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IP & Ownership of Work

In 2013, Reggie Brown sued his Snapchat cofounders, Evan Spiegel and Bobby Murphy. He claimed they stole his idea: an app where messages vanish after being sent. Brown said he not only conceived the concept but also shook hands with Spiegel to serve as CMO. He claimed credit for the original name "Picaboo," the ghost logo, and even a draft patent for the disappearing-message technology.

Not long after they started, the partnership unraveled. Brown alleged he was locked out of company accounts and cut off all communication. One day a cofounder, the next day erased entirely. After a long legal battle, Snapchat settled, paying Brown $157 million.

Without being specific about IP, even college buddies can turn on each other.

Pre-existing IP (called "prior inventions") needs to be disclosed and addressed so there's no confusion about who owns what once the company is formed.
Has any cofounder created code, designs, or other assets before joining the company that might be used in the business?
This assignment clause is standard in cofounder agreements and ensures the company owns what its founders build.
Acknowledge IP assignment to the company

I acknowledge that all inventions, discoveries, designs, developments, improvements, processes, works of authorship, trade secrets, and other intellectual property conceived, created, developed, or reduced to practice by the Cofounder, either alone or with others, in the course of their work for the Company or using the Company's resources, shall be the sole and exclusive property of the Company.

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