LawRato

Can I start my own business if working for one company


17-Mar-2023 (In Startup Law)

My startup is getting incubated in a firm. I am an employee of the same firm, and it was verbally agreed that I would be developing the product for the firm and then later move on and do my own thing. However I am soon reaching the place where I have completely developed it for the firm and am moving out to start my own. In my employment contract none of it mentioned and neither have they mentioned about IP rights. Since it was only verbally agreed, does the firm stand in opportunity to sue me in case I start the same thing on my own? Could you provide some guidance.

Answers (2)

Answer #1
946 votes
If the company hired you to do a work on hire, then all the rights to the product developed, including source code, customization, designs and anything that can attributed as proprietary (IP), vests with the company. Even if it is not mentioned in the Contract about such IP, still by principle of laws and precedents, the company is the rightful owner. Starting your own business on the same line is linked to your employment terms, if there is a non-compete clause, you may have reasonable restrictions on starting the business. You may get in touch with us for more information and deliberation.
Helpful? LawRato19+ LawRato
Answer #2
726 votes
Is this development activity carried out at the cost of the firm you are working in( means are they paying for the development work)? Are they involved in the development activity?. If answer is yes, then they will have right over the intellectual property. its advisable to have clear written agreement with them about the intellectual property rights before leaving the company and starting new one.
Helpful? LawRato24+ LawRato
Advocate Sandeep Hegde

Adv. Sandeep Hegde

LawRato Bangalore / Bengaluru | 5+ Answers
Chat with Advocate Sandeep Hegde Chat 

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.

Report abuse?

Connect with top Startup lawyers for your specific legal issue
Connect with a Lawyer
Comments by Users

No Comments! Be the first one to comment.

"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

All Answers

Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

LawRato