1. The Legal Environment What laws and regulation apply to businesses?

2. Intellectual property laws regulate ownership and use of creative works Examples of Intellectual Property are: Patents Copyrights Trademarks Service Mark

3. Trade Secrets are Intellectual Property, but can not be copyrighted or patented However, is covered under the Uniform Trade Secrets Act (UTSA). Trade secrets could be formulas, ideas, processes or any set of knowledge not generally known in an industry.

4. Patent Is a grant to an inventor giving exclusive right to produce and sell an invention. (For a period of 20 years from the date of application)

5. To Process a Patent 1.The invention must not contain “Prior Art.” (It shouldn’t be based on anything publicly available) 2.The invention must fit into one of five classes: 1. A machine (e.g., fax ) 2. A process (e.g., chemical reaction) 3. Articles of manufacture (e.g., furniture design) 4. A composition (e.g., gasoline formula) 5. A New Use, for any of the other four categories (e.g. pressurized air for computers)

6. To Process a Patent (cont.) 3.The invention must not be obvious. It must be new and unexpected. 4. The invention must have utility. (Useful)

7. Protection of Patents To file a patent at Patent and Trademark Office (PTO) Process an application ($25) and perform a patent search. At that point, the patent is said to be “Patent-Applied-For” status. At this point, the public can not look at the application. Once the PTO decides the claim is valid; the PTO declares the patent, “Patent Pending”. The patent will be issued later.

8. Patents last 20 years Once the patent life expired the patent is placed in public domain.

9. Public Domain is expired intellectual property that no longer has protection And anyone may use any aspect in their own invention, free of charge.

10. Copyrights are similar To Patents, except that they protect original works of authors. These works include books, movies, musical compositions and computer software. They are registered with the Copyright Office, a branch of the Library of Congress. A copyright lasts for the life of the author + 70 years, then it goes into “public domain”.

11. Trademarks are Words, symbols, designs or any combination of these, that a business might identify itself or for products the business sells.

12. Service Marks Are trademarks “stylized” as symbol of doing business with an organization. Like a patent or a copyright trademarks and service marks are legal protection against competitors and anyone that might want to hurt the “name” associated with an organization. When registering with the PTO, the symbol / design must be proven to be original and distinctive.

13. Permits and Licenses Before you open your doors for business, you must have a legal right to do business in that area. This right to do business in a community is a Permit. Certain professions require licenses. These licenses protect the qualified professional and the consumers from the unqualified. Examples of some of these professions are Lawyers, CPAs, Medical Doctors, Barbers and Teachers.

14. Contracts are Legally binding agreements between two or more people. Contracts with vendors, landlords and clients will be common. Agreements occur when one party makes an offer or promises to do something and the other party accepts. It can be verbal or written, but it is better in court when it is in writing.

15. Consideration and Capacity Is what is exchanged for a promise. (usually $) Capacity means that you are legally able to enter into a binding agreement. That you are sane, not under the influence and you must be at least 18. All contracts must be legal to be valid and binding.

16. Zoning Laws are: Local laws by city and county planners to reduce traffic, pollution and noise. There are zones for commercial, residential, industrial and public uses.

17. Building Codes are: Standards of architecture and structural needs in a community.

18. Leasing Is a complex contract used instead of buying equipment, land or building. The lessee is the entrepreneur, the lessor is the owner, and the lease is the contract. Often this is the preferred arrangement due to liability issues.