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Readiness & Constraints
Review employer contracts
If you're building a startup while employed, check your IP clause. Most U.S. contracts say the company owns everything you create while employed. Non-competes may also restrict you. Read your PIIIA carefully—if it's too broad, work on your startup only on your own equipment, time, and off-site.
If you are currently working for a company while building your startup on the side, you might already be in trouble.
- The "IP Clause": Most U.S. employment contracts say the company owns everything you create while employed there. If you use a company laptop or even company Wi-Fi to write code for your startup, your employer could legally own your new business.
- Non-Compete Agreements: While some states (like California) have banned non-competes, many others still enforce them. If your startup is in the same industry as your boss, they could sue to shut you down.
- Read your "Proprietary Information and Inventions Agreement" (PIIIA). If it's too broad, you must finish your startup work entirely on your own equipment, on your own time, and off-site.
Free Resource: Understanding the Intellectual Property Clause in Contracts
Resources
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