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Maybe founders should stipulate that if the project ever gets discontinued, they get all rights back to the original product.
by dqpb 4y ago
Maybe founders should stipulate that if the project ever gets discontinued, they get all rights back to the original product.
- smackeyacky 4y agoThere are always things the acquirer can do to not exactly discontinue a product, but effectively do nothing with it. If you look at the film industry, they are masters of this. Buying scripts and sitting on them etc. A company could buy your widget startup and say they are still selling it, but mail order telephone sales only.
- LurkerAtTheGate 4y agoFounders can offer to buy the rights back later. I did this exactly - sold exclusive rights to software and team was hired onto acquiring company, years later acquiring company decides to shut down software arm and terminate existing service agreements. I offered to buy the rights plus our team back (for about 1% of the initial sale - they were going to just shutter it all), and immediately engaged the clients in new contracts. That purchase agreement was a doozy, spent more on lawyers than buying the rights back.