Brilliant ideas are the easy part. Turning them into successful ventures? That’s where things get complicated, especially when it comes to the law.

Entrepreneurs and inventors often focus on technology, product development, and raising capital. However, without a solid legal foundation, innovation can be vulnerable. Whether it’s safeguarding intellectual property, navigating contracts, or understanding ownership structures, legal missteps can derail even the most promising venture.

Here are the key legal issues in intellectual property (IP) that every innovator should know when preparing to bring a new product to market.

Understanding the IP Toolbox

Many entrepreneurs lump all forms of IP together, but each has a distinct role in protecting different aspects of your business.

• Patents protect an idea and grant inventors the right to exclude others from making, using, selling, or importing an invention for a limited period of time.
• Copyrights protect an expression of an idea, such as code, designs, artistic works, and manuals.
• Trademarks protect brand identity and identify the source of a good or service.
• Trade secrets are business information and proprietary methods, like formulas or algorithms, that have some commercial value and are kept secret.

Copyright vs. Trademark

“Copyrights protect expression. Trademarks protect the source,” explains Neil Peretz of Enumero Law.

A trademark identifies the source of goods or services and protects brand identity. You can trademark business names, product names, logos, symbols, etc. Whereas a copyright protects the creative expression of ideas, but not the idea itself. It applies to things like written content, software copy, website copy, graphic designs, etc.

You don’t have to choose between copyright and trademark. Many businesses need both. For example, let’s say your startup launches a mobile app. The name and logo should be protected by trademark. The app’s code, UI design, and marketing copy are covered by copyright.

Patents

There are three different types of patents:

• Utility patents: Granted to anyone who invents or discovers any new and useful process, machine, or system. They are granted for 20 years from the date of filing your application.
• Design patents: Granted to anyone who invents a new, original, and ornamental design for an article of manufacture, e.g., Apple’s iPhone designs. Design patents are granted for 15 years from the date of issuance of those patents.
• Plant patents: Granted to anyone who invents or discovers and asexually reproduces a new variety of plant, e.g., Honeycrisp apples.

A patent can protect your invention, but it isn’t a guarantee of success or even protection.

“You don’t always need to file for a patent application. In some cases, it doesn’t make business or commercial sense,” observes John O’Malley of Volpe Koenig.

Generally, it makes good sense to file a patent if you’re looking to block competitors from using your technology or if you think you could license the invention to a third party. It can also be advantageous to file a patent when the invention is really easy to copy and can easily be reverse-engineered, meaning competitors can quickly bring a similar product to market. Patents can also be helpful if you’re trying to raise capital early on. Angel investors put value into patent filings, as it signals sophistication.

However, the filing process is costly, and it can take several years before a patent is obtained. It can easily take two or three years before the patent is even examined.

Mark Bloom, Director of Contracting and Chief IP Counsel at NSABP Foundation, Inc., notes that if your product is destined for a market that moves quickly, then seeking patent protection may not be commercially viable. Further, obtaining a patent is only the first step in the process. A more important consideration is the time and money required to enforce the patent. In such instances, it may be better to treat your invention (innovation) as a trade secret.

Can You Keep a Trade Secret?

Trade secrets are free and can last indefinitely. To qualify as a trade secret, the information must actually be secret, commercially valuable, and protected by reasonable security measures. You can’t retroactively call something a trade secret if it’s already public. And if your employees are speaking to third parties, it’s important to educate them about what they can and can’t say, even with a non-disclosure agreement (NDA) in place.

“Employees don’t know what they don’t know,” says Deanne Cevasco of ND Galli Law LLC. “Trade secrets are a little bit of a different kind of animal. You need to educate your employees. Education and training, I think, are sometimes overlooked, but are absolutely key to mitigating any sort of risk of revealing those trade secrets.”

Properly protecting trade secrets requires:

• Agreements: NDAs, IP assignments, and clear employment terms.
• Training: Teaching employees what’s confidential and how to handle it.
• Exit Protocols: Wiping devices, conducting exit interviews, and reminding ex-employees of continuing obligations.

Contracts: Your First and Best Line of Defense

Contracts are more than just formalities; they’re critical tools for protecting your work, defining ownership, and preventing disputes.

“Contracts are used in conjunction with all other IP tools,” explains Gianna Arnold of  Saul Ewing LLP. “They ensure ownership is properly allocated and rights are preserved.”

The essential agreements for any innovator include:

• NDA: Keeps sensitive information confidential.
• IP Assignment Agreement: Ensures the company owns any IP created by employees or contractors.
• Licensing Agreement: Grants usage rights without giving up ownership.
• Consulting and Independent Contractor Agreement: Clarifies deliverables, payment, and IP ownership.
• Collaboration Agreement: Defines what each party is contributing in a joint development. These are essential in academic, biotech, and tech development partnerships.

Even if you are the founder or the ‘idea person,’ you may not own the invention unless it’s clearly assigned in writing. This is especially true when working with co-founders, independent contractors, or outside developers or consultants. It’s vital to have assignment clauses in all agreements. These should clearly state that any invention or intellectual property created for the company belongs to the company, not the individual.

Contracts are one of the few tools that let you control risk rather than just react to it. Importantly, these protections only work if they’re in place before problems arise. Too many startups skip this step early on and try to fix things later, often at great cost.

Protect Your Ideas Early

A strong legal foundation is essential for any innovative venture. Intellectual property, whether it’s an invention, brand, or creative work, needs thoughtful protection from the start. By using the right tools early on, you reduce risk, attract investors, and keep control of what you’ve built. Smart planning now can prevent big problems later. Make IP strategy part of your business strategy.

To learn more about this topic view Intellectual Property 201 / Legal Issues for Innovators & Inventors. The quoted remarks referenced in this article were made either during this webinar or shortly thereafter during post-webinar interviews with the panelists. Readers may also be interested to read other articles about intellectual property.

This article was originally published here.

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