Re:Posterous cofounders create a replacement: Posthaven
by rickcolosimo on Monday February 18, 2013 @11:41AM
(#5239088)
Without digging into the specifics of the matter,if the Foundation is indeed a 501(c)(3), the IRS should/will almost certainly have required it to have three independent board members.
In addition, having counseled clients on this structure, the benefit of creating a nonprofit and giving it IP is that it creates a public check on anything to do with that IP. For example, while a startup's founders can sell the company, they can't unilaterally agree to sell off the IP in the nonprofit, and the public can challenge any such sales by recourse to a state attorney general's office.
It's not perfect, but it helps protect the IP in the way founders want to. In many ways, it's a one-way decision, which is why it works.
In addition, having counseled clients on this structure, the benefit of creating a nonprofit and giving it IP is that it creates a public check on anything to do with that IP. For example, while a startup's founders can sell the company, they can't unilaterally agree to sell off the IP in the nonprofit, and the public can challenge any such sales by recourse to a state attorney general's office.
It's not perfect, but it helps protect the IP in the way founders want to. In many ways, it's a one-way decision, which is why it works.
(Yes, IAAL.)