Intangible Asset Basics for Startups

Part I -- The Laboratory Notebook

Technology startups have a hard time managing to stay afloat often neglecting critical processes needed to protect intangible assets. Consultants and firms exist to help establish and drive these processes in detail to assist technology startups mitigate risks. EverEdge Global is an example of one such firm that specifically provides exceptional end-to-end services in this area. However, what minimal leg work can you do until you find the time to engage with such intangible asset specialists?

The real answer is you need to make the time! Not having enough time is no excuse. You MUST treat this matter seriously since technology ventures are all about IP. These assets determine your valuation more than most other aspects of your business when you engage investors.

For starters, hand out handsome laboratory notebooks to your engineers and scientists. Add a gift, like a nice pen, for them to write with. Make it fun and rewarding. Have the staff start tracking relevant work within them. See the two marked (w/ unique volume numbers) lab notebooks distributed to each employee in our organization:

Note below the signature sections for witnesses, volume labels, and page numbering. The bindings are important to show that the pages are continuous with nothing being torn out. Permanent ink should be used. There’s a simple recommended process and procedure that’s usually documented in the inside cover of professional lab notebooks. We distribute two numbered notebooks per employee: one with graph paper for drawings, and one straight ruled with proper numbering.

(Purchased from The Scientific Notebook Company --- https://snco.com: highly recommended with excellent quality and service)

Researchers and developers should log anything that is even close to being unique. Entries should be made regularly at least once a week at a minimum: the more the better. Even logging potentially mundane work activity, and progress summaries are recommended. Each new idea, unique process, mechanism, machine, plant, gene, etc should be documented and signed by witnesses. Witness sign-off is easy enough to handle if done weekly.

This establishes a record of the intangibles employees work with, modify, and create in the process of performing their weekly activities. It sets the record that could be used later if litigation is necessary. It also tracks the intangibles worked on in relation to each employee which could be leaked even without malign intention as a result of changing employers.

The bookkeeping is a minimal process which establishes the first link in the chain of custody. It's a good practice, especially with physical notebooks which allow people to reflect rather than tapping on a keyboard. It’s simple and easy to instate such protocols into a technology startup’s weekly routine.

Occasionally notebook contents can be curated and actions can be taken for proper protection mechanisms. That’s when trade secrets and patents come into the picture (addressed in part II and III). When documented in the laboratory notebook specialists have sufficient traction to assist busy startups with the minimum of collaboration overhead.