PowerPoint Presentation

Section 8.1
 Pages 121127
8.1
Legal Issues
Facing Start-Ups
What you’ll learn
 How
to protect the product
or service your business is
offering
 The laws that affect the start
up of a business
 Where to get legal advice
8.1
Legal Issues
Facing Start-Ups
Why it’s important
 There
is no aspect of a
business that is not affected
by a law.
 You will save time and money
if you learn about business
laws in advance.
8.1
Legal Issues
Facing Start-Ups
Key Terms
patent
patent-applied-for
patent-pending
copyright
public domain
8.1
Legal Issues
Facing Start-Ups
Key Terms
trademark
service mark
contract
consideration
capacity
8.1
Legal Issues
Facing Start-Ups
I. PROTECTING YOUR
IDEAS
How do you protect a
marketable idea for a product
or service?
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Legal Issues
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II. WHAT ARE YOU
TRYING TO
PROTECT?
The group of laws that
affects how ideas are
protected is called
intellectual property.
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Legal Issues
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III. PATENTS
A. A patent is a grant to an
inventor that gives him or
her the exclusive right to
produce and sell an
invention.
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Legal Issues
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B. A patent lasts for 21 years.
C. There are four rules to
determine if a product is
patented.
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Legal Issues
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1. The invention must not
contain prior art.
2. The invention must fit
into one of five classes.
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Legal Issues
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Machine
Process
Articles of manufacture
Composition
A new use for one of the
four categories
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Legal Issues
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3. The invention must be
“unobvious.”
4. The invention must have utility.
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Legal Issues
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IV. THE PROCESS
A. File a disclosure statement
with the Patent and
Trademark Office (PTO).
B. Include $25 to process.
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Legal Issues
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C. Confirm that you are the
inventor.
D. Within two years, an
application must be filed with
the PTO.
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Legal Issues
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V. THE PATENT SEARCH
A. Patent-applied-for status
means that the public can’t
look at the application and
drawings.
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Legal Issues
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B. If the PTO declares that one’s
claims are accepted, the
patent is patent-pending
status until the patent is
issued.
8.1
Legal Issues
Facing Start-Ups
VI. COPYRIGHTS
A. A copyright protects
original works of the
author.
B. A copyright lasts for 50
years.
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Legal Issues
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C. After 50 years, the work goes
into public domain--it can be
used by anyone free of charge.
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Legal Issues
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VII. TRADEMARKS
A. A trademark is a word,
symbol, design, or
combination of these that
a business uses to identify
itself or something it sells.
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Legal Issues
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B. Trademarks are followed
by the registered
trademark symbol ®.
C. A service mark is a
design or symbol that
describes a service
business.
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Legal Issues
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VIII. LAWS AFFECTING
STARTING UP YOUR
BUSINESS
Certain legal requirements
are fundamental to your
ability to do business.
8.1
Legal Issues
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IX. PERMITS AND
LICENSES
A. A business permit from
your local government
allows you to do business in
your community.
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Legal Issues
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B. Certain professions
require licenses which
show you have the
necessary education and
training to do the job.
8.1
Legal Issues
Facing Start-Ups
X. CONTRACTS
A. A contract is a binding legal
agreement between two or
more persons or parties.
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B. A contract must contain four
parts to be binding.
1. Agreement
2. Consideration--what is
exchanged for the promise
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Legal Issues
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3. Capacity--being able to
enter into a binding
agreement
4. Legality
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XI. CHOOSING A
LOCATION
Where should you locate your
business?
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Legal Issues
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XII. CONTRACTS
A. Cities typically designate
particular areas, or zones.
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B. Laws that relate to the actual
construction of a facility are
called building codes.
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Legal Issues
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XIII. LEASING
A. A lease is a contract to use
a facility or equipment
for a specified period of
time.
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B. The lessee is the person
leasing.
C. The ownership rights belong
to the lessor.
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End of Section 8.1