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Navigating the Legal Landscape: A Guide for Health Tech Startups

by Global Link Law
Mar 26, 2024
health tech startups

Health tech is one of the fastest-growing and most dynamic industries. A study cited by the National Institutes of Health (NIH) noted that “health technology startups are experiencing a significant surge in growth,” with a record-setting $29.1 billion in funds raised in 2021 alone. Healthcare is also highly regulated. To take advantage of commercial opportunities in health tech, startup companies need to be prepared to navigate the legal landscape. 

Regulatory Background: Compliance for Health Tech Startups is a Must

Where healthcare meets technology is where innovation occurs. Regulation is also rapidly developing and ever-evolving in these industries. Health tech startups must navigate a complex web of regulations that govern everything from patient privacy and data protection to medical device efficacy/safety and efficacy. Adherence to all relevant regulations is essential. Non-compliance can result in hefty fines, legal battles, and a loss of consumer trust. 

Health Tech Startups Must Understand the Regulatory Landscape

You cannot navigate the legal landscape that governs healthcare tech without understanding it. A comprehensive understanding of the law is crucial for health startups that are aiming to bring new products, services, and technologies to market. The landscape includes regulatory bodies such as the U.S. Food and Drug Administration (FDA), the European Medicines Agency (EMA), and other national health authorities that oversee the approval of medical devices and software. 

Startups must be familiar with the specific classification of their products—whether it is business software, diagnostic tools, or therapeutic devices—to navigate any related approval process. For example, something as simple as a triage line for urgent care may be classified as a medical device with response times falling under certain regulations. 

Intellectual Property Strategy for Health Tech Innovations

How do you protect the value of your new technology and digital innovations? The answer depends on a number of different factors. An effective intellectual property (IP) strategy can make a difference. It can also attract investors and potential partnerships. The right approach to IP—trademark, copyright, patent, etc—is essential for protecting the innovations that set health tech startups apart from challenges posed by their competitors. 

Indeed, a comprehensive  IP strategy will often encompass patents (to safeguard inventions), trademarks (to protect brand identity), and copyrights (for original content). Beyond that, companies may also be able to use trade secrets for proprietary technologies and innovative processes that can provide a competitive edge. 

Legal Tips: Health tech startups can benefit from conducting a thorough IP audit to identify what aspects of their innovation can be protected and to take steps to secure protection early on. 

Risk Management and Liability Considerations for Startup Companies in Health Tech 

Risk management and liability considerations are paramount for health tech startups, given the potential impact of their products on patient health and safety. Along with other things, startups must implement comprehensive risk management strategies that identify potential risks, assess their impact, and develop mitigation plans. 

For example, obtaining product liability insurance may be needed to protect against claims of injury or damage caused by their products. Beyond that, health tech startups may need to establish clear terms of use and privacy policies that outline the responsibilities and liabilities of all parties. Engaging in regular legal audits to ensure compliance with all regulations. Another key consideration is that many health techs rely on patient health data and these companies must have a legal strategy in place to obtain and use such data.

Be Proactive: Seek Professional Legal Guidance 

When dealing with any type of legal or regulatory matter, it is better to be proactive rather than reactive. Engaging with the right legal professional—one with expertise in health technology—can help to ensure that your startup is not only compliant but also positioned to innovate in a strategic and effective manner. Our founder, president, and managing partner Robyn D. Marino, brings more than two decades of experience to support health tech companies through a wide range of legal matters—from regulatory compliance to contracts. 

Contact Our Senior Healthcare Tech Attorney Today

At Global Link Law, our healthcare tech lawyer is a skilled, experienced, and solutions-focused advocate for clients, including start-up companies. We are committed to bringing value. If you have any legal questions about your health tech startup, our legal team is here as a resource. To set up your confidential, no-obligation consultation, please do not hesitate to contact us today. 


The information provided on this website is for general informational purposes only and should not be considered legal advice. No attorney-client relationship is created by accessing or using this website. Please consult with a qualified attorney before making any legal decisions. Global Link Law is not liable for any reliance on the information provided. Prior results do not guarantee a similar outcome.

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