What is Intellectual Property?: It includes patents, trademarks, copyrights, and trade secrets.

These represents important assets to the entrepreneur.:Intellectual property should be understood even before engaging the
services of an attorney.How to Select a Lawyer:regulations that may affect a venture.:A lawyer may work on a retainer basis or may
be hired for a one-time fee.:A gooAn entrepreneur needs to be aware of any d working relationship with a lawyer:”Eases some of
the risk in starting a new business.:Gives the entrepreneur necessary confidence. :Entrepreneur can offer the lawyer stock in
exchange for services when resources are limited. Patents? Patent - Grants holder protection from others making, using, or selling
similar idea; issued by the Patent and Trademark Office (PTO).:Utility patent – Protection of new, useful, and unobvious processes
(film developing), machines (photocopiers), compositions of matter (chemical compounds), and articles of manufacture; term of 20
years. Its fee vary from 8 dollars online to 165 dollars by mail.:Design patent – Covers new, original, ornamental, and unobvious
designs for articles of manufacture; term of 14 years. Reflects the appearance of object. Initial filing fee for small entity is 110
dollar.:Plant patent - Given for new varieties of plants. The Provisional Application :It is the initial application to the PTO providing
evidence of first to market.:Replaces the disclosure document that was previously accepted by the PTO. :Gives the rights to the
patent based on the concept of first to file.:The actual filing of the patent in its final form must occur no later than 12 months after
the provisional disclosure document if filed. Introduction – Consists of the background and advantages of the invention, the
problems that it overcomes, and how the invention differs from existing offerings.:Description of invention – Includes a detailed
description of the invention and of the drawings that accompany it. :Claims - Specify what the entrepreneur is trying to patent.:The
application should contain a declaration signed by the inventor. Business Method Patents?:The growth of Internet use and software
development has given rise to business method patents. :Firms use these patents to assault competitors and subsequently provide
income from royalties or licensing fees. :Concerns have evolved regarding these patents.:Not all start-ups will have a product or
concept that is patentable,: Trademarks? A distinguishing word, name, or symbol used to identify a product.:It can last
indefinitely.:It can be filed solely on the intent to use the trademark in interstate or foreign commerce; also with the intent to use in
the future. Categories::Coined marks.:Arbitrary marks.:Suggestive marks.:Descriptive marks.

 Registering the Trademark:Filing must meet four requirements::Completion of the written form.:A drawing of the mark.:Five
specimens showing actual use of the mark.:The fee. Initial determination of suitability takes 3 months.:Objections must be raise
within six months, or application is considered abandoned.:The entrepreneur has the right to appeal in case of refusal. Once
accepted, trademark is published in the Trademark Official Gazette to allow any party 30 days to oppose or request an extension to
oppose.:Registration is issued if no opposition is filed.:Procedure takes about 13 months from initial filing. Copyrights? Right given to
prevent others from printing, Copyrights.:copying, or publishing any original works of authorship.:Issues surrounding access to
material on the Internet have led to major legal battles for the entertainment industry.:Copyrights are registered with the Library of
Congress.:Term of the copyright is the life of the author plus 70 years. Trade Secrets? Provides protection against others revealing
asked to sign a confidential information agreement.:Entrepreneur needs to take proper precautions.:Legal action is possor disclosing
information that could be damaging to business.:Trade secrets have a life as long as the idea or process remains a secret.:It is not
covered by any federal law but is recognized under a governing body of common laws in each state.:Employees may be ible only
after the secret has been revealed. Licensing? A contractual agreement giving rights to others to use intellectual property in return
for a royalty or fee. Types of licensing:Patent license agreements - Specify how the licensee would have access to the
patent.:Trademark license agreements - Involve a franchising agreement.:Copyright license agreements - Involve rights to use or
copy books, software, music, photographs, plays, etc. Factors to be considered:Customers’ recognition of licensed
property.:Whether licensed property complements existing products or services.:Entrepreneur’s experience with the licensed
property.:Long-term outlook for the licensed property.:Kind of protection provided by the agreement.:Commitments in terms of
payment of royalties, sales quotas, and so on.:Renewal options. Product Safety and Liabilit? It is the responsibility of a company to
meet any legal specifications regarding a new product covered by the Consumer Product Safety Act.:The Act created a commission
with the responsibility of prescribing safety standards.:The development of stricter regulations regarding labeling and advertising is
also part of the commission’s responsibility.:Large fines as well as product recalls are the typical outcomes of any action enforced by
the commission.Insurance?provides a means of managing risk in the new business.:Some insurances are required by law and cannot
be avoided while others are may be necessary to protect the financial net worth of the venture.:Skyrocketing medical costs can have
a significant impact on insurance premiums.:Entrepreneurs also have to consider health care coverage. Table 6.4 - Types of
Insurance and Possible Coverage?




 Contracts? A legally binding agreement between two parties.Often business deals are concluded with a handshake. :The rule is to
not to rely on a handshake if a deal cannot be completed within one year.:Courts insist on a written contract for all transactions over
$500.:Four essential items in an agreement to provide the best legal protection::Understand the terms and conditions in the
contract.;Cross out anything that you do not agree to.:Do not sign if there are blank spaces (these can be crossed out).:Make a copy
for your files after signing.