Here are the quick tips startups can implement to avoid startup litigation. recently there have been very good startups ending up in courts fighting cases and tarnishing reputation like recent case is of TVF pitchers, fighting for equity stake in the company. Here are the 5 quick tips.
1. Have an agreement
A startup running without a legally enforceable agreement is a recipe for disaster, clear and unambiguous agreement between the partners, employees, vendors reduce the chances of litigation.
2. Abidance with the compliance’s-Do you know government is the biggest litigator in Indian courts, have a competent team of CS CA lawyers to avoid litigation by government in CLB, Income tax tribunals, ED, EOW etc.
3.Robust customer redressal system- Don’t treat your customer badly, they can approach consumer forum for redressal if you fail to redress their legitimate claims.
4.vendor payments- Make sure you pay your vendors on time or else they may sue you for recovery civil suit or your startup can end up in arbitration.
5. IP Policy-make sure all your intellectual property like copyright, TM,designs, patents are registered and are in the name of company, not in the name of employee.
Follow these tips and reduce litigation save time save money.
Thanks & Regards,
Adv. Nitish Banka