Innovation 101 Ep 9: Legal Considerations

Summary

The video discusses key considerations for startups before engaging their first customer. It emphasizes the importance of seeking legal advice specific to your business structure, obtaining insurance, and protecting intellectual property (IP) through non-disclosure agreements, trademarks, and IP assignment deeds. The speaker highlights that copyright is automatic in Australia for creative work. Startups should also focus on essential contracts like service agreements with clear liability clauses. The video advises ensuring ownership of developed software code and getting professional advice when dealing with investors. The UNSW Entrepreneur Legal Centre offers free legal support for students and alumni.

Takeaways

• 📝 It's important to get independent legal advice tailored to your business entity before starting.
• 💼 Consider obtaining insurance to protect yourself from personal liability.
• 🔐 Identify and protect your business's intellectual property (IP) early on.
• 💡 Patents are only for new and inventive ideas, and the process can be costly and time-consuming.
• 🛡️ Use NDAs (Non-Disclosure Agreements) to safeguard your company's confidential information.
• 📛 Trademark your business name and logo through IP Australia for simple and affordable protection.
• 🌐 Secure a corresponding domain name for your business to strengthen your online presence.
• 📜 Ensure that the company owns all IP, and transfer any personal IP ownership with an IP assignment deed.
• 📄 Start-up contracts, like customer terms and service provider agreements, are critical for legal clarity.
• ⚖️ Liability and indemnity clauses in contracts should limit your responsibility, and liability caps are essential to avoid excessive financial risk.

Q & A

What should you do before dealing with your first customer?

Before dealing with your first customer, it's essential to get independent legal advice specific to your business structure.

Why is it recommended to get insurance for your business?

Insurance is recommended to ensure you are not personally liable for any potential risks or damages associated with your business.

What is one of the most important considerations for a business related to intellectual property (IP)?

One of the most important considerations is to identify and protect the intellectual property (IP) that your business has.

Is patenting always necessary to protect your business idea?

No, patenting is a costly and time-consuming process that only applies to new and inventive ideas. There are other ways to protect IP, such as using non-disclosure agreements (NDAs) and trademarks.

What is an NDA, and why is it important?

An NDA (Non-Disclosure Agreement) is important because it ensures that your company's confidential information remains protected when shared with others.

How can businesses easily trademark their name and logo?

Businesses can trademark their name and logo through the IP Australia website, which offers a simple and inexpensive process.

Why is it important for the company, and not individuals, to own all the IP?

It's important for the company to own all the IP to avoid complications with investors and ensure that the business fully controls its assets, which can be assigned through an IP assignment deed if necessary.

What is the key difference between copyright and trademarks or patents?

Copyright is an automatic right, meaning there’s no need for registration. Anything you create, such as photos, videos, or writing, is automatically protected under copyright laws.

What types of contracts should start-ups consider having in place?

Start-ups should consider having contracts such as customer terms and conditions, or a service provider agreement if they are offering services, to outline the services and payments involved.

Why is it important to limit liability in contracts?

Limiting liability in contracts is important to ensure that your business isn’t exposed to excessive financial risk. A liability cap helps protect you from being sued for more than what your services are worth.