Protecting Your Intellectual Property: Patents, Trademarks & NDAs for Startups
- Lilly
- Apr 9
- 3 min read
In today’s innovation-driven startup landscape, intellectual property (IP) is often your most valuable asset. Whether you’re building AI models, consumer apps, or physical products, protecting your IP is essential to maintaining your competitive edge, attracting investors, and avoiding legal disputes.
This guide breaks down the three most common tools startups use to protect their IP: patents, trademarks, and non-disclosure agreements (NDAs)—and when to use each.
What Is Intellectual Property (IP)?
Intellectual Property refers to creations of the mind that can be legally protected. For startups, this includes:
Product designs and inventions
Company logos, brand names, and slogans
Software code and algorithms
Trade secrets, know-how, and customer lists
Creative assets like copywriting, videos, and images
Protecting your IP from the start reduces the risk of theft, copycats, and disputes down the line—especially during funding or acquisition.
Patents: Protecting Inventions & Innovations
A patent gives you the exclusive right to make, use, and sell an invention for a limited period (typically 20 years in the U.S.).
When to File a Patent:
You’ve developed a novel technology, process, or product
You’re raising capital and need to show defensibility
You want to prevent competitors from copying your core innovation
Types of Patents:
Utility Patents (e.g., software algorithms, devices)
Design Patents (e.g., hardware aesthetics)
Provisional Patents (temporary protection while you develop the product)
Tips:
File a provisional patent early—it gives you 12 months of protection and “patent pending” status.
Work with a specialized IP attorney—patent law is complex.
Keep all documentation (sketches, versions, timestamps) organized.
💡 Pro Tip: Many VC firms prefer startups with filed patents—it shows long-term defensibility.
Trademarks: Protecting Your Brand Identity
A trademark legally protects your startup’s brand assets—names, logos, slogans, and even sounds.
What You Can Trademark:
Company or product names
Logo design
Taglines or catchphrases
Domain names (in some cases)
Why Trademarks Matter:
Prevents others from using confusingly similar branding
Increases your valuation—your brand becomes a business asset
Essential for consumer-facing startups in competitive markets
How to File:
Search for existing trademarks via the USPTO Website
File an application with the USPTO (can take 6–12 months)
Use the ™ symbol until it’s registered, then switch to ®
⚠️ Warning: Using a name without checking trademarks can lead to costly rebranding or lawsuits later.
NDAs (Non-Disclosure Agreements): Protecting Confidential Information
An NDA, or confidentiality agreement, prevents others from disclosing or misusing sensitive information you share.
When to Use NDAs:
Talking to contractors, advisors, or freelancers
Pitching to potential partners or investors (rare, but sometimes for proprietary tech)
Onboarding employees or interns
What to Include in an NDA:
Clear definition of what’s confidential
Time period of the agreement
Obligations of the receiving party
Remedies if the NDA is breached
⚠️ Some investors (especially VCs) won’t sign NDAs—don’t be alarmed. Instead, focus on patent filings and limited disclosures.
Examples: How to Strategically Combine IP Protections
Scenario | Best Tools to Use |
Building a novel AI algorithm | Provisional Patent + NDA |
Launching a DTC brand | Trademark + NDA |
Raising a seed round with proprietary tech | Provisional Patent + Cap Table Clean-Up |
Working with offshore developers | NDA + Secure Code Repositories |
Prepping for acquisition | All of the above, clean and organized |
🚀 Final Thoughts: IP as a Strategic Weapon
Intellectual property isn't just legal protection—it's a strategic asset. A well-protected startup:
Commands higher valuations
Gains leverage in M&A negotiations
Prevents copycats and clones
Builds long-term brand value
Start early, document everything, and invest in smart IP protections. If you're unsure where to begin, work with an IP attorney to create a roadmap tailored to your startup.
This blog is brought to you by Beta University. We help early-stage startups navigate the fundraising process and accelerate their growth.
Our intensive 8-week pre-acceleration program is designed for first-time founders to build VC-fundable businesses with proven know-how from the heart of Silicon Valley.
Some of our recent Alumni companies include Generation Lab (Sequoia), Adsgency AI (HF0), Tutti AI (South Park Commons & Skydeck); Openmart (Y Combinator), Mathgpt pro (Y Combinator), Dreammore AI (A16Z), Final Round AI (HF0), and more.
Reach out to lilly@betauniversity.org to learn more about how we can support your startup in the fundraising journey: www.betauniversity.org