I left the startup I co-founded. I still own the IP. Advice needed.
I co-founded a startup. I've put in a lot of work (I'm a software developer / data scientist) mainly in exchange for my co-founder status which wasn't respected. I was never aware of full financial details, never had a say about who's joining the company. Ridiculous features were constantly requested but sales never closed.
I didn't waive any IP. Because of serious trust issues, I left the startup. I suspect they can't raise any more money without my IP waiver. They keep acting shady and I want to recuperate some of my financial losses. I've sent a Cease & Desist Notice that got ignored. What to do?
Too little information to be able to give a useful answer unfortunately.
Why not talk to a lawyer?
If you still have shares in the company or a board seat/executive position, you potentially need to be careful about the issue of causing damage to the company.
Sorry I can't be more helpful.
In the beginning of my collaboration with the startup there was talk about Cofounder Agreement documents that we should sign. Their purpose was to attest that we were in the company from the start and to establish IP waiving rules and equity vesting intervals. I was passing this document around to get opinions on whether it’s a fair offer or not. At that time we were 7 co-founders (yes, you read that right). Since I got mixed advice on the agreement, I took my time to do the research.
We got into a Microsoft Accelerator. Unfortunately, the CEO started to not answer any of my emails. A week passed, then two weeks and then an entire month. I’ve sent several emails and several Skype messages wanting to clarify my co-founder status. Nothing. Wrote an angry email. I used the single piece of leverage I had: the Intellectual Property. I threatened to use it since I waived no rights. I got an answer back in 2 hours max. He took responsibility for everything and swore it won’t happen again.
I still didn’t sign the Cofounder Agreement. I was my only weapon I had in case this happens again. If I would have signed it I would have waived any rights to the IP.
Disclaimer: IANAL and my advice is worth exactly what you paid for it...
I'm assuming you haven't actually incorporated a company in that case? Is this IP you had developed before working together and would have brought into the company? Or stuff you developed while working together and now want to deny usage/ownership rights to?
Do you have any legal protection of the IP such as a patent? And are you based in the US?
My two cents is that a not-yet founded company with 7 cofounders which doesn't reply to one of their partners for over a month (despite that partner owning vital IP rights) isn't a company worth squabbling for shares over.
In your situation (with the information given and making assumptions by reading between the lines) I would explain calmly that it isn't working out and leave in a way which doesn't unnecessarily burn bridges or cause avoidable pain to your cofounders. Unless I'm mistaken in assuming that your company is still very early stage, I wouldn't expect to see any money for IP developed while working together and, in all honesty, I would chalk it up to a valuable learning experience and move on to bigger and better things.
Hi @louisswiss,
I first wrote a 3-page post but then decided to just state the essential and answer questions.
If the company was early state and I only put in a few months of work I would definitely agree with you that it's just better to move on to better things. In a way I already did. However ...
At that scale it is worth going to a lawyer. Make sure to choose one in the same jurisdiction as the company is incorporated in.
Good luck!
This comment was deleted 7 years ago
Disclaimer too: I'm not a lawyer either. I don't know where the company is located but I'm French and by French laws what you're suggesting is totally illegal and could be used by his ex-cofounder against him.
IMO the best advice is to get a lawyer asap.
I don't have access to the company code and I wouldn't try to sabotage them this way anyway :P
I do have complete history via a local Git repository I kept safe. I can definitely prove that the development is mine.
The last piece of advice indeed crossed my mind. Specifically open sourcing it.