The 3 Most Common IP Mistakes That Sink Tech Startups (Plus One Bonus Mistake You Don’t Want to Make)

Startups live and die by their ideas.

But ideas alone don’t build companies. Protected ideas do.

As an IP lawyer who works with tech founders like you, I’ve seen brilliant startups lose deals, get sued, or even go under. Not because the product failed — but because their IP strategy did.

Here are the most common IP mistakes I see early-stage companies make and how smart founders like you can stay out of trouble.

Mistake #1: Weak Contracts Leave You Without Ownership of Your IP

Don’t assume you automatically own what your team creates.

If you want to own your IP, you need clear, specific agreements in place — not just with freelancers and contractors, but with employees too.

Where Founders Go Wrong:

→ Grabbing off-the-shelf employment agreements that don’t assign IP properly.  

→ Partnering with a dev shop or collaborator without locking down IP ownership.  

→ Relying on vague “work for hire” language (spoiler: it’s often not enough). 

Smart Founder Move:

Work with a lawyer (yes, this is where I come in) to draft employment agreements, contractor agreements, and joint venture contracts that clearly assign IP to your company.

It’s boring paperwork…until it becomes the most important paperwork you’ve ever signed.

Mistake #2: Choosing a Brand You Can’t Actually Own

Your brand is your reputation. Your name is how the market finds and trusts you.

But I see too many startups pick names based on domain availability instead of legal protectability. And that’s how founders end up with names they can’t protect. Or worse, names that get them sued.

Where Founders Go Wrong:

→ Choosing descriptive or generic names that can’t be trademarked.  

→ Skipping a trademark search before investing in branding.  

→ Thinking that owning a domain name = owning trademark rights (it doesn’t). 

Smart Founder Move:

Work with an IP lawyer to run a proper trademark clearance search before you fall in love with a name.

Google searches aren’t enough.

Choose a name that’s distinctive, protectable, and legally strong, and have your IP lawyer file early, before someone else does.

Mistake #3: Leaking Your Secret Sauce Without Realizing It

Startups win by knowing something the rest of the market doesn’t.

Your tech. Your process. Your customer data. Your roadmap.

But here’s the thing — you have to talk about your idea to build the business: to investors, to vendors, to potential partners, to customers.

Pitch decks. Product demos. Blog posts. Website copy.

And that’s exactly where founders get sloppy.

Where Founders Go Wrong:

→ Posting product features before filing patents.  

→ Explaining algorithms in investor decks without NDAs.  

→ Publishing roadmaps or technical details online.  

→ Treating the company website like marketing fluff instead of a legal evidence. 

Every one of those mistakes can destroy trade secret protection or permanently make you lose patent rights.

Once it’s public, it’s gone. There’s no un-ringing that bell.

Smart Founder Move:

Protect first. Talk later.

Use NDAs before investor meetings or JV conversations.

File provisional patents before public disclosures.

And treat your website like evidence — because someday, someone who wants to sue you will read every word.

Bonus Mistake #4: Thinking Your IP Strategy is One-and-Done

The IP decisions you make at launch aren’t set-it-and-forget-it.

As your product evolves, your team grows, or you expand into new markets, your IP strategy needs to evolve too.

Where Founders Go Wrong:

→ Forgetting to update agreements as they hire internationally or bring on advisors.  

→ Expanding into new markets without filing for international IP protection 

→ Treating IP like a legal checkbox instead of a core part of business strategy. 

Smart Founder Move:

Make IP part of your regular business planning.

Your product roadmap should have an IP roadmap right next to it.

Schedule check-ins with your IP lawyer as the business grows.

Final Word

Startups win on innovation, speed, and execution.

But protecting what you build is just as important as building it.

IP mistakes don’t kill your startup today. They kill you later… when you’re successful.

Future You will either be really glad you read this.

Or really wish you had.

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