8 Patents – Application procedure (continued) Introduction to the patent application – Includes the context and benefits of the invention, the problems it overcomes, and how the invention differs from existing offers. Description of the invention – Contains a detailed description of the invention and drawings. Claims – Specifies what the contractor wants to patent. Declaration – signed by the inventor(s). Art. 13 Trade marks (continued) Registration of the markThe application must meet four conditions: Fill in the form A drawing of the mark Five samples showing the actual use of the mark Pay the fees The initial determination of suitability takes 3 months. The entrepreneur may appeal against the refusal to grant trademarks. 23 Contracts A legally binding agreement between two parties. Handshake” / Verbal agreements – usually a bad idea Always draft contracts in the name of the company (if registered) Fraud status Written contract required for: Performance of the contract that cannot be concluded within one year. All transactions over $500. Real estate contracts 9 Patents (continued) Patent infringementMany companies, inventions or innovations are the result of improvements or modifications to existing products. Copying and improving a product can be completely legal and a good business strategy.
If patent infringement is unavoidable, the entrepreneur may try to license the patent to the patent holder. Hire a good patent attorney to reduce the risk of patent infringement. 5 Patents Patent – Grants the owner protection against others who make, use or sell similar inventions; issued by the Patent and Trademark Office (PTO). utility model – protection of new, useful and non-obvious processes, machines, compositions of substances and manufacturing objects; Term of 20 years. Designs – Includes new, original, decorative and non-obvious designs for manufactured items; Term of 14 years. Plant patent – Granted for new plant varieties. Not every start-up will have a patentable product or concept. Art. 19 Licensing A contractual agreement that grants others the right to use the intellectual property for a fee or fee. Types of licenses: Patent license agreements – Specify how the licensee would access the patent. Trademark License Agreements – Include a franchise agreement. Copyright License Agreements – Include rights to use or copy books, software, music, photos, plays, etc.
7 The Information DocumentDeclaration of the inventor to the Patent and Trademark Office revealing the intent of the patent idea This document is important when two entrepreneurs file a patent application for similar inventions The disclosure document is not a patent application 21 Insurance Provides a means of risk management in the new business. Some insurance policies are required by law (e.g., Worker`s Comp) and cannot be avoided, while others are optional and help protect the company`s net financial assets (e.g., life insurance). Talk to the insurance agent about the types of insurance needed for your business Some companies/policies can be hard to find. Be specific in the information provided to insurers. 18 Entrepreneur Proverb #24 “Never discuss a business idea without first signing a confidentiality agreement. – Jordan 14 License A contractual agreement that grants others the right to use intellectual property for a royalty or fee Licensing has significant value as a marketing strategy for patent holders. The agreement must be drafted carefully and must involve a lawyer. License of a trademark The license can be valuable for a company that lacks the resources to conduct research and development activities to develop a product. 3 How to choose a lawyer Find someone to get along withCheck references, BBB and bar association applications Fees: Advance or hourly rate The entrepreneur can offer shares to the lawyer in exchange for services Self-completion of part of the legal “steps” after seeking advice from a lawyer – saves $16 PRODUCT SAFETY AND LIABILITYResablification of the company to meet all legal specifications relating to a New product under the Consumer Product Safety Act In addition to setting standards for the Commission, the Commission also has the broad responsibility and authority to identify what it considers to be significant hazards and to identify products it considers unsafe. 4 20 Product Safety and LiabilityCompanies must comply with all legal specifications for products covered by the Consumer Product Safety Act. Also must comply with strict labeling and advertising regulations Penalties High fines Product recalls Liability actions Strict/absolute liability 13 Trade secrets Protection against others Disclosure or disclosure of information that could harm the business Trade secret has a life as long as the idea or process remains secret It is not covered by federal law The trade secret holder has the right to: Use any signatory that violates such an agreement 17 Trade Secrets Provides protection against disclosure or disclosure by others of information that could be detrimental to the business.