{"id":30222,"date":"2019-09-26T11:18:57","date_gmt":"2019-09-26T03:18:57","guid":{"rendered":"https:\/\/zegal.com\/?p=30222"},"modified":"2024-02-21T15:22:53","modified_gmt":"2024-02-21T07:22:53","slug":"startup-series-part-4ip-and-design","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-nz\/blog\/post\/startup-series-part-4ip-and-design\/","title":{"rendered":"Startup Series Part 4: IP and Design"},"content":{"rendered":"\n<figure class=\"wp-block-image alignnone size-large wp-image-30471\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"678\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/09\/yizheng-duanmu-tXFbYqCimhI-unsplash-1024x678.jpg\" alt=\"\" class=\"wp-image-30471\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/09\/yizheng-duanmu-tXFbYqCimhI-unsplash-1024x678.jpg 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/09\/yizheng-duanmu-tXFbYqCimhI-unsplash-300x199.jpg 300w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/09\/yizheng-duanmu-tXFbYqCimhI-unsplash-768x509.jpg 768w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/09\/yizheng-duanmu-tXFbYqCimhI-unsplash-640x424.jpg 640w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/09\/yizheng-duanmu-tXFbYqCimhI-unsplash-1200x795.jpg 1200w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/09\/yizheng-duanmu-tXFbYqCimhI-unsplash-1920x1272.jpg 1920w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><figcaption class=\"wp-element-caption\">Photo by Yizheng Duanmu on Unsplash<\/figcaption><\/figure>\n\n\n\n<p>Here we answer some commonly asked questions about different documents start ups require and how to choose the right one for each different scenario:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-i-have-a-co-founder-who-has-built-a-software-as-a-service-saas-software-and-i-wish-to-have-the-intellectual-property-rights-of-this-software-transferred-to-the-company-which-document-should-i-use\">I have a co-founder who has built a software-as-a-service (SaaS) software, and I wish to have the intellectual property rights of this software transferred to the company, which document should I use?<\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">You may be looking for the <\/span><a href=\"https:\/\/zegal.com\/assignment-of-rights-in-software\/\"><b>Assignment of Rights in Software<\/b><\/a><span style=\"font-weight: 400;\">, which is a document for transferring all rights in software. This document will specify the name and details of the software, and all the relevant details for the transfer of the software.&nbsp;<\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-what-s-the-difference-between-assignment-of-ip-rights-and-assignment-of-rights-in-software\">What&#8217;s the difference between Assignment of IP rights and Assignment of Rights in Software?<\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">The <a href=\"https:\/\/zegal.com\/assignment-of-intellectual-property-rights\/\">Assignment of Intellectual Property Rights<\/a> covers patents, registered designs and trademarks (and many other subcategories) while the <a href=\"https:\/\/zegal.com\/assignment-of-rights-in-software\/\">Assignment of Rights in Software<\/a> deals (as you might expect) with intellectual property related to software. In most situations it will be quite simple to distinguish the difference between the two. Therefore, one must use an Assignment of Rights in Software whenever the subject matter is a software. Otherwise, an assignment of intellectual Property Rights should be used.&nbsp;<\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-if-my-product-has-users-from-multiple-countries-do-i-need-to-list-them-one-by-one\">If my product has users from multiple countries, do I need to list them one by one?<\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">It is better to list as many countries as applicable, to ensure maximum coverage. The more protection an IP right has, the less likely the IP right will be copied by others.&nbsp;&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-what-counts-as-design\">What counts as &#8220;design&#8221;?<\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">&#8220;<\/span><b>Design<\/b><span style=\"font-weight: 400;\">&#8221; is the overall appearance of a product. Design results from one or more visual features, including shape, configuration, pattern, and ornamentation. When the visual features are applied to a product, they give the product a unique appearance. To protect a design one must know if they actually own the design. <span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Please add this sentence after the arrow: \\nYou should always consider the importance of intellectual property when developing your small business logo design.&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:513,&quot;3&quot;:{&quot;1&quot;:0},&quot;12&quot;:0}\">You should always consider the importance of intellectual property when developing your <a href=\"https:\/\/freelancelogodesign.com\/blog\/4728\/\">small business logo design<\/a>.<\/span><\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">If a person owns a design he\/she will fall under one of the following categories:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\"><a href=\"https:\/\/graphically.io\/\" class=\"ek-link\">Hired the designer<\/a> to make the design;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Created the design;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Was given the design in writing by the designer; and or<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Employer of the designer. If the design was created by the employee during his course of employment.&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">Whenever two or more people own an interest in a design, they must apply jointly. The owner of a design must not necessarily be a person. The owner of a design can be a company, a person, an association and or a partnership. However, when the design is owned by a company, association, and or partnership, the design must not be registered using a trading name or a trust.&nbsp;&nbsp;&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">After the ownership of a design is established one must:&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Research thoroughly to avoid infringing someone else&#8217;s IP, as the design might already exists;&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Consider if an IP insurance is needed;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Educate their staff on their contractual obligations by making them sign a <\/span><a href=\"https:\/\/zegal.com\/non-disclosure-agreement\/\"><b>confidentiality agreement<\/b><\/a><span style=\"font-weight: 400;\">;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Consider whether the opinion of an IP professional is needed.&nbsp;&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-what-contract-should-we-use-if-we-have-someone-designing-our-logo-for-us-and-we-want-to-make-sure-that-they-will-release-full-ownership-to-us-after-the-work-is-done\">What contract should we use if we have someone designing our logo for us and we want to make sure that they will release full ownership to us after the work is done?<\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">&nbsp;The assignment of the IP rights will usually be part of the agreement signed for providing the services. The following documents related to services:<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">(1) A <\/span><a href=\"https:\/\/zegal.com\/freelance-agreement\/\"><b>Freelance Agreement<\/b><\/a><span style=\"font-weight: 400;\"> is a short-form contract between a freelancer and a client for the provision of services. It contains a clause for IP.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">A Freelance Agreement can be used in the form of an email, for example, whenever the freelancer and client live in different countries. However, an email should not be used when a freelancer and a client live in the same country.&nbsp; When working with a local client, for instance, one should have a legally binding, written contract, to help prevent uncertainty. Such a document, a Freelance Agreement, is fundamental, especially when working with one time clients. A Freelance Agreement contract, like the one provided by Zegal includes:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Basic information (name, address\u2026)&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">The aim of the project (outline of project and aim)&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Revisions (how many revisions one offers, and how much it will cost for extra revisions)&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Pricing ( price (hourly rates) must be clear)&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Deadlines and cancellations (when the product will be delivered and who will pay for the work if the order is cancelled)&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Copyright and ownership (section will specifically state who owns the copyright rights)&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Choice of law clause (section will state that the two contractors will go to court in case of disagreement)&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">(2) A <\/span><a href=\"https:\/\/zegal.com\/supply-of-services-agreement\/\"><b>Supply of Services Agreement\/Contract<\/b><\/a><span style=\"font-weight: 400;\"> is a contract between a supplier and a customer for the provision of specified services. It contains a clause for IP. This contract provides a useful starting point for a variety of different services. The negotiations and services provided by this contract will be adjusted and varied based on each individual contract. It is a very complex contract that should not be constructed without the guidance of a specialist company like Zegal, as it varies constantly.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">(3) A <\/span><a href=\"https:\/\/zegal.com\/consultancy-agreement\/\"><b>Consultancy Agreement<\/b><\/a><span style=\"font-weight: 400;\"> is a contract by which a company engages a consultant to provide services as an independent contractor. It contains a clause for IP. A Consultancy Agreement should be used if:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">The scope of the work provided needs to be defined&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">The terms of payment must be clarified&nbsp;<\/span><\/li>\n\n\n\n<li>Intellectual Property needs protection<\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">The business relationship needs to be defined<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">The Assignment will implement that the transaction is completed by all parties. If one party does not successfully fulfil their part of the contract, the Assignment (contract) will implement the task on the relevant party.<\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-i-need-to-assign-intellectual-property-from-an-entity-in-one-jurisdiction-e-g-hk-to-an-entity-in-a-different-jurisdiction-e-g-singapore-can-i-use-one-single-document-originating-in-one-of-the-jurisdictions-or-do-i-need-to-create-another-separate-document-originating-the-other-jurisdiction\">I need to assign Intellectual Property from an entity in one jurisdiction (e.g. HK) to an entity in a different jurisdiction (e.g. Singapore). Can I use one single document originating in one of the jurisdictions, or do I need to create another separate document, originating the other jurisdiction?<\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">The Assignment of Intellectual Property Rights sets out the transfer of ownership between the seller and the buyer of a company&#8217;s intellectual property. Since the signing of the document by both represents the two parties in agreement, you will only need <\/span><b>one document<\/b><span style=\"font-weight: 400;\"> when assigning intellectual property from one company to another.<\/span><\/p>\n\n\n\n<p><b>Do not<\/b><span style=\"font-weight: 400;\">:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Sign two different documents&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Allow only one party to sign the document&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">Therefore, <\/span><b>one should<\/b><span style=\"font-weight: 400;\">:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Have both parties sign the document.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Ensure there is a mutual agreement from all parties involved.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Only one document should be present and signed during all transactions.&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-there-is-an-existing-mobile-app-by-another-company-we-want-to-buy-over-we-are-not-buying-the-company-only-the-project-and-all-the-intellectual-property-of-the-project-as-well-as-buying-the-name-of-the-app-also-we-want-to-buy-over-the-complete-rights-of-the-ip-as-an-asset-which-document-should-we-use\">There is an existing mobile app by another company we want to buy over. We are not buying the company, only the project and all the intellectual property of the project. As well as buying the name of the app. Also we want to buy over the complete rights of the IP as an asset. Which document should we use?<\/h4>\n\n\n\n<p><b><a href=\"https:\/\/zegal.com\/assignment-of-intellectual-property-rights\/\">Assignment of Intellectual Property Right<\/a> <\/b><span style=\"font-weight: 400;\">is the document you should use.&nbsp;<\/span><\/p>\n\n\n\n<p><b>One must:<\/b><span style=\"font-weight: 400;\">&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Ensure that ones company can comply with all the terms and conditions.&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Make all parties to the transaction sign the document.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Ensure that there is a \u2018meeting of the minds\u2019. Where all parties understand and comply with the terms of the contract.&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Ensure that the company selling the IP understands that once the transaction is completed they no longer have any rights over the IP, including the name of the app, and the mobile app.&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<p><b>Do not:<\/b><span style=\"font-weight: 400;\">&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Base the contract only on a verbal agreement.&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Allow only one party to sign the contract.&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Make your own company sign the Assignment of IP knowing that the company will not be able to comply to the terms and conditions.&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-i-will-be-hiring-third-parties-to-deal-with-translation-and-logo-design-etc-in-that-case-is-it-appropriate-to-use-the-copyright-assignment-literary-work-for-the-translation-and-assignment-of-ip-rights-for-the-logo\">I will be hiring third parties to deal with translation and <a href=\"https:\/\/logowiz.app\/\">logo design<\/a> etc. In that case, is it appropriate to use the Copyright Assignment (Literary Work) for the translation, and Assignment of IP Rights for the logo?<\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">You could use a <\/span><a href=\"https:\/\/zegal.com\/consultancy-agreement\/\"><b>Consultancy Agreement<\/b><\/a><span style=\"font-weight: 400;\">, which includes provisions where you can make sure any intellectual property rights in the work done in the course of the agreement will belong to you, regardless of type.<\/span><\/p>\n\n\n\n<p class=\"has-text-align-center\"><b><i>This article does not constitute legal advice.<\/i><\/b><\/p>\n\n\n\n<p class=\"has-text-align-center\"><i>The opinions expressed in the column above represent the author\u2019s own.<\/i><\/p>\n\n\n\n<p class=\"has-text-align-center\"><span class=\"s1\"><a href=\"https:\/\/register.zegal.com\/\"><b>Start managing your legal needs with Zegal today<\/b><\/a><\/span><\/p>\n\n\n\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/startup-series-part-3-ip-and-employment-agreements\/\">RELATED READING: Startup Series Part 3: IP and Employment Agreements<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/startup-series-part-2-using-an-ip-assignment\/\">RELATED READING: Startup Series Part 2: Using An IP Assignment<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/common-startup-mistakes\/\">READ MORE: 21 Common Startup Mistakes<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here we answer some commonly asked questions about different documents start ups require and how to choose the right one for each different scenario: I have a co-founder who has built a software-as-a-service (SaaS) software, and I wish to have the intellectual property rights of this software transferred to the company, which document should I [&hellip;]<\/p>\n","protected":false},"author":64,"featured_media":30471,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[46],"tags":[6830,8826,10307],"usecases":[13750],"businesstypes":[13696],"country":[],"class_list":["post-30222","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ip","tag-ip","tag-software","tag-z-syndicate","usecases-protect-your-ip","businesstypes-saas-zone"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Startup Series Part 4: IP and Design | Zegal New Zealand<\/title>\n<meta name=\"description\" content=\"We answer common questions about IP and design documents that startups frequently ask. 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