Your startup should have each of its employees (no exceptions) enter into an Employee Proprietary Information and Inventions Agreement. This agreement ensures that any intellectual property developed by that employee during his or her employment with your startup is wholly owned by your startup. The Employee Offer Letter generated by SmackDocs includes this agreement as one of its exhibits. Therefore if the Employee Offer Letter is used and the exhibit is signed by the employee, your startup does not need to enter into a separate Employee Proprietary Information and Inventions Agreement with said employee.
Sophisticated investors will ask if there are intellectual property protections in place with respect to your startup’s current and former officers, and its employees and consultants. If one or more of these signed agreements does not exist, it can negatively affect a future financing or the sale of your startup.
The Employee Proprietary Information and Inventions Agreement generated by SmackDocs does not include a post-termination non-compete clause. This is because non-competes are rarely if ever enforceable in the State of California, the leading location of tech startups in the United States.