Michael C. Mims


Part I of this article analyzes how White could have remained a player in the “empire business” if only, before abandoning his interest in Gray Matter, he had “lawyered up” — and not with a small time “criminal lawyer,” but with a sophisticated business transactions attorney. Part I offers practical advice, based on today’s legal and business landscape, on how entrepreneurs situated similar to White can best protect their interests before selling out. Part II analyzes an alternative question: what remedies are available to the entrepreneur who, like White, sells out for pennies only to see his work used to later generate massive profits for the remaining shareholders? Part II additionally offers strategies for aggressive litigation tactics for entrepreneurs who feel they have been “cut out,” and proposes that White could have asserted actions for patent infringement and minority shareholder oppression. It analogizes to recent litigation waged among the co-founders and early contributors of Facebook, as well as other recent start-up controversies, to demonstrate how aggrieved entrepreneurs such as White may seek hefty awards through court order or settlement.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.