Skipping Founder and IP Paperwork
Type: warning
Stage: Stage 10: Formation Proof
Difficulty: intermediate
The product can become valuable before the paperwork catches up. Co-founders, contractors, and friends contributing code or design without clear ownership creates a liability that compounds over time.
Overview
The product can become valuable before the paperwork catches up.
Avoid when
Co-founders, contractors, or friends contribute code, design, content, or brand assets without clear ownership agreements. The gap is invisible when the product has no value — and expensive to fix when it does. Retroactive IP assignment requires the cooperation of people who may no longer be cooperative.
Better signal
The company owns or has assigned rights to the assets it sells. Every contributor signs an IP assignment or work-for-hire agreement at the time of contribution. Cooley GO's consulting and formation documents are a practical starting point for learning what these agreements typically contain.