Do You Own What You Think You Own?
Whether you are interested in scaling or seeding the ground to someday sell your expertise-based business, the creation and protection of intellectual property will be at the center of your revenue growth strategy.
Before implementing an IP-based growth strategy, performing legal due diligence is essential. Unlike physical assets, ownership of intellectual property assets has nothing to do with possession, whose idea it was or even who paid for its creation.
Legal due diligence ensures that the foundation of your business–including intellectual asset ownership, corporate structure, employee and contractor issues, and risk mitigation–is solid before we start building upon it.
You may be asking “What could be wrong? I’ve been using my methodology with my clients for years without any problems.”
Here’s the thing. Increased visibility means increased scrutiny. Growing your business with an intellectual property strategy is like adding another floor to your house. The foundation that was good enough for your first floor may not be strong enough to hold your second floor. The legal foundation for your internal uses of IP may not hold up when your use becomes public facing.
When we add a second floor, a sampling of foundation cracks that may appear:
Contractors. Do you have a written agreement for every deliverable received from a contractor that is part of your methodology? 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.
Employers. Did you take some of your former employer’s know-how with you when you set up shop? Of course, we own the knowledge and experience gained during employment, but we don’t own their proprietary information or products.
Employees. Same for your employees. Did they bring any proprietary information from their prior employer to your company?
Clients. 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?
Third Party Materials. Is your methodology 100% original to you? If you use materials licensed from a third party, such as Trusted Advisor or Value Builder, there will be restrictions on how you can use them in your new IP strategy.
Another legal topic, another LinkedIn Live! Join me on April 27th 11:00am EST for a Q&A discussion about intellectual property ownership.
LinkedIn Live: Do You Own What You Think You Own? The Importance of Legal Due Diligence