Most startups initially focus on incorporation, funding, and protecting their intellectual property, which is logical and practical! While these are all important and necessary, startups should also ensure that they are protecting their new startup from legal actions such as a lawsuit – the dreaded ‘‘L’’ word. A lawsuit is the official court process in which two or more parties seek to resolve a dispute. A legal battle can be lengthy, expensive, and create bad publicity. Startups are experiencing a rise in litigation and below we will focus on three growing risks to startups and provide practical steps to prevent these types of lawsuits.
Learn about:
- Responding to the dreaded cease-and-desist and demand letters.
- Preserving documentation with third parties to avoid liability.
- Structuring your startup formation to reduce the risk of owner liability.
- Forming agreements to reduce the risk of litigation between co-founders.
- Maintaining the appropriate employment documentation to reduce the risk of liability.