How to Avoid the Top 5 IP Traps that Kill Startups

This week Carr & Ferrell joins thousands of entrepreneurs and high tech thought leaders from around the country at TechCrunch Disrupt SF 2011 to discuss industry and innovation.  So far (as of Day 2) we are thrilled at the energy, creativity and originality on display here at the San Francisco Design Concourse—not to mention some really cool startup ideas.

The best part of the show has been the opportunity to meet with some of the fresh minds behind these young companies, fueled (if not yet by VC funding) by big ideas and even bigger talent.  For some, this is a first go at realizing a company beyond its idea phase, and we are happy to offer advice based on over twenty years of helping Silicon Valley’s most innovative enterprises.  For them, we put together a list of our top IP tips to help their fledgling startups survive infancy:

How to Avoid the Top 5 IP Traps that Kill Startups

1. Formalize your game plan

Before you secure funding, get a formal agreement between all the founders as to who owns what.  Plan for success, but agree on a plan for what will happen if the company unwinds.

2. Define murky proprietary borders

Draw bright lines between what is developed in the new company, and what technology is owned by a prior company or research contract.

3. Protect yourself

Apply for at least minimal provisional patent protection before launching a website or socializing your new technology.

4.  Patent Strategically

Blueprint your intellectual property portfolio and roadmap before you start building. This vision of what you are creating and where you're going will save your company lots of time and money, and greatly enhance your value to prospective investors.

5.  Focus on your customers

Use your intellectual property to protect the customer experience and not just the details of the technology. Customers do business with you because of the experience you provide. Identify and protect the features of your technology that support that unique experience.