Startups live and die by their ideas.
But ideas alone don’t build companies. Protected ideas do.
If you work with early-stage tech companies — as a lawyer, advisor, investor, or consultant — you’ve probably seen how fast things move.
Unfortunately, I’ve seen how fast things fall apart too.
As an IP lawyer, I’ve watched promising startups lose deals, get stuck in lawsuits, or blow their chance at funding. Not because their product failed but because their IP strategy failed.
And the warning signs were there all along.
Here are the three IP mistakes that take down startups and how you can help your clients avoid them (with the right legal help).
Mistake #1: They Don’t Actually Own Their Own IP
Startups think they own what their team creates.
This shows up all the time with:
→ Developers and designers hired without IP assignment agreements
→ Off-the-shelf employment contracts missing critical IP language
→ Collaborations or joint ventures where nobody clarified who owns what
Why It Matters: Ownership problems don’t surface when everyone’s getting along. They show up in due diligence, M&A deals, or lawsuits. And this often surfaces when it’s too late to fix.
Smart Move: Make sure your clients have airtight contracts — employment agreements, contractor agreements, JV agreements — that actually protect ownership of what’s being created. Work with an IP lawyer to draft or review these.
Mistake #2: They Pick a Brand They Can’t Own (Or Worse, Someone Else Already Owns)
Startups love clever names. But clever doesn’t mean protectable.
And domain name availability is not the same as trademark clearance.
What happens when they skip this step?
→ Cease and desist letters
→ Forced rebrands at the worst possible time
→ Loss of brand equity they’ve already paid for
Smart Move: Encourage your clients to work with an IP lawyer before they fall in love with a name. A proper trademark search costs far less than a rebrand.
Mistake #3: They Give Away Their Secret Sauce Without Realizing It
Startups have to talk about their ideas — to investors, partners, manufacturers, media.
But every pitch deck, demo, or product roadmap shared without protection can blow their chance to patent or maintain trade secret protection.
What To Watch For:
→ Product details on websites or blog posts
→ Algorithms in pitch decks without an NDA
→ Public demos before filing for patent protection
Smart Move: Tell your clients: Protect first. Talk later.
This is especially important for startups planning to file patents or raise outside capital.
Final Mistake: Treating IP Like “Just A Legal Issue”
IP is not just a legal problem. Strong IP rights can actually be a business asset.
Advisors who care about their client’s long-term success encourage early IP strategy.
Because here’s the truth:
→ Investors will ask about it.
→ Acquirers will demand it.
→ Competitors will exploit the gaps.
The Best Advisors Know What They Don’t Know
You don’t need to be an IP expert.
You just need to know when to bring one in.
Founders trust you to spot the landmines they don’t see yet.
Helping them hire an IP lawyer early isn’t just about protecting their ideas. It’s about protecting their future funding, growth, and exit opportunities.
It’s also about protecting your reputation as the advisor who kept them out of trouble.
That’s the kind of advice founders never forget.
