318 Unit 4 Selected Topics Intellectual Property Patents Start up companies

319 Start Up Companies Intellectual propertyIntellectual property ContractsContracts InvestmentInvestment

320 Intellectual Property PatentsPatents Trade Secret/ProprietaryTrade Secret/Proprietary PublishingPublishing CopyrightsCopyrights LicensingLicensing

321 Patents The most important type of intellectual property, patents should possess all three of the following:The most important type of intellectual property, patents should possess all three of the following: –Unique –Unobvious –Useful The value of a start up company depends largely on the number and quality of its patents.The value of a start up company depends largely on the number and quality of its patents. Patents should be written as broadly as possible to cover as many circumstances as possible. Often something other than what you intended may be covered by your patent.Patents should be written as broadly as possible to cover as many circumstances as possible. Often something other than what you intended may be covered by your patent.

322 How Do You Make Patents Usually these are created between an engineer and a lawyer.Usually these are created between an engineer and a lawyer. Sometimes you make the device work first and then look for the invention.Sometimes you make the device work first and then look for the invention. TRIZ is a systematic method for creating inventions and solving problems. is a systematic method for creating inventions and solving problems. Patents cost money to maintain each year. If you dont pay the patent becomes public domain.Patents cost money to maintain each year. If you dont pay the patent becomes public domain. The following web site maintains a list of patents which have become public domain:The following web site maintains a list of patents which have become public domain:

323 Other Intellectual Property Trade Secret/ProprietaryTrade Secret/Proprietary PublishingPublishing CopyrightsCopyrights LicensingLicensing

324 Other Intellectual Property Trade Secret/ProprietaryTrade Secret/Proprietary –Used if it may be difficult to prove a patent is being violated. –Software such as Excel and Windows fall into this category since the source code is kept secret. –You must make sure that it is kept clearly labeled as proprietary information or trade secret.

325 Other Intellectual Property PublishingPublishing –If you publish how you do something before it is patented then someone else cannot prevent you from doing it the way you published it. –So this provides some limited protection for you.

326 Other Intellectual Property CopyrightsCopyrights –This applies more to writing and pictures. If you create it, you own the copyrights. If you want to be able to sue someone for using your material you must register it.

327 Other Intellectual Property LicensingLicensing –Legal agreements that allow you to use someone elses intellectual property such as a patent.

328 Contracts Employment contracts may include clauses which prohibit you from working on the same technology for another company for a number of years.Employment contracts may include clauses which prohibit you from working on the same technology for another company for a number of years.

329 Investment InvestorsInvestors Stock optionsStock options IPO, Initial Public Offering of stockIPO, Initial Public Offering of stock

330 Investment InvestorsInvestors –Venture capitalists Investors in high risk start up companies.Investors in high risk start up companies. Often professionally managed funds.Often professionally managed funds. –Angel investors May invest in more risky companies than venture capitalists.May invest in more risky companies than venture capitalists. Expect a certain number of the companies to fail.Expect a certain number of the companies to fail. Hope to make money back on the few which succeed.Hope to make money back on the few which succeed. Sometimes organized into angel networks to pool their money.Sometimes organized into angel networks to pool their money.

331 Investment Stock optionsStock options –Often part of your salary when working for a start up company is in stock options. –You may have to work for several years before they are fully valued. –The stock options provide you with incentive to work harder for a start up company and compensate you for the lack of security compared to working for an established company. –You have the option to buy the stock at a certain price which is hopefully lower than the price at the time you buy it. –You may want to sell the stock immediately even though you will be taxed more.

332 Investment IPO, Initial Public Offering of stockIPO, Initial Public Offering of stock –If you have stock options then they may be worth lots of money when the company goes public, offers its stock to the public for the first time (or not).

333 Links triz/ triz/ triz/ triz/