IP Tech Knowledgy
Make Sure You Have the Rights You Need to Sell Your App
An early-stage company often relies on various informal relationships with software developers when rushing to get its product to market.
One pitfall that can arise from these informal relationships is that the company may not own the intellectual property in the code developed for it.
Potential investors or acquirers may demand that the company locate and provide further compensation to its former software developers years after the fact to acquire clear title to its code.
To avoid this scenario, early-stage companies should use written agreements with their developers that include, among other terms, obligations to assign to the company all intellectual property rights in any code developed.