Intellectual property rights for start-ups (part 1)

When starting a business, it is essential to properly protect things such as your company name, logo and other creations right away. This prevents others from making use of them without permission or taking advantage of them. Therefore, starting entrepreneurs regularly ask us what they need to consider in the area of intellectual property rights (IPR).

In two subsequent articles, I give you a brief overview of the most important IP aspects that may be relevant to you as a start-up entrepreneur. In the first article, I discuss some practical measures and strategic preparations, such as using NDAs and conducting an availability search. In the second article, I discuss formal IP rights that allow you to legally record and protect your creations and innovations.

Protect know-how, ideas and concepts with secrecy

A common misconception is that an idea or concept as such is legally protectable. This is not the case. Only when an idea takes shape in a concrete work (for example, in a brand name or technical invention) do IP rights come into the picture. Until then, confidentiality is the best protection.

So use a non-disclosure agreement (NDA) before discussing your ideas or sharing important knowledge with third parties such as investors, potential partners or suppliers. Also include confidentiality clauses in employment agreements with your employees and contractors. Note. Is your idea or know-how disclosed despite a confidentiality agreement? Then in principle the protection lapses, and this can usually not be reversed. Only if it concerns a technical invention that is eligible for patent protection does the Dutch Patent Act still offer a limited possibility: you must still submit a patent application within six months after the unauthorized disclosure. So also be critical with whom you do and do not entrust your ideas and know-how to.

Check availability before use

Before you go public with a name or logo, for example, it is very important to check whether it is still freely usable. A careful availability check for a company name (trade name) or product name (brand name) helps avoid legal conflicts and can save you a lot of time and money in the long run.

Are you in doubt about the availability of a company name, for example? Then it is wise to seek legal advice. It often happens that a similar name is already in use, but that this need not be an objection, for example because you are in a completely different sector. A specialist can assess whether there is a real risk of infringement, and possibly guide you in choosing an alternative.

Register domain names on time

Have you chosen a name with which to make your business visible? Then register the corresponding domain name in advance. Don’t wait until the official launch. Popular names can be picked up quickly by others and claiming such a name afterwards is not always possible.

Also, think ahead: consider alternative domain name extensions (such as .com or .eu) the so-called “toplevel domains” and variations in the spelling of your domain name. This will prevent third parties from registering similar domains to steal traffic from your customers, a practice also known as cybersquatting.

Mitigate risks with an IP holding structure

In addition, think strategically about the legal structure of your company. By placing IP rights not in the operating company but in a separate holding company, you shield them from the operating company’s operational risks. This prevents IP assets from being at stake in the event of financial problems in the operating company. You can read more about this in my previously published article.

Questions?

Do you have any questions as a result of this article? If so, please contact one of our attorneys by mail, phone or fill out the contact form for a free initial consultation. We are happy to think along with you.