How does the corporation obtain ownership of the technology and IP from each of the founders which was developed before we incorporated?

Friday, October 19, 2007

Fred Greguras, Fenwick & West, http://www.fenwick.com/

Founders will usually assign ownership of technology and IP as payment for their shares of common stock of the corporation. This is documented in their founders stock purchase agreement. Investors will almost always want technology and IP to be a transfer of ownership rather than a license in which the founders “hedge” on their commitment to the new business. Ownership provides more value to the business than a mere license. Ownership of technology and IP created after the corporation is established occurs through invention assignment agreement or consulting agreements.

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