What Are Key Clauses to Protect Intellectual Property in a Business Contract?

Intellectual property is often an integral component for commercial success, so it’s essential that it’s properly protected in any business relationship. A business contract lawyer in Las Vegas, NV can draft appropriate clauses that clarify the ongoing ownership of intellectual property and set out the circumstances in which it can be used. Having a clear contract in place ensures that if there are any breaches, legal action can be taken.

What Kinds of Risks Exist for Intellectual Property Use?

Sharing confidential information may sometimes be unavoidable when partnering with others, but this presents potential risks. Some of the possible problems could include:

• Theft of intellectual property
• Infringement of agreed use of intellectual property
• Disclosure of confidential information
• Reverse engineering
• Failure to adhere to agreed standards, causing reputational damage

The most effective way to guard against any intellectual property issues is the use of key clauses within a contract. These must be drafted correctly to make them legally enforceable, so it’s essential to seek advice from a lawyer who specializes in business.

How Can a Business Contract Provide Protection?

Having a clear business contract ensures that all parties understand what is permitted and what the consequences of any breach will be. This prevents accidental misuse and may also deter any malicious or deliberate breaches. If you have to take legal action due to a breach, having a clear contract ensures that you can prove all parties were aware of the terms of permitted use.

What Key Clauses Should Be Included?

The terms of any contract will depend on the nature of the business, but should typically include:

• Definition of intellectual property
• Ownership of deliverables and any exceptions
• Confidentiality and non-disclosure
• Licensing terms
• Assignment of rights to a third party
• Reservations and restrictions
• Moral rights provision
• Indemnification for losses
• Penalties for misuse or breaches, including termination terms
• Dispute resolution procedures

The key clauses should seek to cover the entire journey of any product or service relating to intellectual property, clarifying ownership and liability at each stage. The contract should also ensure that there is no way intellectual property can be shared with a third party or made public without clearly defined penalties.

Consult a Business Contract Lawyer in Las Vegas

The clauses that should be included in any business contract are wide-ranging and should be specific to the product and industry. It’s also essential that they are legally enforceable, as otherwise the contract offers no protection. For this reason, it’s vital to use an experienced business contract attorney to draft the contract terms. It’s also advisable to use a local attorney who is familiar with the intricacies of Nevada law.

As business owners ourselves, we understand the importance of robust contract terms. We have drafted contracts for many business owners, executives, and professionals, as well as helped with cases of intellectual property misuse. To discuss how we could help you today, contact Hutchings Law Group in Las Vegas, NV to schedule a consultation. 

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