1. Chapter 06: LEGAL ISSUES FOR THE ENTREPRENEUR

2. Intellectual Property
Any patent, trademark, copyrights or trade secrets held by the entrepreneur
It includes
Need for a lawyer
Hiring a lawyer 4

3. Patent A patent is a contract between the government and an inventor.
The government grants the inventor exclusivity for a specified amount of time.
At the end, the government publishes the invention, and it becomes part of the public domain.
The patent gives the owners a negative right, preventing anyone from making, using, or selling the invention.

4. Types of Patent Utility Patent
Most patents fall into the utility patent category.
Utility patents are subdivided into mechanical, electrical and chemical categories.
utility patent protects the way an invention is used and works.
Utility patents may be granted to anyone who invents a new and useful method, process, machine, device, manufactured item, or chemical compound.

5. Types of Patent Design Patents
A design patent is a patent granted on the ornamental design of a functional item.
Design patents are a type of industrial design right.
Ornamental designs of jewelry, furniture, beverage containers and computer icons are examples of objects that are covered by design patents.

6. Types of Patent Plant patents:
Plant patents typically grant the plant breeder control of the propagating material (including seed, cuttings, divisions, tissue culture) and harvested material (cut flowers, fruit, foliage) of a new variety for a period of 17 years.
With these rights, the breeder can choose to become the exclusive marketer of the variety, or to license the variety to others.
In order to qualify for protection by plant breeders' rights, a variety must be new, distinct, uniform and stable.

7. The Disclosure document
Statement to Patent and Trademark office by inventor disclosing intent to patent idea
This document is important when two entrepreneurs are filing for patents on similar inventions
The disclosure document is not a patent application

8. The Patent Application
Introduction:
Background and advantage of invention
Description of invention:
It consists of description of drawings according to PTO requirement
Claims:
The criteria through which any infringements is determined

9. Trade Mark
A distinguished word, name or symbol used to identify a product
The trademark is given a 20-year registration with 20-year renewable terms
Today the law allows filing a trademark solely on the intent to use the trademark in interstate commerce
There are benefits to registering a mark that has already been in use. 4

10. Categories of Trademark
Coined marks
Arbitrary mark
Suggestive mark
Descriptive mark

11. Registering the Trademark
Completion of the written form
A drawing of the mark.
Five specimens showing actual use of the mark.
The fee

12. Copyrights A copyright protects original works of authorship.
The protection does not protect the idea itself.
It allows someone else to use the idea in a different manner.
The PTO issues registration for software source codes and object codes programs.

13. Trade Secrets
Protection against others revealing or disclosing information that could be damaging to business
Trade secret has life as long as the idea or process remains a secret
It is not covered by federal law
The holder of trade secret has the right to use any signee who breaches such an agreement

14. Licensing
Contractual agreement giving rights to others to use intellectual property in return for a royalty or fee
Licensing has significant value as a marketing strategy to holders of patents.
The agreement must be carefully worded and should involve a lawyer. Licensing a trademark
Licensing can be valuable for a firm that lacks resources to conduct R&D to develop a product.

15. The Patent Application
Introduction:
Background and advantage of invention
Description of invention:
It consists of description of drawings according to PTO requirement
Claims:
The criteria through which any infringements is determined

16. PRODUCT SAFETY AND LIABILITY
Responsibility of company to meet any legal specifications regarding a new product covered by the consumer product safety act
In addition to setting standards for products, the commission also has a great deal of responsibility and power to identify what it considers to be substantial hazards and bar products it considers unsafe 4

17. PRODUCT SAFETY AND LIABILITY
Claims against Product Safety and Liability:
The following are the claims against Product safety and liability
Negligence
Warranty
Strict Liability
Misrepresentation

18. Insurance Common types of insurance includes: Property insurance.
Casualty insurance.
Life insurance.
Worker’s compensation.
Bonding.

19. Contract A legally binding agreement between two parties
All parties involved should be named and their roles specified.
The transaction should be described in detail.
The exact value of the transaction should be specified.
Obtain signatures of the persons involved in the deal.