Intellectual Property Considerations for Nonprofits
Intellectual property can be an area of significant risk for nonprofit organizations, both in terms of violating someone else’s intellectual property rights and protecting the intellectual property of the organization. Ownership of intellectual property can get murky quickly, and it’s important for organizations to understand their risk and put the right policies, procedures, and agreements in place to reduce that risk.
Here are some important intellectual property considerations for nonprofits.
Naming your organization
From the very start of your organization, intellectual property has an impact. Before choosing a name, you should do thorough research to ensure both your name and your tagline are available for use. This goes beyond a simple online search in a web browser to see if anything comes up with that name.
First, search your state’s online registry for businesses and charitable organizations. Second, conduct a search through the United States Patent and Trademark Office. If you want to be as thorough as possible before investing in a name, work with an attorney who specializes in trademark to ensure the name is clear. Once your organization is established, be sure to take the steps needed for official trademark protection.
Using photos or images to promote your organization
Often, organizations get into trouble with intellectual property when using photos or images in materials they create. Photos and images cannot be used without permission or appropriate licensure. Just because an image is online does not mean it is available for use.
“The best way to protect your organization from a legal issue related to images or photos is to always use images purchased through a reputable stock photography source.”
There are now algorithms and programs being used by image owners to find their images and pursue legal action if they have been used without permission. The best way to protect your organization from a legal issue related to images or photos is to always use images purchased through a reputable stock photography source. Stock photo companies make it simple to obtain images legally and use them properly, though be sure to read the licensing agreement for any images you download, as some do place limitations on how you can use the content.
Ensuring ownership of content created for your organization
When content is created by a volunteer or employee within your organization or by a hired contractor, you need a written agreement that specifies who owns the intellectual property. In the case of a volunteer or employee, there are several things that factor into determining who owns the intellectual property. This includes whether they used work/volunteer time to create the materials and whose resources were used to create the content.
Having a written agreement in place helps protect your organization’s intellectual property in the future. If that employee or volunteer moves on to another opportunity, the written agreement determines who controls future use of that specific work.
If the founder of your organization or its board members are creating intellectual property, you also need a written agreement in place that outlines who owns the intellectual property. As with most areas of nonprofit risk, nobody likes to think about the potential issues, but you must. If a founder or board member moves on from the organization, you need a clear understanding of who owns the intellectual property created. That doesn’t always mean it will be the organization who retains those rights. We have worked with founders who created agreements where the founder retained rights to their intellectual property within a certain timeframe and then ownership transferred to the organization.
Intellectual property rights are important for all nonprofit organizations to understand, but especially those whose organizations are built on intellectual property produced by someone else. Putting the right agreements in place from the beginning helps reduce risk to the organization should something occur with the person who created the intellectual property.
The best course of action for any nonprofit is to work with an attorney who specializes in intellectual property, copyright, and trademark. It’s a complex area of the law that requires a specialty focus, and a qualified attorney can help settle questions of intellectual property ownership and put the necessary agreements in place regarding ownership and future use.
If you need a referral to a qualified attorney for intellectual property concerns, reach out to the Nonprofit Solutions team. While we are not intellectual property attorneys, we would be happy to learn more about your situation and refer you to someone who can help.
