't Forget:

• Client Contracts. If you are regularly signing the services agreements provided by your clients, the agreements will contain ownership language regarding the deliverables. Are you retaining rights in your pre-existing property? Non-competes are another danger—are you restricted from offering similar services to your client’s competitors?

• Contractor Contracts. Do you have a written agreement for every deliverable received from a contractor that is part of your service or product? Even if you paid the contractor and the contractor used your ideas to create the deliverable, you must have a written agreement, including specific language regarding ownership, to own exclusive rights in the deliverable.

You know by now that IP is everywhere. More importantly, YOUR IP is everywhere. Make sure you are using contracts competently to make sure you own and control it.

Unsure whether your contracts are your friend or your foe? Ask Erin.

Cheers! 🥂

Erin