What is Intellectual Property (IP)?
Nexa Consultancy | Startup & Finance Glossary
Intellectual Property (IP) refers to creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and software code. It is a company's most valuable intangible asset.
Why it Matters for Startups:
For a tech startup, its IP is often its primary source of competitive advantage and value. Protecting this IP through patents, copyrights, and trademarks is crucial. During fundraising, investors conduct rigorous due diligence to ensure that the company, and not its founders or employees, unequivocally owns all of its IP. This is why having strong IP assignment clauses in all employment agreements is non-negotiable. For a detailed comparison, see our guide on Trademark vs. Copyright.
Example:
A SaaS company's source code is its core IP, protected by copyright. Its brand name and logo are also IP, protected by a trademark.