
What to do with intellectual property left over from failed startups?
- Transfer

Most startups fail, and many of them have software, patents, or other intellectual property that may be useful to the public. This intellectual property could help other startups avoid wasting time on reinventing the wheel, finding creative ways to solve problems, and so on. In a perfect world, the best part of this property would be sold on the market or transferred to open use. Many developers would be happy to see the life of their creations in other projects. But the problem is that all this intellectual property is still the property and it belongs to someone even after the bankruptcy of a startup. If the company attracted venture capital investments, or had other lenders, then after bankruptcy intellectual property rights pass to them. Only in rare cases, it is sold in order to return at least some funds to creditors. This is exactly what happened with Edgeio, a company in which I was a co-founder, and which went bankrupt last year. Most of the intellectual assets were sold to a third party, and the proceeds went to payments to those who participated in the development of these assets. But in most cases, entrepreneurs are so exhausted that they simply turn around and leave, and lenders have no idea anything left with their intellectual property or not. Also, investors have neither the time nor the desire to find out the real value of their remaining assets. It’s even harder to find an example of how entrepreneurs spent time to transfer development to open use. Another reason that development is often simply forgotten is the fact that intellectual property typically has a limited lifespan (before others simply re-create it).
But I know how to change this situation. Lenders and investors could agree in advance, adding an additional agreement to the agreement, that any intellectual property that is supposedly of any value will be transferred to a third-party organization for analysis and determination of its value (financial or any other). This organization can decide to sell what has a price, withholding a percentage of the proceeds as a commission (this will give them an incentive to find value where it is), and simply transfer to the public domain a code or something else that is potentially interesting to society, but with little direct commercial value. This third-party organization will need financing and the proceeds from the sale of intellectual assets will most likely not be able to cover operating expenses. May be, creating such an organization would be a good project for a university or group of universities. Students and teachers may have an academic interest in him. The prospect of implementing such projects may seem rather vague, but the ideaCreative Commons used to seem just as crazy. In any case, an interesting experiment may turn out.