The Hardware Startup

Chapter 11. Legal

This chapter provides a broad overview of some of the legal considerations that hardware startups are likely to encounter. Writing about legal considerations is challenging; there’s no one-size-fits-all strategy that applies to every hardware startup. However, issues such as regulatory compliance, patents, and industry certifications are highly likely to come up as you build your company and sell your product. The material presented here is meant to be a broad overview of the big topics that a founder needs to be aware of. It isn’t legal advice or a substitute for talking to qualified lawyers about your specific situation.

There are six areas of legal complexity that almost every hardware company will encounter:

• Company formation and establishment of a legal entity

• Intellectual property protection

• Contracts (for sourcing, manufacturing, and the sale of finished goods)

• Liability concerns

• Regulatory considerations

• Industry certifications

One lawyer is unlikely to have expertise in all of these areas, so hardware startup founders commonly work with multiple types of lawyer. In the early days, a corporate lawyer will help with entity formation and contracts and can often provide advice about how to handle potential liability issues related to the product. However, most corporate lawyers don’t have extensive experience with patents, so a patent attorney is often needed as well. She can help you navigate complex intellectual property issues. If you’re ...