by Tom McGuire,
Head of the Innovation & Technology Group at Taylor Vinters

Introduction | Page 2 | Page 3

Confidentiality clauses should also be included in any contract to protect the company's innovations and trade secrets. It is also advisable to ask for warranties, especially from consultants, to confirm that the work they are producing is unique and does not infringe a third party's IP rights. Where there are employees or directors from an academic background, it is especially important to get agreement that they will not publish or disclose their work until an application for a patent, or other intellectual property protection, has been filed.

Intellectual property rights are not restricted to technological developments. The rights to marketing and design innovations, including logos and brands, must all be protected. These can be just as valuable as the product or service itself.

Many entrepreneurs will, at some point, need third party investment to fund expansion. This may come from venture capitalists, banks, business angels, or other investors. Whoever is investing will expect to carry out a due diligence check to ensure that the company owns everything that it says it owns and that the rights - particularly the intellectual property rights - are not encumbered by anything that may reduce the value of the company. They will be especially keen to make sure there is no dispute over the rights - they will not want to buy into any litigation. Entrepreneurs must make sure, therefore, that their house is in order from the start.

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