A VC in Vacationland

IP stands for Intellectual Property.  Intellectual property is also an important "Insurance Policy"(another form of IP) for startups.

I have seen numerous startups who do a good job initially of protecting their IP, but then do not follow through and continue to protect new developments.

This can come back to haunt you when you go to sell the company.  Buyers want to know that all they are buying is protected as much as it can be.  If you do not, then your valuation drops.

Here are a few suggestions on how to make sure IP remains your insurance policy and not a huge liability:

• Put it in the Board agenda-this is an effective way of reviewing IP strategy at least 4 times or so a year.
• Offer incentives to key employees–set a bonus pool around IP filings, sharing small cash bonuses with those that bring good ideas forward and work with the patent attorneys to get them protected.
• Keep track of competitor filings–in this way you will know what they are up to so that you can be sure that they do not end run you.

Finally, make sure that you have a top-notch IP lawyer doing your filings, someone with substantial experience in your IP space.  Don’t rely on lawyers who need education from you in your IP space, unless you want an expensive lesson in how not to protect your assets.