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INVENT THE FUTURE!

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MAY 2014

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Update from our Chairman, Alan TratnerWhew what a Spring! . . Just came off speaking, exhibiting and representing our members at a big line up of conferences, trade shows and events: Earth Day, International Green Industry Hall Of Fame, Here’s The Money, SpaceTech Expo, Space Ops, JPL/Cal Tech and the giant annual National Hardware show. We did inter-views about our organizations that were on Google, NBC,and other media.

Summary of the insights gained overall: there is a real recognition and momentum about America needing to push its strengths on invention and innovation and new tech development, and at the National Hardware Show they even opened the last day with a pitch to all the mainline companies to consider outside there own R&D for new ideas and opportunities from inventor/entrepreneurs. Amen!

And I witnessed some first hand positive openness of some companies to explore relationships with Green2Gold, Inventors Workshop International, Small Business Entrepreneurship Center, California Space Enterprise Center to mine the gold of your ideas and products.

Another insight is looking at a manufacturing line of products, see if they are missing a sector/market that your idea could fill, or actually reinventing/improving a product that has not changed for a long time -- that enhances your and our chances of obtaining licensing or even acquisitions.

Beyond that, we have have big steps toward the creation of the California Space Enterprise Center, build-ing support and sponsorships, and our new, bold SuperSTEM education initiative, and now have mem-ber clients in the Virtual Space Enterprise Center working on projects ranging from green rocket propul-sion to cosmic ray illness prevention.

In the clean, green tech sectors, new developments in water clean up, recycling, toxic waste handling that yields energy and useful materials, and powerfully new efficient wind, solar geothermal and bio fuel technologies that can change the world for everyone.

Now we prepare for a Summer and Fall of Cashing in on Great Ideas series in LA, more Here’s the Money financing events from San Diego to San Francisco to Las Vegas. And debut of our new Evolving Mother incubator, and certainly some new ops for Booth Buddies . . . planning to be at SEMA vehicles show, and doing a major event & G2G pavilion on sustainability in Jan 2015 with global agency of US government.

We are awaiting results from a number of grants our team has submitted in our innovative Cooperative Grants Program for seed funding and non profits launched last year, and more are in works. We have some funding resources, if you qualify, from ZERO interest loans, to angel capital, and unconventional financing, for a variety of enterprises.

Attend the Chapters when you can, call for your free member appointments, come to our workshops, renew your membership...empower your projects. Remember, you cannot win if you do not finish the game! Certainly there are no guarantees of success in inventing, entrepreneurship..or for that matter in life! But there are also many opportunities to create wealth, or make a positive change in world. It is your choice, and we have been here for 42 years to assist our members. Good Luck!

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MONEY!Access to Capital Business Expo

the 4th AnnualHere’sMONEY!Access to Capital Business Expo

the 4th AnnualHere’s

S aturday, June 28 th, 20148 am – 3 pm

DOUBLE TREE by Hilton San Diego7450 Hazard Center Drive

San Diego, CA 92108

EVENT INCLUDES:• Networking Breakfast & Business Luncheon Network with other Small Business Owners

• Business Workshops 3 Tracks Focused on Finding, Managing or Growing Your Capital

• Finance and Resource Expo Connect with Local Bankers and Business Organizations

• Loan Pavilion One on One Financial Assessments Available

CO-HOSTED BY:

EVENT BRITE LINK:http://heresthemoneysandiego2014.eventbrite.com

REGISTRATION FEE: $1000

Register Now!Online: www.vedc.orgPhone: 818.907.9977

eMail: [email protected]

Registration is NON-REFUNDABLE

*Name

Com

pany

*Phone ( ) Fax ( )

*e-mail

How did you hear about the expo? m

Yes! I would like to meet with a loan o�

cer.

Guest Name

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Presented by:

Sponsored By:

SCOREFOR THE LIFE OF YOUR BUSINESS

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2014 ‘CASHING IN ON GREAT IDEAS™’ SERIES EVENTS CALENDAR

LOCATION: LOS ANGELES CENTRAL LIBRARY MEETING ROOM A& THE MARK TAPER AUDITORIUM

June 14 Meeting Room A 1-3 PM ‘Inventors & Innovators Workshop--Great Ideas to Global Marketplace’

An intensive overview of current approaches and pathways/options to develop, protect, test, fund and com-mercialize great ideas in almost all fields. Real world case study examples.Resources plus Q& A.

July 12 Mark Taper ‘The Evolvingmother Incubator -- Presenting new opportunities for Moms.’

The Evolvingmother™ Incubator is designed for Moms, Expecting Moms, Entrepreneurs, Inventors, In-novators, Mom Created Non-Profits & Social Ventures. Gain access to enterprise creation, funding, mom friendly career path training & placement in current and emerging markets. Q&A and Resources.Presented by the Evolving Mother Incubator non profit institution and alliances, such as the Inventors Workshop and Entrepreneurs Workshop. Family Friendly event with entertainment and mixer.

Aug 9 Meeting Room A ‘Sustainable Enterprising--the Business of The Planet’

Intensive exploration of Cashing in on the growing global Green Economy for inventors, innovators, en-trepreneurs. Presented by Green2Gold. Products and services for profit and helping the planet. Q&A and Resources.

MARK YOUR CALENDARS; MORE DETAILS TO COME...

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SANTA BARBARA REGIONAL CHAPTER MEETINGS

At The Ramada Inn at Turnpike and 101 Ventura Frwy in Santa Barbara.

FIRST THURSDAY IN EVERY MONTH!

Join us for one on one member counselings starting at 5PM.

Official meeting starting at 6PM.

ONE ON ONE COUNSELING at UCSB AVAILABLE EVERY FRIDAY.

Contact:

Alan Tratner (805) 735-7261 [email protected]

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VENTURA COUNTY CHAPTER MEETINGSJoin us:

ON THE THIRD WEDNESDAY IN EVERY MONTH!

Address: 221 East Ventura Blvd. Oxnard, CA 93036One on one member counselings starting at 5PM.

Official meeting starting at 6PM. All members are welcome.

We’d like to thank our host for the location, Child Development Resources of these chapter meetings.

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FRANCHISING vs. LICENSING

What you Have to Know THE DIFFERENCE BETWEEN FRANCHISING AND LICENSING

Franchising and licensing as a means of expanding a business are often confused with one another. However, franchising and licensing come from two distinct areas of the law. Franchising is based on securities law and li-censing is a form of contract law. What does this mean to the non-lawyer? It means that if one takes up franchis-ing as a means of expanding a business, then compliance with the franchise laws, like the securities laws, requiresregistration of the franchise in the applicable jurisdictions. On the other hand, licensing is merely a contract between two independent contractors and franchise registration is not required.

Franchising certainly creates more work in complying with all the registration requirements, and consequently it is often perceived to be more expensive to go the “franchising route” than down the licensing road which re-quires substantially less legal work.

BUT, ONE THING YOU BETTER KNOW: THERE ARE TWO TYPES OF FRANCHISES AND ONE IS VERY BAD

In practical terms there are two types of franchises:(a) Intentional franchises and(b) Unintentional franchises.

The first type is the situation where someone wants to expand their business and decides to use the franchising mechanism to do it.

The second type is the predicament where in the effort to expand the business, franchises are inadvertently cre-ated (sometime called “hidden franchises”). These hidden franchises are often spawned from a poorly advised and drawn distribution agreement, license agreement, and other marketing formats. These are the franchises that get people into trouble!

The problem is that both types of franchises have to be registered in the appropriate jurisdictions, and the conse-quences of failing to do so is often substantial civil penalties and/or criminal punishment. There have been many entrepreneurs that have served substantial prison terms for selling unregistered or improperly registered fran-chises.

Licensor’s beware! If you go the licensing route it is extremely easy for a licensing format to slip into an uninten-tional franchising structure either by poor draftsmanship of the licensing documents and/or the inappropriate use of business applications in company operations. If a licensor slips into the franchise arena, he needs to either

(a) immediately comply with franchise laws or (b) re-adjust the operations to comply with the licensing laws and avoid the franchise laws.

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THE LEGAL DEFINITIONS OF A FRANCHISE SO EVERYONE CAN UNDERSTAND IT

You have to learn about the “Three-Legged Franchise Stool”. You have to know what franchising is to know how to lawfully avoid franchising, and you have to know how to avoid franchising to create a licensing or other mode of business expansion. Consequently since we have been talking about franchises and need to know about them, we better make it understood just what constitutes a “franchise”. First, I have to tell you the various States and Federal definitions of a franchise are pretty clear, but the application of the facts to these definitions is highly mercurial. You may have trouble ever getting any two franchise lawyers to agree on whether or not franchise law compliance in various situations has been met.

FEDERAL TRADE COMMISSION DEFINITION

The Three Elements: The FTC “Franchise” definition has three key elements: (1) the franchisee’s goods and/or services are to be offered and sold under the trademark of the franchiser; (2) the franchiser requires the fran-chisee to make a minimum payment of $500, and (3) the franchiser maintains significant control of, or pro-vides significant assistance to, the franchisee’ operation methods. Common Name Leg. The element (or leg of the three- legged franchise stool) of the use of the trademark or common name is clear for the purposes of this discussion. You want your trademark or common name to be the rudder that moves your business expansion. “McDonalds” is the most famous example of the common trademark name of franchises. Fee Leg. The element (or leg) of payment of a fee means that franchisee must pay the franchiser at least $500 as a condition of obtain-ing the franchise or of beginning initial operations. Any payments made at any time before or within six months after beginning operations shall be aggregated (combined) to determine if the $500 element is present. These payments may be a requirement of the franchise agreement, or a secondary agreement (e.g. agreement to pur-chase goods only supplied by franchiser.). Operations and Marketing Control Leg. As to the element (or leg) of “significant control or assistance in franchise operations or marketing”, the key word is “significant”. Franchiseractions that trigger the application of the concept of “significant control” are (for example): operations manuals, site approval, personnel policies, accounting procedures, co-op advertising, operations training, etc.

HOW DO YOU CREATE A LICENSE WITHOUT CREATING A FRANCHISE?

There are two key things that have to be done to create a license in a business opportunity situation that does not constitute a franchise:

1. Eliminate one leg of the Three-Legged Franchise Stool.

Usually the One Leg you cannot eliminate is getting paid for all the work! Unless the initial fee is under $500, you ordinarily cannot eliminate the leg that requires the Licensor receive a fee or payment, because getting paid is the primary reason for establishing the licensing structure. Consequently, there usually remains a choice of two legs to eliminate: (a) using a common trademark or common name, or (b) the Licensor’s “somewhat” control over the operations and marketing of the product or services involved.2. And make sure that the Licensee is an independent contractor in its relationship to the Licensor. Warning! This sounds easy. IT IS NOT! And as they say on TV, do not try this at home! It definitely requires the assistance of an EXPERIENCED professional, which means one that has done this successfully before. Warning to Attor-neys: If you are an attorney who has no background in franchise law and has not done the legal work for business opportunity licensing, my strong suggestion is to not do it Refer it to a franchise attorney in your jurisdiction.

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A SYNOPSIS: THE KEYS TO LICENSING A BUSINESS OPPORTUNITY

1. Experienced Counsel. An essential key is having an experienced attorney who can lead you through this com-plex area or the law. The client should be patient and work with the lawyer in finding the legal path to achieve the client’s goals. Usually it can be done if the client listens and is flexible, flexible without giving up the goals of the endeavor. Your local franchise lawyers usually are the “best bet” to help you out in these situations.

2. Create Leverage So Licensee WANTS to Do What Licensor wants. An additional key is to know the specific elements needed by the client to obtain the similar or equivalent results as a Licensor that one might achieve as a franchiser, and this is usually achieved by making conditions available so that the licensee without coercion truly and voluntarily wants to do things the licensor’s way.

3. Realize that Sometimes You Have to Franchise. Sometimes a potential Licensor must accept the facts that in some situations using the licensing model in the particular State cannot be done. Sometimes he has to either (a) use a different business model, or (b) register as a franchise.

Thank you

Geoffrey HassanCalifornia Regional Offices

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Opportunity for Green2Gold, VSEC and IWI/EWI members:

BOOTH BUDDIES: Opportunities for shared expense to obtain markets research and validation at trade show/consumer show and conference events.

Upcoming Events: Here’s The Money Events!

San FranciscoLos AngelesSan Fernando ValleyLas VegasSan Diego

Contact [email protected] (805) 735-7261 for full arrangements and procedures.

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FOR MEMBERS ONLY:

WE ARE PLEASED TO ANNOUNCE NEW FUNDING RESOURCE VIA G2G/IWI OF

ZERO INTERESTSTART UP/ENTREPRENEURSHIP SEED LOANS

$5K UP TO $20K IN STAGES.

CONTACT HEADQUARTERS FOR DETAILS.

(805) 735-7261

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The Environmental Education Group 501(c)(3) International Non-Profit organization is pleased, excited and inspired to introduce a new program for every kind of addiction issue. This new program offers real personal-ized strategies and support for permanent results. It can be a supplement to any existing medical treatment or is a complete strategy on its own. It is confidential and designed to fit in within an individuals current activities, work and lifestyle.

Decades of new research has proven real permanent solutions are personal and individual. That is why we be-lieve our unique Blueprint Strategy™ process is vital to helping individuals gain the personal perspective needed for real long term results and real stability. In our new Blueprint Strategy™ process we will develop a personalized comprehensive treatment strategy. We work with you step by step through the whole process providing personal counseling, tutoring, and support.

We realize you are unique and your addiction stems from an assortment of complex and unique reasons. Dealing with addictions is like going through a maze. Finding the real root of your addiction and problem, and helping guide you to your own true solution is what we are trained to do.

We all know addictions are a very personal thing. And they have affected us in ways that clearly have not been fully understood. For instance a person might be feeling different types of depression but not be aware that those feelings could be directly linked to an addiction of some sort. Because some addictions may just feel like strong attachments, it might confuse someone thinking they are not addicted to anything.

Attachments and addictions might just be a way of thinking and not include any kind of substance. Of course we all know what substance addictions are and the catastrophic damage that sort of addiction can cause.

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But a person might be attached to thinking a certain way his forefathers did in regards to various types of preju-dices and not even be aware of how deep an issue it might be in a part of their consciousness that could lead to catastrophic issues or personal types of depression. That person might find themselves depressed all of a sudden when someone from another race moves in their neighborhood. And that is just one example of how we may have non-substance addictions or attachments.

There are many concepts or philosophies that we may be following that we don’t even believe in. For example we might follow concepts or ways of eating, ways of being a mother or father, or ways of viewing ourselves. These old concepts can be penetrating and causing negative troubling responses inside us like irritation, bitterness, lack of interest, hurt, or confusion about what we are doing with our lives. All because we lost some aspect of our freedom and we may not even realize it at all, or we may realize it and not have a clue what to do about it.

We all know addictions and attachments affect us all differently. Of course someone with an addiction may have no depression or other obvious symptoms at all. We know there are good and bad addictions, just like there are good and bad habits. The judgment of whether a habit or addiction is good or bad is an individual and personal judgment.

If a person is trying to overcome some attachment, habit or deep addiction our process will get the sought after results. Our program is set up to help dig those problems or issues up and bring them to the surface so we can face them, deal with them and dissipate them. Not just hide from them.

We speak boldly, but we can guarantee it as long as you want to solve those problems. And we don’t know anyone else that can do that.

Call 310.663.2609 or email [email protected] to schedule an interview.

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Patent Agent, Mr. Persaud of Green2Gold, shares some highlights from the American Intellectual Property Law Association Spring Meeting (AIPLA) in Philadelphia, from May 15th-17th.

The meeting was attended by patent attorneys and agents from around the world, and the speakers included Mr. David Kappos, former director of the U.S. Patent and Trademark Office, and patent and trademark attorneys who have prosecuted hundreds of patents and trademarks, and fought patent infringement litigation in billion-dollar lawsuits related to intellectual property rights.

After Mr. Kappos’ presentations, I had the opportunity to ask him a question about his recommendations regard-ing a patent prosecutor’s role in protecting clients from certain potential changes in the laws which affect the validity of the client’s patent. These changes might happen over the course of a patent’s 20-year lifespan, and thus are somewhat unpredictable. Mr. Kappos suggested that a patent attorney or agent should make certain to abun-dantly fulfill the “written description” requirements of 35 USC § 112. The written description is supposed to teach the public how to make and/or use the claimed invention. The written description requirement has other aspects, but these go beyond the scope of this article. Mr. Kappos’ comments, however, highlight the role of the patent prosecution attorney or agent in a client’s competitive strategy, and in ensuring that a client’s patents are well-grounded and able to survive litigation.

Another presentation discussed using the combination of “trade dress” and design patents to create value for manufacturers. This combination may be used to create a distinctive impression of the client’s brand in the mind of consumers, which tends to produce more profit for the manufacturer, according to a study cited by the pre-senters. This presentation, too, showed how intellectual property counsel can help their clients’ bottom lines.A third presentation focused on the developing “financial” market in trading intellectual property rights. The panel showed us some fascinating data on the stock value of publicly traded entities whose business model focused on acquiring large portfolios of patents. The panelists also discussed the different models of businesses that they were part of, either as counsel or as principals.

Some of the business models discussed by the panelists included:

1. A fund that acquires patents, uses these patents as the basis of further research, and then files new patents based on their discoveries, and

2. A firm that has created a “financial exchange” website through which entities can pay for the right to manu-facture a fixed number of products which incorporate a specific patent. Companies selling such rights on the exchange pay a substantial fee to join, but companies buying such rights pay no fee.

Both business models are, of course, substantially more complicated than this article has room to discuss.

The meeting also included a great deal of discussion concerning “patent assertion entities”, or so-called “patent trolls”. The threat that such trolls pose to small and “micro” entities was discussed, and at one of our lunch meet-ings we heard a presentation from The Honorable Tom Marino a U.S. Congressman from Pennsylvania, who discussed potential legislation connected to curbing the abuses that “patent trolls” create. We also heard from the Honorable William Sorrell, Attorney General of Vermont, regarding some of the steps that his office is taking to fight “patent trolls” in Vermont, at a second lunch meeting.

An official from the USPTO also discussed several new programs which are being planned, or have been started, by the Office, which will hopefully make patent prosecution faster and easier. These include an accelerated ex-amination program. The USPTO appears to engage in constant or near-constant review focusing on how it can fulfill its role better. The USPTO also seems to try to quickly adopt new technology to help it to fulfill its role, and I personally commend the USPTO for this.

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