Transcript Chapter 6 – Legal Issues for the Entrepreneurs

Chapter 6 –
Legal Issues for the
Entrepreneurs
Vishnu Parmar, IBA
University of Sindh, Jamshoro
Intellectual Property
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IP includes patents, trademarks,
copyrights, and trade secrets
represents important assets to the
entrepreneur.
What is a Patent?
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A Patent is a contract between the
government and an inventor
Govt. grants the inventor exclusivity
regarding the invention for a specific time
It is “Property” right to exclude others
It is “Territorial” provides protection only
within the United States. No World Wide
Patent.
The patentee must enforce the patent
once it is granted
Provisional Applications
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Utility 20 years Term (from filling)
Design 14 years Term (from filling)
Plant 20 years Term (from filling)
Utility Patents
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It grants the owner protection from
anyone else making using and selling the
identified invention and generally reflects
protection of new, useful, and unobvious
process such as film developing, machines
such as photocopier, composition of
matter such as chemical compound or
mixture of ingredients and articles of
manufacture such as toothpaste pump
Design Patent
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It covers new original ornamental
and unobvious designs for articles of
manufacture, a design patent reflects
the appearance of an object.
Plant Patent
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These are issued under the same
provisions as utility patents and are
for new varieties of plants. These
patents represent a limit area of
interest, and thus very few of these
types of patents are issued
Trademarks
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A trademark may be a word, symbol,
design, or some combination of such,
or it could be a slogan or even a
particular sound that identifies the
source or sponsorship or certain
goods or services.
TM is given an initially 20 year
registration with 20 years unrenewable terms
Copyrights
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A copyright protects original works of
authorship. The protection in a
copyright doesn't protect the idea
itself.
It allows someone else to use the
idea or concept in a different manner
Trade Secrets
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In certain cases the entrepreneur
may prefer to maintain an idea or
process as confidential and to sell or
license it as a trade secret.
The Trade secret will have a life as
long as the idea or process remains a
secret
Licensing
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Licensing is an arrangement between two
parties, where one party has proprietary
rights over some information, process or
technology protected by a patent,
trademark, copyright.
This arrangement requires the license to
pay a royalty or some other specified sum
to the holder of the proprietary rights
(licensor) in return for permission to copy
the patent, trademark, or copyright.
Need for a Lawyer
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Legal expertise required vary based
upon kind of business like franchise,
an independent start-up or a buy
out, consumer or industrial products,
Non-profit or profit oriented, weather
involves computer software or
exporting or importing.
How to Select a Lawyer?
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Must be specialist in the specific
areas of law
A competent attorney is in a better
position to understand all possible
circumstances and outcomes related
to any legal action
How to Select a Lawyer?
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Fees concern
May work on Retainer basis (stated
amount per month or per year)