PowerPoint Presentation Section 8.1 Pages 121- 127

PowerPoint Presentation

Section 8.1Section 8.1 Pages 121-Pages 121-

127127

What you’ll learnWhat you’ll learn How to protect the product How to protect the product or service your business is or service your business is offeringoffering

The laws that affect the start The laws that affect the start up of a businessup of a business

Where to get legal adviceWhere to get legal advice

8.1 Legal Issues Facing Start-Ups

Why it’s importantWhy it’s important There is no aspect of a There is no aspect of a business that is not affected business that is not affected by a law.by a law.

You will save time and You will save time and money if you learn about money if you learn about business laws in advance.business laws in advance.


Key TermsKey Termspatentpatent

patent-applied-forpatent-applied-for

patent-pendingpatent-pending

copyrightcopyright

public domainpublic domain


Key TermsKey Termstrademarktrademark

service markservice mark

contractcontract

considerationconsideration

capacitycapacity


I. PROTECTING YOUR I. PROTECTING YOUR IDEASIDEAS

How do you protect a How do you protect a marketable idea for a product marketable idea for a product or service? or service?


II. WHAT ARE YOU II. WHAT ARE YOU TRYING TO TRYING TO PROTECT? PROTECT?

The group of laws that The group of laws that affects how ideas are affects how ideas are protected is called protected is called intellectual propertyintellectual property..



III. PATENTSIII. PATENTSA.A. A A patentpatent is a grant to an is a grant to an

inventor that gives him or inventor that gives him or her the exclusive right to her the exclusive right to produce and sell an produce and sell an invention.invention.


B.B. A patent lasts for 21 years. A patent lasts for 21 years.

C.C. There are four rules to There are four rules to determine if a product is determine if a product is patented.patented.


1.1. The invention must not The invention must not contain prior art.contain prior art.

2. The invention must fit The invention must fit into one of five classes.into one of five classes.


MachineMachine ProcessProcess Articles of manufactureArticles of manufacture CompositionComposition A new use for one of the A new use for one of the

four categoriesfour categories


3.3. The invention must be The invention must be “unobvious.”“unobvious.”

4.4. The invention must have utility. The invention must have utility.


IV. THE PROCESSIV. THE PROCESSA. A. File a disclosure statement File a disclosure statement

with the Patent and with the Patent and Trademark Office (PTO). Trademark Office (PTO).

B.B. Include $25 to process. Include $25 to process.


C.C. Confirm that you are the Confirm that you are the inventor.inventor.

D.D. Within two years, an Within two years, an application must be filed with application must be filed with the PTO.the PTO.


V. THE PATENT SEARCHV. THE PATENT SEARCHA.A. Patent-applied-forPatent-applied-for status status

means that the public can’t means that the public can’t look at the application and look at the application and drawings. drawings.


B.B. If the PTO declares that one’s If the PTO declares that one’s claims are accepted, the claims are accepted, the patent is patent is patent-pendingpatent-pending status until the patent is status until the patent is issued.issued.


VI. COPYRIGHTSVI. COPYRIGHTSA.A. A A copyrightcopyright protects protects

original works of the original works of the author.author.

B.B. A copyright lasts for 50 A copyright lasts for 50 years.years.


C.C. After 50 years, the work goes After 50 years, the work goes into into public domainpublic domain--it can be --it can be used by anyone free of charge.used by anyone free of charge.


VII. TRADEMARKSVII. TRADEMARKSA.A. A A trademarktrademark is a word, is a word,

symbol, design, or symbol, design, or combination of these that combination of these that a business uses to identify a business uses to identify itself or something it sells. itself or something it sells.


B.B. Trademarks are followed Trademarks are followed by the registered by the registered trademark symbol ®.trademark symbol ®.

C.C. A A service markservice mark is a is a design or symbol that design or symbol that describes a service describes a service business.business.


VIII. LAWS AFFECTING VIII. LAWS AFFECTING STARTING UP YOUR STARTING UP YOUR BUSINESSBUSINESS

Certain legal requirements Certain legal requirements are fundamental to your are fundamental to your ability to do business. ability to do business.


IX. PERMITS AND IX. PERMITS AND LICENSESLICENSESA.A. A business permit from A business permit from

your local government your local government allows you to do business in allows you to do business in your community.your community.


B.B. Certain professions Certain professions require licenses which require licenses which show you have the show you have the necessary education and necessary education and training to do the job.training to do the job.


X. CONTRACTSX. CONTRACTS A. A. A A contractcontract is a binding legal is a binding legal

agreement between two or agreement between two or more persons or parties. more persons or parties.


B. B. A contract must contain four A contract must contain four parts to be binding.parts to be binding.

1.1. Agreement Agreement

2.2. ConsiderationConsideration--what is --what is exchanged for the promiseexchanged for the promise


3.3. CapacityCapacity--being able to --being able to enter into a binding enter into a binding agreement agreement

4.4. Legality Legality


XI.XI. CHOOSING A CHOOSING A LOCATIONLOCATIONWhere should you locate your Where should you locate your business?business?


XII. CONTRACTSXII. CONTRACTSA. A. Cities typically designate Cities typically designate

particular areas, or zones.particular areas, or zones.


B.B. Laws that relate to the actual Laws that relate to the actual construction of a facility are construction of a facility are called building codes.called building codes.


XIII. LEASINGXIII. LEASINGA. A. A lease is a contract to A lease is a contract to

use a facility or use a facility or equipment for a specified equipment for a specified period of time. period of time.


B.B. The lessee is the person The lessee is the person leasing.leasing.

C.C. The ownership rights belong The ownership rights belong to the lessor.to the lessor.


End of Section 8.1End of Section 8.1

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PowerPoint Presentation Section 8.1 Pages 121- 127