22
JAN 2018
StartUps and their Most Common Legal Mistakes
Via Pixabay.

StartUps and their Most Common Legal Mistakes


Spain

Startups, those fast-growing companies that keep proliferating thanks to the development of new technologies, also make mistakes, and sometimes these mistakes are found in the legal sphere. Joaquín Muñoz, Head of IT&IP at ONTIER Spain, provides a few tips to make it easier for entrepreneurs to create and develop their startups, especially in the legal sphere.

First of all, it is important to bear in mind that the shareholders agreement is essential to lay the foundations of the new company and decide who is who within the company and how it will function internally.

In addition, startups are technology-linked companies, so in many of them software and its ownership are important issues. To avoid conflicts related to this ownership, contracts are key. The contract should specify any relevant matters like the ownership of the source code, the functional analysis and the delivery times. This way you can avoid any possible risks.

It is also very common for this type of companies to make money through advertising. Data Protection Law should be especially taken into account in this case, and of course the new GDPR that will enter into force next May, which includes aspects such as privacy by design or the analysis of impact on privacy.

Furthermore, since registering the brand is important, it's also key to register the domain on the Internet. Domain hunters are real, and they're always alert. According to Joaquín Muñoz, 'this is not a triviality as it may seem'.

Last but not least, there is a specific mantra you should keep in mind if you want to succeed in the startups and Internet world: you won't take possession of other people's content. 'People use to think that everything on the Internet is free to use. However, the rule should be using what's yours and asking for permission for everything else' notes Muñoz.

Here you can read the full article (SP only).



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