Chapter 06: LEGAL ISSUES FOR THE ENTREPRENEUR www.AssignmentPoint.com

Intellectual Property Any patent, trademark, copyrights or trade secrets held by the entrepreneur It includes Need for a lawyer Hiring a lawyer www.AssignmentPoint.com 4

Patent A patent is a contract between the government and an inventor. The government grants the inventor exclusivity for a specified amount of time. At the end, the government publishes the invention, and it becomes part of the public domain. The patent gives the owners a negative right, preventing anyone from making, using, or selling the invention. www.AssignmentPoint.com

Types of Patent Utility Patent Most patents fall into the utility patent category. Utility patents are subdivided into mechanical, electrical and chemical categories. utility patent protects the way an invention is used and works. Utility patents may be granted to anyone who invents a new and useful method, process, machine, device, manufactured item, or chemical compound. www.AssignmentPoint.com

Types of Patent Design Patents A design patent is a patent granted on the ornamental design of a functional item. Design patents are a type of industrial design right. Ornamental designs of jewelry, furniture, beverage containers and computer icons are examples of objects that are covered by design patents. www.AssignmentPoint.com

Types of Patent Plant patents: Plant patents typically grant the plant breeder control of the propagating material (including seed, cuttings, divisions, tissue culture) and harvested material (cut flowers, fruit, foliage) of a new variety for a period of 17 years. With these rights, the breeder can choose to become the exclusive marketer of the variety, or to license the variety to others. In order to qualify for protection by plant breeders' rights, a variety must be new, distinct, uniform and stable. www.AssignmentPoint.com

The Disclosure document Statement to Patent and Trademark office by inventor disclosing intent to patent idea This document is important when two entrepreneurs are filing for patents on similar inventions The disclosure document is not a patent application www.AssignmentPoint.com

The Patent Application Introduction: Background and advantage of invention Description of invention: It consists of description of drawings according to PTO requirement Claims: The criteria through which any infringements is determined www.AssignmentPoint.com

Trade Mark A distinguished word, name or symbol used to identify a product The trademark is given a 20-year registration with 20-year renewable terms Today the law allows filing a trademark solely on the intent to use the trademark in interstate commerce There are benefits to registering a mark that has already been in use. www.AssignmentPoint.com 4

Categories of Trademark Coined marks Arbitrary mark Suggestive mark Descriptive mark www.AssignmentPoint.com

Registering the Trademark Completion of the written form A drawing of the mark. Five specimens showing actual use of the mark. The fee www.AssignmentPoint.com

Copyrights A copyright protects original works of authorship. The protection does not protect the idea itself. It allows someone else to use the idea in a different manner. The PTO issues registration for software source codes and object codes programs. www.AssignmentPoint.com

Trade Secrets Protection against others revealing or disclosing information that could be damaging to business Trade secret has life as long as the idea or process remains a secret It is not covered by federal law The holder of trade secret has the right to use any signee who breaches such an agreement www.AssignmentPoint.com

Licensing Contractual agreement giving rights to others to use intellectual property in return for a royalty or fee Licensing has significant value as a marketing strategy to holders of patents. The agreement must be carefully worded and should involve a lawyer. Licensing a trademark Licensing can be valuable for a firm that lacks resources to conduct R&D to develop a product. www.AssignmentPoint.com

The Patent Application Introduction: Background and advantage of invention Description of invention: It consists of description of drawings according to PTO requirement Claims: The criteria through which any infringements is determined www.AssignmentPoint.com

PRODUCT SAFETY AND LIABILITY Responsibility of company to meet any legal specifications regarding a new product covered by the consumer product safety act In addition to setting standards for products, the commission also has a great deal of responsibility and power to identify what it considers to be substantial hazards and bar products it considers unsafe www.AssignmentPoint.com 4

PRODUCT SAFETY AND LIABILITY Claims against Product Safety and Liability: The following are the claims against Product safety and liability Negligence Warranty Strict Liability Misrepresentation www.AssignmentPoint.com

Insurance Common types of insurance includes: Property insurance. Casualty insurance. Life insurance. Worker’s compensation. Bonding. www.AssignmentPoint.com

Contract A legally binding agreement between two parties All parties involved should be named and their roles specified. The transaction should be described in detail. The exact value of the transaction should be specified. Obtain signatures of the persons involved in the deal. www.AssignmentPoint.com