59. What do investors care about in respect of IP?
From the investor’s point of view, whether a company that applies for venture capital financing already has an IP right protection in force or is waiting for an approval, plays an integral role in the final investment decision. It is building value of the company, creating its competitive advantage and of course makes the investors keener on supporting the company. For many discussed companies – Gelatex and Giraffe 360 for instance – an IP right for a product, its functionality or manufacturing process, serves as a powerful weapon in the industry and was already in place before got financed by the organization.
60. How and when should a startup seek legal advice on IP matters?
A start-up should seek legal advice when registering a patent or trademark, assigning rights via contracts with suppliers and employees, in data protection and investment agreements. Various accelerators and other start-up organizations provide assistance of lawyers for a reduced fee, a lawyer can be found via directories or based on personal recommendations. It is important to supply the lawyer with all the necessary information and negotiate the fee cap as soon as possible to ensure efficient assistance.
61. Are all lawyers qualified to advise on all IP matters? What are the limits?
There are lawyers that are qualified almost in all IP matters, however, often this is not the case. Therefore, particular matters need particular lawyers or attorneys. Usually, attorneys are specialized either in patent or trademark matters, other IP issues typically do not seek a special qualification but rather experience. Sworn attorneys in contrast to regular lawyers have duty of confidentiality. There is a possibility to choose from working with one lawyer, law firm or legal department of a consulting firm.
62. What is open-source software and when is it used?
Open-source software is a public software that can be publicly used, edited, or commercialized by anyone free of cost. That is, a license that not only permits the use, but also commercialization.
63. What is a confidentiality agreement (or NDA) and when is it used?
NDA is a non-disclosure agreement, a legal contract that once comes into force states that signed third party cannot disclose any information that was provided to him under employment, consulting or other circumstances. Sworn attorneys in contrast to regular lawyers have duty on confidentiality. When hiring independent workers NDA is also signed.
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