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Licensing Agreements for Startups: Turning Your IP into Revenue
Licensing your intellectual property - whether it’s code, brand, or content - can be a smart way to scale without manufacturing or selling yourself. But founders need to tread carefully: Licensing Agreements involve handing over rights to your most valuable asset.
Expanding Your Reach: What Startup Founders Should Know About Distribution Agreements
If your startup sells physical products or software, you may eventually need help reaching customers in new markets. A distribution agreement can be a powerful way to expand without building a large internal sales team.
Manufacturing Agreements for Startups: Legal Basics Behind the Build
If your startup builds physical products - hardware, wearables, or consumer goods - you need more than a handshake with your manufacturer. A well-drafted manufacturing agreement is essential to protect your product, control quality, and limit liability.
Getting Vendor Agreements Right: A Legal Checklist for Startup Founders
As your startup grows, so does your list of vendors - design agencies, cloud providers, contractors, and SaaS platforms. Every one of those relationships should be backed by a Vendor or Service Agreement that protects your interests and sets expectations.
FAQs
Open allWhy is employee classification so important?
Misclassifying employees as contractors or exempt workers can lead to back pay claims, penalties, and lawsuits.
What happens if my startup doesn’t have a Privacy Policy?
You risk fines under laws like GDPR and CCPA, removal from app stores, and loss of user trust.
How often should a Privacy Policy be updated?
At least once a year, or whenever you change your data practices, adopt new tools, or when laws change.
What’s the difference between a Privacy Policy and Terms of Service?
A Privacy Policy explains how you handle user data. Terms of Service govern how users interact with your platform. Both are essential.
Do all startups need a Privacy Policy?
Yes. If you collect any personal data - emails, IP addresses, or cookies - you need one. Most app stores and ad networks also require it.
Can I use a template for my Terms of Service?
Templates are a starting point, but your TOS should be customized to your business model, user base, and compliance obligations.
What’s the difference between Terms of Service and a Privacy Policy?
TOS govern how users interact with your platform, while a Privacy Policy explains how you collect, use, and store their personal data.
Do all startups need Terms of Service?
Yes. Any business with a website, app, or platform should have TOS to set user expectations and limit liability.
Are Terms of Service legally binding?
Yes - if properly drafted and accepted (usually through clickwrap), TOS create an enforceable contract between you and your users.
Can a Partnership Agreement be changed later?
Yes. Agreements should be reviewed and updated as the business grows or circumstances change.
Is a Partnership Agreement legally binding?
Yes. As long as it’s properly drafted and executed, it sets enforceable rules for ownership, profit-sharing, and decision-making.
Do I need a Partnership Agreement if I trust my co-founder?
Yes. Even the strongest relationships benefit from clear rules. A written agreement prevents misunderstandings and protects both parties if circumstances change.
When should a startup replace an MOU with a contract?
When the relationship involves money, intellectual property, or liability risk, you should transition from an MOU to a formal agreement.
Can MOUs be enforced in court?
Courts may enforce MOUs if they look like contracts—for example, if they include payment terms or obligations. To avoid confusion, clearly state whether the MOU is binding.
How is an MOU different from a contract?
Contracts create enforceable obligations. MOUs generally outline intentions and expectations but stop short of legal enforceability.