Kruze clients are twice as likely to get acquired as the average startup.  Find out why here
Kruze Consulting Navbar Logo
  • (415) 322-1610
  • Contact Us
  • Accounting & Bookkeeping
    Name
    Startup Accounting

    Maximize Your Startup’s Potential

    Name
    Startup Bookkeeping

    Services for High-Growth Startups

    Name
    Strategic Financial Accounting

    Strategic Accounting Boosts Your VC-Funded Startup’s Financial Future

    Tax Services
    Name
    Startup Tax Services

    Tax Services for VC-Backed Startups

    Name
    Startup Tax Returns

    Filing Tax Returns for VC-Backed Startups

    Name
    Delaware Franchise Tax

    Calculate Your Delaware Franchise Tax

    R&D Tax Credits
    Name
    R&D Tax Credits

    Unlock Your Startup’s R&D Tax Credit Potential

    Name
    R&D Tax Calculator

    How much can your startup save in payroll taxes?

    Advisory services
    Fractional CFO & Advisory

    VC Due Diligence

    Startup M&A Accounting

    Financial Modeling Services

    409A Valuations Services

    Part-Time CFOs Services

  • Pricing
  • Name
    About Us

    Learn more about Kruze Consulting

    Name
    Partners

    Our partners are the best in the business

    Name
    Reviews

    See what our clients say about us

    Name
    Careers

    Join our team of startup accounting experts

  • Early-Stage Tax Tips

    Guide to Seed Stage Tax Returns

    Do unprofitable companies need to file tax returns? Yes! Read our tips now.

    Guide to Seed Stage Tax Returns

    Knowledge base

    Name
    Startup Q&A

    Answers to hundreds of startup accounting, finance, HR and tax Q's

    Name
    Blog

    Expert startup accounting advice (and more)

    Name
    Case Studies

    See how we helped our clients save money and grow their businesses

    Top Financial Tips and Resources for Startups

    Name
    Startup Financial Health Tools

    Tips for setting up scaleable financial systems

    Name
    Free Financial Models

    Free to download financial models

    Name
    C-Corp Tax Deadlines

    iCals with federal, state and local compliance deadlines

    Name
    Best VC Pitch Decks

    See more of the best pitch decks ever used

    Name
    CEO Salary Report

    Data on what CEOs are paid

    Name
    Best Startup Credit Cards

    After working with hundreds of startups, we picked the best credit cards

  • (415) 322-1610
  • Contact Us
  1. Home
  2. Blog
  3. How to Protect Intellectual Property With a Global Team

How to Protect Intellectual Property With a Global Team

by
Deel Kruze Consulting

Deel

Last updated: August 1, 2024
Published: May 24, 2022

How to Protect Intellectual Property With a Global Team

 

Worried about intellectual property rights when hiring globally? Learn what you can do to protect your IP when hiring employees and contractors.

Thank you to our friends at Deel for sharing their knowledge on this important topic for startups.

Despite many advantages, global hiring exposes employers to several risks regarding company information. With company data stored in clouds and shared among global teams, ensuring data security and intellectual property (IP) protection is a challenge. 

But it’s mission-critical to protect your IP, maintain your reputation, and avoid legal battles, even if you hire worldwide. Keep reading to learn more about IP and how to keep it safe with a global team.

What is Intellectual Property (IP)

Intellectual property (IP) refers to any creation of your mind, such as an invention, ideas, or product development. Although intangible, these concepts are considered tradable, so they count as legal property.

In a business setting, intellectual property includes any intangible asset owned and protected by an individual or an organization that third parties can’t use or implement without the owner’s consent.

Intellectual property protection matters for companies of all sizes since their products and services make them stand out from the competition and attract potential customers or investors.

Different types of IP include:

  • Patents
  • Trademarks
  • Trade secrets
  • Franchises
  • Copyrights

The challenges of IP in a global context

IP protection is more challenging in distributed teams than in companies that only hire locally. There are several reasons why.

Company data is more exposed

Remote companies without physical offices need to store and share their data in the cloud. Digital data storage and transfer make confidential company information vulnerable to hackers, phishers, and other unauthorized parties. The risk is even higher if employees use personal devices to access company data.

Local laws regarding IP may vary

In most countries, employers keep IP rights unless their contract with an employee states otherwise. That means that anything an employee creates while employed by a company belongs to that company. However, in some countries, independent contractors have IP rights, representing an issue for their clients. In the Netherlands, for example, employees may register a trademark in their name even if they create it during employment.

Companies risk failing an initial public offering (IPO) audit

Companies that fail to protect their IP may fail an IP audit organized for a particular purpose, such as a liquidity event like IPO. IPO audits mainly investigate controls over financial reporting, but auditors also ensure the company adequately protects intellectual property.

How to protect IP in global teams: 5 tips

You can protect your company IP by setting up proactive systems, such as the tips below.

Register patents, copyrights, and trademarks as soon as possible

In many countries, like the US, you have the right to copyright protection as soon as you create the work. But you should register your IP as soon as possible. 

Depending on the type of IP you want to protect, you can register with the US Patent and Trademark Office or the US Copyright Office. The sooner you register, the easier it is to defend a copyright infringement.

Sign NDAs with employees, contractors, and partners

You shouldn’t rely on copyright automatically belonging to you. The best practice is to sign non-disclosure agreements (NDAs) with your employees, contractors, and partners to ensure your information remains confidential. NDAs add a layer of protection to work that’s not eligible for protection under copyright or patent laws. We encourage you to seek legal review on any NDAs to ensure enforceability.

Create remote work policies

If you recently transitioned to remote work, update your company policy with guidelines regarding remote work sooner rather than later. These guidelines should describe which distributed employees can access company data and equipment, when, and how.

Establish security audit protocols

Periodic internal audits of your data security processes will help you identify and improve your system’s potential threats and weaknesses. Hackers regularly develop new ways to hack into encrypted data and gain access to sensitive information. Continually test your firewalls, encryptions, and other protections, and update them as necessary.

Educate your employees on IP protection

Educate your employees on the importance of IP protection and cybersecurity protocols you require. If your team is aware of potential exposure risks, they’ll be careful when using unknown networks or installing unauthorized apps on their devices. At the same time, they’ll know the rules regarding ownership of their work as soon as they sign a contract and the NDA with you. 

How Deel helps you protect your IP

Hiring global employees through Deel provides you with access to their employer of record features. One of these features is access to locally-owned entities and locally-compliant contracts that seamlessly transfer IP ownership to you whenever you hire a new person.

Direct vs. indirect IP assignment

Generally, when you hire people worldwide through an EOR, you have two options regarding IP assignment: direct and indirect.

Direct IP assignment means you enter into a direct agreement around IP with the employee. Indirect IP assignment means the employee assigns IP to the EOR in their employment agreement, and then the EOR assigns the IP to their client in their Master Services Agreement (MSA).

Deel’s general recommendation is to use Deel’s (indirect) IP assignment instead of Proprietary Information and Invention Assignment (PIIA) or Confidential Information and Invention Assignment (CIIA) agreements.

There are several benefits to indirect IP assignment:

  1. It lowers the risk around permanent establishment and joint employment as direct agreements between employees and clients are avoided as much as possible.
  2. It enables Deel to pursue the IP claims locally to protect the client’s IP ownership, if necessary.

Get your IP through EOR when hiring employees

If you hire full-time employees through Deel’s EOR model, Deel is their legal employer, so Deel can transfer the IP ownership to you. This happens in two steps, in which Deel acts as a middleman:

  1. Deel hires the employee on your behalf and the employee lawfully assigns any IP created during the contract to Deel as their formal employer.
  2. Deel receives the IP rights and assigns them automatically to you, the client, without the need to provide any additional documentation, with a few exceptions (like France).

This protocol allows Deel to ensure IP assignment enforceability worldwide, regardless of the local IP laws, which vary significantly by country. Deel’s tailored contracts account for regional differences through the two-step IP assignment, so no matter where you hire, you get the IP ownership that’s rightfully yours. When this protocol is followed, both Deel and the client company maintain operational compliance.

Another role that Deel assumes in IP ownership transfer is risk mitigation for the client. If the IP is assigned directly from the employee to the client, this act can be an indicator of a direct employment relationship, which puts the client at risk. To avoid the employee claiming to be a direct employee of the client, Deel uses the two-step approach to the IP transfer and keeps the client company fully protected while ensuring total compliance with local employment and IP laws.

Own your IP even when hiring contractors

Even if you hire contractors, Deel provides compliant contract templates that enable you to own any contractor-created IP. Deel tailors each contract to account for any regional legal differences, always with a strong IP clause protecting you no matter your contractor’s location.

Protect your IP when hiring globally with Deel

With Deel, you can have peace of mind knowing that your agreements are up-to-date with any changes in IP regulations in every country. Deel’s legal partners mitigate any risks against potential lawsuits whether you hire contractors or employees. If you’re preparing for an audit, you don’t have to worry about compliance as Deel can ensure your contracts align with local laws around the globe.

As a client of Kruze, you qualify for special discounts when you hire contractors and employees with Deel. Request a demo with Deel to learn more about their hiring solutions.

Disclaimer: This article is provided for informational purposes and should not be considered legal advice. Consult a legal professional for more information.


Contact Us for a Free Consultation

Get the information you need


Previous Post
How often should an early-stage startup have board meetings?
Next Post
How do a startup’s taxes change if it changes the state of incorporation?

Startup CEO Salary Calculator

US Based Companies that have raised under $125M

  Redirecting to results  

Top Articles

  • Pre-Seed Funding + Top 20 Funds
  • eCommerce Accounting
  • Accounts Receivable Loans
  • What is the 2% and 20% VC fee structure?
  • How much does a 409A valuation cost?
  • What are Your VC’s Return Expectations Depending on the Stage of Investment?
  • Fractional CFOS
Kruze on X
Email Us
RSS

How much can your startup save in payroll taxes?

Estimate your R&D tax credit using our free calculator.

r&d tax calculator

Signup for our newsletter

   

Popular pages

  • SaaS accounting 101
  • Best accounting software
  • Top banks for startups
  • How to account for convertible note
  • Average CEO Pay
  • Startup Tax Returns
  • Best VC Pitch Decks
Related content:
What is your startup’s cash position?
Wed, 25 September 2024
Closing the Deal: The Final VC Meeting
Wed, 21 August 2024
How to Handle a Co-Founder Departure
Wed, 18 September 2024
Brex vs Ramp - Which card is best for startups?
Mon, 11 November 2024
Also read:
How to Handle a Co-Founder Departure

How to Handle a Co-Founder Departure

Kruze Consulting's COO, Scott Orn, gives advice on how to handle a co-founder leaving the company and finding the positives alongside the negatives.
Wed, 18 September 2024
How to Rebalance Ownership Between Founders

How to Rebalance Ownership Between Founders

Before we get into the how, let’s start with why you may want to rebalance ownership between founders.
Wed, 18 September 2024
Paying PTO if your startup is shutting down

Paying PTO if your startup is shutting down

A crucial task when shutting down a startup company is notifying and paying employees for their paid time off (PTO).
Thu, 1 August 2024
Steps to shut down a startup

Steps to shut down a startup

Kruze Consulting's COO, Scott Orn, gives a helpful guide to shutting down a startup appropriately before moving on to bigger successes.
Thu, 1 August 2024

Kruze is a leader in accounting services for startups

With over $10 billion in funding raised by our clients, Kruze is a leader in helping funded startups with accounting, tax, finance and HR strategies.

Thank you!

✅ Your request has been submitted.
We will contact you shortly.

Enter your name
Enter Company name
Enter Phone number
Enter Email
Enter Message
 
By clicking Contact Us, you consent to receive automated messages from Kruze Consulting. Reply STOP to opt out. Terms of Service | Privacy Policy.
  • Startup Finance Q&A

  • Average 409a Cost
  • Startup Tax Credits 101
  • Research & Development Credits
  • Financial Model Templates
  • Average CEO Salary
  • Average CTO Salary
  • Startup Runway 101
  • Specialized Services

  • Startup Bookkeeping
  • SaaS Accounting
  • Crypto Accounting
  • Biotech Accounting
  • Best CPAs for Startups
  • Cloud Accounting
  • Fractional CFOs
  • Startup Financial Planning
  • Best B2B Fintech Software

  • Best Startup Payroll
  • Cap Table Software
  • Brex vs Ramp
  • Startup Accounting Software
  • Best Startup Credit Cards
  • Best Banks
  • Crypto Accounting Software
  • Cloud Accounting
  • Venture Capital Resources

  • VC Pitch Deck Templates
  • Startup Pitch Deck Course
  • Pre Seed Funds
  • Startup Financing 101
  • How much VC to Raise
  • VC Return Expectations
  • 409A Valuation Services
  • VC Due Diligence Checklist

Kruze Consulting Logo Kruze Consulting

Kruze Consulting is a licensed CPA firm; California Board of Accountancy license number 7637

  • Team
  • Pricing
  • Careers
  • Kruze News
  • Reviews
  • Contact Us
  • Security
  • Privacy Policy
  • Terms of Service

Copyright © Kruze Consulting 2025

We may monetize some of our links through affiliate advertising. At any moment, executives or team members may own public or private stock in any of the third party companies we mention.

Do Not Sell or Share My Personal Information

Resources

  • Startup Resources
  • Startup Q&A
  • Case Studies
  • Kruze Blog
  • C-Corp Tax Deadlines
  • Startup Accounting Dictionary

Free Tax Calculators

  • Startup R&D Tax Credit Calculator
  • How Much Does a Startup Tax Return Cost?
  • Delaware Franchise Tax Calculator
  • Burn Rate and Cash Runway Calculator

Startup Tips

  • Startup Expense Management 101
  • 10 Best Banks For Startups in 2025
  • Startup Payroll
  • Best Accounting Software for Startups
  • Startup Tax Compliance
  • How to Pay International Employees & Contractors
  • Startup Bill Pay Service

Locations

  • Austin
  • New York City
  • San Francisco
  • San Jose
  • Santa Monica

Social Media

  • Kruze Consulting on Youtube
  • Kruze Consulting on LinkedIn
  • Kruze Consulting on Twitter
  • Kruze Consulting on Yelp

Industry Expertise

  • SaaS Accounting
  • Biotech Accounting
  • AI Startup Accounting
  • eCommerce Accounting
  • Hardware Accountants
  • CPG Accountants
  • Crypto Accounting
  • Healthcare Accounting
  • Startup Accounting
  Talk to a leading startup CPA
  • Is the content on this page useful?

Thank you!

Your feedback is very important.

READY TO CONNECT FOR A FREE CONSULTATION?

We are the experts at helping seed/VC-backed Delaware C-Corps with their accounting and finances!

Talk to an experienced accountant, not a generic sales person

Alex Janeck Kruze Consulting
Alex Janeck
Edith Silva Kruze Consulting
Edith Silva
Will Martin Kruze Consulting
Will Martin
Viz AI

$250M+ VC Funding Raised


"I had a great experience working with Kruze Consulting when we raised Series A. They know what VCs need to see, and how to present a startup’s books and finances. If you are going to raise venture capital, you need experts like Kruze."
Chris Mansi

Chris Mansi

CEO

Startup Venture Capital Assistance

With former venture capitalists on staff, our team is here to help you navigate the fundraising process and manage your board of directors

Vanessa Kruze Kruze Consulting
Vanessa Kruze
Founder & CEO, CPA
Alex Janeck Kruze Consulting
Alex Janeck
VP of Revenue
Pequity

Scale Remote Operations & Team


"Kruze has supported us above and beyond basic accounting needs by ensuring we have everything we need to expand and support our team wherever they may be located"
Zack Fisch

Zack Fisch

Head of Operations & Legal

Clients who have worked with Kruze have collectively raised over $15 billion in VC funding.

We set startups up for fundrising success, and know how to work with the top VCs.

Vanessa Kruze, CPA Kruze Consulting
Vanessa Kruze, CPA
Founder & CEO
Kruze Logo

Experienced team helping you

Our account management team is staffed by CPAs and accountants who have, on average, 11 years of experience.

Bill Hollowsky, CPA Kruze Consulting
Bill Hollowsky, CPA
VP of Accounting Services
Claudine Vantomme, CPA Kruze Consulting
Claudine Vantomme, CPA
Controller
Morgan Avery Kruze Consulting
Morgan Avery
SUT/R&D Sr. Tax Accountant
Beth Bassler Kruze Consulting
Beth Bassler
Controller, CPA
Protara Therapeutics

Grew from a 2-person startup to a NASDAQ listed public company.


"The Kruze team helped us grow from a 2-person startup to a NASDAQ listed public company in 2 years. We wouldn’t have gotten public without Kruze’s support. Anyone thinking of launching a startup should make Vanessa their first call!"
Jesse Shefferman

Jesse Shefferman

CEO

Kruze Logo

Get in Touch

Please help us connect with you

How can we reach you?

Our first response is typically via email, so please check your inbox.

By clicking Next, you consent to receive automated messages from Kruze Consulting. Reply STOP to opt out. Terms of Service | Privacy Policy.

Help us have a productive first consultation by providing some additional information.

What year was your startup incorporated?

What is your stage of funding?

(pick up from the list)

Approximately how much funding have you raised?

(please enter a dollar value such as 5000000)

Help us understand what you are looking for:

(Optional, click the ones you need)

Anything additional that you’d like to share?

Optional - if you’d like to share anything else to help us prepare for our consultation, please let us know. We are also happy to sign an NDA, just let us know.

Loading search...

Initializing search...

Search