When first conceiving of a new startup idea, lots of entrepreneurs experience a measure of paranoia about it and start demanding that everyone with whom they discuss it sign a nondisclosure agreement (NDA). My opinion is: Don’t use an NDA until you must in order to protect highly sensitive, non-public information. NDA’s protect actual secrets,…
Category Archives: Company 2.0
Bi-polar IP Strategy for Startups: Protect What You Can, then Tell Everyone
If you’re starting a company, you may wish to begin in stealth mode, keeping your business idea and plans secret for a little while. During this stealth phase, consider doing the following to protect your intellectual property: Think of a name for the company. Do a trademark search before you form a company. If it’s…
You Don’t Need Anyone’s Permission
If you are considering entrepreneurship, nobody is going to come along and suggest to you that it might be a good idea. Certainly, nobody is going to give you permission. If you are married, your spouse is unlikely to say, “Hey, I know what you should do today. You should quit your full time job,…
Elements of an Executive Summary for Startups
An executive summary is often the first document potential investors see about your company. Think of it as a 1-3 page advertisement for your company to investors. Its purpose is to cause the investor to want to learn more about the opportunity. It should contain no trade secrets or confidential information. Here’s what I look…
Why Use Website Terms of Service Agreements?
Why put a Terms of Service agreement on your website? Look, everything’s got a little legal legend to it, ok? You see them everywhere. The masthead of a magazine, the fine print on an advertisement, even the coffee cups at McDonald’s. Everything just seems to go better when emblazoned with a bunch of juicy legal…
Startup Legal FAQ 12 – Why Own IP?
What’s the big deal with owning all this IP? Isn’t there more to my company than just my IP? Yes, there is a bit more to your company than its Intellectual Property. But, on average, not much more. So it’s important to keep good records about the IP you have. Here is one of a…
startup legal FAQ – 7. What is a PPM?
What is a PPM and why do I need one? A Private Placement Memorandum, or PPM, is a formal description of the investment opportunity offered by your company. Before taking money from investors (or lenders), you may wish to consider circulating a PPM to inform them of the basic provisions of your business plan, a…
startup legal FAQ – 6. Why form a company?
Do I really need to form a company or can I do business without one? With few exceptions, all business should be conducted from within a company that is properly formed and organized as a corporation, a limited liability company (LLC), a limited partnership (LP) or the like. Why? Four basic reasons: a. Asset Protection…
startup legal FAQ – 3-5. What up with all the contracts?
So what’s with all the contracts? There is no truer maxim in the law than “get it in writing.” Probably the single most effective service lawyers provide to manage risk is the thoughtful structuring, negotiating, and drafting of effective contracts. With very few exceptions, every transaction in which a company engages should be governed by…
startup legal FAQ – 2. Lawyer says what?
The vast majority of the advice emerging companies lawyers give clients is meant to address one or more of these risks: Litigation risk. We help you avoid things that could put you on the losing end of lawsuits. Valuation risk. We help you take steps to fortify your company’s value (or at least not needlessly…
