Francelina M. Perdomo Klukosky, Esq.
Manhattan, NY: (212) 980-7206
Software Startups
Software Startup Lawyer NYC - Francelina M. Perdomo Klukosky
Law Firm for Software Startups, Perdomo Law in Manhattan New York, NY
Approximately 1.35 million tech-related startups launch each year. Establishing a software company amid so much competition can seem overwhelming but innovative ideas and a solid business plan make it possible to stand out. Unfortunately, many brilliant entrepreneurs fail despite their business knowledge and creativity. Often, the failure is because they do not keep their businesses secure. Protecting intellectual property is a 21st-century must-do for anyone that dreams of success.
Legal Requirements for Business Startups
The excitement of starting a new company can cause people to begin before they have all the plans in place. However, businesses can fail if the owners do not take each step cautiously. Consulting with a software startup attorney before the business begins will allow all team members to have a consistent image of the company and its responsibilities. Some details to work through include:
• If the company is an LLC, partnership, or corporation.
• The name and branding of the business.
• The roles of each person involved in the company.
• If the company will need employees.
• What will happen if a member of the founding team leaves.
• How funding the business will take place.
• Legal Protection of Software Startups
The owners of software startups need to think about protecting their products immediately. The most vital protection is through copyrights. Businesses must consider the risks of unauthorized use of any online or mobile property, and copyright law is the best way to protect against theft. Before their work goes public, most startups should contact a software startup law firm with experience in trademark, patents, and copyright law.
Potential Business Contracts Needed
Businesses also need to think about the contracts that will protect them once they launch and become more established. Legal documents prevent unnecessary lawsuits and many other issues. Every transaction and the new venture could potentially create a situation that requires legal protection. Those that stay connected with their software startup lawyer will do better than those that remain unaware of the risks they face.
A variety of agreements could play a role in the success of the company. The following is only a partial list of what types of contracts most software companies use. All startups should discuss the details more with a lawyer as soon as their company begins to grow.
Independent Contractor Agreements (ICA):
Software companies often use the services of independent contractors to complete projects. The decision reduces the expenses associated with hiring more staff. It also allows the company to expand creatively by consistently bringing new talent into the discussion. The contracts for these individuals should include a description of the work, time schedules for completion, and payment amounts. Many agreements will also include who holds the rights for the completed work.
Non-Disclosure Agreements (NDA):
Many software businesses will ask employees and independent contractors to sign an NDA to keep the work taking place as secret as possible. The agreements also help prevent partners and others from publicly discussing the business financing or other business-related information that could affect the company's image.
NDAs can include other agreements not directly related to disclosures. Some of the most common additions include non-compete or non-solicitation agreements. Including these agreements can help a company protect its client list and keep businesses they partner with from stealing their talent. However, some companies prefer to have these documents remain separate from other agreements.
SERVICE LEVEL AGREEMENT (SLA):
Software startups that typically work with individual consumers or small customers may not need an SLA. The need for these documents usually arises when the company takes on larger projects with other businesses. It is a promise that any work completed will meet the specifications expected by the client. Startups may sign an SLA for someone else before they work for them or require them when they hire others.
LETTER OF INTENT (LOI) / Memoranda of Understanding (MOU):
These documents can come labeled in two ways but have the same meaning. The agreements become useful when companies begin in-depth negotiations with another entity but need an assurance that the work is worth the effort. A Letter of Intent guarantees the seriousness of the other entity in completing the deal. Without an LOI, a business could spend valuable time and money on a negotiation that goes nowhere. The loss of a contract, merger, or large order could bankrupt a startup or new software business. An LOI can also benefit smaller software companies. The agreements are valuable tools to show investors of the growth potential of the organization.
Software Development Agreements
Software development agreements allow companies to put in a legally binding contract what the client desires. It prevents clients from rejecting a product due to claims of it omitting something they wanted. The documents signed by them will show that the software company created the requested product. The paperwork should also include what will happen if a rejection occurs, the agreed-upon purchase price, warranty protection, and more. Software development agreements protect the client and the company equally and are necessary documents for software developers.
Contact Software Startup Attorney, Francelina M. Perdomo Klukosky for a Case Assessment
Creating a software startup is often the first step of achieving a life goal. Entrepreneurs need to do all they can to protect their dream once they take that first step. Contact a Software Startup Law Firm immediately to learn more about the types of contracts recommended to keep personal and business assets safe. Established organizations that once neglected this step should also hire a lawyer and review how they can better protect themselves today.
Please contact us for a case assessment.
Additional References
Perdomo Law
1270 Avenue of the Americas
Suite 2005
New York NY 10020
Phone: (212) 980-7206
Suite 2005
New York NY 10020
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