According to the U.S. Patent and Trademark Office, while trademarks, patents and copyrights are all types of intellectual property, they differ from one another in the following ways.
A trademark is typically a logo or something similar that protects a particular brand name or symbol. It could be a word, phrase, design or any combination thereof and helps prevent other businesses from using a logo or other identifier that is similar to yours.
If you are looking to protect an invention, device or process, you may want to secure a patent. To get a patent, your invention or product has to be new and novel in nature. The patent helps prevent others from using the same process, or manufacturing your device, without your permission.
Many people rely on copyrights to protect literary or artistic works, such as manuscripts, books and songs. Copyrights are for tangible items and give you the exclusive right to use, distribute and reproduce the copywritten work.
There are other important distinctions that exist among trademarks, patents and copyrights, including how long each lasts and how far they extend in the geographic sense.
]]>According to LinkedIn, more than 90% of small- and medium-sized businesses use social media to attract new customers and retain existing ones. If yours is one of them, you want your social media presence to reflect positively on your company.
Having your creditors post on your social media accounts might not be the look you are going for. Luckily, even though creditors can attempt to collect using social media, they must follow specific rules. An important one is not posting information about your debts in a publicly viewable forum.
If your company’s creditors wish to contact you through social media, they must send private or direct messages to you. They also must identify themselves and tell you what debt they are trying to collect. This helps reduce your chances of falling victim to a scam.
You should not be constantly worrying about your company’s unpayable debts. You also should not lose sleep over how creditors might try to collect payment. If your business is suffering financially, it may be time to explore bankruptcy and other debt-relief options.
Ultimately, by taking steps to restore your company’s financial health, you will no longer have to worry every time you open its social media apps.
]]>Your debt-to-income ratio compares how much revolving debt you have relative to your monthly income. Regularly calculating your debt-to-income ratio is a good way to measure your overall financial health.
Fortunately, you do not need an advanced degree in mathematics to calculate your debt-to-income ratio, as the math is simple. First, add up your revolving expenses. These include your mortgage or rent, student loans, auto loans, credit card balances, alimony, child support and anything else you must pay every month.
After adding together your monthly debt, divide by your gross monthly income. This is how much money you make before your employer takes deductions. Then, move the decimal point two places to the right to show your debt-to-income ratio as a percentage.
Different individuals are comfortable with different amounts of debt. Still, if you have too much debt relative to your income, you may have trouble securing financing for a home, car, education or anything else. The U.S. Consumer Financial Protection Bureau recommends keeping your debt-to-income ratio below 43%. Depending on your financial goals, you may want to have an even lower ratio.
Ultimately, if your debt-to-income ratio is exceedingly high, you may want to better understand your debt-relief options, such as seeking bankruptcy protection.
]]>Trade dress infringement happens when one company uses trade dress that is close enough to another’s that it causes confusion in the minds of buyers. In order to show that infringement occurs, the plaintiff needs to prove certain elements.
According to FindLaw, trade dress refers to the visual appearance and characteristics of a product, such as the color, shape, size, graphics, texture and selling techniques. Some examples of trade dress include the atmosphere in a restaurant, product configuration, trade show style, unique smell and catchphrase. Trade dress refers to the overall appearance, which may include individual elements used previously by others.
A company can register its trade dress with the United States Patent and Trademark Office. In order to receive protection, a trade dress must be distinctive and non-functional. A company does not have to register a trade dress, as there are protections under common law. However, registration helps prevent others from copying it.
The person or company bringing an infringement claim bears the burden of proof. According to the United States Courts for the Ninth Circuit, the plaintiff must prove ownership of the trade dress and show that it is distinctive and non-functional. The plaintiff must prove that it began using the trade dress prior to the defendant and that the defendant’s use of the trade dress would cause confusion among consumers.
In all intellectual property disputes, strong evidence can be essential to winning a case. Careful documentation of trade dress elements can help prove that an infringement occurred and provide a defense against trade dress claims from competitors.
]]>Your non-compete should address the following areas and include reasonable restrictions.
A non-compete should only restrict former employees from working for businesses that directly compete with your company. Although it is unnecessary to name specific companies, you should list the industries that provide your competition.
Your non-compete agreement should restrict how long your former employee must refrain from conducting business in your company’s industry. The average duration for non-competes in Florida is six months to two years. Anything beyond that may be unnecessarily restrictive and could void the agreement.
Your agreement should include a term preventing a former employee from working in your business’s geographic vicinity. However, geographical restrictions may be excessive when they restrict employees from working in another state.
Your investment in your employees may include training them in procedures, skills or techniques that give your company a competitive edge. Therefore, it is not unreasonable to include a clause that restricts former employees from transferring proprietary information to a new employer that can use it to gain industry prominence or harm your business.
Your valid non-compete agreement should include a remedy for an employee’s violation of its terms. For example, in addition to pursuing an injunction ordering the employee to stop the offense, you may seek monetary damages equal to what the violation costs your business and punitive damages.
A non-compete agreement can protect your Florida business. Still, this contract is most helpful when it applies to specific employees.
]]>David is admitted in New York, Florida, the United States District Courts for the Southern District of Florida, the United States District Court for the Eastern and Southern Districts of New York, the United States Court of Appeals for the Second and Third Circuits and the United States Supreme Court. Welcome aboard!
]]>Corporations and limited liability companies are two business structures that provide limited liability. The U.S. Small Business Association describes the differences between the two so you can choose one that is most appropriate for your company.
Incorporating a business makes it a separate legal entity from its owner(s). If you own a corporation, its separate legal status provides limited liability that protects your personal assets. If you incur business debts, only business assets can go toward paying them.
The biggest downside of a corporation is that, depending on its structure, you may have to pay income taxes on the company’s behalf and then pay taxes again on the profits you made as the owner of the corporation on your personal income taxes.
An LLC is sort of a hybrid of a corporation and a sole proprietorship. As the owner of an LLC, you do not have to pay any corporate taxes. You still have to pay self-employment taxes, but because of the pass-through, there is no double taxation. At the same time, an LLC protects your personal assets by providing limited liability.
Each type of business structure offers its own advantages and disadvantages. You should consider these carefully before choosing a structure and starting the business because, in some cases, it is difficult or impossible to change the structure later.
]]>Many nests are under the regulation of a homeowners association. HOAs impose all manner of restrictions on residents. When unfavorable rulings and operational misbehavior ruffle feathers, bare-knuckle litigation can result.
Home dwellers often have big renovation plans. The installation of a fence to block predators is more than cosmetic. Adding a patio or hot tub may vastly improve quality of life. Projects like these typically need approval from an HOA. Denials originating from personality conflicts are enough to justify suing.
Those living under HOAs must pay the expenses of board members. As with any financial arrangement, there is the possibility of fiscal impropriety. An executive could apply funds toward unapproved matters, such as luxurious business dinners. Someone might buy expensive company vehicles. Utilizing funds in selfish ways does not enrich those within the community.
Domesticated animals are no less than family members. Unfortunately, an HOA could place arbitrary limits on the number of pets. The organization could have concerns about noise or smell that lack merit. Nonetheless, the welfare of the creature deserves consideration. There may not be a better location for an older cat or dog to live. The threat of legal action may be necessary to elicit an exception.
There are myriad scenarios under which homeowners decide to sue their HOAs. Taking these matters to court presents a worthwhile alternative to accepting these situations.
]]>However, disputes are an inevitable part of any business path, especially with people who work with unknown factors like other companies or individuals. So how do you deal with them when you come across them?
FINRA talks about mediation and arbitration. These are two of the most popular methods of resolving disputes that manage to stay out of the court system. They are prized for that reason, as they allow you and any other party involved to skip the time commitment and financial needs of a court case.
Arbitration is more similar to litigation. An arbitrator holds similar power to a judge. They will listen to all sides present their facts and evidence, and then make a decision based on this. Every party must abide by their decision.
Mediation, on the other hand, does not involve the mediator making decisions on behalf of the involved parties. Instead, they offer their opinion and advice, and it is up to the parties involved to decide what they want to do with it.
This is also a great way to preserve business ties. Litigation often ends with bridges entirely burned due to the time and money commitment involved. Using one of these alternative options generally helps keep tempers low, opening the chance for further collaboration in the future.
This is of crucial importance because the health, wellness and future growth of a business depends largely on the connections it has.
]]>After you go through the hassle of developing your company’s decor, you do not want one of your competitors to steal it. You also do not want another company to confuse your customers. Because your company’s decor is likely part of its intellectual property, you can take steps to protect it from infringement.
In simple terms, your company’s trade dress is the different facets you use to market your product or service. It may include your business’s decor, layout, packaging and color schemes. According to the U.S. Patent and Trademark Office’s Trademark Manual of Examining Procedure, trade dress must be inherently distinctive and nonfunctional to qualify for trademark protection.
Obviously, it is not possible to trademark trade dress that is generic in nature. It is equally impossible to apply for trademark protection for trade dress that matches or closely resembles another company’s protected trade dress.
Inherently distinctive trade dress has a shape, design or scheme that is unexpected, unique or original. This type of trade dress is protectable, as it has an indicia of origin for your customers and others.
The nonfunctional part of the trade dress equation simply means your trade dress is not essential to the delivery of your product or service. This effectively means you could still do business without the trade dress. On the other hand, if your trade dress is functional, it may not be protectable.
Ultimately, if you have a nonfunctional and inherently distinctive trade dress, applying for trademark protection guarantees someone else does not capitalize on your ingenuity and hard work.
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