Bad Contract can be Expensive and Litigious.
Does not matter, if you are using employees, contractors, consultants, or other companies to develop your IP, it is smarter that there be a contract with that person or entity before work is started. In the age of digitalisation, intellectual property is ubiquitous in companies. IP rights may be sold or licensed or even given away.
Bad IP contract takes place at the beginning of the work and the entrepreneur or company most often ignores that the contractor can be designated as a co-owner or the owner of the product or service. It is necessary for each contract to specify who owns the intellectual property created and which will be processed in the future.
IP Contract: questions and answers
The greatest economic value of IP comes from its use in licensing. This can be in the form of product licensing.
to avoid future conflict.