Protecting IP and Data Security When Working with Remote Teams

Hiring remote developers or agencies can be highly beneficial—but it also interferes with data security. Remote workers are accessing the network outside a traditional perimeter, which introduces multiple security risks due to unprotected devices and unsecured public networks.

According to a 2020 report by Malwarebytes Labs1, 20 percent of companies faced security breaches due to remote work. In the meantime, IBM reported2 that data breaches caused by remote work took longer to discover and were more expensive to contain.

Outside the office, there are no IT professionals monitoring the internal network. Workers' personal devices used for work-related tasks usually don’t have the same level of security software or firewalls as company-issued equipment, making them more susceptible to risks. In a home environment, there's also no physical security—meaning that, in theory, it is easier for an unauthorized person to gain access to sensitive data.

While the records mentioned above might sound alarming, remote work itself isn't a threat—poor security measures are. With remote work, traditional methods are irrelevant. Instead, companies need to adapt and implement security protocols tailored to emerging threats.

Remote work is harder to control in aspects such as devices, networks, and security practices. This leaves sensitive company data vulnerable to:

• Cyberattacks: Phishing scams, malware, and ransomware are only some of the ways that hackers can target remote workers through.
• Data Breaches: If proper security protocols aren’t in place, sensitive information may be exposed.
• High Costs: Every data breach is a financial risk—not only directly, but also indirectly, because of the damaged reputation.

That’s why data security matters even more in remote teams. Both proper security measures and extensive employee training are a must in these types of scenarios.

Learn more o this topic: Digital Communication in Business | Data Security

Protecting intellectual property (IP) and trade secrets is another issue. Without clear contracts, companies risk losing ownership of critical assets. But before diving into legal strategies and security tools, it’s important to be clear about what’s actually at stake.

What is Intellectual Property?

The intellectual property definition is determined by law. And while the wording may vary depending on jurisdiction, the gist is usually the same. According to Cambridge Dictionary, intellectual property is “someone's idea, invention, creation, etc., that can be protected by law from being copied by someone else”. The term covers various intangible assets created by human intellect—including software code, product designs, algorithms, documentation, and even brand identity.

When your team builds an app, develops custom software, or designs a new interface, that output is your IP (intellectual property). It’s the core value of your business.

Why IP Protection Matters

Your startup’s valuation, investor confidence, and ability to scale all depend on how well your intellectual property is protected. Weak IP protection can lead to:

• Intellectual property infringement by third parties or ex-contractors.
• Loss of competitive advantage, if your proprietary code or ideas leak.
• Legal disputes across jurisdictions, especially when working with freelancers or remote agencies.

It is worth knowing that global IP theft is a top cybersecurity threat. A strong IP framework makes your startup more credible and more attractive to investors. It signals professionalism, maturity, and long-term thinking.

Hiring remote developers or agencies can accelerate your progress—but it also introduces IP risk. And that risk grows when teams are distributed across different legal systems and time zones. Laws governing contracts and IP protection vary by country, which makes everything harder. What are the most common risks you should have in mind while working in a remote team?

Unclear Ownership of Work

Many startups assume that once they pay for development, they automatically own the IP. In reality, without a properly structured IP assignment clause, the creator (freelancer or agency) may legally retain rights to the work. That means your startup might not actually own the codebase it’s built upon. That is a huge risk that needs addressing upfront with precise contracts.

Cross-Border Legal Complexities

Different countries have different intellectual property law frameworks. With team members scattered all over the world, legal interpretation might be difficult. By default, disputes might fall under the IP creator’s local laws. However, it is not obvious. Therefore, it is best to specify which jurisdiction applies in contracts. That way, you can control your own fate and enforcement options.

Data Security Gaps

Remote collaboration often relies on third-party tools—GitHub, Slack, Google Drive, etc. Each tool adds another potential access point for data leaks or misuse. Without clear policies, sensitive IP can be shared too freely.

IP Risk with Freelancers and Agencies

Independent contractors and outsourcing agencies can be excellent partners, but they also increase IP risk if:

• They reuse your code in other projects.
• They lack internal security measures.
• They subcontract parts of your project without your consent.

The flexibility that makes freelancers so appealing can also become a major IP liability if not managed correctly.

Building a remote team doesn’t mean compromising on IP or data protection. It simply requires structure, discipline, and the right legal and technical safeguards. Here’s how to protect IP effectively—without slowing down your development velocity.

Use Clear, Legally Binding Contracts

Every contractor, developer, or agency should sign agreements that explicitly assign all rights to the work they produce to your company. Essential clauses include:

• Work-for-hire or IP assignment: Confirms all IP belongs to your company from day one.
• Confidentiality/NDA: Protects proprietary information.
• Non-compete and non-solicitation: Reduces risk of ex-collaborators working for competitors.

Always include a governing law and jurisdiction clause that matches your company’s country of incorporation. This avoids legal ambiguity later.

Learn more about contracts and resolving disputes in outsourcing: Contract Enforcement Options: Dispute Resolution in Outsourcing

Limit Access and Enforce Data Segmentation

Not everyone in your remote team needs full repository access. Apply the principle of least privilege, so that developers access only relevant modules, designers see assets but not backend logic, contractors work in isolated environments, etc. The smaller the data exposure, the smaller the risk. Combine that with other Zero Trust principles, such as Multi-Factor Authentication or continuous monitoring and logging of network activity, for maximum security.

Use Secure Infrastructure

Use VPNs and encrypted storage. VPNs allow to route internet traffic through a secure, encrypted server, making it much more difficult for anyone to intercept or decipher communications. Establish a secure, centralized repository where all code is version-controlled and backed up, and access is limited. Never share passwords or sensitive files via email or unsecured channels.

Educate Your Remote Team

All the security policies are useless if your team doesn’t understand and apply them. Host short onboarding sessions and extensive training programmes for both employees and contractors. Create clear protocols for everyday procedures and reporting suspected breaches. Every member of the team needs to understand the steps required to protect your company's IP ant the importance of security measures. Empowered teams are your first line of defence.

Audit Regularly

Conduct periodic security audits and IP reviews:

• Check that all contributors have signed updated IP agreements.
• Review repository access lists monthly.
• Run vulnerability scans on your codebase.

Audits not only detect risks early—they also demonstrate professionalism to investors and partners.

Partnering with software agencies can save time and help elevate your product. It might be viewed as risky, but it doesn’t have to be. A right software partner will make sure that your company’s assets are secure. Before you sign a contract, make sure to check:

• Who exactly will work on your project (full-time employees vs. subcontractors).
• How the agency handles source code storage and backups.
• Whether your startup retains full IP ownership upon project completion.

Don’t forget to ask for reviews or references, providing real insight to working with a certain agency or a freelancer.

A reputable software partner, like Milo Solutions, provides clear contracts, transparent workflows, and built-in security practices that ensure your IP and data are fully protected—from start to finish.

Are you ready for a safe, efficient collaboration? Consider partnering with experts who understand both software development and data security. Book a call with Milo Solutions to discuss how our expertise can help create your success.

What does IP mean in business?

IP stands for intellectual property, which includes creations of the mind such as software code, algorithms, product designs, and documentation. It’s the foundation of your company’s value and competitiveness, which must be protected.

How can a startup protect its IP when hiring freelancers?

Always verify the freelancer’s authenticity and level of expertise. Use written contracts that clearly state all IP created by freelancers is owned by your company. Include NDAs and IP assignment clauses. Specify which jurisdiction applies when dealing with conflict regarding IP rights.

What are the biggest IP risks with remote teams?

The most common risks are unclear IP ownership, cross-border legal issues, weak access controls, and poor data security practices when using collaboration tools.

Why is data security critical for startups?

Startups often handle sensitive code, architecture, and client data. A single breach can damage reputation, reduce investor confidence, and expose proprietary information—making strong data protection essential from day one.

What non-technical measures can improve remote security?

A strong security policy, clear protocols, regular training, and fostering a culture of accountability without blame are the best tools for promoting secure behaviours in remote teams and greatly reducing the risks.