Posted: 09 April 2021 # Legal Issues Relative to Research & Development #### Accountant's Minute 267 In the most recent ESS BIZTOOLS’ Business Advisory Services Webinar/Conversation, Matthew Karakoulakis, Principal Legal Officer of AMK Law discussed with Peter Towers, Managing Director, ESS BIZTOOLS a range of legal issues that affect inventors and small companies as they undertake research activities. Matthew Karakoulakis indicated that, to protect the investment that has been made in a research and development project, it is critical that the right legal protections are put in place. Matthew indicated that he is a Partner in the “[Boost Legal Template](https://boostlegaltemplates.com.au/)” that emerged after a substantial amount of research and development activity to develop the right technology to be able to supply a wide range of legal documentation to Australian SMEs. *“This system gives business owners the opportunity to purchase legal documents at a fraction of the normal cost”.* *“Legal document should be up-to-date”. “Just because a document was prepared 4 or 5 years ago, doesn’t mean that it is fit for purpose today”.* Matthew indicated that the key documentation that inventors and SMEs should be considering, relative to their research and development activities, include: - Shareholders’ Agreements. - Employee Handbook. - Employee Contract including Assignment of Intellectual Property. - Confidentiality Agreements – there is a need to ensure that the agreement fully covers the role that the employee is performing in the research and development process. - Website Legal Protection – Privacy Policies. - Contracts between an investor, business people and universities need to be drafted at the very beginning of the relationship, however they are often left for a period of time that is often too late. Matthew indicated that most inventors and SMEs involved in research and development activities, did not know what type of documentation they need. He said that a review of the Boost Legal Templates will give a good indication of the type of agreements that should be under consideration. Matthew stressed that the inventor/SME should be conscious of the need for contracts to be prepared and signed from the very beginning of any emerging business relationships connected with the research and development project. *“Getting the right legal documents upfront can keep litigation away!”* *“Contracts written properly from the beginning can save a lot of subsequent cost”.* A discussion was held on the desirability of registering Trademarks and the drafting of Trade Secret Agreements which would include a Nondisclosure Agreement/Confidentiality Agreement which sets out the limited information that is being disclosed to a business e.g. manufacturer to allow them to undertake the manufacture of a product that has been developed by a research and development process. Matthew Karakoulakis indicated that these agreements should be prepared as soon as possible in the commercial relationship. You can view the 32 minute video of the conversation between Matthew Karakoulakis and Peter Towers by [clicking here](https://youtu.be/_NiutZL2Zyo). ### 12 Steps to Planning a Research and Development Project ESS BIZTOOLS presented a webinar recently outlining the 12 Steps to Planning a Research and Development Project. This webinar was presented to inform small and medium-sized accountancy firms of the services that they could provide to assist clients, who are interested in undertaking a research project, so they can avail themselves of the opportunity to claim the Research and Development Incentive Rebate and hopefully to grow their business into a value-adding enterprise. If you would like to view the 35 minute recording, please [click here](https://youtu.be/_mVMxjJGPHI). ### Upcoming Webinars Presented by ESS BIZTOOLS ESS BIZTOOLS presents regular webinars on a range of matters relating to the type of services that accountants who are prepared to offer business advisory services will find interesting. The upcoming webinar program is as follows: - 10 Steps Getting Ready for Research and Development – Monday 12th April at 12-noon AEST. To register [click here](https://essbiztools-au.zoom.us/webinar/register/WN_h0xClmCRQUOYNZaTp8zDSA). - Evaluating Research and Development Product – Tuesday 13th April at 2.00pm AEST. To register [click here](https://essbiztools-au.zoom.us/webinar/register/WN_Gu8QFtkmQGOLbgMHQ5pKtA). - Evaluating Research and Development Product will be re-presented on Thursday 22nd April at 2.00pm AEST – to register [click here](https://essbiztools-au.zoom.us/webinar/register/WN_yO43YurFSFCrxC2o_frJ5w). - Predictive Accounting – Wednesday 19th May at 12-noon AEST. To register [click here](https://essbiztools-au.zoom.us/webinar/register/WN_k7co84KnTvGAfii5ktXRCQ). ### Challenges Ahead Over the last 8 weeks ESS BIZTOOLS has presented a series of webinar/conversations with key advisors to the accounting industry on how accountants can proactively advise clients and prospects on the Australian government’s research and development system. This series was part of our general promotion on what is entailed within “Business Advisory Services”. You are most welcome to visit our websites – [www.essbiztools.com.au](http://www.essbiztools.com.au) or [www.essbizgrants.com.au](http://www.essbizgrants.com.au) where you can obtain information on government grants that are available for an individual client. Would you like to “**Book A Demo**” on ESS BIZTOOLS with Peter Towers, Managing Director, ESS BIZTOOLS, an accountant with experience in a wide range of activities, including Chief Financial Officer/Company Secretary of a listed public company, Principal of an accounting firm, Business Advisor to a major Australian government grant program delivered by AusIndustry and Founder and Principal Writer of the ESS BIZTOOLS’ product packages? You can book a demo at [www.essbiztools.com.au](http://www.essbiztools.com.au) or contact Peter Towers: Email: [](https://www.essbiztools.com/javascript:/*%20This%20email%20address%20is%20being%20protected%20from%20spambots.*/)[](https://www.essbiztools.com/javascript:/*%20This%20email%20address%20is%20being%20protected%20from%20spambots.*/) Telephone: 1800 232 088 Have a great day. ![Legal Issues Relative to Research & Development](https://www.essbiztools.com/images/zoo/blogs/2021/am267.jpg) #### ESS BIZTOOLS Blogs ### Recent Posts... 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