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The legal protection of a business plan

10. July 2024
in Other
Reading Time: 3 mins read
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Key Facts
  • A business plan is a strategic document for start-ups and is used for business development and as a presentation tool for investors.
  • Ideas are not eligible for protection; however, texts and graphics may be protected by copyright.
  • The basic business idea and general concepts are usually not legally protected.
  • Non-disclosure agreements (NDAs) help to protect the sensitive content of the business plan.
  • Clear written agreements promote the handling of intellectual property in the start-up team.
  • Team-building activities and transparent decisions are important for building trust.
  • Legal safeguards should be combined with trust and cooperation.

A business plan is an indispensable strategic document for start-ups and company founders. It serves as a roadmap for business development and as a presentation tool for potential investors. But what about the legal protection of its content? This question concerns many founders who fear that their innovative ideas and carefully developed strategies could be copied by others. This blog post sheds light on the legal aspects of a business plan, explains which elements are protected and which are not, and provides practical tips for handling sensitive business information in the startup team.

Content Hide
1. What is legally protected in the business plan?
2. What is not protected?
3. How can the business plan be additionally protected?
4. Dealing with the business plan in the start-up team

What is legally protected in the business plan?

As a general rule, ideas and concepts in themselves are not eligible for protection. This may sound sobering for many founders at first, but it is an important foundation of innovation law. However, the specific content and design of a business plan may be partially protected by copyright:

  • Texts and formulations: The specific linguistic elaboration enjoys copyright protection if it reaches a certain level of creativity. This refers to the specific way in which the ideas are expressed and presented, not to the ideas themselves.
  • Graphics, tables, diagrams: Independently created visual elements may be protected by copyright. This includes unique representations of data, processes or structures.
  • Financial plans and calculations: Detailed calculations can be protected as database works if they have a special structure or methodology. The protection relates to the way in which the data is compiled and presented.

What is not protected?

The following elements of a business plan are generally not legally protected:

  • The basic business idea: The central idea or concept of the company is not eligible for protection. Others can pursue and implement similar ideas.
  • General concepts and strategies: Overarching business strategies or market approaches are not protected. They can be taken up and applied by others.
  • Market analyses and assessments: General market information and industry analyses are not protected by copyright as they are based on publicly available data.
  • Pure facts and data: Objective information and statistical data used in the business plan do not enjoy copyright protection.

How can the business plan be additionally protected?

The following measures can be taken to better protect the sensitive content of the business plan:

  • Conclude non-disclosure agreements (NDAs) with all parties involved: This creates a legal obligation of confidentiality for all those who have access to the plan.
  • Register property rights such as patents or trademarks: For technical innovations or specific brand elements, consideration should be given to registering corresponding property rights.
  • Only pass on excerpts of the business plan or omit critical details: This way, important information can be protected without revealing the entire concept.
  • Document copyright protection through dating and signature: Careful documentation can be helpful to prove authorship in the event of a dispute.

Dealing with the business plan in the start-up team

Working together on a business plan in a young start-up team always carries the risk of individual members using the content for their own purposes. To prevent this, the following steps are advisable:

  1. Open communication: Talk to the team at an early stage about possible scenarios and expectations regarding the use and confidentiality of the jointly developed content.
  2. Written agreements: Make clear agreements on the use and confidentiality of the jointly developed content. This can take the form of shareholder agreements or specific cooperation agreements.
  3. Legal protection: Conclude shareholder agreements or cooperation agreements that regulate the handling of intellectual property in detail.
  4. Documentation of contributions: Carefully record who contributed what content to the business plan. This can be helpful in the event of later ambiguities or disputes.
  5. Building trust: Invest in a strong team feeling and shared values to strengthen loyalty. This can be achieved through regular team-building activities, transparent decision-making processes and a fair distribution of responsibilities and potential profits.

Ultimately, the success of a start-up is based on trust and team spirit. Legal safeguards are important, but they are no substitute for cooperation based on trust. A balanced approach that takes both legal protection and trust-building into account forms the best basis for successful collaboration on the business plan and beyond for the entire start-up process.

Tags: BrandsCreation heightPatentsRiskStartups

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