(A note from your friendly neighborhood IP lawyer)
If you’re a corporate lawyer working with startups, you already wear about six hats. You’re busy forming entities, coordinating fundraising efforts, handling governance, putting protection in place with insurance, and doing a hundred other things that help new companies survive long enough to raise their first round.
But there’s one area that tends to stay just out of view until it’s too late — intellectual property.
And when it goes wrong, it goes expensively wrong.
As IP lawyers who work closely with tech startups, we have seen brilliant companies lose traction, valuation, and investor confidence, not due to their technology or market, but because they failed to protect their IP from the outset adequately.
Here’s how you can help your clients avoid those headaches (and look like a superhero in the process).
1. Encourage IP ownership clarity early and on paper
Startup founders are often so focused on building that they forget to document who actually owns what.
Things can get messy fast, especially when co-founders, contractors, or third-party developers are involved. We’ve encountered situations where a startup didn’t own its own code, brand, or even patent filings due to incorrect paperwork.
You can add real value by flagging the importance of clear IP assignment language in:
- Employment and contractor agreements
- Joint venture or collaboration agreements
- Consulting or development contracts
A quick, “Have you spoken with an IP lawyer about this?” can save your client hundreds of thousands of dollars later.
2. Remind clients that NDAs and trade secrets go hand in hand
Startups are built on ideas. But ideas only qualify as trade secrets if they’re actually treated as secrets.
We have seen good companies lose their right to protection because they pitched investors, shared beta features with partners, or posted details on their websites before implementing proper confidentiality measures.
Your corporate clients may think an NDA is optional. It isn’t.
Encouraging them to establish consistent confidentiality practices (and checking in with IP counsel on what truly counts as a “secret”) can make all the difference between owning a competitive advantage and giving it away.
3. Help them see that branding isn’t just marketing. Branding is actually an essential form of IP
Many startups fall in love with a name or logo before checking if it’s actually theirs to use.
A quick trademark clearance search early on can save months of rebranding later. We have seen founders build beautiful websites, raise funding, and gain traction, only to be forced to change their name because it infringed on someone else’s mark.
You don’t have to do the clearance yourself. But steering your clients toward IP counsel before launch is one of the simplest ways to protect their runway and reputation.
4. Frame IP as part of valuation, not as a legal expense
You’re often the first to hear a founder say, “We’ll deal with IP later.”
But “later” is usually when they’re fundraising. But that’s precisely when investors start asking tough questions about who owns the IP. If the answer isn’t a confident yes, that’s a red flag that can slow or even kill a deal.
By encouraging your clients to consider IP now, you’re not only protecting them but also empowering them. You’re setting them up for stronger valuation conversations down the road.
5. Collaboration makes everyone look good
Looping in an IP lawyer early doesn’t complicate things. An IP lawyer can actually complement the work you do for your startup clients.
IP lawyers are here to redo incorporation documents or second-guess deal structures. Our role is to ensure the company you’re helping build truly owns the innovation it’s built on.
When a startup gets into trouble, no one wins. But when corporate lawyers and IP lawyers collaborate early, founders gain peace of mind, investors see solid due diligence, and both practices earn trusted, long-term clients.
Final Thought
Startups move fast. Mistakes are inevitable. But IP mistakes are preventable with clear documentation, good processes, and the right expertise at the right time.
If you ever find yourself thinking, “My client might have something worth protecting,” that’s the perfect time to bring in an IP lawyer.
Because the best IP disputes are the ones your clients never have to fight.
