Legal
Launching a startup is an exciting journey, but amidst the whirlwind of product development, funding, marketing, and team building, a crucial element often gets overlooked: a sound intellectual property protection.
Your ideas, inventions, and brand identity are the lifeblood of your business. They are what sets you apart from competitors and a key factor to attract investors. Protecting them is not an option; it’s a necessity. A sound IP strategy should be priority from day one, not an afterthought.
Step 1: Establishing IP Ownership
Imagine this: you've collaborated with a talented developer on a groundbreaking piece of software. You've shaken hands, maybe even had a few celebratory beers, but have you formally documented who owns the code? Verbal agreements are worth the paper they're not written on. This is where an IP Assignment Deed comes in.
An IP Assignment Deed is a legally binding document that formally transfers ownership of intellectual property, such as software code, designs, inventions, or written works, from the creators (often the founders or developers) to the company itself. This is crucial for clarifying ownership and preventing future disputes. Without a properly executed assignment, you could find yourself in a messy legal battle down the line, potentially losing control of your core assets.
It's essential to have these agreements in place before any significant development or creation begins. Don't wait until your product is launched or you're seeking funding. The process is relatively straightforward, but it requires careful attention to detail. Each founder, contractor, or employee who contributes to the creation of IP should sign an assignment agreement. This ensures that the company owns all the intellectual property rights associated with its products and services.
Step 2: Protecting your IP from Competitors
After establishing ownership of your Intellectual Property, your next step is to protect it from competitors, this is accomplished through registration. In Australia, you can register trade marks, patents, designs, plant breeder’s rights, and records of assignments of copyright through IP Australia.
- Copyright: Copyright protects original works of authorship, such as software code, designs, and written works. In Australia, copyright protection is automatic and does not require registration. However, it is important to keep records of when your work was created in case you need to prove ownership in the future.
- Patents: Patents protect inventions that are new, innovative, and useful, including inventions in medical technology, pharmaceuticals, appliances, mechanical devices, etc. In Australia, patents are granted by the government and give the owner exclusive commercial rights, freedom to licence, and the right to take legal action to stop others from manufacturing, using or selling the invention in Australia without permission.
- Trade marks: Trade marks protect elements that distinguish your brand, goods and services, from competitors. It can be used to protect brand names, logos, sounds, smells, pictures, movements, or aspect of packaging. In Australia. Registration gives the owner exclusive rights to use the trade mark in connection with the goods or services for which it is registered, as well as the ability to sell or license it to others.
- Designs: A registered design protects the visual appearance of a product. This includes the shape, configuration, pattern or ornamentation which give a product its unique appearance. A registered design gives you exclusive commercial rights to use, sell or license the design.
- Plant Breeder's Rights: Plant breeder's rights (PBR) are intellectual property rights granted to plant breeders in respect of new varieties of plants that they have bred. PBR gives the breeder exclusive commercial rights to sell, license, or otherwise deal with the propagating material and harvested material of the new variety.
If you plan on extending your business market overseas, it is paramount to register your IP overseas. We can help you determine the best strategy in establishing international protection.
Step 3: Other Important Considerations:
- Non-Disclosure Agreements (NDAs): A non-disclosure agreement (NDA), also known as a confidentiality agreement, is a legally binding contract in which one or more parties agree not to disclose confidential information. NDAs are commonly used to protect trade secrets and other sensitive information that could be damaging to a business if it were disclosed to competitors or other third parties.
- Website Terms of Use: Your website's terms of use should include a section that addresses intellectual property. This section should make it clear that all content on your website, including text, graphics, logos, and software, is protected by copyright and other intellectual property laws. It should also state that users are not allowed to use any content from your website without your permission.
Contact LUNA for Tailored Legal Advice
Protecting your startup's IP is essential for its long-term success. By taking the necessary steps to establish ownership, protect your IP from competitors, and enforce your rights, you can ensure that your startup's valuable assets are safe.
At LUNA, we understand the challenges that startups face when it comes to protecting their IP. We can provide you with tailored legal advice and assistance on all aspects of IP law, from establishing ownership to enforcing your rights. Contact us today for a consultation.