We’re talking about intellectual property today which is a pretty big topic in any business. But specifically, what we want to talk about today is the concept of having a separate legal entity for your IP. When is that a good idea?
Your business can be structured any number of ways. You could be a sole trader or be a company. The problem with those entities owning intellectual property is that if you get sued or go bankrupt then any intellectual property that you own could be lost.
One way to protect that IP is to have a different entity to control it. That separate entity doesn’t do anything else. It just owns the intellectual property.
The ideal situation would be to create that structure during the startup type phase of your business. If you do it later, it’s going to be more expensive and will be more complicated. Once the separate structure is created you can then license the IP to your business.
The trading entity then enters into agreements with suppliers, employees, etc. But if you can’t do it at the beginning, it’s never too late. You should think about doing it particularly if you’ve got some valuable IP.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.