United Inventors Association - Practice Safe Crowdfunding - National Hardware Show

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Crowdfunding or other fundraising comes with intellectual property challenges. Follow five steps to crowdfunding to ensure success.

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  • Chaos – examples of errors
  • Kaufman study – not a lot of primary research on IPIP Loss – customer list stolen, create a brand and materials but infringing, and computer code not belonging to youIt is not just legal, it is good business. Not just IP attorneys but business attorneys. TI makes more from licensing than products, 40% of US companies’ value does not appear on BS (50% in the EU)
  • Car – represents Patents – think how many different patents are in a car.Coke – design of the bottleWebsite copyrightTrademark – Coke – protect from Brand confusion – l bought the wrong cookies! Looked it up Fig Newtons 1914ish and Newmans 1997 – hmmmmmm.Coke is $100 billion dollar brand and only $40 billion on the balance sheet…
  • Example of startup – to show that actually patents least amount of the time - NAME, BRAND, BLOG, Customer or Supplier List, and then Invention or Product – has 100% IP. Patents are more rare for startups! Trade secrets – cheapest but can be easiest to lose.If you patented the wheel (which I found out recently is not the actual tire) if you did not have the right to make a tie rod Example of focus on IP patents, miss the boat on the others, some simple things like protecting Trade Secrets with employees.1 – Simply does not. Only protected in the US. And also actions within the US can impact outside - example patents – until March 2013 changes, once you file in US, you have disclosed your invention and kills ability for international patents. Also, if you publicly disclose your invention with enough detail, you have also killed your ability for international patents 2 – simple ex. copyright – when many parties are doing a project – like these slides to more complex & problematic – patents – if more than one person listed on a patent as owner – regardless of contribution – EACH owner has the right to independently exploit the patent WITHOUT consulting the other.Example of a person who goes to a university and gets one idea from a professor and puts into patent – are they required to list that person as an inventor?  3 – who is actual owner of the IP – if individual inventor or person who filed, need to have a formal written assignment to the Company to assign all the rights otherwise…. 4 – May have a patented process but if an exclusive license to use or sell has been executed, then important to disclose and to understand how/if that impacts your ability to attract investors. 5. For example if you have a contractor developing software for you and they in turn use some freeware and you are charging for the software. You pay the invoice for the contractor and you think that you own this new software. Issues – copyright infringement because free ware used and then resold; if you have not expressly outlined who owns the IP in the software in your contract, you may have not retained the rights to the software. Contractors are not same as employees. 
  • Special guests Dara Albright and Brett Harris to discuss platform picking and raising social capital
  • Approach is methodical, like a checklist
  • Multiple inventors have the right
  • First INVENTOR to FILE and can Disclose and File.
  • Knowledge is PowerGet informed and you will save time and money.ABSOLUTELY get attorneys or consultants.
  • Ask Audience what IP for each Case.Maria’s restaurant example - Have the name, working on the signage and everything, do not use yet but want to save money and wait to file until in use (means offered for sale) BUT someone else files – they win – explain Common Law TM but you do not have because not offered (explain Breanna’s pool concept – know your rights). Trade secrets need to be protected – process or recipes – have employees sign off and mention trade secrets specifically – also trade secret is different every state but need to take reasonable steps to protect something of value.Inventor – Phillip with Smart Focus, the need to document in proper inventors’ notebook and file patents but WAIT you infringed on a TM, any funding presentation, competition (crowdfunding will end up with a huge issue because Enabling Public Disclosure – all 3 are needed. Make sure all inventors’ listed – remember that if listed do NOT have to consult with you. Example from PGCC where the first guy said he did not have IP protection and was there seeking help and the second guy left an important piece at home.Website – copyright every 3 months for blog, careful re copyright taking others’ photos – just because no C does not mean that not still copyright issue. Also if you have videos done, make sure you have the copyright.Software created by outsiders – if they violate copyright and put into your code, can be a problem if not shown (open source read the T&Cs regardless). Need to have all IP assigned. Have business attorney check documents.DO NOT FORGET ABOUT managing IP – need to look for dates, renewals, maintenance fees etc.
  • Microventures, CircleupSoMoLend is debtAngel List – accredited investors
  • Not all the requirements but not to be done over night.
  • Pebble Watch campaign was an outlier
  • Quality not quantify
  • +DNA Zoo Tees. Funding used to fulfill orders and “ramp up production” – Weak request – no emotional+No Social Media engagement+No pre-work – GO!G3Researched Platform:Social Capital Planning and preparation beforehand. Spending a lot of time at the beginning of the campaign and throughout it making individual/personal connections with people   Having a strong presence on social media – FB Campaign for 500 likes BEFORE started campaign Educated followers on Indiegogo BEFORE campaign friends/networks to post to their social media pages PitchVideo – Team members were featured – know who you’re supportingSocial capitalHeavy on Facebook and TwitterNetworkshoutout & support $5000 corporate donation within the first weekintroductions to local reporters in order to get the word out through the news and print materials Promotedhastags, Links BEFOREEDUCATED followers on what crowdfunding/Indiegogo was beforeRequested ideas/suggestions on rewardsCampaign updates 1/weekIndiegogoRespond to Indiegogo comments, FB, TwitterPhotosSet weekly goals to encourage more supportRewards$25 – SM Thank you!, Mother’s Day Shout Out$50 – Access to photo journey$100 Handmade keychain from Kenya$250 Personal thank you from someone benefiting from clinic$500 Printed photo book$1,000 Plaque in clinic & dinner with team$5,000 – Co logo printed in clinicSeasonal PromotionMake Donation for Mother’s Day – Social Media Shout OutsFeatured on Indiegogo’s Blog 2 days Mother’s DaySurpassed goal of $17,650 and ended with $20,175Mother’s Day campaign allowed them to make an emotional connection with audienceEnjoy your day tomorrow and now that there are Kenyan women who will have hope because of this clinic.make your mom feel special while at the same time working to ensure that another mother in Kenya can have a safe Mother's Day.Increased social media presence and connections; donors, media contacts, networkProvided opportunity for donations beyond campaign – reason to follow – supported campaign and emotional connections
  • Ask Audience what IP for each Case.Maria’s restaurant example - Have the name, working on the signage and everything, do not use yet but want to save money and wait to file until in use (means offered for sale) BUT someone else files – they win – explain Common Law TM but you do not have because not offered (explain Breanna’s pool concept – know your rights). Trade secrets need to be protected – process or recipes – have employees sign off and mention trade secrets specifically – also trade secret is different every state but need to take reasonable steps to protect something of value.Inventor – Phillip with Smart Focus, the need to document in proper inventors’ notebook and file patents but WAIT you infringed on a TM, any funding presentation, competition (crowdfunding will end up with a huge issue because Enabling Public Disclosure – all 3 are needed. Make sure all inventors’ listed – remember that if listed do NOT have to consult with you. Example from PGCC where the first guy said he did not have IP protection and was there seeking help and the second guy left an important piece at home.Website – copyright every 3 months for blog, careful re copyright taking others’ photos – just because no C does not mean that not still copyright issue. Also if you have videos done, make sure you have the copyright.Software created by outsiders – if they violate copyright and put into your code, can be a problem if not shown (open source read the T&Cs regardless). Need to have all IP assigned. Have business attorney check documents.DO NOT FORGET ABOUT managing IP – need to look for dates, renewals, maintenance fees etc.
  • Infringement is real issues
  • United Inventors Association - Practice Safe Crowdfunding - National Hardware Show

    1. 1. "TRAKLIGHT", "ID YOUR IP", "IP VAULT", and "IP CLOUD" are registered trademarks of The PIP Vault, LLC. © MMXIII The PIP Vault, LLC. All Rights Reserved. Mary Juetten, Founder & CEO Practice Safe Crowdfunding™: Raise money while Protecting your Ideas May 5th, 2014 UIA – National Hardware Show
    2. 2. Inventors’ World
    3. 3. Innovation Capture is Hard
    4. 4. Got Intellectual Property? Why Care… • IP theft costs US companies $250 billion annually • 100% of all companies have IP • 700K new startups annually vs. 20% protected IP after 1st year • IP is most valuable asset and not on your Balance Sheet • Exclude competition; Attract investment (incl. crowdfunding); Leverage & license • Avoid IP loss, infringement, or business failure Disclaimer: This is intended to be general information. Nothing in this presentation constitutes legal advice. Please consult with an attorney before making any intellectual property protection decisions.
    5. 5. What is IP? • Patents (utility & design) • Copyright © • Trademark/Service mark TM SM ® • Trade secrets – unsung heroes NO legal advice provided!
    6. 6. IP Misconceptions • IP is just for Tech Startups or Tech companies & Patents are the only IP for inventors. • Trade secrets are the easiest to protect because there is no registration. • You can copy anything without a copyright © • You can copyright an idea. • Domain = TM • If I pay for it, I own it. • Patents means right to make or sell.
    7. 7. Start on the Right Trak Do NOT start with creating a: Campaign Pitch or Business Plan THIS APPLIES TO ALL FINANCING! Disclaimer: This is intended to be general information. Nothing in this presentation constitutes legal advice. Please consult with an attorney before making any intellectual property protection decisions.
    8. 8. Summary IDENTIFY IP PROTECT IP PICK A PLATFORM BUILD SOCIAL CAPITAL CREATE A PITCH
    9. 9. Strategies: 1.ID IP 2.Protect IP WHY WHO WHAT WHEN WHERE ✔
    10. 10. WHO: IP Ownership Challenges • Multiple Inventors • Who you are? Employee of another company • Proper Assignment of IP Rights – personal versus company • Assume that Ownership automatically extends outside the US
    11. 11. • Date of Idea/Invention (First to Invent  First INVENTOR to file) • Date of Use • Date of Filing • Date of Conversion • Renewals WHEN: Key Dates to Remember
    12. 12. • Idea • URL • Name • Know how • Employees • Contractors WHAT: Business Plan/Funding Presentation
    13. 13. Strategies to Protect IP • Do it Yourself: – USPTO.gov – Copyright.gov • Hire a Professional: – Attorney, Consultant, Legal Zoom, Rocket Lawyer • Secrets: – Notary, IP Vault, Copyright software
    14. 14. • Inventor • Website • Software • Restaurant • Traklight! ` Case Studies 2/ 26/ 13 11:42 AMIP Awareness Assessm ent Page 1 of 2http:/ / www.uspto.gov/ inventors/ assessment/ assessment.html Accessibility Privacy Policy Terms of Use Security Emergencies/Security Alerts Information Quality Guidelines Federal Activities Inventory Reform (FAIR) Act Notification and Federal Employee Antidiscrimination and Retaliation (NoFEAR) Act Budget & Performance Freedom of Information Act Department of Commerce NoFEAR Act Report Regulations.gov STOP!Fakes.gov Department of Commerce USA.gov Strategy Targeting Organized Piracy (STOP!) Careers Site Index Contact Us USPTO Webmaster This page is owned by Inventor Resources. Trademarks Q5. Do you control and manage the proper use of your trademark by other users you have authorized? 1. Yes. 2. No. 3. Not sure. Next Before starting the assessment, please note: Save the link for this page as a favorite/bookmark on your browser. In the “Internet Options” of your browser, deselect/uncheck history on exit. This will allow you to return and resume your assessment session in case you cannot finish it in one sitting. This will also allow you to access your training materials and assessment results at your convenience. As you are answering the assessment questions, choose the answer that best applies to your business or circumstances as an independent invento r or individual. Where applicable, cho ose all the responses that apply to your situation. Responses or data collected in the assessment are not stored or used by the USPTO or NIST MEP. Important Notice Please note that any information provided here does not constitute legal advice, but is intended to increase your IP awareness. When filing an application for obtaining specific IP rights, it is recommended that you obtain professional legal assistance. The IP Awareness Assessment contains links to external websites. USPTO does not maintain those external sites and is not responsible for the material found therein. IP Strategies & Best Practices Trademarks Copyrights Design Patents Trade Secrets Utility Patents Using Technology of Others Licensing Technology to Others International IP Rights IP Asset Tracking IP category Last Modified: February 26, 2013
    15. 15. 3. PICK A PLATFORM • REWARDS BASED: Kickstarter Indiegogo How it works online! • FEDERAL EQUITY BASED: Not yet legal  Online Business Planning OTHER: Angel List, Lending Club, Georgia CF
    16. 16. GET READY NOW Federal Securities Equity is not yet Legal Create a Pipeline Same steps as other Financing Sources
    17. 17. EQUITY is not Easy Requirements include: Business Plan Financial Statements Background Checks Valuation
    18. 18. REWARDS CHOOSE THE BEST PLATFORM FOR YOU: • ALL OR NOTHING • % BASED ON TYPE • BE REALISTIC
    19. 19. STEP 4: RAISE SOCIAL CAPTIAL Success is directly related to Social Capital Social Capital is more than Social Media Quality not Quantity social icon: creative nerds, iconarchive.com
    20. 20. CONTENT IS KING Expert Blogs Speaking Social Media PR Start working on this before you launch your campaign. Traklight blog
    21. 21. Case Study: Lessons Learned
    22. 22. What they do. • Genetic Art – Ts – Portraits • Channels – Obsessed pet owner – Animal organizations • Convert Steel shipping containers into medical clinics • Cooling/Heating installed • Most of medical equipment needs/electric and sink • Durable • Quickly Installed
    23. 23. A Tale of Two Campaigns 2
    24. 24. Seriously?... Try again? • Lessons learned • New plan of action • New cause • New business opportunity
    25. 25. The new plan. • Pre-Selling • HEAVY PR – Social Presence – Local media • Partnering • Get it in writing • New rewards structure • SCHEDULE
    26. 26. Results?!
    27. 27. ONLINE Campaign Business Plan Projections ` STEP 5: CREATE PITCH
    28. 28. Ignorance is NOT a Defense Be Careful: Video Copy Business Plans
    29. 29. READ READ READ Read License & Permission to Use Check out CreativeCommons.org
    30. 30. Questions? Mary Juetten mejuetten@traklight.com @traklight @maryjuetten IDENTIFY. PROTECT. SUCCEED. www.traklight.com TAKE OUR FREE RISK QUIZ

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