7-1

Session Session #17B#17B

Legal Issues For Legal Issues For The EntrepreneurThe Entrepreneur

7-2

Intellectual PropertyIntellectual PropertyPatentsPatents

CopyrightsCopyrights

TrademarksTrademarks

7-3

LawyerLawyerWhy Have One?Why Have One?

Determine What Is NeededDetermine What Is Needed

Search For Lawyer With Special ExpertiseSearch For Lawyer With Special Expertise

How to Select LawyerHow to Select Lawyer One-Time Service or On-Going?One-Time Service or On-Going?

Set-Up Comfortable Working RelationshipSet-Up Comfortable Working Relationship

Determine Costs Up-FrontDetermine Costs Up-Front

7-4

PatentsPatentsContract Between Government & Contract Between Government & Inventor- 17 Year Protection (U.S.)Inventor- 17 Year Protection (U.S.)

Grants Holder Protection Of IdeaGrants Holder Protection Of IdeaTypesTypes

UtilityUtility DesignDesign PlantPlant Business MethodBusiness Method

International WTO deliberationsInternational WTO deliberationsInfringement issuesInfringement issues

7-5

Patent DocumentationPatent Documentation

1)1) U.S. Patent & Trademark OfficeU.S. Patent & Trademark Office

2)2) Disclosure Document - Date Of Disclosure Document - Date Of ConceptionConception

3)3) ApplicationApplicationa)a) IntroductionIntroduction

b)b) DescriptionDescription

c)c) ClaimsClaims

7-6

TrademarksTrademarksDistinguishing Word/Name/SymbolDistinguishing Word/Name/SymbolBenefitsBenefits• Notice Of Exclusive RightsNotice Of Exclusive Rights• Entitlement To SueEntitlement To Sue• Incontestable RightsIncontestable Rights• Prevent Importation Of Goods With Similar Prevent Importation Of Goods With Similar

MarkMark• Entitled To Use Of Notice Of RegistrationEntitled To Use Of Notice Of Registration®®• Basis For Foreign FilingBasis For Foreign Filing

7-7

TrademarkTrademark Filing RequirementsFiling Requirements

1)1) Completion of Written Completion of Written FormForm

2)2) Drawing of MarkDrawing of Mark

3)3) Five Specimens Five Specimens Showing Use Of MarkShowing Use Of Mark

4)4) FeeFee

7-8

CopyrightsCopyrightsPrevents Others From Copying Original Prevents Others From Copying Original

Works Of AuthorshipWorks Of AuthorshipSoftware Added To Law In 1980Software Added To Law In 1980Registered With Library Of CongressRegistered With Library Of CongressRequirementsRequirements

Form From PTOForm From PTO Two Copies Of WorkTwo Copies Of Work Fee- Register of CopyrightsFee- Register of Copyrights

ProtectionProtection Author - Life + 50 YearsAuthor - Life + 50 Years Institution - Publication + 75 YearsInstitution - Publication + 75 Years

7-9

Copyright ProtectionCopyright ProtectionBooksBooks

ScriptsScripts

ArticlesArticles

PoemsPoems

SongsSongs

SculpturesSculptures

ModelsModels

MapsMaps

BlueprintsBlueprints

CollagesCollages

Printed Material On Printed Material On

Board GamesBoard Games

DataData

MusicMusic

7-10

Trade SecretsTrade Secrets

Protection Against Protection Against Revealing InformationRevealing Information

Not Covered By Federal Not Covered By Federal LawLaw

Confidentiality AgreementConfidentiality Agreement

7-11

LicensingLicensing

Contract For Rights To Contract For Rights To Intellectual Property Of OthersIntellectual Property Of Others

Property Owner Receives Property Owner Receives Royalty/FeeRoyalty/Fee

Value = Marketing Strategy To Value = Marketing Strategy To Holder Of Patent, Copyright, Holder Of Patent, Copyright, TrademarkTrademark

7-12

Licensing FactorsLicensing Factors

•Recognizable Property?Recognizable Property?

•Complement Product/ServiceComplement Product/Service

•Experience With PropertyExperience With Property

•Long-Term OutlookLong-Term Outlook

•Kind Of ProtectionKind Of Protection

•Commitment?Commitment?

•Renewal Options/TermsRenewal Options/Terms

7-13

Product Safety/LiabilityProduct Safety/LiabilityGovernment Consumer Product Government Consumer Product Safety Acts are Generally Aimed at Safety Acts are Generally Aimed at Safeguarding Public Interest with Safeguarding Public Interest with Respect to: Respect to: Ensuring StandardsEnsuring Standards Avoiding Substantial HazardsAvoiding Substantial Hazards Controlling Dangerous DefectsControlling Dangerous Defects

7-14

Product Liability ClaimsProduct Liability Claims

NegligenceNegligence

WarrantyWarranty

Strict LiabilityStrict Liability

MisrepresentationMisrepresentation

7-15

Types Of InsuranceTypes Of Insurance

PropertyProperty – fire, burglary, – fire, burglary, business interruptionbusiness interruption

CasualtyCasualty – costs of defense, – costs of defense, judgment, product liabilityjudgment, product liability

LifeLife – for corp. executives – for corp. executivesWorkersWorkers’ Compensation’ CompensationBonding Bonding - protects company - protects company

against employee responsibility against employee responsibility e.g. theft, lack of performance e.g. theft, lack of performance

7-16

ContractsContractsLegally Binding Agreement Between Legally Binding Agreement Between Two PartiesTwo Parties

RequirementsRequirements Offer is madeOffer is made Acceptance (voluntary)Acceptance (voluntary) Consideration (something of value)Consideration (something of value) Competency (between competent parties)Competency (between competent parties) Legal (must be on legal grounds)Legal (must be on legal grounds) $500+ Must Be In Writing$500+ Must Be In Writing

7-17

Contract IngredientsContract Ingredients

Parties Named & Roles SpecifiedParties Named & Roles Specified

Detailed Description Of Detailed Description Of TransactionTransaction

Exact Value Of TransactionExact Value Of Transaction

Signatures of All Parties InvolvedSignatures of All Parties Involved

7-18

Remedies For BreachRemedies For Breach

Fulfill Agreement Or Fulfill Agreement Or

Pay DamagesPay Damages

Restitution - Both Restitution - Both

Parties Agree To Parties Agree To

Drop MatterDrop Matter