Instructor Resource
Neck, Entrepreneurship, 1e
SAGE Publishing, 2018
Case Notes
Chapter 15: Navigating Legal and IP Issues
Rob Donat, Founder & CEO of GPS Insight
Summary
Rob Donat came from a modest, middle-class background. As a boy, he learned the value of a
dollar and how to work hard. He also learned that with a little creativity and forethought, he
could engage in entrepreneurial projects to earn extra spending money. A self-described
“technology geek,” Donat was fascinated by computers growing up, and eventually earned
These varied experiences prepared Donat to eventually found GPS Insight, which offers GPS
tracking and other valuable informational services to freight truck companies. Launching this
startup was not easy, nor was it affordable. Nevertheless, Donat managed to raise, borrow,
contribute, and otherwise scrape up the $2 million he needed to get his new venture off the
ground. It took $40 million in revenue before GPS earned their first dollar in profit, but ever
since, they have been on a continual pathway of upward growth.
Despite the success of GPS Insight, many challenges remain. One such challenge is learning how
Analysis
Rob Donat’s story provides an ideal case study for the information presented in this chapter.
First, there are a variety of legal considerations that Donat and his colleagues had to make in
preparing the legal structures of GPS Insight. Over time, through their own education, research,
and counsel, as well as their experiences (including making legal mistakes), they were able to
protect their own intellectual property and take steps to avoid global theft and other common
Instructor Resource
Neck, Entrepreneurship, 1e
SAGE Publishing, 2018
Sample Answers to Case Questions
1. Rob Donat is an effective example of leveraging the financial damage that patent trolls
can incur in a business. How might you apply what you learned from Rob’s experience to
the development, design, and patenting of your own products and services in the
future?
2. What kinds of preventive actions can you take to avoid legal mistakes and other
common IP traps that typically ensnare startups?
3. In what ways do your entrepreneurial ideas involve the development of intellectual
property and/or patents? What legal considerations will you need to take into account
in the pursuit of your business building objectives?
Sample answer: Answers will vary from student-to-student. Emphasize that every