Research and Development documentation is important

When a company undertakes R&D, the focus should be on safeguarding the potentially valuable asset that is being created.

The protection of intellectual property starts with the team that are going to be involved in the research activities.

Management should check the employment agreements for the team assembled for the research project. Does the agreement adequately cover research activities in which the team member will be involved? If not, consideration should be given to drafting an updated employment agreement.

Contractors and consultants proposed to be engaged on the research activities should be invited to be involved so long as an appropriate intellectual property agreement and confidentiality agreement are signed.

In most situations, unless these agreements have been signed, the contractor/consultant retains ownership of the intellectual property relating to their services.

Companies undertaking research activities should obtain legal advice before engaging a contractor/consultant to work on a research project. 

It is the company’s responsibility to maintain records that identify who performed the various components of the work on a research project.

This means that, for contractors and consultants, a written agreement has been prepared specifying the work to be undertaken and that tax invoices are received to substantiate each payment.

Being diligent on the documentation with employees, contractors and consultants relating to research projects could save the Company Directors considerable heartache relating to the intellectual property being developed.

Towers Business Development are familiar with the R&D process and can assist companies on the entire research and development journey. To find out more, contact Peter Towers on 1800 232 088.