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Here's how you can safeguard your intellectual property rights in a partnership.

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When entering a partnership, protecting your intellectual property (IP) rights is crucial to maintaining the integrity and value of your creations. Whether it's a product design, a unique service process, or even a brand name, these assets are often the cornerstone of your business. By understanding the legal mechanisms available and taking proactive steps, you can ensure that your IP remains secure even as you collaborate with others. This article will guide you through the essential measures to safeguard your intellectual property rights in a partnership, helping you to navigate this complex yet vital aspect of business with confidence.

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Gamze Müge Kan

Partner at KYO Legal & Startup Mentor

1 Define IP Terms

Before diving into a partnership, make sure both parties have a clear understanding of what intellectual property is and what specific IP assets are involved. Intellectual property refers to creations of the mind, like inventions, literary and artistic works, designs, symbols, names, and images used in commerce. It's essential to identify and categorize your IP assets—be they patents, copyrights, trademarks, or trade secrets—as this will determine the appropriate protection strategies. Discussing this openly will lay the groundwork for mutual respect and proper handling of IP within the partnership.

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Gamze Müge Kan

Partner at KYO Legal & Startup Mentor
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Each partner's intellectual property rights to the partnership and the company and the list of the company's intellectual property products should be kept as an inventory. The partnership's share ownership and share ratios can also be determined according to the monetary value of the IP rights brought by the parties and their potential contribution to the partnership.

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2 Legal Agreements

The backbone of IP protection in a partnership is a well-drafted legal agreement. This should outline ownership rights, usage permissions, and how IP will be handled both during and after the partnership. It's imperative to consult with an attorney specializing in intellectual property law to ensure that the agreement is comprehensive and enforceable. The agreement should cover scenarios such as dissolution of the partnership or if one party wishes to sell their stake, ensuring that your IP rights are preserved in any circumstance.

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Gamze Müge Kan

Partner at KYO Legal & Startup Mentor
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Suppose the intellectual property rights are not directly transferred to the partnership as assets and the partner retains the IP rights of the product. In that case, the partnership should hold the rights such as use, distribution, dissemination, etc. and how the intellectual property rights and products will be regulated should be protected by the contract. If the IP rights of a product or trademark are transferred to the partnership by the partner, the relevant consents should be obtained for this contract, and it should be written that all rights regarding the product are transferred.

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3 Register IP Rights

To enforce your intellectual property rights, registration is often necessary. Patents protect inventions, trademarks safeguard brand identifiers, and copyrights secure original works of authorship. By registering these rights with the appropriate government bodies, you create a legal presumption of ownership and the exclusive right to use your IP. This makes it much easier to prevent unauthorized use by third parties—including your partner if things go awry.

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Gamze Müge Kan

Partner at KYO Legal & Startup Mentor
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If you have a registrable IP right, you should seek protection from international organizations such as EUIPO or WIPO in your country and for international protection. IP rights protected by registration can be patent or trademark rights. However, there is no registrable protection for products such as software or literary works. Therefore, if you have an IP right that can be registered, it should be protected in local and international organizations. Thus, the protection of your IP right will increase and provability will be easy in case of violation.

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4 Monitor Usage

Vigilantly monitoring how your intellectual property is used within the partnership is critical. Keep an eye on how your IP is being utilized in day-to-day operations and in marketing materials. If you notice any misuse or unauthorized alterations, address them promptly. Regular audits can help ensure that the terms of your legal agreements are being followed and that your IP is not being compromised.

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5 Plan for Exit

Always plan for the possibility of the partnership ending. Your legal agreements should include clauses that clearly state how intellectual property will be handled upon termination of the partnership. This might include buyout options, licensing agreements, or other methods to separate IP rights. Having a clear exit strategy in place will minimize disputes and ensure that your IP remains protected.

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Gamze Müge Kan

Partner at KYO Legal & Startup Mentor
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Agreements on the protection of intellectual property rights and usage rights are most important during the exit phase. If you have assigned your intellectual property to the partnership, it will remain with the partnership upon exit. However, if there is a situation such as granting the right to use for a while, you will have the IP rights of the intellectual property product, so you should have the rights to the product upon exit.

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6 Enforce Violations

If you discover a violation of your intellectual property rights within the partnership, it's important to enforce your rights decisively. This could mean initiating dispute resolution processes outlined in your legal agreements or taking legal action if necessary. Enforcing violations serves as a deterrent against future infringements and reinforces the value and importance of your IP within the partnership.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Here's how you can safeguard your intellectual property rights in a partnership.

1

2

3

4

5

6

7

1 Define IP Terms

2 Legal Agreements

3 Register IP Rights

4 Monitor Usage

5 Plan for Exit

6 Enforce Violations

7 Here’s what else to consider

Partnerships

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Here's how you can safeguard your intellectual property rights in a partnership.

1

2

3

4

5

6

7

1 Define IP Terms

2 Legal Agreements

3 Register IP Rights

4 Monitor Usage

5 Plan for Exit

6 Enforce Violations

7 Here’s what else to consider

Partnerships

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