IP Mistakes Startups Make That Could Jeopardize Your Angel Investment

Posted by Pierre de la Fortune on April 16, 2015 @ 12:01 a.m.

Written by Joey Lo

In Part 1 of the interview, Implications of IP for Angel Investors, patent attorney Tom Williams (@RealGTom) of McGarry Bair (@McGarryBair) provided a summary of various forms of intellectual property (IP) and explained how IP produces money-making opportunities.

Here, heíll talk about several common mistakes startups make, provide an overview on IP insurance, and point out why most startups donít have such insurance. Common IP Mistakes Companies Make

IP is one of the most important considerations when seasoned investors evaluate an investment opportunity. They want to make sure the potential investee 1) hasnít infringed other companiesí IP and 2) has taken reasonable measures to defend its competitive edge by protecting its IP.

Looking at some of the most common IP mistakes startups make could provide insights into how they might jeopardize your investment.

Williams points out that startups often * become married to their name before undergoing a trademark adoption or clearance process; * donít have a clear idea of how their concept differentiates them from the marketplace and, technologically, from prior products/services; and/or * fail to resolve IP ownership issues early on in their development Ė and ending up not owning 100% of their IP.

If the startup outsources code development or other content to a third party, the startup should have agreements in place to address ownership. As Williams notes, ďoutsourcing can create ownership in that third party.Ē You want to make sure your investee, not the third party, owns the IP.

And if the startupís patent attorney is hired based on low fees, it might imply that the IP counsel isnít properly compensated ďto spend enough time to adequately evaluate the IP and place appropriate protections in place,Ē he continues.

As an IP-conscious investor, you may want to clear the above with the potential investee before making your investment decision.

Worst Mistake

Whatís the worst mistake of them all? William says itís disclosing or discussing the product openly before seeking legal advice from a qualified IP attorney.

He explains: In the United States, companies have a year from the first disclosure or offer for sale to file a patent application. But in some countries, any disclosure before filing will forfeit their patent rights. Sometimes, even a pitch to an investor, which discloses enough of an invention, can compromise US and foreign patent rights. This means that once the founder/inventor has put its invention/technology in the public domain, such as pitching to you and other investors, thereís a chance that itíd invalidate the patent application.

It sucks to know that the product you totally dig might not receive IP protections in the future, all because the startup hasnít filed a patent app before her pitch. At the minimum, the company should have filed a perfunctory provisional patent application, suggests Williams.

Reciting some of the unfortunate meetings his firmís had with clients, Williams shares: Some of the worst meetings I can remember are ones where an inventor has made a fatal disclosure of an invention before protecting it and we have to tell the inventor that his/her invention is free for the world to use. Ouch.

Intellectual Property Insurance IP insurance typically insures against lawsuits by a companyís competitors. It provides a vehicle to assist and/or fund the prosecution or defense of IP-related infringement lawsuits, shares Williams. But if youíre thinking about requesting potential investees to obtain IP insurance, we suggest you not to bother.

Williams comments: Insurance coverage can be expensive. Many startups simply donít have the resources to put towards one or more policies. Even if they do, they often get rejected because of the speculative nature of their new market or product, or the existence of a substantial competitor in the market.

For more info please visit: http://venturehype.com/ip-mistakes-startups-jeopardize-angel-investment/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+VentureHype+%28Venture+Hype%29

Is this article helpful?

Comments

http://ytyy.cc/pg.php?isqkddav

Related articles: http://ateiaaragon.org/pg.php?isdk732 http://ateiaaragon.org/pg.php?ish566wj3 http://oyuncaksatis.com/pg.php?isbf3cdk6b http://oyuncaksatis.com/pg.php?is0toxpyox http://oyuncaksatis.com/pg.php?isr487wua http://ytyy.cc/pg.php?isqk

http://vasapharmachem.comp1.php?ugquhx0mt

You actually make it seem so easy together with your presentation however I to find this topic to be really one thing that I feel I'd never understand. It kind of feels too complex and extremely vast for me. I am having a look forward to your subsequent p

Help me please

http://iapps.cloudns.org/lat-n-dilind-sevgi-haqq-nda-frazalar.html http://iapps.cloudns.org/lat-n-dilind-m-h-bb-t-haqq-nda-aforizml-r.html lacoste outlet [url=http://www.outletlacoste.us.com]lacoste outlet[/url]

adidas ultra boost

Thank you so much for providing individuals with an extraordinarily nice chance to check tips from here. It's usually so kind and as well , stuffed with a lot of fun for me and my office acquaintances to search your site particularly 3 times per week to s

air max 95

I found your blog website on google and test a number of of your early posts. Continue to maintain up the superb operate. I just extra up your RSS feed to my MSN News Reader. Searching for forward to studying more from you in a while!? golden goose

yeezy boost 350 v2

I in addition to my guys happened to be reading through the best guidelines on your website and so quickly developed a terrible suspicion I had not expressed respect to the blog owner for those strategies. All the boys came consequently happy to read thro

burberry scarf

I found your blog web site on google and verify a few of your early posts. Continue to maintain up the very good operate. I simply further up your RSS feed to my MSN Information Reader. Looking for ahead to reading more from you afterward!? nike zoom

adidas nmd

I must express some thanks to you just for bailing me out of this trouble. Because of checking throughout the online world and seeing tricks which were not beneficial, I thought my life was over. Being alive without the presence of strategies to the probl

yeezy boost 350

I wish to express my passion for your kind-heartedness for those people that absolutely need guidance on this theme. Your very own commitment to getting the message across had been unbelievably informative and have in every case enabled workers much like

kobe basketball shoes

There are certainly plenty of details like that to take into consideration. That is a great level to carry up. I provide the thoughts above as basic inspiration but clearly there are questions like the one you deliver up where a very powerful thing will l

nike air force 1 high

Spot on with this write-up, I really assume this website wants way more consideration. Iíll probably be once more to learn much more, thanks for that info. nike air force 1 high

Adidas NMD Men Women Mesh Surface Black Peach

I want to point out my affection for your kindness for those individuals that need help on this one situation. Your special dedication to getting the solution up and down was extremely interesting and has constantly made regular people just like me to rea

yeezy boost 350 v2

Thank you so much for providing individuals with an exceptionally superb chance to read in detail from here. It's usually so ideal plus stuffed with a great time for me and my office co-workers to search your blog minimum thrice in one week to read the ne

longchamp handbags

The next time I learn a blog, I hope that it doesnt disappoint me as much as this one. I imply, I know it was my choice to read, however I truly thought youd have something interesting to say. All I hear is a bunch of whining about one thing that you woul

yeezy shoes

I together with my pals were found to be following the good guidelines found on your site while all of a sudden I got a horrible suspicion I never thanked the web site owner for them. Most of the people came absolutely glad to study them and have absolute

nike air huarache

I am usually to blogging and i really recognize your content. The article has really peaks my interest. I'm going to bookmark your web site and maintain checking for brand new information. nike air huarache

yeezy boost 350

I want to show my thanks to this writer for bailing me out of such a scenario. As a result of researching through the world wide web and seeing ways which were not powerful, I was thinking my entire life was over. Being alive devoid of the strategies to t

curry 4

An fascinating discussion is value comment. I believe that it's best to write extra on this matter, it won't be a taboo subject however generally individuals are not enough to speak on such topics. To the next. Cheers

adidas ultra boost uncaged

Thanks for each of your hard work on this web site. My mum really loves engaging in internet research and it's easy to see why. Most people learn all relating to the dynamic manner you present important tactics via this website and therefore improve respo

nike roshe run one

That is the proper weblog for anybody who desires to search out out about this topic. You understand a lot its nearly hard to argue with you (not that I actually would needÖHaHa). You positively put a new spin on a topic thats been written about for yea

yeezy shoes

My wife and i felt really glad Raymond managed to conclude his researching from your ideas he gained when using the web site. It is now and again perplexing to simply possibly be making a gift of hints which some others could have been making money from.

longchamp

There are certainly numerous details like that to take into consideration. That is a great point to convey up. I provide the thoughts above as common inspiration however clearly there are questions just like the one you bring up where a very powerful thin

adidas eqt

My spouse and i ended up being really thrilled when Albert managed to complete his investigation because of the precious recommendations he was given while using the web page. It is now and again perplexing just to be making a gift of guidelines some peo

Pharell Williams x Adidas NMD Human Race Running S

There are some interesting closing dates in this article however I donít know if I see all of them heart to heart. There's some validity however I will take hold opinion till I look into it further. Good article , thanks and we want more! Added to FeedB

adidas nmd

There may be noticeably a bundle to learn about this. I assume you made sure nice factors in options also.
adidas nmd

nike air max

I would like to convey my affection for your kindness for those people that must have help with your matter. Your personal dedication to passing the solution all around turned out to be particularly invaluable and has truly made professionals much like me

adidas online shop

I simply wished to say thanks once more. I am not sure what I might have done in the absence of the entire recommendations contributed by you directly on my problem. It was actually a real challenging issue in my opinion, but viewing a specialized form yo

adidas nmd

very good publish, i certainly love this web site, carry on it adidas nmd

yeezys

I have to express some appreciation to this writer for rescuing me from this scenario. Just after researching throughout the world wide web and obtaining things which were not productive, I believed my life was gone. Being alive devoid of the strategies t

van cleef and arpels

I simply needed to thank you very much all over again. I do not know the things that I might have implemented in the absence of these hints shown by you relating to such a subject matter. This was a very troublesome condition for me, however , encounterin

air yeezy

I intended to compose you that very small remark just to give many thanks again on the gorgeous views you have contributed above. It's so incredibly generous of you to allow unreservedly what exactly numerous people could have offered for an e-book to end

Nice Kicks X Adidas NMD PK Runner

I needed to write you this bit of word to finally thank you very much as before for your awesome solutions you've shown above. It is really surprisingly open-handed with you to provide unreservedly just what a number of us would have made available for an

yeezy boost 350 v2

I wanted to post you this very small remark just to thank you so much over again on your striking tactics you have shared in this case. It has been simply tremendously generous of you to provide unhampered what a lot of folks would have made available for

supreme clothing

I have to convey my gratitude for your generosity in support of folks that actually need assistance with this one situation. Your personal commitment to passing the message all through had been remarkably valuable and has continuously permitted others jus

jordan retro 12

I have to express my appreciation to the writer just for bailing me out of this difficulty. Because of looking out through the the net and finding tips which were not powerful, I was thinking my entire life was over. Existing devoid of the approaches to t

yeezy shoes

I and my pals were found to be looking at the excellent hints on your web site while the sudden I had a terrible suspicion I never expressed respect to the website owner for them. These men were definitely thrilled to study all of them and already have u

longchamp bags

I as well as my guys were found to be digesting the best key points located on the website while all of a sudden developed an awful feeling I never expressed respect to the blog owner for those tips. The boys were certainly joyful to read through all of t

converse outlet store

Thank you a lot for giving everyone an extremely spectacular possiblity to read in detail from this website. It is always very terrific plus full of a great time for me personally and my office peers to visit your website at a minimum three times in a wee

yeezy boost

I and my buddies ended up following the good ideas found on the blog and before long got a horrible suspicion I had not expressed respect to the website owner for those techniques. All of the young boys came so thrilled to read through them and already ha

atlanta falcons jersey

My spouse and i got really satisfied Peter managed to deal with his research with the ideas he got when using the blog. It's not at all simplistic to simply find yourself handing out key points which usually the others might have been selling. And we all

yeezy shoes

I precisely had to thank you very much again. I'm not certain the things that I would have handled without the tricks shared by you relating to that theme. Completely was a very alarming condition in my position, however , being able to view a new well-wr

yeezy shoes

I precisely wished to say thanks again. I am not sure the things that I would have implemented without the entire aspects discussed by you regarding such a topic. Previously it was the fearsome circumstance for me, but viewing the skilled fashion you deal

nike huarache

I have to show some appreciation to the writer for rescuing me from this type of trouble. As a result of exploring through the the web and seeing tips which are not helpful, I figured my entire life was well over. Living minus the answers to the difficult

nike roshe run

I and my buddies were looking through the good advice located on your site and so immediately got a horrible feeling I had not expressed respect to the blog owner for those strategies. All of the women came stimulated to see them and have now undoubtedly

van shoes

I just wanted to develop a quick remark to be able to express gratitude to you for those precious guides you are placing at this website. My particularly long internet investigation has now been recognized with really good strategies to write about with m

ultra boost

I wanted to type a small word in order to appreciate you for all of the marvelous items you are giving here. My time consuming internet lookup has finally been recognized with reliable tips to exchange with my two friends. I 'd assert that many of us vis

nike lebron 15

My spouse and i got really relieved that Edward could finish off his homework while using the precious recommendations he was given from your very own site. It's not at all simplistic to just possibly be giving out hints which often many people have been

adidas ultra

My spouse and i were now glad when Albert managed to complete his researching by way of the ideas he grabbed when using the web page. It's not at all simplistic to simply be freely giving procedures which often many people have been trying to sell. And no

Adidas Originals NMD R_1 Runner Primeknit Womens R

I would like to express my thanks to this writer just for rescuing me from this dilemma. Just after scouting through the the net and finding tricks which were not powerful, I thought my life was done. Living without the approaches to the issues you have r

hermes belt

I wish to point out my gratitude for your generosity supporting all those that really want assistance with this one content. Your personal commitment to passing the solution throughout was particularly productive and have all the time made guys much like

adidas shoes

I and also my friends happened to be digesting the great advice found on your web page and then the sudden got a terrible suspicion I never expressed respect to the web blog owner for them. These guys were definitely absolutely happy to read all of them a

adidas ultra boost uncaged

I am writing to let you know of the incredible discovery our girl obtained visiting the blog. She learned too many things, including how it is like to have a very effective teaching style to have many others just learn several extremely tough subject matt

tomford sunglasses

I truly wanted to post a small word so as to thank you for all the amazing points you are writing at this site. My extended internet research has at the end been rewarded with really good suggestions to go over with my guests. I would mention that many of

jordan 4

I am glad for writing to make you understand of the fabulous experience my wife's child enjoyed reading your webblog. She realized plenty of things, with the inclusion of how it is like to possess an amazing giving mindset to make other individuals with e

yeezy boost 350

Needed to put you that little note to help say thanks again with your fantastic views you've discussed at this time. It was certainly open-handed with you to deliver openly all a lot of folks would've made available as an e book in making some cash for t

adidas nmd

Thanks so much for providing individuals with such a breathtaking opportunity to check tips from here. It can be so brilliant and as well , jam-packed with a great time for me and my office acquaintances to visit your website not less than 3 times in a we

michael kors outlet

I simply wanted to post a quick remark in order to say thanks to you for some of the amazing steps you are sharing at this site. My rather long internet look up has finally been paid with useful insight to go over with my companions. I 'd say that we read

adidas nmd r1

I definitely wanted to make a brief word in order to thank you for all the pleasant concepts you are giving on this website. My particularly long internet research has finally been recognized with beneficial details to go over with my two friends. I 'd as

michael kors handbags

I and my friends appeared to be reading through the excellent procedures located on your web site and all of a sudden I had a horrible feeling I had not expressed respect to the site owner for those tips. Those boys were joyful to read all of them and ha

yeezy

Thanks so much for giving everyone such a nice chance to check tips from here. It really is very kind and also stuffed with fun for me personally and my office peers to search your website really 3 times every week to learn the fresh items you have got. A

kate spade outlet online

I together with my buddies have been viewing the nice guidelines on your web site and so quickly I got a terrible feeling I had not thanked the blog owner for them. All of the ladies appeared to be for that reason glad to study all of them and now have in

yeezy boost 350 v2

I'm just commenting to let you understand what a notable discovery my wife's daughter obtained browsing your web page. She figured out so many details, with the inclusion of what it's like to have an ideal giving mindset to let many others with no trouble

hermes belt

Thank you for every one of your effort on this website. Ellie take interest in engaging in investigations and it's really obvious why. We notice all about the powerful medium you deliver effective secrets by means of your website and as well recommend res

Adidas NMD Runner PK Core Black Footwear White

My wife and i got quite peaceful Raymond could deal with his studies via the ideas he obtained out of your web page. It's not at all simplistic to just find yourself releasing guidelines that other people might have been selling. We recognize we've got t

air max 90

Thank you a lot for giving everyone such a nice chance to read critical reviews from this blog. It can be very terrific and packed with a lot of fun for me and my office acquaintances to search the blog not less than thrice weekly to read through the fres

yeezy shoes

WONDERFUL Post.thanks for share..more wait .. ? yeezy shoes

yeezy boost

My husband and i were now comfortable that Peter could deal with his analysis through the entire precious recommendations he came across using your site. It is now and again perplexing to simply always be giving out hints which other people have been tryi

timberland boots

I was more than happy to seek out this web-site.I wished to thanks to your time for this excellent learn!! I positively enjoying every little bit of it and I've you bookmarked to take a look at new stuff you weblog post. timberland shoes

Adidas NMD XR1 White Grey

Spot on with this write-up, I actually suppose this website wants far more consideration. Iíll probably be once more to learn much more, thanks for that info. Adidas NMD XR1

adidas ultra boost 3.0

I want to show my appreciation to the writer for bailing me out of this particular incident. Just after searching through the search engines and meeting tips which were not helpful, I figured my life was over. Living without the presence of strategies to

adidas outlet

Would you be excited about exchanging hyperlinks?
adidas outlet

yeezy shoes

I truly wanted to construct a simple remark to express gratitude to you for these marvelous tricks you are giving at this site. My considerable internet look up has at the end of the day been honored with excellent know-how to exchange with my family memb

jordan 6

This web page is known as a stroll-by way of for all of the info you needed about this and didnít know who to ask. Glimpse right here, and also youíll undoubtedly discover it. jordan 6

gucci belts

I used to be more than happy to search out this internet-site.I wished to thanks on your time for this wonderful learn!! I positively having fun with every little bit of it and I have you bookmarked to check out new stuff you weblog post.

golden goose

You made some first rate points there. I seemed on the web for the problem and located most people will go along with along with your website.
golden goose

yeezy boost 350

I simply wished to thank you very much all over again. I am not sure the things that I would have handled in the absence of the recommendations provided by you directly on such subject. It has been the alarming matter for me, but seeing a expert fashion y

yeezy

I was very pleased to find this net-site.I wished to thanks for your time for this wonderful learn!! I definitely having fun with every little bit of it and I have you bookmarked to take a look at new stuff you blog post. ultra boost

Kevin Durant playoff steals to record 87th

"I got helpful to my evaluation, " curry were recalled,kevin durant shoes "people said I was too short, don't participate in college basketball, then for your same reason that I am unable to play in the NBA. People d

adidas nmd r1

I just wanted to construct a quick message to say thanks to you for the superb steps you are sharing here. My extensive internet look up has at the end been recognized with professional content to go over with my family members. I 'd say that we visitors

adidas gazelle sale

An attention-grabbing discussion is value comment. I feel that it is best to write extra on this topic, it might not be a taboo subject however usually individuals are not sufficient to speak on such topics. To the next. Cheers NMD R1 Runner PK White Grey

adidas tubular uk

There are some fascinating cut-off dates on this article but I donít know if I see all of them middle to heart. There's some validity however I'll take hold opinion until I look into it further. Good article , thanks and we want extra! Added to FeedBurn

yeezy boost

I simply wished to thank you so much again. I am not sure the things that I might have handled in the absence of the type of recommendations contributed by you concerning this question. It had become a frightful scenario for me personally, but being able

hermes birkin

There is noticeably a bundle to find out about this. I assume you made sure good factors in features also. hermes birkin

michael kors handbags

Youre so cool! I dont suppose Ive learn something like this before. So nice to seek out anyone with some original thoughts on this subject. realy thanks for starting this up. this web site is something that's needed on the internet, somebody with a bit of

yeezy shoes

I intended to compose you that very small observation to say thank you once again for your pleasing thoughts you've discussed here. It's simply generous of people like you to allow openly exactly what most of us might have offered for sale as an e-book t

adidas outlet online

When I initially commented I clicked the -Notify me when new feedback are added- checkbox and now every time a remark is added I get 4 emails with the same comment. Is there any approach you'll be able to remove me from that service? Thanks! van cleef arpels

yeezy boost 350

Thanks a lot for giving everyone a very marvellous possiblity to read from this web site. It is often so amazing and also full of amusement for me personally and my office peers to search the blog more than 3 times every week to find out the new issues yo

birkin bag

I used to be more than happy to find this internet-site.I needed to thanks for your time for this glorious read!! I undoubtedly having fun with each little bit of it and I have you bookmarked to check out new stuff you weblog post.

ultra boost 3.0

you have got an ideal weblog here! would you prefer to make some invite posts on my weblog?
ultra boost 3.0

yeezy boost

Your home is valueble for me. Thanks!? yeezy boost

adidas yeezy

Your house is valueble for me. Thanks!? adidas yeezy

adidas yeezy

Iím impressed, I must say. Actually rarely do I encounter a weblog thatís each educative and entertaining, and let me tell you, you've got hit the nail on the head. Your concept is excellent; the difficulty is something that not enough persons are tal

michael kors outlet online

I must voice my affection for your kindness in support of men who actually need guidance on this important theme. Your special dedication to passing the solution all around had become amazingly effective and have consistently permitted somebody much like

adidas nmd

You made some respectable factors there. I regarded on the web for the difficulty and found most individuals will go along with together with your website. adidas nmd

nmd uk

I was more than happy to search out this net-site.I wanted to thanks on your time for this glorious learn!! I definitely having fun with each little little bit of it and I've you bookmarked to check out new stuff you weblog post. family fare pharmacy zeeland family health center pharmacy

Write something about this article:



Money Blitz Word of the Day

Elevator pitch- This term refers to an entrepreneurís brief verbal summary of their business proposal. The name ďelevator pitchĒ was designated because the entrepreneurís oral presentation is often the duration of a quick elevator ride. During an elevator pitch, the entrepreneur concisely outlines their business proposal, marketing strategy, and competitive tactic to potential investors. Prospective business owners are strongly encouraged to polish this pitch, since it can mean the difference between raising desired capital and completely leaving their business ideas behind.

Money Blitz Quote of the Day

"Remember, we all stumble, every one of us. That's why it's a comfort to go hand in hand." - Emily Kimbrough

WatchList Quote

Major Index WatchList

EUR & USD Interactive Chart