One of the most costly - yet easily prevented - disasters for any business is the failure to secure ownership of intellectual property (IP).
Unless you take the proper legal steps, you could find that your company doesn't own its most prized possessions.
Here are the details you need to know.
Under the law, the ownership of copyrights and inventions may actually belong to your independent contractors and employees, unless there is a prior written agreement to the contrary. Federal copyright law, and the laws of most states, mandate that employees and independent contractors who invent products, write materials and develop software may be the owners of the IP rights.
In some states, an employer may only have a limited license in an invention that an employee creates while on the employer's time clock.
Fortunately, you can easily prevent this type of catastrophe. All U.S. states permit employers to require their employees to sign copyright, IP and invention assignment agreements that give all IP rights to the company.
A well-drafted agreement can be less than a single page in length and should be written by an attorney. It requires the employee or contractor to turn over or legally "assign" all rights to the company. In addition, these agreements require the employee or independent contractor to assist the company's counsel in securing and enforcing the rights.
Another good practice: Ask employees to designate, upfront, all pre-existing inventions that are to be excluded, but to cover all new inventions that are in any way related to your business, even if developed during the employees' non-working hours.
For example, let's say your company makes billing software. This agreement prevents one of your software developers from claiming that he came up with a time management program at night that could be of use to your company - or your competitors.
By following these simple procedures, business owners can avoid tremendous aggravation and loss of property that is truly irreplaceable.
If your business received a PPP loan, you may be eligible to have that loan forgiven. Our team can help you ensure that your loan forgiveness application is filed correctly and timely. Complete our five-question form, and we can provide a quote for your application by the next business day.Request a Quote