Question
Hello! As a startup, we are often told to seek legal advice early do avoid huge problems and costs later. This seems to be especially true regarding Intellectual Property, which is probably what constitutes most of our value as a company at this point. However, as a startup we are also operating on a very tight budget, so it seems a bit unrealistic to hire a law firm for all kinds of legal issues. What would be the best approach here? Naturally, we would like to build a relationship with an individual lawyer/law firm, but that is expensive. Hiring a specialist here and there and trying to figure out the broader issues for ourselves does not sound like a great idea either. What is a good way for a startup to gain comprehensive legal coverage early, without over-stretching our finances?
Answers: 2 public & 2 private
I agree with Prateek Jindal, and would add the following. It is key to understand what your top priorities are in building your business. Some form of incorporation is likely needed. It would be best to consult with a corporate attorney to understand which structure is appropriate for your business plan. If you have a novel technology, then patents may need to be high on your list of importance because you face the potential loss of rights if you do not file patent applications before publicly disclosing or selling your invention, or the like. Other areas of IP like trademarks and copyrights can often be dealt with later. It is best to seek out a law firm that 1) has a reputation of working with startups, and 2) has attorneys under one roof that can advise you in the legal areas that you have identified as being the top priority (e.g., a corporate and intellectual property firm). That makes coordination between the attorneys from different practice areas much easier because they are just down the hall from each other. It also makes your time more efficient in your interactions with the firm. And you need to spend as little time as possible on legal matters, with most of your focus on building the business.
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