IP Contributor Relationships: Protecting IP In Your Canadian Startup

June 1, 2026

Author:

Joseph A. Gill

IP Chain-of-Title: The Silent Killer of Fundraises and Exits in the Saskatchewan Startup Space

What is the IP chain‑of‑title, and why does it matter to investors?

IP chain‑of‑title risk occurs when a company cannot clearly prove it owns the intellectual property (IP) created by founders, employees, contractors, or partners. These gaps often surface during fundraising or acquisitions and can delay or kill deals entirely.

If the company cannot prove it owns its IP, investors and acquirers do not see a business. They see a risk-shaped hole where value should be.

Why IP ownership is a leverage issue, not just a legal issue

IP is not just “tech.” It is leverage.

But IP is also people: founders, employees, contractors, advisors, partners, sometimes even customers. The relationship risk is simple – people tend to believe they own what they create unless the paperwork says otherwise.

How Saskatchewan startups should manage IP contributors from day one

Step 1 – Own it on paper, not just in your head

The most common early-stage IP failure is chain-of-title gaps:

a contractor built core code but never signed an assignment
a founder created key IP before the company existed
someone contributed under a vague “handshake” agreement

That stuff doesn’t disappear. It shows up later at the worst time.

Step 2 – Build an IP capture habit (daily beats heroic)

Innovation happens in tiny increments:

code changes
training data tweaks
customer feedback turned into features
playbooks, workflows, processes
domain knowledge and know-how

Track it regularly. Don’t rely on memory or Git history to tell the story later.

Step 3 – Open-source is not “free.” It’s “free with rules.”

Open-source can be powerful, but licenses matter. Some licenses can create commercial friction depending on how software is distributed or integrated.

The practical move is simple: inventory dependencies and know what licenses exist.

Step 4 – Treat data rights like IP

For many modern startups, the most valuable asset is not a patent. It is:

unique datasets
labeling processes
model improvement workflows
domain-specific know-how

If the company uses customer data for any purpose beyond service delivery, that must be clearly documented.

What Saskatchewan Startups Can Do in the Next Seven Days

Run a chain-of-title audit: list all contributors and confirm that all IP assignments are signed.
Create a lightweight invention/IP disclosure form and review it monthly.
Inventory open-source dependencies and licenses; flag anything that does not fit the business model.
If customer data is used for improvement or training, add a clear written schedule explaining how.

This article, IP Contributor Relationships: Protecting IP In Your Canadian Startup is part of a series relating to the Technology & High Growth Startup in Saskatchewan, written by Saskatoon Partner, Joe Gill.

Follow McKercher LLP on LinkedIn to be notified when the next article in this series is published.

This post is for information purposes only and should not be taken as legal opinions on any specific facts or circumstances. Counsel should be consulted concerning your own situation and any specific legal questions you may have.

About the Author

Joseph A. Gill is a partner in the McKercher LLP Saskatoon office. He is the Prairie's go-to technology and startup lawyer, having assisted hundreds of prairie startups from formation and beyond. He works with founders throughout the startup life cycle through growth, scale, and exit. Joe was named a 2025 Lexpert Rising Star - Leading Lawyer Under 40 in Canada. This prestigious national award recognizes exceptional young lawyers who demonstrate leadership, innovation, and community impact.

About McKercher LLP

For 100 years, McKercher LLP has grown deep roots across Saskatchewan, serving the community from offices in Saskatoon and Regina. As one of the province’s largest and most established full-service law firms, we proudly follow a client-first philosophy as we provide legal services and real solutions for the people who rely on us.

Services

Industries