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IP contribution of partner and unilateral breach of association without compensation.

  • Thread starter Thread starter lifexpert
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lifexpert

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I was invited by an Internet start up project entrepreneur to assist him in the planning of the project in order to attract initial funding.

The verbal agreement supported by a document which was not signed, in the presence of a third party and at a lawyers office, was that-;

-the participants will be shareholders and in my case a ten (10) percent share in the project/company.

Recently I made a suggestion on a new Internet Domain Name and I suggested that if and when the Domain Name was successfully registered, that a sum of US$ 50,000.00 may be credited in my favour within the company.

This claim has upset the entrepreneur and I received an email that upon legal advice from his lawyer, he has unilaterally decided to terminate the relationship and any claims to the shares in the future.

Furthermore, he claims that, all participants in the project should work for the project free of charge and any inventions or creations made by the participants are the property of the company. And the creator/participant loses all claims to such property.

I understood from my previous experience that a company may claim all rights to IP of an employee during his/her tenure of direct employment.

Can an entrepreneur claim to all IP of a partner who is giving some of his time to the project? Has he a rightful claim on all IP activity?

During the course of my association, I have provided with management guidence, introductions to various persons and participants, and submitted him with information which was of use to his project.

Based on these facts, can the entrepreneur unilaterally and summarily dismiss a partner in his project without any right to defence or any compensation?

Readers comments are most welcome.
 



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