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Are these founders trying to screw me?

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21–30 of 66 posts

Re: Are these founders trying to screw me?

#23
Sounds dubious. But if the founder is the sort of person you'd never have worked for if you'd known what he was like, why do you care? It sounds like you ought to work somewhere else anyway.

Re: Are these founders trying to screw me?

#24
You have a great deal of leverage that you don't seem to be using here. If you haven't signed anything, and haven't been paid for anything, then the code is yours, and you can walk with it. Understand that contracts don't require papers, but it helps when things go wrong.

The key here is consideration. It's what you've given up and what the other person has given up in return. You've given up the code (IP, time, development), and what have you gotten in return? If you've been paid, that may be all that matters in court. If you haven't been paid, and if you've been promised equity and haven't received it yet, the contract is unenforceable and you can walk with your code.

I would use that last bit if applicable to leverage your position and make your case to the founder. You want the equity up front, before an NDA. The NDA keeps you from taking your code elsewhere, which is probably what the founder, his lawyer, and the investors want to keep you from doing.

Also, don't settle for a wimpy stock agreement. If you're in a position to take your year's worth of work and bring it somewhere else, and that year's worth of work is substantial, use that to get a substantial bit of equity. I would be ready to take my work too. In fact, it might be better to go ahead and do that since things are pretty shaky with this founder.

Disclaimer: Like most other people here I'm not a lawyer, so don't sue me after taking my advice.

Re: Are these founders trying to screw me?

#25
post #20
post #17

Earlier quoted context omitted.

It's not really stealing of source if you wrote it and there's no contract saying it belongs to them. I know in Canada at least, unless otherwise stated copyright stays with the creator (in a contractor relationship, other way around for employees) and you've simply licensed them use of the code. So you're only bound to anything you've verbalized (that can be proven) and written down (think emails). I know our copyri…

It doesn't matter if there's a written contract... if you are working on a venture together with some sort of verbal understanding, in California (I'm assuming in the rest of the USA too) that is just as legally binding as a written contract (At least according to the two lawyers I've talked to... you should obviously talk to your lawyer about your options as circumstances may be different).

I'm pretty sure what you say is correct, which means that the verbal agreement for equity also holds. It follows that if no equity is given, the contract is breached and the code can be taken elsewhere.

Re: Are these founders trying to screw me?

#26
Tell them that you are going to stop working till this issue is cleared up, and that if they decide to stop working with you, you will revoke all rights to the code you wrote for them through a court order, and that the business will fall through because of legal considerations.

Things will happen fast then. Otherwise, you just go get another job. You have nothing to lose that you have not already lost, they have everything to lose. You have them by the balls, don't let them intimidate you.

Re: Are these founders trying to screw me?

#28
Understand that others are treating this as a business relationship. Being lied to or not treated in a way commensurate with what you have been promised is excellent grounds for leaving.

Stand up for yourself. Tell them you'll sign it together with the stock agreement or walk.

Re: Are these founders trying to screw me?

#29
post #10

I am surprised you've been waiting for a year. You should already agree and demand they give you the percentage they promissed. It's OBVIOUS they are trying to screw you. "I've been working for a startup" Did you get paid for the work you did? If no, then probably you still own the code. Check that with your lawyer. In case you decide to leave now will you still own the code? If yes, then you know what to do.

Did you get paid for the work you did? If no, then probably you still own the code. This is really good advice here. So many people miss this one. I wish it had more upmods. When people try to screw you like this they usually rely on keeping everything as vague as possible, hoping to get as much out of you as they can and then stiff you in the end. This vagueness cuts both ways. If there was no written agreement and…

No I've not been paid for anything. My lawyer at one point mentioned that if I was they could use that to say "oh we've paid him, that's what we agreed to as compensation". So I believe you're correct in this aspect. I"ll ask my lawyer again.

Re: Are these founders trying to screw me?

#30
post #23

Sounds dubious. But if the founder is the sort of person you'd never have worked for if you'd known what he was like, why do you care? It sounds like you ought to work somewhere else anyway.

The problem is if the idea is good and they take my code and sell it and make money then I've lost out. At this point I want what was promised to me.
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