September 24, 2018

How do you handle IP agreements when building a side business?

This may be a naive question, but as someone just getting familiar with the IH community, I've always wondered this.

Assuming you're taking the route of working a tech job (as a dev, designer, etc.) where IP (copyright, patent, etc.) & non-compete agreements abound, but you've got a hankering to start a side business...

How does one get something started without stepping on toes? Do you make your product orthogonal to your day job? Or complementary? I've heard some suggest building something and then trying to sell it to your employer, but if you've signed an IP agreement that covers copyright, and your employer makes software, wouldn't they already own it?

Reading this is what brought the subject to mind: https://www.joelonsoftware.com/2016/12/09/developers-side-projects/

I also understand this may vary by country, but any responses or reflections would be useful. Thanks!


  1. 3

    My rule has been - don't use your work computer (or anything your employer paid for), and don't work on anything related to your day job. And obviously make sure you have a PIIA with your employer that specifically outlines your projects as prior inventions that you own.

  2. 1

    Here's some YC advice on this: https://youtu.be/EHzvmyMJEK4?t=12m

    From the owner or employer's point of view basically for what I can remember you have to make the startup (the legal entity) the owner of all the IP that is produced by employees, contractors, and founders.

    Also more related to starting a startup this same class was updated, and as long as you don't work on your startup at your job and you produce your own stuff you are good (simplifying it a lot).

    https://www.startupschool.org/videos/35

    best of luck!