Share this :

Post on twitter:

 

Top ten legal mistakes made by entrepreneurs

By Lincoln Kim @ MaRS

November 13, 2006

 

Boston Legal: lawyers in pants
originally uploaded by LordKhan

Written by a Harvard Business School professor who specializes in Entrepreneurial Management, this list covers the legal aspects of entrepreneurship, from hiring the right lawyer to international IP protection.

1. Thinking any legal problems can be solved later.
2. Promising more in the business plan than can be delivered and failing to comply with state and federal securities laws.
3. Starting a business while employed by a potential competitor, or hiring employees without first checking their agreements with the current employer and their knowledge of trade secrets.
4. Disclosing inventions without a nondisclosure agreement, or before the patent application is filed.
5. Waiting to consider international intellecutal property protection.
6. Negotiating venture capital financing based solely on the valuation.
7. Failing to make a timely Section 83(b) election.
8. Hiring a lawyer not experienced in dealing with entrepreneurs and venture capitalists.
9. Issuing founder shares without vesting.
10. Failing to incorporate early enough.

Related Blogs

 

BioEntrepreneurship – Intellectual property strategy
BioEntrepreneurship More BioEntrepreneurship building blocks were gained in last Monday’s BioEntrepreneurship session with an overview of IP in the industry. Lynda Kurdyduk reviewed the criteria f

Global CONNECT: how important are the IP policies?
At the Global CONNECT last week, I heard different and sometimes contradicting views on IP policies and their importance in the commercialization of the inventions. Currently, different policies ar

Four hot tips on powerful patent filing
Quick: what’s the difference between regular utility and provisional patent application? Not sure?  These four hot tips for start-ups on filing for a patent can help you answer those questions

The start-up prenup
Can you name the founders of Apple Computer? I expect almost everyone reading this was able to name Apple’s co-founder and CEO Steve Jobs.  A fair number of you probably were also able to name

Protect your idea!
It’s never too early to file for a patent: although it may take years for a patent application to come through, you are protected from the moment you apply. Take the guesswork out of it: seek a

18 mistakes that kill startups
  The woodpecker may need to go! by sunshineseclipse In many ways, Noah was a entrepreneur himself: he saw a need in the market, paid no attention to the skeptics, had a well-engineered plan, a

Tags: commercialization, contracts, entrepreneur, hr, ip, legal, lincoln kim, strategy