What is Startup Legal Portal?

Access legal expertise with Startup Legal Portal, featuring 7 essential guides and over 100 FAQ items for founders and tech companies.

If I wrote the code before incorporating, who owns it?

Without a formal IP assignment, the founders personally own the pre-incorporation IP — not the company. An IP assignment agreement transfers ownership to the company, which is essential before fundraising.

Do contractors automatically assign IP to the company?

No. By default, contractors often retain ownership of what they create. A written IP assignment clause is required for the company to own contractor-produced code.

Will investors check IP during due diligence?

Yes. Weak or missing IP assignment is a common due-diligence finding that can delay or derail a round. Clean IP ownership is essential.

Do I need an NDA before sharing my idea with investors?

Many investors won't sign NDAs, but you should use them with contractors, partners and vendors. For investors, careful disclosure is often more practical than an NDA.

Startup Intellectual Property Lawyer in Israel

Protecting the code, the product and the idea — IP assignment, NDAs and trade secret protection that make the company own its assets.

Summary

Intellectual property is a startup's most valuable asset — the code, product, brand and know-how. Yet many founders build the product before incorporation, or with contractors and employees, without formally assigning the IP to the company. The result: the company doesn't own its own product. Proper IP protection includes IP assignment agreements (from founders, employees and contractors), NDAs, trade secret policies, and trademark registration where relevant. Investors check this in due diligence — and weak IP can kill a round.

When do you need this?

You built a product before incorporation and the IP is not assigned to the company.
You are hiring employees or contractors who will create code or content.
You are about to raise capital and investors will run IP due diligence.
You shared your idea with investors or partners without an NDA.
You want to register a trademark or protect your brand.

Common legal problems

IP created by founders before incorporation is never assigned to the company.
Contractors retain ownership of code they wrote for the company.
No NDAs signed before sharing the idea or business plan with investors.
Trade secrets not protected by policy or contract.
Brand name used without a trademark check or registration.

Documents to review

IP Assignment Agreements

Non-Disclosure Agreements (NDAs)

Employment and Contractor Agreements

Trademark Applications

Invention Assignment Clauses

Need legal guidance?

Schedule an initial consultation with Adv. Zion Bahalul.

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Mistakes founders make

✕Founders keep personal ownership of pre-incorporation IP — the company doesn't own its product.

✕Using contractors without IP assignment — they own what they write.

✕Sharing the business plan with investors without an NDA.

✕No internal trade-secret policy — information leaks with no recourse.

✕Launching a brand without checking it doesn't infringe someone else's trademark.

How the process works

Audit of who created the IP and whether it is assigned to the company.

Drafting IP assignment agreements for founders, employees and contractors.

NDAs for investors, partners and vendors.

Trademark strategy and registration where relevant.

Internal trade-secret and confidentiality policy.

How Adv. Zion Bahalul can help

IP assignment agreements to ensure the company owns its product.
NDAs for investors, employees, contractors and partners.
Contractor and employment agreements with invention-assignment clauses.
Trademark registration and brand protection.
Trade-secret policy and confidentiality framework.
IP due-diligence readiness for fundraising.

Frequently Asked Questions

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Adv. & Notary Zion Bahalul

Startup Lawyer · Israel

Adv. Zion Bahalul provides legal counsel to founders, startups, tech companies and investors — from incorporation through fundraising, IP and ongoing counsel. Services in Hebrew, English and Spanish.

The information on this site is general information only and does not constitute legal advice. Each case depends on its circumstances, and it is advisable to obtain individual legal advice before making a decision or signing a document.