Legal issues for the Entrepreneur

Intellectual property Any patents,trademarks, copy rights or trade secrets held by the entrepreneur. Lack of understanding of Intellectual property ignore important steps that they should have taken to protect these assets.

Need for a lawyer Entrepreneur should be aware about any regulation that affects the enterprise. Varies based on type of business. Carefully evaluate before hiring.

How to select a Lawyer Specialist in specific areas of law. Wok on a retainer basis. Gives opportunity to call lawyer whenever need arises without incurring much cost. Some time hired for one time fee. Cordial relationship has to be maintained.

Legal issues in setting up the organization. Patents The Disclosure of Document. Trademarks. Copyrights Trade Secrets Licensing Product Safety and Liability. Insurance Contracts

Patents Patent is a contact between the government and an inventor. Grants holder protection from others making, using or selling similar idea. In exchange for disclosure of the invention the government grants the inventor exclusively regarding the invention for a specified period of time. At the end of the domain however there is the assumption that the disclosure will stimulate ideas and perhaps even the development of an even better product that could replace the original.s

Types of patent Utility patents-17 to 20 years Design patents-l4 years Plant patents-17 years

Disclosure Document To establish the date of conception of the invention. Important when two entrepreneurs are filing the for patents on similar inventions. the first entrant is given right for patent. Prepare a clear and concise description of the invention. Photograph has to be included. It is an indent for patent idea.

The Patent Application Contain complete history and description of the invention as well as claims for its usefulness. Form has to be downloaded. Contents Introduction Description Claims

Assess whether patent now exists File for patent Is patent recent or is it nearly expired. Do expired patents exist that accomplish same purpose Can the product changed slightly without infringement Begin planning for introduction when existing patent expires Develop product using own design Seek license Develop modified version Options to avoid Infringement No New or unacceptable Ready to Expire acceptable NO Yes yes

Checklist for minimizing patent risks Seek a patent lawyer who has expertise in the product line. Disclosure –seek legal counsel. Evaluate competitors patents. Consider licensing your patents. Employment contracts. All products got patent.

Classroom exercises A company uses 300 units of an item per day and the order lead time is 5 days. What should be the level of inventory when a new order is to be placed ?

Answer Reorder point = usage rate × lead time Reorder point = 300 × 5 =1500 units

Mr. Kiran wants to open a tailoring shop in a colony. Name the suitable ‘pricing method’ for providing his services

Answer Competitors pricing. Demand based Pricing

For which type of products can the manufacturer initially fix a very high price? Name the pricing-method which is used for such type of products.

Unique and innovative product. Skimming pricing