entrepreneurship 101: managing intellectual property with arshia tabrizi
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M A R S D I S C O V E R Y D I S T R I C T E N T R E P R E N E U R S H I P 1 0 1
W E D N E S D A Y J A N U A R Y 2 6 , 2 0 1 1
A R S H I A T A B R I Z I
B . A . S C . C O M P U T E R E N G I N E E R I N G ( H O N ) ( U O F T ) J U R I S D O C T O R ( L A W ) ( U O F T )
M E M B E R O F O N T A R I O & C A L I F O R N I A B A R S
W W W . T A B R I Z I L A W . C O M A R S H I A @ T A B R I Z I L A W . C O M
INTELLECTUAL PROPERTY (IP) FOR TECH START-UPS
Tabrizi Law Office PC
Start-up/technology law for over 12 years Full-service start-up practice since 2002
Incorporation, Financing, IP, Trademark, Licensing, Web Strategic Advisors/Partners with Clients
Client list NeXJ Systems (founded by William Tatham, previously
founder of Janna Systems, acquired by Siebel for $1.7 b.) RedFlagDeals.com (acquired by YPG in March 2010) WedSnap Inc. (acquired by The Knot Inc. in Feb 2009) CognoVision (MaRS client, recently acquired by Intel) 6N Silicon Inc. (MaRS client, acquired by Calisolar Inc.)
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Business of Innovation
What is a start-up? Business of innovation
What makes a start-up? Intangible assets
Invention Brand Software Know-how
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What is IP?
IP protects “intangible assets” IP gives “competitive advantage”
Keeps competitors outside market
IP is “intellectual” property Your “intangible” piece of real estate
IP is a “business tool” Service of “business objectives”
IP is “not” just about patents
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IP #1 – Trade Secrets
What is a Trade Secret? Information of value Protected via secrecy
Types of information Source code Algorithm Chemical process Business plan Customer list Pricing list
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Trade Secrets – Tip #1
Non-disclosure agreements (NDA) Agreement to treat information in confidence Disclosure to:
Potential hire Potential customer Potential partner Potential investor
Mutual versus one-way NDA Read them!
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IP #1 – Trade Secrets
PROS CONS
Competitors in the dark Unlimited protection period
WikiLeaks Reverse engineering Patent
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IP #2 - Patents
What is a Patent? Invention
New (not “prior art”) Not Obvious (e.g. car with 5 wheels) Utility (commercial application)
Why get a Patent? 20-year monopoly Exclusive market
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IP #2 - Patents
How do I get a Patent? Patent registry search
Do yourself, hire someone
Draft and file application Description Claims (Scope of Invention) Previous Publication
1-year grace period
Rights on “registration” ~ 3-5 years to registration
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Patents – Tip #2
Patents are “business tools” Offensive strategy
Litigation License-out Biotech, IBM, RIM Patent trolls
Other strategy Cold war (defensive) Start-up
Venture capital Competitors out
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IP #2 - Patents
PROS CONS
20-year monopoly No “good guy” defense
Tell the world Costs: file ($3-15k), registration ($25k), enforcement (?) Internal resources
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IP #3 - Copyright
What is Copyright? Right to copy Other rights (perform, display)
Automatic on creation Content (website, music, text) Software (firmware) Documentation, drawings, designs
Exclude competitors Prevent copying of your creation License your creation
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Copyright – Tip #3
Copyright assignment Authors own original copyright Written assignment required Employment contracts Consulting contracts
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IP #3 - Copyright
PROS CONS
Cheap Automatic
Does not protect idea Only against copycats Enforcing (P2P)
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IP #4 - Trademarks
What is a Trademark? Word
Company name, product name
Logo Nike, Windows, Apple
Registration $1-2k per mark, 3–18 months Market (country) analysis
Why Get a Trademark? Stop copying Stop confusing marks
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Trademarks – Tip #4
Trademarks must be used Registration not enough Use it or lose it
Use it Document it
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Thank You
Tabrizi Law Office P.C. www.tabrizilaw.com arshia_tabrizi [email protected] 416.510.2600 x.306
Copyright 2008-2011 Tabrizi Law Office PC