What happens to the IP when the company is shut down?


A startup I know was recently closed down by its investors. What happens to the technology that the startup had developed in this situation? I presume from context that the developers can't just take the code (and art, data, etc) and keep working on it themselves, but what generally is done with it in these cases? Would the startup (theoretically; if they want it) keep a copy of everything developed, with the potential option of selling it or starting a new company to resume work on it? Is it just summarily deleted?

Also, what would prevent the developers from just stating over, based on what they remember of the code, aside from lack of time and money?


Answers: 3 public & 0 private

Other Consultant

In order to protect your IP, and assure the value of it, independent of the sake of the company, you could consider an escrow-arrangement with the company-stakeholders (shareholders, investors, team-members, customers) as beneficiaries.
The developing company deposits its knowledge and technological assets with an escrow agent who acts as a trusted third party.
In case the company is shut down, or at the occasion of other predefined incidents, the IP remains available to these beneficiaries. They can continue using it and thus benefit from it.
From the point of view of the user of the technology (e.g. customers), this is a sound business continuity measure, part of any serious corporate governance policy.

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