Chapter 6 – Chapter 6 – Legal Issues for the Legal Issues for the

EntrepreneursEntrepreneurs

Vishnu Parmar, IBAVishnu Parmar, IBA

University of Sindh, JamshoroUniversity of Sindh, Jamshoro

Intellectual Property Intellectual Property

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

What is a Patent?What is a Patent?

A Patent is a contract between the A Patent is a contract between the government and an inventorgovernment and an inventor

Govt. grants the inventor exclusivity Govt. grants the inventor exclusivity regarding the invention for a specific timeregarding the invention for a specific time

It is “Property” right to exclude othersIt is “Property” right to exclude others It is “Territorial” provides protection only It is “Territorial” provides protection only

within the United States. No World Wide within the United States. No World Wide Patent.Patent.

The patentee must enforce the patent The patentee must enforce the patent once it is grantedonce it is granted

Provisional ApplicationsProvisional Applications

UtilityUtility 20 years Term (from filling)20 years Term (from filling) DesignDesign 14 years Term (from filling)14 years Term (from filling) PlantPlant 20 years Term (from filling)20 years Term (from filling)

Utility PatentsUtility Patents

It grants the owner protection from It grants the owner protection from anyone else making using and selling the anyone else making using and selling the identified invention and generally reflects identified invention and generally reflects protection of new, useful, and unobvious protection of new, useful, and unobvious process such as film developing, machines process such as film developing, machines such as photocopier, composition of such as photocopier, composition of matter such as chemical compound or matter such as chemical compound or mixture of ingredients and articles of mixture of ingredients and articles of manufacture such as toothpaste pumpmanufacture such as toothpaste pump

Design PatentDesign Patent

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

Plant PatentPlant Patent

These are issued under the same These are issued under the same provisions as utility patents and are provisions as utility patents and are for new varieties of plants. These for new varieties of plants. These patents represent a limit area of patents represent a limit area of interest, and thus very few of these interest, and thus very few of these types of patents are issuedtypes of patents are issued

TrademarksTrademarks

A trademark may be a word, symbol, A trademark may be a word, symbol, design, or some combination of such, design, or some combination of such, or it could be a slogan or even a or it could be a slogan or even a particular sound that identifies the particular sound that identifies the source or sponsorship or certain source or sponsorship or certain goods or services.goods or services.

TM is given an initially 20 year TM is given an initially 20 year registration with 20 years un-registration with 20 years un-renewable termsrenewable terms

CopyrightsCopyrights

A copyright protects original works of A copyright protects original works of authorship. The protection in a authorship. The protection in a copyright doesn't protect the idea copyright doesn't protect the idea itself.itself.

It allows someone else to use the It allows someone else to use the idea or concept in a different manneridea or concept in a different manner

Trade SecretsTrade Secrets

In certain cases the entrepreneur In certain cases the entrepreneur may prefer to maintain an idea or may prefer to maintain an idea or process as confidential and to sell or process as confidential and to sell or license it as a trade secret.license it as a trade secret.

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

LicensingLicensing

Licensing is an arrangement between two Licensing is an arrangement between two parties, where one party has proprietary parties, where one party has proprietary rights over some information, process or rights over some information, process or technology protected by a patent, technology protected by a patent, trademark, copyright.trademark, copyright.

This arrangement requires the license to This arrangement requires the license to pay a royalty or some other specified sum pay a royalty or some other specified sum to the holder of the proprietary rights to the holder of the proprietary rights (licensor) in return for permission to copy (licensor) in return for permission to copy the patent, trademark, or copyright.the patent, trademark, or copyright.

Need for a LawyerNeed for a Lawyer

Legal expertise required vary based Legal expertise required vary based upon kind of business like franchise, upon kind of business like franchise, an independent start-up or a buy out, an independent start-up or a buy out, consumer or industrial products, consumer or industrial products, Non-profit or profit oriented, weather Non-profit or profit oriented, weather involves computer software or involves computer software or exporting or importing.exporting or importing.

How to Select a Lawyer?How to Select a Lawyer?

Must be specialist in the specific Must be specialist in the specific areas of lawareas of law

A competent attorney is in a better A competent attorney is in a better position to understand all possible position to understand all possible circumstances and outcomes related circumstances and outcomes related to any legal actionto any legal action

How to Select a Lawyer?How to Select a Lawyer?

Fees concernFees concern May work on Retainer basis (stated May work on Retainer basis (stated

amount per month or per year)amount per month or per year)