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Intellectual Property Issues for Startups
- 1. • 中国科技大学硅谷校友会创业俱乐部 • 硅谷清华联网 • 南京大学硅谷校友会 • 浙江大学北加州校友会 • 吉林大学硅谷校友会 • IC CAFE硅谷站 • 硅谷信息港 ( www.bay123.com ) 1
- 2. Zheng Liu January 18,2015 Intellectual Property Law For Startups
- 3. Agenda • Intellectual Property (IP)type breakdown: Patents, Copyrights, Trademarks, and Trade Secrets • IP rights in a startup’s life cycle • The dangers of not protecting IP and using other’s IP without securing rights • Protecting one’s IP • Securing IP rights through licensing and collaboration Intellectual Property Law For Startups 3
- 4. Why Care AboutIntellectual Property and Licensing? Offensive: Secure Rights and Build Value Defensive: Avoid infringement, misappropriation and dispute Intellectual Property Law For Startups 4
- 5. Categories of IntellectualProperty Intellectual Property Law For Startups Trade Secrets Trademarks Copyrights Patents 5
- 6. Trade Secrets :The Protection • Information which is not generally known or reasonably ascertainable that allows a business to obtain an advantage (usually economic) over competitors or others • A company can only protect is trade secret as long as it is kept confidential • Examples: formula, source code, manufacturing process, customer list Intellectual Property Law For Startups 6
- 7. Trade Secrets :The Limitation • Maintenance of secrecy (marking documents, implementing security procedures (sign-in, badges, firewalls) • Reverse engineering and independent development • General knowledge and skills of employees (residuals and know-how) • Once disclosed the trade secret is no longer protected Intellectual Property Law For Startups 7
- 8. Copyrights: The Protection • Copyrightis a form of protection grounded in the U.S. Constitution and granted by law for original works of authorship fixed in a tangible medium of expression. Copyright covers both published and unpublished works. • Exclusive rights: to copy, sell, import or export, create derivative works (works that adapt the original work), perform or display • Copyright may apply to a wide range of creative, intellectual, or artistic forms, or "works” such as plays, movies, audio recordings, photographs and software • Deciding to register the copyright Intellectual Property Law For Startups 8
- 9. Copyrights: The Limitation • Copyrightdoes not protect facts, ideas, systems, or methods of operation • Independent creation • Limited time for protection • Changing technology and fair use exception Intellectual Property Law For Startups 9
- 10. Trademarks: The Protection • Atrademark is a brand name. • A trademark or service mark includes any word, name, symbol, device, or any combination, used or intended to be used to identify and distinguish the goods/services of one seller or provider from those of others, and to indicate the source of the goods/ services. • Although federal registration of a mark is not mandatory, it has several advantages, including notice to the public of the registrant's claim of ownership of the mark, legal presumption of ownership Intellectual Property Law For Startups 10
- 11. Trademarks: The Limitation • Lossof trademark, the generic problem • Trade erosion • Carving out industry specific trademarks • Protection overseas Intellectual Property Law For Startups 11
- 12. Patents: The Protection • Subjectmatter: apparatus, process, methods, design patents • How to obtain: file an application (provisional vs. non-provisional) with the USPTO • Disclosure, statutory bars to patents, deadlines, timeliness, and filing date Intellectual Property Law For Startups 12
- 13. Patents: The Limitation • Patent protection is the right to exclude not a right to practice • The importance of timing (when to file and how long it takes) • High cost to secure patent rights • Costs to enforce patent rights and difficulties in enforcing patent rights once the patents are granted • One patent may not be enough Intellectual Property Law For Startups 13
- 14. Intellectual Property LifeCycle and Issues • Founders (Assignments) • Employees (Employment, assignment, non-compete) • Consultants (Consulting agreements) • University/Former Employers (Employment agreements) • Products and services • In-licenses, out-licenses and acquisitions Intellectual Property Law For Startups 14
- 15. • Dangers ofnot protecting one’s IP » Cannot operate » Losing money • Dangers of not securing IP rights » Financial disputes » Criminal prosecution Intellectual Property Law For Startups 15
- 16.