A Forward-Thinking Firm

Business partners may protect their intellectual properties

On Behalf of | Oct 29, 2021 | Uncategorized |

Individuals forming a business partnership may wish to consider a contractual agreement to protect their intellectual properties. Without an agreement, a dispute may lead to a partner losing a valuable IP.

As noted by Business News Daily, partners contributing valuable materials may protect their ownership rights. A contract may describe, for example, how the business may use or license a partner’s personal IP.

An IP agreement outlines terms and conditions

By signing an agreement, each partner confirms that the protected materials legally belong to their owner. Terms may outline the business’s rights to use the IPs and how partners may use them to generate income.

Contracts may detail how the individual who owns the materials receives royalty payments or credit. A contract may also describe when a partner may revoke his or her authorization for the business to use an IP.

A non-disclosure agreement may help avoid future IP litigation

Before contributing valuable code, software or proprietary products to a startup or new partner, individuals may safeguard their materials. According to Entrepreneur.com, they may request a non-disclosure agreement. The NDA may help avoid future IP litigation. Sharing sensitive information with new business partners or outside investors may carry an element of risk.

NDAs may make it easier to freely discuss confidential information. Future product or services discussions may proceed without fear of theft. By requiring their employees to sign NDAs, partners may hold them liable for damages if they share protected information with outsiders or competitors.

New businesses often rely upon their partners’ intellectual properties to create their services or product offerings. A partnership agreement may outline how the business may legally use or license a partner’s protected works. Combined with a non-disclosure agreement, copyrighted materials may assist partners in obtaining outside capital and pursuing new opportunities.