You Built It.
Make Sure You Own It.
Founders who lose their intellectual property don’t know it until it’s gone.
Founder Story
This is one of the worst founder stories we have heard. And we have heard a lot.
One founder we spoke to is at the top of her field. She hired a highly recommended senior developer to build her platform.
He used it to run his own competing business. Then held her platform hostage. Then routed all her company emails through his server.
She did not just lose money. She lost control of her business.
Most startups do not survive a setback like this.
She is capable. It still happened to her. She just did not know what she was walking into. Most founders do not.
Learn how to protect your intellectual property.
What Is Intellectual Property (IP) and Why Founders Don't Realize They Are Losing It
Intellectual property (IP) is the legal ownership of what you create. In software, that means your code, your design, your data, and the logic that makes your product work.
If you don’t have it in writing, you may not own it at all – even if you paid for it.
In Canada and the United States, a contractor retains ownership of code they write unless a contract explicitly says otherwise. In our experience, most contracts are not written to protect you. They are written to protect the person you are paying.
By the time most founders figure this out, they have already handed over time, money, and control to the wrong person.
The Three Ways Founders Lose Their IP
The dev shop that never hands over the keys
You pay for the build. You launch. Then you realize the agency still controls the codebase, the servers, or the proprietary components underneath your product. You are renting what you thought you owned.
The developer or your technical partner who walks and takes the code with them
No handoff. No source code. Just silence. And a product you cannot touch, modify, or maintain without starting over from scratch.
The trusted partner who becomes the threat
The worst. A developer with full access to your platform uses it for themselves: to build a competing business, hold your systems for ransom, or intercept your communications. When it happens, it’s devastating.
Another Story
This one cost a founder everything he had.
Another founder we met hired a development team overseas. He put in $100,000. His entire savings.
Every time he followed up, the answer was the same. Almost done. Just a little more money to finish it off.
He never got his app. They kept his money. They kept his IP. He went to government officials for help. But there was nothing they could do.
He lost everything he had put in.
Warning Signs You May Not Own Your IP
Before you pay another invoice, check these:
- Your developer controls access to the code repository, the system where your code is stored (like GitHub or GitLab)
- You've never seen a contract that explicitly says you own the work
- Your app runs on hosting accounts controlled by the developer, not you
- You don't have your own login credentials to your servers, database, or domain
- You never signed a non-disclosure agreement (NDA) before work began. An NDA is a legal document that prevents the other party from sharing or using your confidential information.
If any of these are true: stop. Get legal advice before you pay anything else.
If you paused on even one of those, trust that instinct. Most founders who lose their IP knew something felt off. They just did not know what to do with that feeling. Now you do.
What It Costs When IP Is Lost
Recovering from an IP dispute is expensive and slow. Legal costs add up quickly. Rebuilding from scratch adds more. And none of it accounts for the months your business sits still while you fight to get back what should have been yours from the start.
Not sure where you stand? Start here.
Most founders have never seen this checklist. Read it before you sign anything.
Free. No email sequence. Just the checklist.
What Protecting Your IP Actually Looks Like
Whether you work with us or someone else, these are the basics. Do not skip them.
1
Get an IP assignment clause in your contract.
The contract should state, in plain language, that all work created for you is owned by you. Not the developer. Not the agency. You.
2
Sign a non-disclosure agreement before any conversations begin.
Before you share your idea, your data, or your product plans, get an NDA signed. This protects you if the relationship breaks down.
3
Own every account yourself.
GitHub, AWS, Google Cloud, your domain registrar, every account should be registered to you. You grant access to your developers. They do not own the accounts.
4
Maintain access to your codebase at all times.
You should be able to see, download, and hand off your own code whenever you want. If a developer resists this, that is a red flag.
5
Do a mid-project audit.
Before the halfway mark on any build, confirm you have access to everything you are paying for.
How New Idea Machine (NIM) Handles IP
We built our contracts around one principle: you own what you pay for. From the first line of code.
Here’s what that means in practice:
- Full IP ownership is in writing from day one. Assigned to you, not to us.
- Your code lives in your repository, on your accounts, under your control.
- You can leave anytime. We want you to stay because you love working with us, not because you have to.
- We bill time and materials only. No inflated fixed bids.
- If you don't need a custom build yet, we will tell you. One founder came to us ready to spend $30,000 on a custom social platform. We sent her to a $100 per month tool instead. She needed to validate her community first.
Whether you are about to hire your first developer or you are already mid-build, we are happy to take a look. It costs you nothing to get a second set of eyes on a contract before you sign.
You Built It. Make Sure You Own It.
If something feels off with your current build, or you want to start your next one the right way, talk to us. We will tell you what we see, honestly.
No pitch. No pressure. Just a straight conversation.