Intellectual Property Strategies for Entrepreneurs

One clause cost a Stanford founder billions. In 2013, Reggie Brown’s Stanford roommates froze him out of Snapchat, the app built on his original idea for disappearing photos. He eventually forced a $157.5 million settlement, but missed out on billions as Snapchat’s valuation skyrocketed. What was the clause that decided it all? The IP clause. Here's a 2-tier strategy for protecting IP in deals where your innovation is on the line: #Tier 1: Define what you’re giving away (and what you’re not) Most IP clauses read like shopping lists where everything gets thrown in the cart. Example: "Client shall exclusively own all right, title and interest in and to all Deliverables, including all Intellectual Property Rights therein." Risk: That single sentence can include your pre-existing IP, your proprietary methodologies, your trade secrets, and even ideas you develop after the contract ends. The Snapchat parallel: Brown claimed original ownership of the core Snapchat concept, worth millions at the company's $70 million valuation. The dispute arose because there were no clear agreements about who owned what when the idea first emerged. Better approach - The IP Inventory: Before you sign anything, create four buckets: ▪️Background IP: What you owned before this relationship started ▪️Foreground IP: What you'll create specifically for this project ▪️Derivative IP: Improvements to your existing IP using their input ▪️Joint IP: True collaborative creations requiring both parties Protective language you could use: "Company retains all rights to Background IP. Client receives exclusive license to Foreground IP developed solely for this project. Derivative IP improvements revert to Company with Client receiving perpetual license for their use case." #Tier 2: Negotiate value, not just rights The smartest IP clauses acknowledge that valuable innovations deserve ongoing compensation, not just upfront payments. Traditional model: You assign IP for a flat fee. They commercialize it for billions. You get nothing more. Value-sharing model: IP assignment includes revenue participation, milestone payments, or success fees tied to commercialization. A good framework to use: ▪️For low-value implementations: Flat assignment with reversion rights ▪️For medium-value innovations: Assignment with 2-5% revenue sharing capped at 3x development costs ▪️For breakthrough innovations: Joint venture structure or equity participation Industry-specific considerations: ▪️Software: Focus on derivative work definitions and license-back provisions ▪️Hardware: Emphasize manufacturing and improvement rights ▪️Services: Protect methodology IP while allowing client-specific customization ▪️Content: Separate creation rights from distribution rights Don’t let “standard” IP clauses sign away your future. Contracts don’t just govern today’s deliverables, they decide who owns tomorrow’s upside. #IntellectualProperty #ContractManagement #InnovationProtection

A few people asked what it actually looks like to file patent applications the smart way. Here’s the framework I give startup teams who want to protect innovation without wasting capital: 1. Don’t file just because you “can.” Too many patent applications get filed on features that aren’t core to the product, the market, or the long-term strategy. Just because it’s technically new doesn’t mean it’s worth protecting. 2. Tie every filing to a business objective. What are you trying to accomplish? Protect revenue? Block a competitor? Support a valuation narrative? There needs to be a clear business case for every dollar spent on IP. 3. Prioritize enforceability over imagination. Broad, abstract patents might sound exciting, but they often fail when tested. Focus on what you can realistically enforce. If your claim can’t stand up in court or deter a competitor, it’s not helping you. 4. Treat foreign filings like investments — not checkboxes. Filing internationally gets expensive fast. File where you have customers, competitors, or partners. Not where “you might want protection someday.” 5. Reassess regularly. As your product evolves, your patent strategy should too. What mattered at seed stage may not matter at Series B. Trim the fat. Redirect capital where it matters. The bottom line: a strong patent strategy isn’t about quantity — it’s about alignment. The best portfolios are lean, targeted, and tied directly to how the company competes and grows. If you’re not sure whether your IP is doing that, it’s worth a second look.

Your startup's most valuable asset isn't your office space, your tech stack, or even your customer list. It's your intellectual property. But most founders miss a few critical things about IP until it's too late: 1. Patents aren't just for tech giants  They can boost your valuation in early funding rounds. Thinking global? File internationally from the start. Many VCs won’t even look at you without solid IP protection. 2. You don’t need a patent for everything Most products use a mix: Patents, trademarks, copyright, and trade secrets Software? Protect code with copyright, functions with patents, name with trademarks  Smart founders protect only what matters — and stretch their legal budget further. 3. If you don’t own your IP, your startup is at risk Biggest mistake? Forgetting to get written IP assignments from co-founders. Get signatures before you incorporate. Employees and contractors need IP agreements too. 4. Yes, you need to budget for this. Filing, maintaining, and enforcing IP rights costs money. But it’s cheaper than losing your IP to a copycat (or co-founder lawsuit). Prioritize your core innovations. Protect what makes you different. 5. Start with an IP audit  What’s protectable? Logos, brand names, techniques, code, products. Check for conflicts before you go to market. Research your competitors — don’t fly blind. Your business can’t grow on a cracked foundation. Your ideas are the heart of your company. Protect them like it. What's your biggest IP concern right now? Drop it below and let's problem-solve together. P.S. Don't wait for a cease and desist letter to start thinking about IP. By then, it’s probably too late.

Your IP Strategy May Be the Key to Your Startup’s Best Exit In 2025, it’s common for founders to build startups with an eye on a future sale. Yet, many don’t realize how crucial a strong IP strategy can be in achieving an easy and lucrative exit. Here are some tips to ensure your IP assets boost your payout when the time comes: 1. Keep Your Portfolio Clean and Centralized Make sure every patent, trademark, and piece of IP is properly assigned and belongs to a single entity. A scattered IP portfolio, or one loaded with missing assignments and declarations, raises red flags for potential buyers and can diminish the perceived value of your startup. 2. Ensure Your Brand’s Goodwill Is Transferable If you have trademarks, confirm that they’re all correctly assigned and not bound up in personal relationships. A great example is PepsiCo’s acquisition of poppi: The poppi brand stood on its own, making it easy to alienate and transfer without messy entanglements, ultimately leading to a multimillion-dollar buyout. 3. Recognize That Buyers Often Only Want the IP While you may value your sales channels, marketing strategies, or even your team, a buyer might view everything except your IP as a liability. If the bulk of your value lies in operations that aren’t easily transferable, it could lower your exit value or leave you stuck running the business until you’ve disentangled everything. 4. Don’t Neglect Trade Secrets If you have special formulas, processes, or insights, protect them rigorously and make sure they’re recognized as trade secrets. This way, they’re transferred properly and confidentially during the sale. Unprotected know-how can lose its edge if it’s exposed, or worse, it may not be credited as an asset in the deal. Takeaway An exit strategy is only as good as the assets you’re able to sell or license. By solidifying your IP and protecting your trade secrets, you’ll give potential buyers a compelling reason to pay top dollar. What do you think? How have you seen IP influence successful startup exits? Let’s continue the conversation on how to make IP your best strategic move. #startup #dealmaking #exitstrategy #ip #technology #innovation

If your tech was created by a freelancer, without a formal contract, you might not even own it. Here’s what many startups don’t realise: IP ownership is not always assigned automatically, even if you paid somebody to do the work. Freelancers, agencies, even co-founders, without a signed IP assignment clauses, you may not even legally own your own code, content or designs. This is a deal-breaker during fundraising or acquisition. I feel surprised when founders believe that payment means ownership. You don’t even know but you are committing a huge mistake. Don't gamble with this. Why Intellectual Property Matters for Startups 1. Startups exist in competitive markets, and established players can easily copy your ideas. IP rights means that your innovation is protected from being copied.   2. Demonstrating that your IP assets are clearly defined illustrates originality and competitive advantage, and improves your startup’s total valuation when seeking funding. 3. Established trademarks and copyrights will help distinguish your brand in a crowded marketplace. 4. You can also license your IP or develop joint ventures for increasing revenue. 5. When your IP is registered you have control over where to scale your business and what regions to safely expand to without risk of infringement. Quick IP Essentials: 1. Copyright protects original works like software, designs, and content. 2. Patents protect inventions and technical innovations (20-year protection). 3. Trademarks protect your brand name and logo (renewable every 10 years). 4. Trade Secrets cover confidential business information that gives you a leg up. In 2019, Ola’s parent company won a legal fight against “Ola Tours,” which had a deceptively similar name, highlighting the importance of securing your trademarks to protect against brand dilution and consumer confusion. Government Support for Startups The Startup India Action Plan: Fast-track patent applications, 80% fee rebate for filings, free legal or technical assistance. Scheme for Facilitating Startups Intellectual Property Protection (SIPP): Financial incentives and simpler procedures around IP protections. IPR Awareness Campaigns: Run by CIPAM to inform startups of the importance of IP protection. Protecting your IP is not a DIY job. Here’s why professional help is essential: 1. Identify the right IP protection type, not every idea is patentable or able to be trademarked. 2. Prepare and prosecute patent applications using technical and legal knowledge. 3. Determine whether and when to file, as IP law is territorial in nature and time sensitive. 4. Develop and maintain a comprehensive IP strategy that includes Inception, Litigation, Licensing, and Monetization. 5. Perform patent landscape studies to avoid unnecessary R&D, and maximise publicly available knowledge. Your IP is an important asset as it can make or break the future of your startup. Protect it wisely and strategically. Ahmed & Co #Startups

Startups don’t fail because of bad ideas. They fail because of missed opportunities to protect and scale those ideas. If you're building a startup and don't have an Intellectual Property (IP) strategy, here's what you might be risking: ❌ Your tech gets copied before you even hit market ❌ Investors hesitate because your innovation isn’t protected ❌ You lose competitive advantage in your own space Now imagine this instead👇 ✅ You file a patent early → Your invention is protected ✅ You trademark your brand → Your identity is secure ✅ You build IP assets → Your company valuation goes up In 2025, IP isn't optional — it's your startup's shield and sword. The earlier you align your innovation with an IP strategy, the stronger your foundation for scaling, attracting funding, and entering global markets. 💡 Here’s what every startup should start with: ✅ Identify your core innovation ✅ Consult an IP expert (yes, early-stage!) ✅ File what's worth protecting — patents, trademarks, designs ✅ Align your IP with business goals ✅ Revisit and revise as you grow If you're a founder or working with a startup, this is your gentle nudge to take IP seriously. 🔁 Share with someone who needs to hear this. 💬 Got a question on startup IP strategy? Drop it below or DM — always happy to provide guidance. #Startup #IntellectualProperty #IPStrategy #Innovation #Patents #stanford #SJSU #Trademarks #StartupIndia #Founders #ViksitBharat #siliconvalley

From student thesis to €150 million in revenue: the IP strategy behind air up's dazzling success I love IP strategies that combine different forms of intellectual property (IP), as it allows different aspects of a product to be protected. Air up's IP strategy is a good example: 🎓 Based on a bachelor thesis in 2016, air up's founders recognized the commercial potential of flavouring water solely through scent early on. They patented their initial prototype before launching their startup in 2018. Today, the company has: 📌 Patent rights: Approximately 10 patent families protect their drinking system and aroma pods. 📌 Design rights: Protect the unique appearance of their bottles and pods. 📌 Registered trademark: Protects their brand identity and logo. 📌 Trade secrets: The aroma composition in the pods is kept secret. This means exclusive flavours that competitors cannot replicate. This integrated IP strategy makes it hard for others to legally copy air up's products. It also strengthens air up's ability to take legal action against infringers, as these actions can be based on multiple IP rights. 🚀 As air up has tremendous commercial success, others are keen to copy their products. Reports indicate that counterfeit products have cost the company more than 10 million euros in revenue. However, their robust IP protection allows them to successfully take action against counterfeiters and the marketplaces selling these products. I don't think air up would be what it is today without its integrated IP strategy. Do you agree?

The Overlooked Growth Lever: Structuring IP & Partnerships the Right Way. Securing Intellectual Property or IP and structuring robust partnerships are crucial to driving product success and ensuring long-term growth. Here’s how to make them work for you: Safeguard Key Innovations: Protect patents, trade secrets, and trademarks to prevent competitors from capitalizing on your ideas. Draft Rock-Solid Agreements: Clearly define IP ownership and usage rights in every partnership. This prevents future disputes. Focus on Improvements: Include terms for ownership of improvements made during collaborations. Leverage Strategic Licensing: Use licensing agreements to monetize your IP while retaining control. Align Incentives: Create win-win partnerships by including shared revenue models or exclusivity terms. In sum, IP without protection is just an idea. IP, especially when it comes to partnerships, is more than legal necessities—it’s your competitive advantage. Have you secured yours? What’s one way you’ve used IP or partnerships to support your product’s success? Share your insights below! -------- 💥 I’m Olga V. Mack 🔺 Expert in AI & transformative tech for product counseling 🔺 Upskilling human capital for digital transformation 🔺 Leading change management in legal innovation & operations 🔺 Keynote speaker on the intersection of business, law, & tech 🔝 Let’s connect 🔝 Subscribe to Notes to My (Legal) Self newsletter