Session #17B
Legal Issues For
The Entrepreneur
7-1
Intellectual Property
Patents
Copyrights
Trademarks
7-2
Lawyer
Why Have One?
 Determine What Is Needed
 Search For Lawyer With Special Expertise
How to Select Lawyer
 One-Time Service or On-Going?
 Set-Up Comfortable Working Relationship
 Determine Costs Up-Front
7-3
Patents
Contract Between Government &
Inventor- 17 Year Protection (U.S.)
Grants Holder Protection Of Idea
Types
 Utility
 Design
 Plant
 Business Method
International WTO deliberations
Infringement issues
7-4
Patent Documentation
1) U.S. Patent & Trademark Office
2) Disclosure Document - Date Of
Conception
3) Application
a) Introduction
b) Description
c) Claims
7-5
Trademarks
Distinguishing Word/Name/Symbol
Benefits
• Notice Of Exclusive Rights
• Entitlement To Sue
• Incontestable Rights
• Prevent Importation Of Goods With Similar
Mark
• Entitled To Use Of Notice Of Registration®
• Basis For Foreign Filing
7-6
Trademark
Filing Requirements
1) Completion of Written
Form
2) Drawing of Mark
3) Five Specimens
Showing Use Of Mark
4) Fee
7-7
Copyrights
Prevents Others From Copying Original
Works Of Authorship
Software Added To Law In 1980
Registered With Library Of Congress
Requirements
 Form From PTO
 Two Copies Of Work
 Fee- Register of Copyrights
Protection
 Author - Life + 50 Years
 Institution - Publication + 75 Years
7-8
Copyright Protection
Books
Maps
Scripts
Blueprints
Articles
Collages
Poems
Songs
Printed Material On
Board Games
Sculptures
Data
Models
Music
7-9
Trade Secrets
Protection Against
Revealing Information
Not Covered By Federal
Law
Confidentiality Agreement
7-10
Licensing
Contract For Rights To
Intellectual Property Of Others
Property Owner Receives
Royalty/Fee
Value = Marketing Strategy To
Holder Of Patent, Copyright,
Trademark
7-11
Licensing Factors
•Recognizable Property?
•Complement Product/Service
•Experience With Property
•Long-Term Outlook
•Kind Of Protection
•Commitment?
•Renewal Options/Terms
7-12
Product Safety/Liability
Government Consumer Product
Safety Acts are Generally Aimed at
Safeguarding Public Interest with
Respect to:
 Ensuring Standards
 Avoiding Substantial Hazards
 Controlling Dangerous Defects
7-13
Product Liability Claims
Negligence
Warranty
Strict Liability
Misrepresentation
7-14
Types Of Insurance
Property – fire, burglary,
business interruption
Casualty – costs of defense,
judgment, product liability
Life – for corp. executives
Workers’ Compensation
Bonding - protects company
against employee responsibility
e.g. theft, lack of performance
7-15
Contracts
Legally Binding Agreement Between
Two Parties
Requirements
 Offer is made
 Acceptance (voluntary)
 Consideration (something of value)
 Competency (between competent parties)
 Legal (must be on legal grounds)
 $500+ Must Be In Writing
7-16
Contract Ingredients
Parties Named & Roles Specified
Detailed Description Of
Transaction
Exact Value Of Transaction
Signatures of All Parties Involved
7-17
Remedies For Breach
Fulfill Agreement Or
Pay Damages
Restitution - Both
Parties Agree To
Drop Matter
7-18