Case Notes/Answers
Innovate LLP Legal Dilemmas in the Start-up World, by
Matthew
Discussion Questions:
The case materials are to be distributed in advance of the class.
1. Describe and analyze Michelle Lee’s situation. What has she done right? What has she done
wrong?
2. What should Lee do about:
a. choosing representation
b. choosing a type of business entity
c. determining equity configurations
d. raising funds
e. assigning intellectual property (IP)
f. names and trademarks
3. Did Lee consult with a lawyer too early? Why or why not?
4. Are there other questions Lee should have asked the lawyer?
, W15506
Teaching Note
INNOVATE LLP: LEGAL DILEMMAS IN THE START-UP WORLD
CASE OVERVIEW
This case presents the story of Michelle Lee, a burgeoning mobile application entrepreneur, who
developed an interesting potential product with her friends. However, when she encounters an investment
opportunity, she decides to seek legal advice for the first time in her business life. She realizes from this
encounter how unprepared she is and some of the tough questions that she will need to answer.
The purpose of this case is to provide some general legal considerations for people pursuing
entrepreneurship and new venture creation in a Canadian context. The core issue is that most nascent
entrepreneurs are not lawyers. As a result, they will likely have little idea about how to navigate the legal
aspects of starting a new business. In a case of “not knowing what you do not know,” nascent
entrepreneurs will likely be unaware of issues that may or may not require consultation with legal
counsel, such as questions about starting up a business, protecting intellectual property and drafting
founder agreements.
The motivation of this case is thus to provide a fictional but plausible scenario for nascent entrepreneurs
to relate to and consider with respect to their own business ideas. The case scenario mirrors what a
nascent entrepreneur might encounter when dealing with a law firm that specializes in start-ups. In this
case, the story of Lee and her friends, as well as the software product, is fictional. However, Innovate
LLP and Adrienne Ng, the lawyer whose advice this case is based on, are both real.
COURSES AND LEARNING OBJECTIVES
This case is designed for undergraduate and MBA classes in entrepreneurship but may be used in other
disciplines exploring the legal aspects of new venture start-up. This case may be valuable in course
modules dealing with new venture creation, an introduction to entrepreneurship, small business
management and start-ups.
Innovate LLP Legal Dilemmas in the Start-up World, by
Matthew
Discussion Questions:
The case materials are to be distributed in advance of the class.
1. Describe and analyze Michelle Lee’s situation. What has she done right? What has she done
wrong?
2. What should Lee do about:
a. choosing representation
b. choosing a type of business entity
c. determining equity configurations
d. raising funds
e. assigning intellectual property (IP)
f. names and trademarks
3. Did Lee consult with a lawyer too early? Why or why not?
4. Are there other questions Lee should have asked the lawyer?
, W15506
Teaching Note
INNOVATE LLP: LEGAL DILEMMAS IN THE START-UP WORLD
CASE OVERVIEW
This case presents the story of Michelle Lee, a burgeoning mobile application entrepreneur, who
developed an interesting potential product with her friends. However, when she encounters an investment
opportunity, she decides to seek legal advice for the first time in her business life. She realizes from this
encounter how unprepared she is and some of the tough questions that she will need to answer.
The purpose of this case is to provide some general legal considerations for people pursuing
entrepreneurship and new venture creation in a Canadian context. The core issue is that most nascent
entrepreneurs are not lawyers. As a result, they will likely have little idea about how to navigate the legal
aspects of starting a new business. In a case of “not knowing what you do not know,” nascent
entrepreneurs will likely be unaware of issues that may or may not require consultation with legal
counsel, such as questions about starting up a business, protecting intellectual property and drafting
founder agreements.
The motivation of this case is thus to provide a fictional but plausible scenario for nascent entrepreneurs
to relate to and consider with respect to their own business ideas. The case scenario mirrors what a
nascent entrepreneur might encounter when dealing with a law firm that specializes in start-ups. In this
case, the story of Lee and her friends, as well as the software product, is fictional. However, Innovate
LLP and Adrienne Ng, the lawyer whose advice this case is based on, are both real.
COURSES AND LEARNING OBJECTIVES
This case is designed for undergraduate and MBA classes in entrepreneurship but may be used in other
disciplines exploring the legal aspects of new venture start-up. This case may be valuable in course
modules dealing with new venture creation, an introduction to entrepreneurship, small business
management and start-ups.
