Intellectual property crimes in startups: Protect your ideas

Intellectual property crimes involve the unlawful exploitation, for profit, of the moral and economic rights that creators hold over their work.

This may include reproduction, plagiarism, distribution, public communication (including what is commonly referred to as piracy), or the commercial exploitation of works without the authorization of the rights holder.

These offences also include actively facilitating access to protected works through links or online distribution channels. 

As established by the Spanish Intellectual Property Law of (Royal Legislative Decree 1/1996) , a work does not need to be registered to be protected. Copyright protection exists automatically from the moment of creation and applies to artistic, literary, scientific, and technological works. 

The penalties associated with these offences are regulated by Articles 270, 271, and 272 of the Spanish Criminal Code. 

Sanctions may include prison sentences ranging from six months to six years (  in aggravated cases, as well as financial penalties and additional measures related to unauthorized reproduction, distribution, access facilitation, or infringement of intellectual property rights. 

In addition to criminal penalties, civil liability may also apply. This can include compensation for financial losses, lost profits, cessation of unlawful activities, and costs associated with investigating the infringement.

Before discussing which assets your startup should protect, it is important to distinguish between intellectual property and industrial property. 

• Intellectual property protects original creations such as software, designs, literary works, and technological innovations. It focuses on ideas, content, and creative expression and is protected through copyright and related rights. Registration is not required for protection to exist.
• The propiedad industrial protege inventos, nombres comerciales, patentes. Su objetivo es proteger la innovación aplicada e identificar productos y servicios para evitar que terceros los copien y exploten sin autorización. En este caso, sí es necesario registrarla para poder protegerla.

For startups, intangible assets can represent a significant competitive advantage while also increasing company value and investor confidence. 

For this reason, it is important to protect assets that are automatically covered by copyright from the moment of creation, including: 

• Software and source code , such as applications, algorithms, and digital platforms developed internally. 
• Designs and prototypes , including models, blueprints, and innovative product concepts. 
• Creative content , such as marketing materials, images, videos, websites, infographics, and similar resources. 
• Know-how y procesos internos como metodologías, protocolos y técnicas únicas de producción. 
• Databases, technical documentation, and structured information that create strategic value for the business.

In addition to intellectual property rights, it is important to protect other strategic assets such as know-how and internal methodologies. These elements are not covered by copyright, but rather as trade secrets and through confidentiality agreements.

To prevent your competitors from taking advantage of your innovation, you need to protect these elements—especially before raising capital—to build trust among investors and partners.

Below are five practical strategies that can help safeguard your company's innovations.

It is advisable to maintain records of everything your company develops. Document authorship, repositories, software versions, licenses, designs, content, and data assets.

Without a clear record of ownership and development history, defending your rights can become difficult. It may also reduce your ability to demonstrate asset value during due diligence processes or investor reviews.

It is equally important to ensure that any external resources used by your company are properly licensed and that proof of acquisition is retained.

You should also verify that licenses are compatible with your business model. 

Special attention should be paid to open-source software dependencies to ensure compliance with licensing requirements.

Employees, freelancers, contractors, and suppliers should formally transfer relevant intellectual property rights to the company  when appropriate. This is typically achieved through confidentiality agreements and contracts that include intellectual property assignment clauses.

Without these agreements, ownership may remain with the original creator, since copyright protection automatically belongs to the author from the moment a work is created.

To reduce the risk of future ownership disputes or infringement claims, foster good internal practices. Teams should avoid copying content without proper authorization and understand the importance of respecting intellectual property rights. 

This is particularly relevant for product development, marketing, and data teams.

Monitoring your intellectual property and implementing procedures for ownership verification and infringement response is one of the best ways to prevent legal issues and react quickly if problems arise.

If you discover an infringement or receive a legal notice regarding your own activities, it is advisable to stop the disputed use immediately, preserve all relevant evidence, and seek professional legal advice. 

At Bolboreta Innova Group, we are well aware of how important intellectual property rights are for a startup. That’s why we provide advice through Bolboreta Impulsa which encourages companies to establish robust processes ranging from asset mapping to contract management with all stakeholders. 

Protecting your intellectual property is the foundation for transforming ideas into a sustainable competitive advantage supported by investment, strategic vision, and the right guidance. If your idea combines technology, market potential, and impact, contact us and discover how we can help protect and strengthen your innovation.