A founder once came to me in a panic. The guy who had built their entire product was a consultant, and there was no contract or IP assignment, which means he owned the code. All of it.
And owning the code isn’t just a minor detail; the code was their ENTIRE product, all legally owned by this contractor.
Luckily for the business, this particular developer was fair. He didn’t want to be aggressive, but in theory, he could have held the whole company hostage.
We agreed on a payout of around £30k, and he could have asked for more, not because he threatened anyone, but because it was his property.
It’s wild how many start-ups skip this stuff. No contract or IP assignment, and zero thought as to who actually owns what.
Start-ups move fast, but moving fast without legal hygiene means you might be sprinting straight into a lawsuit.
So, founders… ask yourself: who owns the copyright in the thing you’re building?
If the answer isn’t you, it might be time for a chat.
(Or if you think it’s you, but it’s not on paper: same deal.)