Chapter 6 – Legal Issues for the Entrepreneurs Vishnu Parmar, IBA University of Sindh, Jamshoro

Intellectual Property IP includes patents, trademarks, copyrights, and trade secrets represents important assets to the entrepreneur. IP includes patents, trademarks, copyrights, and trade secrets represents important assets to the entrepreneur.

What is a Patent? A Patent is a contract between the government and an inventor A Patent is a contract between the government and an inventor Govt. grants the inventor exclusivity regarding the invention for a specific time Govt. grants the inventor exclusivity regarding the invention for a specific time It is “Property” right to exclude others It is “Property” right to exclude others It is “Territorial” provides protection only within the United States. No World Wide Patent. It is “Territorial” provides protection only within the United States. No World Wide Patent. The patentee must enforce the patent once it is granted The patentee must enforce the patent once it is granted

Provisional Applications Utility20 years Term (from filling) Utility20 years Term (from filling) Design14 years Term (from filling) Design14 years Term (from filling) Plant20 years Term (from filling) Plant20 years Term (from filling)

Utility Patents 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 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 It covers new original ornamental and unobvious designs for articles of manufacture, a design patent reflects the appearance of an object. It covers new original ornamental and unobvious designs for articles of manufacture, a design patent reflects the appearance of an object.

Plant Patent 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 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 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. 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 un- renewable terms TM is given an initially 20 year registration with 20 years un- renewable terms

Copyrights A copyright protects original works of authorship. The protection in a copyright doesn't protect the idea itself. 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 It allows someone else to use the idea or concept in a different manner

Trade Secrets 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. 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 The Trade secret will have a life as long as the idea or process remains a secret

Licensing 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. 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. 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 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. 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? Must be specialist in the specific areas of law 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 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? Fees concern Fees concern May work on Retainer basis (stated amount per month or per year) May work on Retainer basis (stated amount per month or per year)