The Entrepreneurs with No Garage Project: Protecting Ownership Interests and Intellectual Property Rights on a Shoestring Budget
by Perry Binder
KEY WORDS: ENTREPRENEURSHIP, BUSINESS LAW, INTELLECTUAL PROPERTY, SHAREHOLDER AGREEMENT, WORK FOR HIRE AGREEMENT, RISK ASSESSMENT, PEDAGOGY
ABSTRACT: Entrepreneurs with No Garage is a team project focusing on the most common mistakes that people make when forming a business without legal counsel. In the assignment, students assume the role of a hypothetical business partner in a start-up with only $500 for initial legal costs. Students participate in exercises that allocate these funds; assess personal and company risk levels; draft a Shareholder Agreement entailing different roles and capital contributions; and write a Work for Hire agreement with a clause conferring intellectual property ownership. The project is broken up into short and flexible modules, with an a la carte menu for Legal Studies professors to choose from and use in a business law course.