Intellectual Property

Protecting what you build — software, data, and trade secrets

Overview

Software companies often underinvest in IP protection until something goes wrong — a competitor copies their product, a key employee leaves with proprietary code, or a vendor claims ownership of work they built. The legal framework for protecting technology IP involves multiple overlapping regimes: copyright protects source code automatically at creation; trade secret law protects confidential information that provides competitive advantage; patents can protect novel software methods and systems; and contracts govern what happens to IP in every business relationship you enter.

One underappreciated IP issue for tech companies is open source compliance. Every tech company uses open source software — the question is whether they're tracking what they use and complying with the license terms. Copyleft licenses (GPL, AGPL especially) impose obligations that can require you to release your own proprietary code if not handled correctly. AGPL is particularly relevant for SaaS companies — its network use provisions mean that even running AGPL software on a server without distributing it may trigger share-alike obligations. An open source audit and policy should be a standard part of any tech company's IP program.

Federal Laws

Federal
Bayh-Dole Act
Bayh-Dole
Governs IP rights in federally funded research. Allows grant and contract recipients to retain patent rights to inventions. Government retains a royalty-free license and march-in rights. Critical for any tech company receiving federal R&D funding or SBIR/STTR grants.
Federal
Copyright Act
Copyright Act
The foundational federal law protecting original works of authorship. Copyright attaches automatically upon fixation; registration is not required for protection but is required before suing for infringement and to recover statutory damages.
Federal
Defend Trade Secrets Act
DTSA
Created a federal civil cause of action for trade secret misappropriation. Lets companies sue in federal court and seek injunctions, damages, and — in egregious cases — seizure of misappropriated materials.
Federal
Defense Federal Acquisition Regulation Supplement
DFARS
DoD-specific supplement to the FAR. Contains stricter requirements on technical data rights, software rights, and cybersecurity (CMMC). CMMC program effective November 2025 requires third-party cybersecurity certifications for DoD contractors.
Federal
Digital Millennium Copyright Act
DMCA
Establishes safe harbors for online service providers against liability for user-uploaded infringing content, provided they implement notice-and-takedown procedures. Critical for any platform hosting user-generated content.
Federal
Open Source Licensing Frameworks
OSS Licenses
Not a single law but a critical compliance area. Open source licenses create legally binding obligations when you use, modify, or distribute open source software. Key license families: Permissive (MIT, Apache 2.0, BSD — few obligations, allow proprietary use); Weak Copyleft (LGPL, MPL — share-alike requirements apply only to the licensed component); Strong Copyleft (GPL, AGPL — require distributing source code of the entire combined work). AGPL is particularly significant for SaaS companies — network use may trigger copyleft obligations even without distributing software. Every tech company needs an open source policy.
Federal
Patent Act
Patent Act
The federal law governing patents for inventions and designs. Establishes the USPTO, defines patentable subject matter, and creates enforcement rights. Patent eligibility for software remains a contested area post-Alice.
Federal
Stevenson-Wydler Technology Innovation Act
Stevenson-Wydler
Promotes technology transfer from federal laboratories to the private sector. Relevant for tech companies seeking to license federally developed technology or partner with federal labs.
Federal
Technical Data and Computer Software Rights
FAR 52.227
FAR contract clauses governing government rights in technical data and computer software. Determines whether the government receives unlimited, limited, or government-purpose rights. Negotiating these clauses is one of the most consequential IP decisions when entering government contracting.

How Jurisdictions Differ

Copyright and patent law are federal — uniform across the US. Trade secret law is largely uniform through the federal Defend Trade Secrets Act, though states have their own trade secret laws that may provide additional protections. For international IP, the landscape varies significantly. Patent protection requires country-by-country filings. Copyright protection is generally automatic in Berne Convention countries (most of the world) but enforcement varies dramatically. The EU has specific database protection rights that don't exist in the US. China's IP enforcement environment is distinct and requires specific strategy.

Official Resources

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