Meaning
Contracts used to document the assignment of inventions and software ensure that the business holds clear title to its core technology. These IP contribution agreements are typically signed at the moment of formation to move assets from personal ownership to the new company. The document provides the foundation for future investment by proving the corporation owns its products.
Asset Specification
Asset Specification identifies the specific codebases, designs, trademarks, and trade secrets being moved to the company. The agreement must list these items in enough detail to distinguish them from the founder’s previous work at other firms. If the description is too vague, the company may struggle to prove it owns the specific version of the product that was launched.
Clear schedules of assets allow investors to verify the intellectual property portfolio during an audit.
Warranty Clause
Warranty Clause provides a guarantee that the contributor is the sole author of the work. This statement protects the company if a third party later claims the asset was stolen or copied.
Corporate Security
Corporate Security is achieved when every founder and early hire has signed a valid assignment. The document provides the foundation for future investment by proving the corporation owns its products.
