In Tough Tech, intellectual property (IP) can be your biggest asset — or your biggest risk. The key is protecting your innovations early, while staying flexible to pivot, partner, and grow.
IP is your competitive edge: your patents, trade secrets, and trademarks protect what makes your tech unique and valuable.
Start protecting your IP from day one. In this case, smart beats fast: rushing to file without thoughtful planning can lead to costly missteps. Early legal advice helps avoid issues with ownership, filings, and licensing down the road. Many law firms that work with early-stage Tough Tech startups will defer payment until you raise capital — don’t let perceived costs hold you back from getting guidance.
If you are spinning out of academia, reach out to your technology transfer office (TTO) or technology licensing office (TLO) as soon as possible to understand the IP pathway out of your university. There is no standard technology transfer process; every institution and licensing situation is different. This can often be a lengthy process and funders will want to know your progress as part of their diligence, so it’s worth getting clarity early.
Eventually, you’ll need an IP strategy that protects future product developments and builds a legal moat around your company. It’s a good idea to build a relationship with a legal team that you trust to guide you through various growth stages of your company.
Here's what you need to know about intellectual property:
Know the intellectual property types.
Patents: Protect your inventions. File provisional patents early.
Trade secrets: Protect know-how. Use NDAs and strong contracts.
Trademarks: Protect your brand identity.
Copyrights: Protect code, documentation, and creative content.
File early, search smart.
File as soon as possible and run thorough prior art searches to avoid wasted effort and ensure freedom to operate.
Balance openness & protection.
Defend your core technology, but don’t let secrecy block collaboration or partnerships.
Be strategic with legal costs.
Prioritize key innovations and work with lawyers who understand startups and Tough Tech. Many early-stage Tough Tech law firms will defer payment until you raise funds. You may even want to explore licensing as a revenue stream.
Understand funding & IP.
Venture capitalists care a lot about IP ownership, so make sure all IP is assigned to the company, not individuals, and show a clear, proactive IP strategy in your pitch.
Protect IP in collaborations.
Clearly define who owns what in any partnership with universities or contractors. Use IP assignment agreements for all team members and collaborators to avoid disputes later.
Spinning out from a university
Most universities own the IP developed in their labs, so you’ll need a licensing deal to commercialize it. Negotiate fair terms, paying close attention to royalties and exclusivity. Use their resources, such as incubators, funding, and alumni networks as you navigate the spinout process. To avoid future disputes, make sure everyone signs IP agreements.
