IP Assignment: Make Sure the Company Owns What It Sells
Type: article
Stage: Stage 10: Formation Proof
Difficulty: advanced
A company that does not own its own intellectual property has a formation problem. How IP ownership gaps happen silently — and the asset categories that need attention before the product becomes valuable.
Overview
A company that does not own its own intellectual property has a formation problem. This can happen quietly. A contractor writes code without assigning rights. A co-founder contributes designs before the entity exists. A friend creates the logo. The product grows, but ownership is unclear.
What needs attention
Code, designs, brand assets, domain names, content, datasets, models or prompts, customer lists, internal tools, contractor work, and open-source dependencies. Cooley GO's startup document library includes consulting agreements and formation-related documents — part of the broader paperwork founders use to clarify ownership and contribution rights.
How to fix it
Each contributor — co-founder, contractor, advisor, friend — should sign an IP assignment or work-for-hire agreement that clearly transfers rights to the company. This should happen at the time of contribution, not retroactively. Retroactive assignment is possible but creates friction and sometimes resistance if a relationship has soured.
Stage 10 rule
The company should own or have clear rights to the thing customers are paying for.