6 hour class presentation-2011-1-30-for release to general public

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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.
  • 6 hour class presentation-2011-1-30-for release to general public

    1. 1. Making Money From IdeasAn Overview of Patents, Trademarks, Copyrights, and Licensing<br />Presented by:<br />Eric A. Hanscom<br />Managing Attorney<br />2141 Palomar Airport Road, Suite 320<br />Carlsbad, CA 92011<br />Phone: (760) 651 0142<br />Email: info@iciplaw.com<br />Website: www.iciplaw.com<br />Other Offices in Hong Kong and Bangkok<br />
    2. 2. Warning: Do not discuss your invention in this class! <br />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.<br />
    3. 3. Protecting Your Ideas With…<br />
    4. 4. Patents - <br />A patent is a right to exclude others from manufacturing, selling, or using your invention for a number of years. <br />Eg. The Apple iPod<br />
    5. 5. Trademarks tm - <br />A trademark is any name, symbol, figure, letter, word, or mark adopted and used by a manufacturer or merchant in order to designate his or her goods and to distinguish them from those manufactured or sold by others. <br />Eg. iPod and <br />“Trade Dress” - the overall image of a product used in its marketing or sales that is composed of the nonfunctional elements of its design, packaging, or labeling (as colors, package shape, or symbols) <br />NOTE: Trade dress is protected by the Trademark (Lanham) Act of 1946 if it is not a functional part of the product, has acquired secondary meaning, and there is likelihood of confusion as to the source of the product on the part of the consumer if a competing product has a similar trade dress.<br />
    6. 6. Copyright © - <br />A copyright is the legal right granted to an author, composer, playwright, publisher, or distributor to exclusive publication, production, sale, or distribution of a literary, musical, dramatic, or artistic work.<br />Eg. Harry Potter and the Sorcerer’s Stone <br />
    7. 7. Trade Secrets - <br />Trade Secret - a formula, process, device, or item of information used by a business that has economic value because it is not generally known or easily discovered by observation or examination and for which reasonable efforts to maintain secrecy have been made.<br />Eg. The formula of Coca-Cola <br />
    8. 8. * Certain Exceptions Apply<br />
    9. 9. Who is going to pay for this?<br />
    10. 10. Should You Protect Your Idea?<br />
    11. 11. Can You Patent Your Idea?<br />
    12. 12. How do You Know What Disclosures are Out There?<br />
    13. 13. Basics of the Patent Application Process<br />
    14. 14. Basics of the Patent Application Process<br />
    15. 15. Parts of a Utility Patent<br />
    16. 16. Parts of a Utility Patent<br />Abstract<br />Drawings<br />Background of the Invention<br />Detailed Description<br />Claims<br />
    17. 17. Title Page<br />
    18. 18. Drawings<br />
    19. 19. Background of the Invention<br />A simple introduction to what your invention is<br />
    20. 20. Detailed Description<br />This section describes exactly how the invention works by referring to the drawings. <br />
    21. 21. Claims<br />This is the section that protects your ideas<br />It lays out the individual elements of your idea – basically what you “claim” as your invention.<br />
    22. 22. Infringement<br />
    23. 23. Infringement<br />Patent 1: Narrow Claims<br />Patent 2: Broad Claims<br />The Competition<br />
    24. 24. Infringement<br />
    25. 25. Making Money From IdeasAn Overview of Patents, Trademarks, Copyrights, and Licensing<br />Presented by:<br />Eric A. Hanscom<br />Managing Attorney<br />2141 Palomar Airport Road, Suite 320<br />Carlsbad, CA 92011<br />Phone: (760) 651 0142<br />Email: info@iciplaw.com<br />Website: www.iciplaw.com<br />Other Offices in Hong Kong and Bangkok<br />
    26. 26. Trademarks v. Servicemarks<br />
    27. 27. What can be Trademarked?<br />
    28. 28. Basics of the Trademark Application Process<br />Opposition<br />
    29. 29. Foreign Patents and Trademarks<br />Key Countries<br />
    30. 30. Foreign Patent and Trademarks<br />Foreign Patents must be filed: <br />Directly in the foreign country; or<br />Buy yourself time with a Paris Convention (PCT) filing<br />Foreign Trademarks can be filed:<br />Directly in the foreign country; or<br />En masse through the Madrid Protocol.<br />
    31. 31. Foreign Patent and Trademarks<br />Key Factors:<br />Number of People in the Country<br />Average Income per Person<br />Geographic and/or Cultural Factors<br />Enforcement of Intellectual Property<br />
    32. 32. Foreign Patent and Trademarks<br />Key Countries:<br />USA<br />40 – 50% of world’s market for many goods<br />Other Buyers<br />Europe, Japan, Australia, Canada<br />Manufacturing Sites<br />China / Hong Kong, Taiwan, South Korea, Vietnam, Thailand<br />Defensive Patents / Trademarks: China<br />Shipping Ports: Hong Kong, Singapore<br />
    33. 33. Copyrights<br />
    34. 34. The Invention Game<br />
    35. 35. Do it Yourself?<br />Is it a business or a hobby? Business are created to make money, hobbies are for fun. If your invention is just a hobby, sure, try to do it yourself, but don’t expect to succeed. <br />Mistakes made with IP applications are often not “discovered” until years after filing, and you may lose potential patent and trademark rights during this time.<br />A solid IP strategy is essential for attracting investors. Seasoned investors will look carefully at your patent, trademark and copyright applications before they invest in your invention, so why not do it right the first time?<br />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.<br />
    36. 36. Inventor Paranoia<br />
    37. 37. Patent and Trademark Scams<br />
    38. 38. Making Money From IdeasAn Overview of Patents, Trademarks, Copyrights, and Licensing<br />Presented by:<br />Eric A. Hanscom<br />Managing Attorney<br />2141 Palomar Airport Road, Suite 320<br />Carlsbad, CA 92011<br />Phone: (760) 651 0142<br />Email: info@iciplaw.com<br />Website: www.iciplaw.com<br />Other Offices in Hong Kong and Bangkok<br />
    39. 39. Making Money:Preliminary Considerations<br />
    40. 40. Making Money From Your IP<br />
    41. 41. Putting it all together <br />
    42. 42. Design, Manufacture, Deliver TM<br />Prototyping your Ideas<br />An overview of the first steps for commercializing your product idea <br />Leardon SolutionsPO Box 28564San Diego, CA 92198-0564<br />www.leardon.com<br />
    43. 43. * Assumption is a 4 piece metal or plastic mechanical prototype. Certain exceptions apply.<br />
    44. 44. Why Create a Prototype?<br />Validation of Idea/Proof of Feasibility: The proof-of-concept prototype bears little resemblance to the actual product and should be used to prove the idea is valid and feasible.<br />Use for Obtaining IP: The proof-of-concept prototype or integrated design prototype can be used in discussions with the patent attorneys to ensure proper communication of functionality.<br />Show to Investors for Raising Money: Use a high-quality prototype in an investor presentation. There is no better investor pitch than one with a product demonstration.<br />Work out Design and Manufacturing Details: Design and engineer the product so that it can be manufactured with quality results at the best price.<br />Validate Functionality and Qualify Design: Put integrated design prototype and production prototype through rigorous qualification tests to verify product will operate properly under all conditions.<br />Feedback from Distributors, Buyers, and Retailers: Take the integrated design prototype and production prototype to targeted sales channels and receive valuable feedback prior to freezing design.<br />Obtain Customer Feedback from Beta Units:Have customers find potential issues and provide useful feedback by using the final production prototypes. <br />
    45. 45. Beer Tap Lock<br />Booklet Folding Mechanism<br />Examples of Proof-of-Concept Prototypes<br />Essential Tremors Eating Assistance<br />Ink-jet printer paper feed<br />Bicycle Shifting Plate<br />Imaging Spot Lens<br />Clinical Diagnostic Case<br />Medical Tourniquet<br />Biological Analysis Chip Holder<br />High-speed envelope printer<br />Eye/Ear Protection<br />
    46. 46. Examples of Integrated Design Prototypes<br />Clinical Diagnostic Case<br />Active Wear Exercise Belt<br />Clinical Diagnostic Access Door<br />Medical Diagnostic Equipment<br />Imaging Spot Lens<br />Medical Tourniquet<br />Medical Intubation Device<br />Bicycle Seat Clamps<br />Machined Body Panel<br />Precision Spring<br />Pet Food Bowl<br />
    47. 47. Custom Bicycle Head-Tube Badges<br />Examples of Production Prototypes<br />Pet Food Bowl<br />Medical Tourniquet<br />Logo Keychain<br />Acrylic Golf Putter<br />Grease Fitting<br />Inkjet Printer<br />
    48. 48. How to Find a Competent Fabrication Vendor<br /><ul><li>Outsourcing and Offshoring
    49. 49. Outsourcing: subcontracting a process to a third-party company
    50. 50. Offshoring: relocation of a business process from one country to another
    51. 51. Things to consider when offshoring
    52. 52. Don’t underestimate the difficulty in offshoring a prototype
    53. 53. Entrepreneurs typically don’t have the leverage or economics of scale to approach off-shore manufacturers and get world-class pricing
    54. 54. A thorough understanding of the culture and how to effectively communicate with them are keys for successful offshoring
    55. 55. Relationships are key to the successful of the offshoringproject
    56. 56. Don’t blindly search alibaba.com and globalsources.com for vendors</li></li></ul><li>How do you make a Prototype?<br /><ul><li>Stereolithography (SLA)
    57. 57. A laser is used to cure liquid material and generate a part
    58. 58. Parts are great for verifying form and fit but not usually function
    59. 59. Takes about 3 days from release
    60. 60. Cost ranges from $300 to $1000 for medium parts</li></li></ul><li>How do you make a Prototype?<br /><ul><li>Machining
    61. 61. It is possible to machine most plastics and metals
    62. 62. Turnaround times are around 1-3 weeks
    63. 63. Produces parts that can be used to test form, fit, and function
    64. 64. Part cost ranges from $150 for small parts and $6000 for large parts </li></ul>Final Prototype Assembly<br />Machined Parts Before Glueing<br />
    65. 65. How do you make a Prototype?<br /><ul><li>Silicone Molding
    66. 66. Take a machined plastic part and create a silicone mold for producing 15 parts
    67. 67. Costs more than a tooled part but lead-time is much faster
    68. 68. A set of 15 small parts will cost around $1500-$2500</li></li></ul><li>Steps To Consider When Starting A Business<br />Ryan A. Alexeev, Esq.<br />2141 Palomar Airport Rd., Ste. 320<br />Carlsbad, CA 92011<br />Tel: (619) 819-5085 / Fax: (619) 353-3401<br />www.NorthCountyLegal.com<br />
    69. 69. So You Have Decided To Start A Business<br />Business Plan<br />Entity Formation<br />FBN<br />
    70. 70. Business Plan<br /><ul><li>Purpose
    71. 71. Strengths
    72. 72. Weaknesses
    73. 73. Target Market
    74. 74. Start Selling or Providing Your Services
    75. 75. Competitors
    76. 76. Investment
    77. 77. Write Your Plan Down
    78. 78. Obtain Trademarks or Patents</li></li></ul><li>Entity Formation<br /><ul><li>Sole Proprietorship
    79. 79. Partnership
    80. 80. Corporation
    81. 81. LLC</li></li></ul><li>Sole Proprietorship<br /><ul><li> Can just start doing business – You and the business are one
    82. 82. No need to file anything with the State
    83. 83. Pay taxes under your own social security number
    84. 84. You are personally liable</li></ul>Partnership<br /><ul><li> Two or more people going into business with each other
    85. 85. No need to file anything with the state if you are operating as a general partnership
    86. 86. Each person pays taxes on their own
    87. 87. Each person is liable for the debts and you may be liable for your partner’s actions</li></ul>General partners – manage the business and are equally liable for its debts<br />Limited partners – may invest but not be directly involved in management and are liable only to the extent of their investments.<br />Limited Liability Partnership – Usually used by attorneys or accounting firms. Limits the partner’s liability to the amount he/she invested in the company.<br />
    88. 88. Corporations<br /><ul><li> Business is separate entity from the owners
    89. 89. Requires Articles of Incorporation to be filed with the Secretary of State
    90. 90. Should have your by-laws which state how meetings should be held, when they should be held
    91. 91. Minimum franchise tax fee of $800 must be paid each year
    92. 92. Must have an annual meeting and send in statement to the Secretary of State every year stating you are in compliance
    93. 93. The business is liable and not the individuals – Of course there are exceptions to these rules</li></ul>Limited Liability Corporation<br /><ul><li> Owners and managers have limited liability
    94. 94. For tax purposes
    95. 95. 1 owner is taxed as sole proprietorship
    96. 96. More than 1 owner is taxed as partnership
    97. 97. May be owned by individuals or business entities
    98. 98. Formation is simpler and faster than forming and maintaining a corporation
    99. 99. Formal oral or written operating agreement must be entered into
    100. 100. Minimum tax of $800/year
    101. 101. Articles of Organization must be filed with Secretary of State</li></li></ul><li>Fictitious Business Name<br />File with County of San Diego<br />San Diego El Cajon Kearney Mesa San Marcos Chula Vista<br />Do not use the publication services sent you immediately <br />

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