PowerPoint Presentation  Section 8.1  Pages

What you’ll learn  How to protect the product or service your business is offering  The laws that affect the start up of a business  Where to get legal advice 8.1 L egal Issues Facing Start-Ups

Why it’s important  There is no aspect of a business that is not affected by a law.  You will save time and money if you learn about business laws in advance. 8.1 L egal Issues Facing Start-Ups

Key Terms patentpatent-applied-forpatent-pendingcopyright public domain 8.1 L egal Issues Facing Start-Ups

Key Terms trademark service mark contractconsiderationcapacity 8.1 L egal Issues Facing Start-Ups

I. PROTECTING YOUR IDEAS How do you protect a marketable idea for a product or service? 8.1 L egal Issues Facing Start-Ups

II. WHAT ARE YOU TRYING TO PROTECT? The group of laws that affects how ideas are protected is called intellectual property. 8.1 L egal Issues Facing Start-Ups

III. PATENTS A. A patent is a grant to an inventor that gives him or her the exclusive right to produce and sell an invention.

8.1 L egal Issues Facing Start-Ups B. A patent lasts for 21 years. C. There are four rules to determine if a product is patented.

8.1 L egal Issues Facing Start-Ups 1. The invention must not contain prior art. The invention must fit into one of five classes. 2. The invention must fit into one of five classes.

8.1 L egal Issues Facing Start-Ups  Machine  Process  Articles of manufacture  Composition  A new use for one of the four categories

8.1 L egal Issues Facing Start-Ups 3. The invention must be “unobvious.” 4. The invention must have utility.

8.1 L egal Issues Facing Start-Ups IV. THE PROCESS A. File a disclosure statement with the Patent and Trademark Office (PTO). B. Include $25 to process.

8.1 L egal Issues Facing Start-Ups C. Confirm that you are the inventor. D. Within two years, an application must be filed with the PTO.

8.1 L egal Issues Facing Start-Ups V. THE PATENT SEARCH A. Patent-applied-for status means that the public can’t look at the application and drawings.

8.1 L egal Issues Facing Start-Ups B. If the PTO declares that one’s claims are accepted, the patent is patent-pending status until the patent is issued.

8.1 L egal Issues Facing Start-Ups VI. COPYRIGHTS A. A copyright protects original works of the author. B. A copyright lasts for 50 years.

8.1 L egal Issues Facing Start-Ups C. After 50 years, the work goes into public domain--it can be used by anyone free of charge.

8.1 L egal Issues Facing Start-Ups VII. TRADEMARKS A. A trademark is a word, symbol, design, or combination of these that a business uses to identify itself or something it sells.

8.1 L egal Issues Facing Start-Ups B. Trademarks are followed by the registered trademark symbol ®. C. A service mark is a design or symbol that describes a service business. C. A service mark is a design or symbol that describes a service business.

8.1 L egal Issues Facing Start-Ups VIII. LAWS AFFECTING STARTING UP YOUR BUSINESS Certain legal requirements are fundamental to your ability to do business. Certain legal requirements are fundamental to your ability to do business.

8.1 L egal Issues Facing Start-Ups IX. PERMITS AND LICENSES A. A business permit from your local government allows you to do business in your community.

8.1 L egal Issues Facing Start-Ups B.Certain professions require licenses which show you have the necessary education and training to do the job.

8.1 L egal Issues Facing Start-Ups X. CONTRACTS A. A contract is a binding legal agreement between two or more persons or parties. A. A contract is a binding legal agreement between two or more persons or parties.

8.1 L egal Issues Facing Start-Ups B. A contract must contain four parts to be binding. 1. Agreement 2. Consideration--what is exchanged for the promise

8.1 L egal Issues Facing Start-Ups 3. Capacity--being able to enter into a binding agreement 4. Legality

8.1 L egal Issues Facing Start-Ups XI.CHOOSING A LOCATION Where should you locate your business?

8.1 L egal Issues Facing Start-Ups XII. CONTRACTS A. Cities typically designate particular areas, or zones.

8.1 L egal Issues Facing Start-Ups B. Laws that relate to the actual construction of a facility are called building codes.

8.1 L egal Issues Facing Start-Ups XIII. LEASING A. A lease is a contract to use a facility or equipment for a specified period of time.

8.1 L egal Issues Facing Start-Ups B. The lessee is the person leasing. C. The ownership rights belong to the lessor.

8.1 L egal Issues Facing Start-Ups End of Section 8.1