Presented by:                                   Eric A. Hanscom                                       Managing Attorney214...
35 U.S.C. §102: You have 1 year from the time  you first “publicly disclose” your invention  until you have to file for pa...
   Job Description: Can handle all legal issues relating to    Intellectual Property (as opposed to “Patent Agents”).   ...
Patents                 Trademarks                 Copyrights                Trade Secrets• A right to exclude       • Any...
Type of                                         Average time until Expect to pay                                          ...
File for a provisional, use the 1 year graceperiod to look for investors, do some R&D,do the prior art search, assess pate...
Safe Invention Practice1/1/2009    Disclosure  12/31/2009Provisional            Utility (effective filing date of 1/1/2009...
2007     1/1/2009   12/31/2009Disclosure   Provisional Utility (effective filing date of 1/1/2009) Rather than filing a pr...
12/1/2008 1/1/2009   12/31/2009Disclosure Provisional Utility (effective filing date of 12/31/2009)Problem: Inventor teste...
1/1/2012     2/1/2012       3/1/2012     12/31/2012Provisional(A) Disclosure   Utility(B)   Utility(A) (effective         ...
• Venture Capitol    Investors      • Hedge Funds                   • Will want to see solid business plan including      ...
   Examples: Shark Tank, Cal. State U San Marcos    “Quick Pitch Competition”.   Inventor has 2 minutes to convince a pa...
• You must invent or discover something new and useful                   • Only the following subject matter can be patent...
Prior Art Search                     Analyze the Results• Looks for issued patents,          • Should I apply for a utilit...
File Application   Allowance         Issue                    OfficeFile Application                  Response         All...
IssuedFile Application   Allowance                                      Patent                                    Renewal ...
Background of            Detailed    Abstract       Drawings                                                    Claims    ...
A Patent gives you’re the right to                                       A patent is good only in the countryexclude other...
Your Invention                                Patent 1: Narrow Claims                                       Patent 2: Broa...
He is a Chilean                businessman                 who makes                  laptops in                    China....
Presented by:                                   Eric A. Hanscom                                       Managing Attorney214...
Trademarks (Products)               Trademarks               (45 Classes)Servicemarks (Services)
Business Name, Logo    Preliminary                      ConsiderationsSlogan, Logo               Is my name unique enough ...
File       Allowance    Publication      OppositionApplication   Office              Response                          Tra...
Foreign Patents must be filed:                             • 40 – 50% of                           •Directly in the foreig...
What should    • Websites (before and after putting on-                  line)  inventors     • Brochures and other Advert...
Presented by:                                   Eric A. Hanscom                                       Managing Attorney214...
 Investors and Prospective Buyers of  your invention already know a lot about inventors; you need to know  the same thing...
Winners   Losers
Is it a business or a hobby? Business are created to makemoney, hobbies are for fun. If your invention is just a hobby,   ...
“There are two types of inventors: the paranoid, and the more paranoid” • Ron Reardon, President, National Association of ...
    Derek Sivers   It’s so funny when I hear people being so protective of ideas. (People who want me to sign an NDA to ...
Lawyers who say they have investor-clients and would considerintroducing you to the investors (but imply that you have to ...
Presented by:                                   Eric A. Hanscom                                       Managing Attorney214...
Making / Selling it Yourself:Find Your Target Audience                                                                • Fi...
License                Assignment (Selling Your IP)• License is a “rental” of your   • Assignment is a sale  IP           ...
Prior Art Search -> Is it worth filing for a Utility Patent?     Yes -> Get “patent pending” (Utility or Provisional), the...
Design, Manufacture, Deliver    TM        Prototyping your IdeasAn overview of the first steps for commercializing your pr...
Design         Specialty       Expected Time*         Expected Cost*        Prototype                 Use for Prototype   ...
How do you make a Prototype?      Stereolithography (SLA)          A laser is used to cure liquid material and generate ...
How do you make a Prototype?       Machining           It is possible to machine most plastics and metals           Tur...
How do you make a Prototype?      Silicone Molding          Take a machined plastic part and create a silicone mold for ...
Presented by:                                   Eric A. Hanscom                                       Managing Attorney214...
Ryan A. Alexeev, Esq.    2141 Palomar Airport Rd., Ste. 320            Carlsbad, CA 92011Tel: (619) 819-5085 / Fax: (619) ...
Business Plan           Entity Formation                              FBN
•Start Selling or     •Purpose    Providing Your        •Strengths    Services              •Weaknesses                   ...
•Sole Proprietorship•Partnership•Corporation•LLC
Sole Proprietorship• Can just start doing business – You and the business are one• No need to file anything with the State...
Corporations• Business is separate entity from the owners• Requires Articles of Incorporation to be filed with the Secreta...
   File with County of San Diego   San Diego El Cajon Kearney Mesa San Marcos    Chula Vista   Do not use the publicati...
Intellectual Property Class Material by Eric Hanscom
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  • I am going to briefly go over the following three areas you should consider when starting a business. The handout you have been given goes into much more detail than I will be covering today, but it will act as a guide to help you outside of class.
  • Everyone who decides to go into business for themselves goes into business for different reasons. Regardless of why you decided to start a business, you should start with a business plan.The purpose of a business plan is first and foremost a way for you to organize what it is your business will be doing. You need to look at your purpose for starting your business. It helps you evaluate your strengths and weaknesses as well as help you define your target market.What is the point of having a target market? You cannot adequately service everyone from the get-go. If you have a specific market you want to target, it is easier to relay this information to people you know or networking organizations you belong to, allowing them to listen for possible referral sources for you.Once your write your business, you should update it as the focus of your organization becomes clearer and better defined.You will want to write down your current goals along with your yearly goals from your first year though your fifth year as well as your 10 year goals.A business plan can be used to help you get financing from banks and other investors because it acts as a roadmap of what you have gotten in place and how you want to grow.In the handout you will see that I have included an outline of parts you may want to include in your business plan. These are just to act as a guide. You can include different sections as they pertain to your needs.
  • Sole Proprietorship Can just start doing business – You and the business are one No need to file anything with the State Pay taxes under your own social security number You are personally liablePartnership Two or more people going into business with each other No need to file anything with the state if you are operating as a general partnership Each person pays taxes on their own Each person is liable for the debts and you may be liable for your partner’s actionsGeneral partners – manage the business and are equally liable for its debtsLimited partners – may invest but not be directly involved in management and are liable only to the extent of their investments.Limited Liability Partnership – Usually used by attorneys or accounting firms. Limits the partner’s liability to the amount he/she invested in the company.Corporations Business is separate entity from the owners Requires Articles of Incorporation to be filed with the Secretary of State Should have your by-laws which state how meetings should be held, when they should be held Minimum franchise tax fee of $800 must be paid each year Must have an annual meeting and send in statement to the Secretary of State every year stating you are in compliance The business is liable and not the individuals – Of course there are exceptions to these rulesLimited Liability CorporationOwners and managers have limited liability For tax purposes 1 owner is taxed as sole proprietorshipMore than 1 owner is taxed as partnershipMay be owned by individuals or business entitiesFormation is simpler and faster than forming and maintaining a corporationFormal oral or written operating agreement must be entered intoMinimum tax of $800/yearArticles of Organization must be filed with Secretary of State
  • Everyone who decides to go into business for themselves goes into business for different reasons. Regardless of why you decided to start a business, you should start with a business plan.The purpose of a business plan is first and foremost a way for you to organize what it is your business will be doing. You need to look at your purpose for starting your business. It helps you evaluate your strengths and weaknesses as well as help you define your target market.What is the point of having a target market? You cannot adequately service everyone from the get-go. If you have a specific market you want to target, it is easier to relay this information to people you know or networking organizations you belong to, allowing them to listen for possible referral sources for you.Once your write your business, you should update it as the focus of your organization becomes clearer and better defined.You will want to write down your current goals along with your yearly goals from your first year though your fifth year as well as your 10 year goals.A business plan can be used to help you get financing from banks and other investors because it acts as a roadmap of what you have gotten in place and how you want to grow.In the handout you will see that I have included an outline of parts you may want to include in your business plan. These are just to act as a guide. You can include different sections as they pertain to your needs.
  • Everyone who decides to go into business for themselves goes into business for different reasons. Regardless of why you decided to start a business, you should start with a business plan.The purpose of a business plan is first and foremost a way for you to organize what it is your business will be doing. You need to look at your purpose for starting your business. It helps you evaluate your strengths and weaknesses as well as help you define your target market.What is the point of having a target market? You cannot adequately service everyone from the get-go. If you have a specific market you want to target, it is easier to relay this information to people you know or networking organizations you belong to, allowing them to listen for possible referral sources for you.Once your write your business, you should update it as the focus of your organization becomes clearer and better defined.You will want to write down your current goals along with your yearly goals from your first year though your fifth year as well as your 10 year goals.A business plan can be used to help you get financing from banks and other investors because it acts as a roadmap of what you have gotten in place and how you want to grow.In the handout you will see that I have included an outline of parts you may want to include in your business plan. These are just to act as a guide. You can include different sections as they pertain to your needs.
  • You need to file a fictitious business name, aka FBN, if you are operating under any name other than your own. It is only $30 for the first one and $5 for each additional one you file at the same time.You can do a search online or in person at the San Diego County Recorder’s office. Filing a FBN does not guarantee you will be the only business operating under that name, which is why you might want to file a trademark.After you filed the paperwork, you need to publish it in a local paper for four weeks before it is officially registered.Again, the handout that has been provided has more detailed information to help you through the process. If you have any additional questions you can ask me during the break or after class.
  • Intellectual Property Class Material by Eric Hanscom

    1. 1. Presented by: Eric A. Hanscom Managing Attorney2141 Palomar Airport Road, Suite 320 Phone: (760) 651 0142Carlsbad, CA 92011 Email: info@iciplaw.com Website: www.iciplaw.com Patents, Trademarks, Copyrights, IP strategy and portfolio management
    2. 2. 35 U.S.C. §102: You have 1 year from the time you first “publicly disclose” your invention until you have to file for patent protection.
    3. 3.  Job Description: Can handle all legal issues relating to Intellectual Property (as opposed to “Patent Agents”). The Journey to become a Patent Attorney: 1. Undergraduate Science Degree 2. Law Degree 3. California Bar Exam 4. Patent Bar Exam
    4. 4. Patents Trademarks Copyrights Trade Secrets• A right to exclude • Any name, symbol, • The legal right • A formula, process, others from figure, letter, word, granted to an author, device, or item of manufacturing, or mark adopted and composer, information used by selling, or using your used by a playwright, a business that has invention for a manufacturer or publisher, or economic value number of years. merchant in order to distributor to because it is not designate his or her exclusive publication, generally known or goods or services and production, sale, or easily discovered by to distinguish them distribution of a observation or from those literary, musical, examination and for manufactured or sold dramatic, or artistic which reasonable by others. work. efforts to maintain secrecy have been made.
    5. 5. Type of Average time until Expect to pay Length of Renew- Practical examples in Intellectual Protects issue or final (attorney fees + protection able? business Property rejection? costs)* 20 years from Devices, substances,Patent (Utility) How something works 3 years $7,000 - 50,000 date of filing No business methods. application* Patent 1 year grace period to file a 1 year "grace Devices, substances, 1 year $3,000 - $6,000 No (Provisional) utility patent application period" business methods. Patent (US 14 years from Unique shapes of How something looks 1 year $2,000 No Design) date of issue products Patent Up to 25 years Unique shapes of (European How something looks 5 months $2,000 - $5,000 from date of No products Design) issue Potentially Name or logo related to Company names, Trademark 10 months $1,000 - $5,000 Infinite w/ 10 Yes business identity brand names, slogans. year extensions Websites, owners Life of author Copyright Artistic creations 3 weeks $300 - $1,000 No manuals, packaging, plus 70 years advertising materials.* Certain Exceptions Apply
    6. 6. File for a provisional, use the 1 year graceperiod to look for investors, do some R&D,do the prior art search, assess patentability,make a prototype, get feedback fromprospective buyers and customers.But, it isn’t all that easy and there aredangers.
    7. 7. Safe Invention Practice1/1/2009 Disclosure 12/31/2009Provisional Utility (effective filing date of 1/1/2009)Disclosure = offer to sell, showing at trade show, selling some on eBay, showing to potential investors.
    8. 8. 2007 1/1/2009 12/31/2009Disclosure Provisional Utility (effective filing date of 1/1/2009) Rather than filing a provision BEFORE disclosure, Inventor tried to “test the market” (trade show, sell a few, etc.) and delayed more than a year in filing for patent protection. Inventor’s own actions become “prior art” under 35 USC 102 (one year to file patent application after disclosure).
    9. 9. 12/1/2008 1/1/2009 12/31/2009Disclosure Provisional Utility (effective filing date of 12/31/2009)Problem: Inventor tested the market, filed a defective provisional (DIY’er or online patent filing service), USPTO determined Utility is NOT supported by provisional, refuses to allow Utility to take provisional filing date, so Inventor’s own disclosure is fatal under 35 USC 102.
    10. 10. 1/1/2012 2/1/2012 3/1/2012 12/31/2012Provisional(A) Disclosure Utility(B) Utility(A) (effective filing date of 12/31/2012)Problem: Inventor A filed a defective provisional, disclosed, a competitor (B) filed a valid patent, then A filed a Utility application AFTER B,USPTO determined Utility A is NOT supported by provisional, refuses to allow Utility to take provisional filing date, so Inventor A loses “race to USPTO”.
    11. 11. • Venture Capitol Investors • Hedge Funds • Will want to see solid business plan including IP strategy. • Healthcare • EnvironmentGovernment Grant • • Antiterrorism Will want to see solid business plan including IP strategy. • Friends FFF • Family • Followers You • Last choice
    12. 12.  Examples: Shark Tank, Cal. State U San Marcos “Quick Pitch Competition”. Inventor has 2 minutes to convince a panel of seasoned businesspeople to invest in his/her invention. Successful “pitchers” include business plan, key team members, IP strategy (US/foreign), prototype phase, estimated production cost, where made, estimate profit by quarters, identify market, offer rate of return or % of company.
    13. 13. • You must invent or discover something new and useful • Only the following subject matter can be patented: • Processes (business methods) Can A Patent • Manufactures (products)Protect Your Idea? • Compositions of matter (substances) (35 U.S.C §101) • Is there a patent, published paper (including published patent applications), or other public disclosure? • Did it happen more than 1 year before the filing of the application?Did Someone Else • This is true even if you had no knowledge of the other public disclosure Beat You To It? (35 U.S.C. §102) • No patent if your invention is an “obvious improvement” over someone else’s public disclosure • Usually the largest hurdle in obtaining a patentIs Your Invention • This is true even if you had no knowledge of the other public disclosure Truly Unique? (35 U.S.C. §103)
    14. 14. Prior Art Search Analyze the Results• Looks for issued patents, • Should I apply for a utility patent? published patent applications, • Business decision based upon prior and products on the marketplace art references found and economic that are similar to yours. benefit of obtaining (or at least filing for) a patent• Prior Art Searches are not perfect. Everything cannot be found.• Use a Prior Art Searching company that ONLY does prior art searches; Do NOT use invention submission companies who will give you a “package deal” that includes a prior art search and a patent application.
    15. 15. File Application Allowance Issue OfficeFile Application Response Allowance Issue Action Office Final OfficeFile Application Response Abandon Action Action Office Final OfficeFile Application Response Response Allowance Issue Action Action OfficeFile Application Response Allowance Issue Action File Continuation Office Response Allowance Issue Application Action
    16. 16. IssuedFile Application Allowance Patent Renewal Response Fees (Utility Rejection /Office (written, Patents Action phone call, only) visit USPTO)
    17. 17. Background of Detailed Abstract Drawings Claims the Invention Description• Summary of 150 • A simple • This section • This is the words or Less introduction to describes section that what your exactly how the protects your invention is. invention works ideas Describes the by referring to • It lays out the general field of the drawings. individual the invention, Describes in elements of and sets up why detail why your your idea – the prior art invention is not basically what fails to solve the a mere “obvious you “claim” as problem that improvement” your invention. your invention over existing fixes. patented inventions.
    18. 18. A Patent gives you’re the right to A patent is good only in the countryexclude others from making, using, where you have the patent. or selling the invention. 4 Take-Away Items you should remember To infringe a patent, you must To infringe a claim, you must infringe infringe one claim of the patent. every element of the claim.
    19. 19. Your Invention Patent 1: Narrow Claims Patent 2: Broad Claims• A Laptop that includes Claim 1: A Laptop A Scanner A Scanner Comprising• A Scanner• A Copier• A Fax Claim 2: A Laptop A Copier A Copier Comprising• A Printer Claim 1: A Laptop Comprising Claim 3: A Laptop A Fax A Fax Comprising Claim 4: A Laptop A Printer A Printer Comprising The Competition Throckmorton V. Cox, III: 12-year old Francoise’s Computer Center: In the Hing Wong: A Hong Kong company computer genius living in New York U.S., he builds a laptop computer importing into the U.S. a laptop who has customized his laptop to that contains a fax. He does not sell computer with a photocopier and a contain a scanner, fax, printer, and it in the U.S., but rather exports all of scanner built into it. cell phone. He made it himself, and the laptops to France. has never sold it to anyone.
    20. 20. He is a Chilean businessman who makes laptops in China. What about Felipe Santiago?He ships the These laptops laptops contain a fax,directly from scanner, China to printer, and Germany. photocopier.
    21. 21. Presented by: Eric A. Hanscom Managing Attorney2141 Palomar Airport Road, Suite 320 Phone: (760) 651 0142Carlsbad, CA 92011 Email: info@iciplaw.com Website: www.iciplaw.com Patents, Trademarks, Copyrights, IP strategy and portfolio management
    22. 22. Trademarks (Products) Trademarks (45 Classes)Servicemarks (Services)
    23. 23. Business Name, Logo Preliminary ConsiderationsSlogan, Logo Is my name unique enough to get a trademark? (The more fanciful the better. Nike, Xerox v. San Diego Legal Services. Colorful logos, tag lines,Product Name slogans are all good. Should I pay for a trademarkColor, Sound, Shape search?
    24. 24. File Allowance Publication OppositionApplication Office Response Trademark First renewal fees Action Issues are due between years 5 and 6 Subsequent renewal fess are due every 10 years
    25. 25. Foreign Patents must be filed: • 40 – 50% of •Directly in the foreign country USA world’s market •Buy yourself time with a Patent for many goods Cooperation Treaty (PCT) filingKey Countries Other • Europe, Japan, Buyers Australia, Canada Foreign Trademarks can be filed: • China / Hong •Directly in the foreign country Manufactur- Kong, Taiwan, •En masse through the Madrid Protocol ing Sites South Korea, Vietnam, Thailand Defensive Patents / • China Trademarks Key Factors: •Number of People in the Country •Average Income per Person •Geographic and/or Cultural Factors: Will they buy your product? Shipping • Hong Kong, •Enforcement of Intellectual Property: Ports Will that country enforce your IP? Singapore
    26. 26. What should • Websites (before and after putting on- line) inventors • Brochures and other Advertising Materials consider • Packagingcopyrighting? • Owner’s Manuals • Loser usually has to pay some attorney’s fees and court costs Copyright • Statutory Damages of up to $150,000 per infringement for knowing and willful Lawsuits infringement.
    27. 27. Presented by: Eric A. Hanscom Managing Attorney2141 Palomar Airport Road, Suite 320 Phone: (760) 651 0142Carlsbad, CA 92011 Email: info@iciplaw.com Website: www.iciplaw.com Patents, Trademarks, Copyrights, IP strategy and portfolio management
    28. 28.  Investors and Prospective Buyers of your invention already know a lot about inventors; you need to know the same things about inventors (yourself) if you want to have a chance to succeed.
    29. 29. Winners Losers
    30. 30. Is it a business or a hobby? Business are created to makemoney, hobbies are for fun. If your invention is just a hobby, sure, try to do it yourself, but don’t expect to succeed.Mistakes made with IP applications are often not “discovered” untilyears after filing, and you may lose potential patent and trademark rights during this time.You can’t bluff forever: A solid IP strategy is essential for attractinginvestors. Seasoned investors will look carefully at your patent, trademarkand copyright applications before they invest in your invention, so why notdo it right the first time?As the inventor, what is a good use of your time? Successful inventors focus on what they do best and hire professionals for the rest.
    31. 31. “There are two types of inventors: the paranoid, and the more paranoid” • Ron Reardon, President, National Association of Patent Practitioners (NAPP), NAPP Conference, 2009. Common Concern: “The Chinese will steal my idea so I won’t use them for prototypes Never tell your idea to anyone “There are 3 things every or production” and die happily, but without successful inventor needs to Fact: There is a security having made any money off do: 1) trust some people, 2) concern in overseas your idea, because you kept take some chances, and 3) manufacturing, but I have seen your secret. spend some money” much more “copying of successful products” than “stealing of ideas”.
    32. 32.  Derek Sivers It’s so funny when I hear people being so protective of ideas. (People who want me to sign an NDA to tell me the simplest idea.) To me, ideas are worth nothing unless executed. They are just a multiplier. Execution is worth millions. Explanation: AWFUL IDEA = -1 NO EXECUTION = $1 WEAK IDEA = 1 WEAK EXECUTION = $1000 SO-SO IDEA = 5 SO-SO- EXECUTION = $10,000 GOOD IDEA = 10 GOOD EXECUTION = $100,000 GREAT IDEA = 15 GREAT EXECUTION = $1,000,000 BRILLIANT IDEA = 20 BRILLIANT EXECUTION = $10,000,000 To make a business, you need to multiply the two. The most brilliant idea, with no execution, is worth $20. (My laptop idea was probably worth $10) The most brilliant idea takes great execution to be worth $20,000,000. That’s why I don’t want to hear people’s ideas. I’m not interested until I see their execution. (So, think twice before becoming an Arrogant Inventor who thinks a mere idea is worth millions)
    33. 33. Lawyers who say they have investor-clients and would considerintroducing you to the investors (but imply that you have to hirethem for business first). (Beware of “alphabet lawyers”)Invention Promotion Companies“International” Trademark companies, Trademark “monitoring services”Beware the “free ticket” to discuss your patent (it is probably one way)
    34. 34. Presented by: Eric A. Hanscom Managing Attorney2141 Palomar Airport Road, Suite 320 Phone: (760) 651 0142Carlsbad, CA 92011 Email: info@iciplaw.com Website: www.iciplaw.com Patents, Trademarks, Copyrights, IP strategy and portfolio management
    35. 35. Making / Selling it Yourself:Find Your Target Audience • Find a Factory, avoid front door and back door theft issues.• Warning to those who don’t like “selling”: you will have to “sell” your invention to someone • Transportation to Dock• If no one will buy it, probably won’t make money • Shipping • Warehouse in Long BeachDo Research • Customs • Distribution• Internet/Sourcing sites • Sales• Trade Shows • Charge-backs• Visit Local Stores • AdvertisingCreate a Prototype? Theoretically not • Allowancesnecessary to file a patent application, but • Defective Policiespractically, YES, you should have one. • Accounting• U.S. • Unforeseen Circumstances• Asia
    36. 36. License Assignment (Selling Your IP)• License is a “rental” of your • Assignment is a sale IP • “You give me $500,000, I’ll• “You have the rights to make give you the patent.” and sell products covered by • Less common than licensing this patent in California for because the assignee is less one year. I get $25,000 up likely to pay a decent price front, and you pay me 3% of with an unproven invention, gross sales per year. and once you have “proven”• Considerations: the sales ability of the • Exclusive or Non-exclusive invention, you probably don’t • Territory want to sell it anyway. • Royalties • Accounting Period • Audit Rights • Ending, Renewal, and Termination of the License
    37. 37. Prior Art Search -> Is it worth filing for a Utility Patent? Yes -> Get “patent pending” (Utility or Provisional), then try to sell or license. No -> Will patent laws change? Worth a Hail Mary application to get patent pending status for a few years? In any case -> Would a Design Patent be useful? In any case -> Trademarks and Copyrights.
    38. 38. Design, Manufacture, Deliver TM Prototyping your IdeasAn overview of the first steps for commercializing your product idea Leardon Solutions PO Box 28564 San Diego, CA 92198-0564 www.leardon.com
    39. 39. Design Specialty Expected Time* Expected Cost* Prototype Use for Prototype Detail Fabricator Required Required Design Fabrication Design Fabrication Proof-of- “It works” 1-2 1-5 No No N/A $200-$2000 Concept months weeks Integrated “This is how I’ll 1-3 3-5 $1000- Probably Probably $1500-$3000 Design mass produce it” months weeks $2000 “This is what it $3000-$15000 Production looks like off the Yes Yes 2-3 months 2-3 months $2000- $3000 (includes production assembly line” tools)* Assumption is a 4 piece metal or plastic mechanical prototype. Certain exceptions apply .
    40. 40. How do you make a Prototype?  Stereolithography (SLA)  A laser is used to cure liquid material and generate a part  Parts are great for verifying form and fit but not usually function  Takes about 3 days from release  Cost ranges from $300 to $1000 for medium parts
    41. 41. How do you make a Prototype?  Machining  It is possible to machine most plastics and metals  Turnaround times are around 1-3 weeks  Produces parts that can be used to test form, fit, and function  Part cost ranges from $150 for small parts and $6000 for large parts Machined Parts Before Glueing Final Prototype Assembly
    42. 42. How do you make a Prototype?  Silicone Molding  Take a machined plastic part and create a silicone mold for producing 15 parts  Costs more than a tooled part but lead-time is much faster  A set of 15 small parts will cost around $1500-$2500
    43. 43. Presented by: Eric A. Hanscom Managing Attorney2141 Palomar Airport Road, Suite 320 Phone: (760) 651 0142Carlsbad, CA 92011 Email: info@iciplaw.com Website: www.iciplaw.com Patents, Trademarks, Copyrights, IP strategy and portfolio management
    44. 44. Ryan A. Alexeev, Esq. 2141 Palomar Airport Rd., Ste. 320 Carlsbad, CA 92011Tel: (619) 819-5085 / Fax: (619) 353-3401 www.NorthCountyLegal.com
    45. 45. Business Plan Entity Formation FBN
    46. 46. •Start Selling or •Purpose Providing Your •Strengths Services •Weaknesses •Target Market•Write Your Plan •CompetitorsDown •Investment•Obtain Trademarksor Patents
    47. 47. •Sole Proprietorship•Partnership•Corporation•LLC
    48. 48. Sole Proprietorship• Can just start doing business – You and the business are one• No need to file anything with the State• Pay taxes under your own social security number• You are personally liablePartnership• Two or more people going into business with each other• No need to file anything with the state if you are operating as a general partnership• Each person pays taxes on their own• Each person is liable for the debts and you may be liable for your partner’s actionsGeneral partners – manage the business and are equally liable for its debtsLimited partners – may invest but not be directly involved in management and are liable onlyto the extent of their investments.Limited Liability Partnership – Usually used by attorneys or accounting firms. Limits thepartner’s liability to the amount he/she invested in the company.
    49. 49. Corporations• Business is separate entity from the owners• Requires Articles of Incorporation to be filed with the Secretary of State• Should have your by-laws which state how meetings should be held, whenthey should be held• Minimum franchise tax fee of $800 must be paid each year• Must have an annual meeting and send in statement to the Secretary of Stateevery year stating you are in compliance• The business is liable and not the individuals – Of course there areexceptions to these rulesLimited Liability Corporation• Owners and managers have limited liability• For tax purposes • 1 owner is taxed as sole proprietorship • More than 1 owner is taxed as partnership• May be owned by individuals or business entities• Formation is simpler and faster than forming and maintaining a corporation• Formal oral or written operating agreement must be entered into• Minimum tax of $800/year• Articles of Organization must be filed with Secretary of State
    50. 50.  File with County of San Diego San Diego El Cajon Kearney Mesa San Marcos Chula Vista Do not use the publication services sent you immediately

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