Proactive Contracting Tips for Tech Startups: Protecting the Company's Value and IP, Avoiding Costly Mistakes

Description

Technology startup companies typically have limited resources in the early stages of the company's lifecycle. These limitations and the many competing priorities for management's time and attention often result in startups making critical contracting mistakes that inadvertently weaken their commercial position.

Commercial contracts that receive little or no attention during the startup phase frequently create issues later in the company's lifecycle. Failure to be proactive in the initial contracts phase or to retroactively remedy prior mistakes as the company moves forward can place the company in breach of its business-to-business contracts; it can create uncertainty about the company's ownership of its intellectual property; and it can create a host of operational risks. It can also jeopardize financing and kill or devalue M&A deals when investors or acquirers discover these problems in their due diligence.

When entering into commercial and IP-related agreements, startups and even well-established companies should consider not only the present context and objectives of each contract, but also how each contract's language could significantly impact investments, transactions, and acquisitions in the future. Companies that are proactive in protecting their commercial position and IP rights upfront are better positioned when it comes time to raise funds or sell the company.

Listen as our authoritative panel highlights common contractual provisions and issues that need to be handled with care and foresight early on to avoid problems in future transactions. The panel will provide tips for identifying potential legal pitfalls and strategies for remedying contractual issues retroactively.