In case you haven't noticed yet, I am all about helping you avoid the legal boo boo's that I made (and there were TONS) while starting and running my first business…….OY were there tons.  I made every mistake under the sun when it came to legal docs, working with investors, and protecting my own personal interests and not only those of the company. There is no reason for you to repeat any of the mistakes I made!  I asked my friend Linda Wang to chat with me about ways you can protect yourself as a start-up and she gives some great advice in this short interview.  Linda works with entrepreneurs to make sure they have the legal side covered and will generously offer advice if you give her a ring!

Check out Linda's packages to help you avoid any boo boo's and be sure to mention Entreprenette to receive 20% off.
If you are not sure exactly what you need, be sure to email Linda for a free 15 minute consult.

DISCLAIMER:The information in this interview is designed to provide accurate and authoritative information in regard to the subject matter covered.  It is presented with the understanding that neither Cambrian Law nor Entreprenette is engaged in rendering legal, accounting or other professional services.   If legal advice or other professional assistance is required, the services of a competent professional person should be sought.

When I met Nellie Akalp, we realized quickly that we had so many things in common; being entreprenettes, being moms, having twins, general business philosophies, and that we both wanted to enjoy our lives with our families as much as we wanted to enjoy being our own boss!

Having experienced what it's like to work with investors while experiencing the pros and cons of those relationships, and watching from the side as they tried to find a buyer for my then troubled handbag line, I wanted to hear Nellie's story of building her first company MyCorporation and selling it to behemoth Intuit.  Intuit has since sold it to Deborah Sweeney with whom I have had the pleasure of interviewing as well.  The circle of life continues.

A lot of clients ask what they should do to prepare for possibly positioning their company to be sold down the line, and while I have my own lists of "what to do", I was lucky enough to get Nellie to share her thoughts on the subject in this action packed interview.

What are your long term goals with your company?

• Do you ever think about an exit strategy?
• Was your business built around one?
• Do you know anyone who successfully sold their business?

Not many people can answer yes to any of the above, so please don't start to second guess yourself ok?  Click below to hear how Nellie sold hers for a gigantic sum of money – which she reveals -  and tells you about her new business, CorpNet.com after her non-compete expired.  Talk about moving onward and upward!

Nellie (and CorpNet) has generously offered a 25% off discount on any service they offer as well as a free business consultation.  Mention or Enter Promo Code: ENTREPRENETTE

Follow Nellie on Facebook and Twitter to keep up with her.

Legal Disclaimer:
CorpNet.com® is a document filing service and CANNOT PROVIDE YOU WITH LEGAL, TAX, OR FINANCIAL ADVICE.  For legal or financial information specific to your needs, we strongly urge you to consult with an attorney or CPA licensed in your jurisdiction.

A client I worked with last year recently contacted me to tell me that someone in her small town was actually copying her product that is patent pending.  After commiserating with her, I remembered this post I did over a year ago on this exact topic.  After revisiting the story, the memories came flooding back and I wanted to share this with you again as it is so important to protect yourself whenever possible.  I of course did not have "patent pending" status, but the situation is very similar.

Protecting your idea can also be integral to your marketing and sales plan.  For instance, I was contacted by a large catalog in Japan who wanted to sell my Handy Hold All™ but they required that I file a Trademark in Japan for my Simply Sarah brand so no one could copy it.  Since it was around $3,000-4,000 to file, I made sure I had the purchase order in tact and a deposit prior to filing. Just be aware of your options at all times so you can always be on the lookout for your next big deal!

I took it a few steps further this time and contacted my friend Deborah Sweeny, CEO at My Corporation, who did my Trademark as well as my corporation for Simply Sarah many years ago, and asked her if she'd share some details with us on the difference between Copyrights and Trademarks so you can protect yourself as well.

Deborah has generously offered a $20 discount coupon for all Entreprenettes who use the coupon code NETTE at checkout for any product they sell on My Corporation.  Woo hoo cool right?

Click here for additional information about Trademarks and Copyrights

Follow My Corporation on Facebook and Twitter

DISCLAIMER:The information in this interview is designed to provide accurate and authoritative information in regard to the subject matter covered.  It is presented with the understanding that neither MyCorporation nor Entreprenette is engaged in rendering legal, accounting or other professional services.   If legal advice or other professional assistance is required, the services of a competent professional person should be sought.

I remember when I decided to patent my Handbag Hanger back in 2003.  I did as much research as I could on my own via the internet – searching google and scouring every organizing store on the planet to see if they had something similar. Once I was fairly certain I had a unique product, I called an attorney to start the process.  It was pretty easy going from there for me back then as not as many patents were being filed.  I did however choose a Design patent over a Utility patent to save money as I was sure no one could reconfigure my product and patent over my design patent……but they did……and I learned  lesson.  Fortunately the "copy" has not really infringed on my business but that was a stroke of luck!

So many people are afraid of the Patent office right? 
I mean they seem to wield such power over us and our inventions. Do you ever wonder………….

• If your product even be patented?
• If the patent even protect it?
• How long will the process take?
• How much will it all cost me?
• How does it all work?

The USPTO has a  relatively new section for inventors that they are pouring a lot of resources into, and I wanted to bring it to your attention in case it can be of use to you.  I was lucky enough to sit next to someone from the USPTO on the airplane last month and he was excited to meet someone who had connections to so many entrepreneurs……and connected me to John Calvert – The Administrator of the Inventors Assistance Program. John and I chatted this week and I recorded our conversation for you to hear. 

If you are thinking of patenting, have a patent in process, or want to file a provisional patent…..listen up!

John shares some insider tips and had generously offered up helpful links to help this process move more smoothly. Did you know you can just pick up the phone and speak to someone about your patent?

Here are some quick links to get you around the PTO website faster!

Read the latest copy of the Inventors Eye Newsletter

Quick 411 list of sections to help you navigate the website

Patent and Trademark Depository Library Program

P.s John gave me an insider tip and let me know that Mid January is the next on-line chat if you want to partake…..I'll let you know as soon as I know the date and how to access it.  If you want to see transcripts of past chats click here.

Have you ever had some incredible idea and wondered if you should patent it?  Most people have at some point in their life.  Have you ever seen a bronze plaque of a patent on someones wall and thought it was cool?  I know I have! But the real deal is a plain piece of paper with your patent info…….not a plaque.  Boo Hoo!

I have a design patent and let me tell you – it isn’t all roses all the time.  Yes, I was very fortunate for the first few years until someone started to infringe…….boy was I hopping mad.  After many lawyer letters back and forth and several thousands of dollars, I really got nowhere.  This company was a shell and we could never find a real person to actually bring a suit against so we gave up after a year or two.   Then suddenly, they disappeared for a while (I thought they’d given up and I’d won!) then resurfaced about a year later with a PATENT over my patent!!  After crying to my attorney – there really wasn’t anything to do any more.  Fortunately they sell to a totally different market and don’t seem to be taking away any of my market share – but it is still annoying.  My experts below share a few of their tips for those of you considering a patent.

Hope this helps you make a decision!

1. Legal Smegal Patents or Not

To patent or not to patent: Many of my clients have patents, several have had to defend them. Get one, I say yes and make sure the documentation is impeccable! Check with several patent attorneys before going with one.

Those that have defended patents find it is long and arduous journey. After all it is the legal system! When they did finally win or settle they came out ok, but not sure they wanted another patent.

The main point seems to be the small variant in design that makes it a new patent! Good luck!

Thanks to: Harlan Goerger of AskHG.com by H. Goerger & Associate.

2. Design Patent Unfairly Treated

To patent or not to patent: My patent research stopped short of contacting an attorney. What I learned was getting a design patent would cost me thousands of dollars and if one person copied my product but changed ONE TINY DETAIL they could patent their design and so on and so on. Design patents aren't worth the money.

Thanks to: Shelly Gnewikow of Craft chicks.

3. Ideas=$$$$$

To patent or not to patent: Yes, patents are worth it! Creativity must be protected in order for anyone who conceived an idea to keep it and possibly enjoy the revenue fruits of their labor! If you are in a dilemma as to whether or not to patent an idea, ask yourself these questions: (1) Are your ideas valuable to you? (2) What would you do if you saw someone had made money from your unprotected idea?

Protect your ideas and sleep better at night!

Thanks to: Mary Winkenwerder.

4. Patent..path to Future

To patent or not to patent: A product/process/service must be unique or innovative and be first to be patented. A patented product offers many safeguards & financial sustainability to the patent holder:
1.Piracy & duplicity is discouraged.
2.Opportunity to franchise your Patent and earn lifelong financial benefits in the form of Licence/usage/Royalty fee etc.
3. Opportunity of globalization of your product/s.

Getting patent is tedious, time consuming and financially expensive proposition. Product must be unique.

Thanks to: Naresh Vij of Kaveri Consultants, India.

5. Protect your gadget FREE!

To patent or not to patent: 97% of private patents don't succeed so don't waste your money. Filing a patent application costs nothing. So, file an application. You will receive a patent number and a date indicating that you have an application pending. Now put Patent Pending on your product and scare off would be copyists. As the twelve month deadline for payment approaches simply allow that application to lapse and refile for nothing. You can be Patent Pending for ever!
John Richards 'The Naked Inventor' from Amazon.

Thanks to: John Richards of Ideasun Ltd.

6. Do a patent search!!

To patent or not to patent: I feel a patent is important,especially for the independent inventor that may want to license their product.I find many inventors skip over a very important step of the invention process, doing a patent search.Inventors should check search engines & USPTO.gov with various descriptions of their idea. If the idea is out there already,they should consider how different their invention may be.If they still didn't find anything similar,they should have a patent search done by a patent attorney/agent.

Thanks to: Brian Fried of Got Invention Radio.

7. Keeping Trade Secrets Quiet

To patent or not to patent: We chose not to patent our technology due to a few reasons. Because we are a self funded start up, we did not have the funds to pursue a patent. Secondly, we realize that with a patent, we would have to divulge all of our trade secrets which would allow our competitors to easily reproduce our technology. And lastly, if our competitors copied our patented technology, we wouldn't have the funds to defend ourselves in court as legal fees would be astronomical.

Thanks to: Phyllis Cheung of My Wedding Concierge.

8. Profit from your invention

To patent or not to patent: A patent gives you the right to prevent others from making, using, or selling your invention. In other words, others need your permission, typically a license, to practice your claimed invention. A well prepared patent with broad claims is more valuable than a patent with narrow, very specific claims because it has broader licensing potential. Negotiating a license is much cheaper than suing for patent infringement, even though the negotiations can take a protracted period of time to complete.

Thanks to: Ian Blum of Cohen Pontani Lieberman & Pavane.

9. Success! Maybe!

To patent or not to patent: Given the amount of time and effort I put into developing the invention, there was a certain level of comfort achieved in securing a patent for it, regardless of whether I attempt to commercialize it or not. But the patent system is hardly perfect, often burdened with large financial expense and less-than-qualified people. I felt I had no choice but to let go of my attorney and finish the process alone, and my success or failure might not be truly determined unless and until I need to defend it.

Thanks to: Bill Kostuj of WaggleWeight(TM).

I often wonder WHAT made someone decide to become an Entreprenette. Do you?  When I graduated college and got a job in the movie business, I never thought for a second about being an Entreprenette. I was just going to work in the film business forever and find my fame and fortune there.  Even though I come from a long line of  entrepreneurs of all kinds (Fashion Designers, Linen & Sheet Designers, Factors, Shrinks, Dentists, Deli Owners and more I’m sure), it really never occurred to me to follow in their footsteps as I didn’t feel passionate about anything in particular at that time……except for perhaps a guy or two!

This famous photo shows JFK Jr in a coat from my Grandma’s Imported Linens and Children’s clothing store in NYC  -  Jackie shopped there a lot.

When I did have my Ah-HA moment – I finally understood the reason I was taking the plunge and what was so alluring about being my own boss. I love hearing others stories and thought you might too.  A big thanks to my Experts who contributed their stories to inspire and guide you.

How Do You Know if Your Product is Unique?
I get asked this question all the time! I wish I had a crystal ball that could tell you if you had the next million dollar idea. I can certainly help you determine if it is unique and worth a try! I asked my Experts to contribute their 2 cents as experienced Entreprenettes to give you a ton of ideas……56 to be exact, of how you can determine if your idea is unique and worth pursuing.

One of the questions that has come up a lot with clients is How do I protect my idea?

This can be a super frustrating aspect of a great invention. Unfortunately, while we pay the big bucks to the lawyers to file Patents, Trademarks and Copyrights, if you don’t have the cash to put up on the back end, they can be rendered useless by an infringer.  I am not saying to bypass this step if you have an invention worth protecting, but I am saying to be wise about what can happen.  New ideas are created all the time from existing ideas – that’s what makes the world go round. You see something cool and think, “If only it did this, or closed like this instead,” and voila, you have a new idea. It’s almost impossible to know if your Patent is impenetrable. You can only do the best you can do, and hope for a winner, or at least for a long run, before someone else figures out a twist on your idea.  Be sure to see  or speak to a reputable attorney about whether or not you can protect your idea one way or another.

When I launched my first handbag line, as you know it all started with my Pinked edge bag.   I didn’t file anything to protect it as didn’t warrant anything official.  After a few years and hundreds of boutiques under my belt, I was trying to get into Bloomingdales and other dept stores.  I was sending catalogs, calling the buyers, offering the order on consignment…..anything I could think of.  One day a friend calls and says, Wow I just saw your bags in Bloomies!  That is so cool.”  Of course I blurted out that it wasn’t my stuff and asked what they looked like etc… She couldn’t remember much except that they looked just like mine so I called Bloomingdales right away.   It turned out that a very large company had knocked off my bag – EXACTLY – and was selling them for about 60% less.  I was livid. I had worked so hard to build my brand and now someone else was taking money out of my hands.  I immediately ordered one to get to my attorney.  I was going to show them a thing or two right?  I started to photo copy all the press I had gotten of the Pinked Bag over the years, magazine interviews of me talking about the bag, copies of old invoices showing sales, and samples of my bags.  I even pulled out some old videos of my interviews on Access Hollywood with tons of bags around me.  I was sending him my army – the biggest box of proof he’d ever gotten.   Of course I didn’t have any formal or legal documents pertaining to my design, just my mountain of proof that I pulled together.  I was SURE that I was going to win (whatever that meant) and they’d have to pay me some kind of royalty and remove the bags from the stores.  I had BIG dreams of how this was going to play out.  So I get the box off to my attorney a couple days later and he calls me a few days after that.  I was seriously delirious by this time, sitting on the edge of my chair waiting to hear how we were going to demolish them. I swear I had dreams of a front page WSJ story – I clearly needed a valium.

My attorney was a very proper southern gentleman and had a soft way of delivering a hard blow.  His slight accent always made everything sound better to me, except this time.  He said gently, “I hope you didn’t have your heart set on a specific outcome, but what worries me about broaching this subject with XX company, is that they can say they had the idea for 20 years and that YOU are infringing on their idea and owe them a royalty on every bag you’ve ever sold.”  My heart sank.  I was devastated.  I knew they had stolen my idea – the bag was the same size as mine millimeter by millimeter. That was no coincidence.  But I listened to my lawyer and let it go because I didn’t have the money to fight a big legal battle and XX company had bottomless wells.  It ate at me for a while, until I accepted that imitation is the sincerest form of flattery.    Luckily for me, they only made them that one time.

The best part was that a couple months later, I got the order from Bloomingdales and my bags sold really well.

It is beyond important to protect yourself when possible from anyone being able to use what you worked so hard to build.  These next suggestions are only suggestions and it does not take away from the validity your product.  You do not have to do any of these steps to proceed.  They are only precautions to protect you.  I personally trademark all my company names.

a. Copyrighting your work

Copyrighting is a very simple process and can be done  at http://www.copyright.gov. When being used to protect  artistic or literary work a copyright is usually the way to go. The general cost can vary from do it yourself for about $35 to $500 with an attorney.  You can also check out http://www.legalzoom.com  or http://www.mycorporation.com for help with questions as well.

b. Trademarks
What is a trademark or service mark?

A trademark is a word, phrase, symbol or design, or a combination of words, phrases, symbols or designs, that identifies and distinguishes the source of the goods of one party from those of others.

A service mark is the same as a trademark, except that it identifies and distinguishes the source of a service rather than a product. Both marks are identified by the symbols ™ (not yet registered) and ® (registered)

To begin I suggest going to the http://www.uspto.gov website and do a basic search of the term you want to trademark.  If you are certain that the mark is available from your research, then I suggest going the less expensive (Bootstrapping) route through http://www.mycorporation.com or http://www.legalzoom.com. They can walk you through the process for a nominal fee of around $300.  The cost to file per class of goods or service is $375 each.  You will need to determine how many classes you need to protect your mark.

c. Patents

A patent is not require or essential to take your product to market.   You will find many products that do not have a patent are highly successful.  You will need to determine the effectiveness of a patent for your product with your attorney.  I highly recommend retaining a savvy attorney for this important step.  No one can afford costly mistakes in this arena.  While a patent is designed to protect you from infringement  (others illegally manufacturing and selling your product) on your product, upholding the patent in court can be very costly and difficult to enforce.  There is no “Patent Police” nor does US Customs protect your patent from importers. (US Customs does however protect Trademarks at the borders).

What is the Difference Between “Utility” and “Design” Patents?

In general terms, a “utility patent” protects the way an article is used and works, while a “design patent” protects the way an article looks. Both design and utility patents may be obtained on an article if invention resides both in its utility and ornamental appearance.

Be smart in your choices and wise in your decisions.

Good luck!