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Chapter 4

IP Protection for Startups

13 min 50 XP

Why IP is a startup's crown jewel

For many startups, intellectual property is the most valuable asset. Protecting it early prevents copycats and reassures investors during due diligence.

The four pillars of IP

Trademarks protect brand identity — names, logos, taglines. Patents protect novel, non-obvious inventions for 20 years. Copyright protects original creative and software code automatically on creation. Trade secrets protect confidential business information (e.g. algorithms, customer lists) for as long as secrecy is maintained.

Assignment and ownership

A critical founder mistake is failing to ensure IP created by founders, employees and contractors is assigned to the company. Without proper assignment agreements, a contractor who wrote your core code may own it. Investors scrutinise this in due diligence.

A practical IP plan

Startups should: register a trademark for the brand early, file patents before any public disclosure, embed IP-assignment clauses in every employment and consultancy contract, and use NDAs for sensitive disclosures. Startup India offers an 80% rebate on patent fees and faster processing.

🃏 Flashcards

Term

Trademark

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Definition

Protects brand names, logos and taglines.

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📋 Case Study

📝 Test yourself

Startup IP Quiz

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A patent protects an invention for:

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In this course

  1. 1. Startup India Overview
  2. 2. Choosing Business Structure
  3. 3. Funding & Term Sheets
  4. 4. IP Protection for Startups
  5. 5. Employment Laws for Startups