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The video discusses the importance of having a proprietary information and inventions agreement for employees and consultants. This agreement is distinct from standard confidentiality agreements and should be established when forming a company. Every employee and consultant must sign it to protect the company's intellectual property. The speaker shares experiences where companies failed to manage this process, leading to complications during mergers and acquisitions (M&A) discussions. When companies realize that some team members and consultants have not signed the necessary documentation, it creates challenges in securing the rights to technologies developed during their collaboration. Proper management of these agreements is crucial.
