Inventors and innovators come from all walks of life, and this includes individuals both young or very senior. These individuals have the right to high quality service and respect, just like any other client. As we have seen in the IT world, brilliant ideas for new software programs have created millionaires out of teenagers! So it should not come as a surprise to any of us that agents are approached by individuals under the age of consent for services to protect their interests with an amazing innovation. When this happens, are there any unique ethical considerations of which an agent should be aware?
Scenario
You have been approached by a 17-year-old student entrepreneur about starting a new software business. He has the support of his parents. How should you handle this situation?
Analysis and Factors to Consider
The first thing to consider is whether a 17-year-old can execute legal documents and that is a legal, not ethical question. You might consult the Government of Canada’s Youth Entrepreneurship Guide, for example, which provides that an individual needs to be at least 18 years of age to sign contracts and other legal documents. If an individual is under the age of 18, then they need someone 18 years or older to sign on their behalf. Therefore, depending on the wishes of the student who has approached you, and other relevant considerations, you may raise with the student whether they wish to wait until they turn 18 to pursue the business idea in order to be legally able to provide independent instructions to you and enter into business without the need of parental support. It is up to you to confirm whether there are any differences in this guidance by province, and to consider what strategy might work best for this client and their business idea.
If the decision is made to move forward as a 17-year-old with parental support, then there are a few ethical and business considerations that come to mind.
The first focuses on ‘Who is your client?’ It is not unusual, for example, for a professional to have a client who provides instructions but has their fees paid by a third party. This can happen when a criminal lawyer represents a youth and the parents are responsible for paying the fees. This does not mean that the parents become the clients – only that they agree to pay the fees.
Because there is a foreseeable risk of disagreement between multiple parties giving instructions in any circumstances, it is important at the outset to have a very clear retainer agreement identifying who is your client, who may give instructions, whether confidential information may be shared between the student, the parents and you, whether this is in effect a Joint Retainer, or what the nature and extent of support is to be provided by the parents. Consider your duty of Confidentiality under Part 2 of CPATA’s Code of Professional Conduct. You want to avoid being caught between the student client and the parents if a disagreement arises. How will this be handled? To whom do you owe a duty of loyalty? This should all be clearly spelled out in the retainer agreement.
Whether it is decided that both the student and the parents will provide you instructions, or that only the student will do so, it is helpful to keep in mind your duties of Competence under Part 1 of the Code and to provide good Quality of Service under Part 4 of the Code. This includes ensuring that you effectively communicate with someone who may be less able than an adult to grasp the information they must understand in order to provide you instructions and make informed decisions. It is up to you to develop an understanding of the unique needs of this client, and to communicate in a way that is helpful to them and documents your advice and instructions on a regular and clear basis.
Another consideration is taking proactive steps to avoid a conflict of interest developing for you as a result of a difference of opinion between the student and their parents. Have a look at Part 3 Conflicts in the Code. As noted earlier, having a clear retainer agreement that identifies who are your clients, who can provide instructions, to whom do you owe a duty of loyalty, etc. can help avoid future conflicts. If this is to be a Joint Retainer, then consider Rule 3(5) and the guidelines provided therein. The retainer should also address what will happen in the event of a disagreement or conflict that cannot be rectified, including the circumstances under which you may have the option or a duty to withdraw (see Rule 6 Withdrawal).
Conclusion
While agreeing to provide IP services to a 17-year-old client may involve some unique considerations such as those highlighted above, it is important that youth entrepreneurs, just like adult clients, have access to appropriate IP services in a safe and relatively risk-free way. Each client situation and business idea is unique and should be treated that way. By starting the agent-client relationship on the right foot, for both the client(s) and you, then you can avoid misunderstandings and conflicts later on.