16807870
Description
Mind Map by julian valencia, updated more than 1 year ago
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Created by julian valencia
about 5 years ago
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10 Common Mistakes When
Launching a New Business
- 1. Choosing A Business Name Without Rights To
An Online Presence
- A business should ensure that they can have exclusive
right to use it in association with the goods and services
of their company to prevent others from hijacking or
diverting attention from their Brand.
- A business should ensure that they can have exclusive
right to use it in association with the goods and services
of their company to prevent others from hijacking or
diverting attention from their Brand.
- 1. Choosing A Business Name Without Rights To
An Online Presence
- 2. The Business Name Does Not
Comply With Applicable Legislation
- the business name should be unique and not confuse a
consumer with the goods, services, or trademarks of
another business. The name should also not falsely
describe the business
- the business name should be unique and not confuse a
consumer with the goods, services, or trademarks of
another business. The name should also not falsely
describe the business
- 2. The Business Name Does Not
Comply With Applicable Legislation
- 3. Failing To Trademark A Business
Name
- A business still has to file for a trademark. It’s advisable to
do so after the recommended name and trademark
searches to ensure they have all their rights protected. It
is a mandatory requirement before a new corporate name
- A business still has to file for a trademark. It’s advisable to
do so after the recommended name and trademark
searches to ensure they have all their rights protected. It
is a mandatory requirement before a new corporate name
- 3. Failing To Trademark A Business
Name
- 4. Failing To Obtain International
Trademark Protection
- The last thing a business wants is to be ready to launch after pitching
to funders and investors only to find out that someone else holds the
trademark rights. It’s important for founders to think about where
their markets are or could be in order to protect their brand in those
markets.
- The last thing a business wants is to be ready to launch after pitching
to funders and investors only to find out that someone else holds the
trademark rights. It’s important for founders to think about where
their markets are or could be in order to protect their brand in those
markets.
- 4. Failing To Obtain International
Trademark Protection
- 5. Failing To Properly Secure The
Intellectual Property Rights From
Co-Founders, Employees, Licensees Etc.
- It’s important to also ensure that any founders or part time independent contractors
are not also employees of another company that could be a competing business.
Further, the work or contribution they could be doing for their new company could
belong to the employer creating conflicting and competing interests.
- It’s important to also ensure that any founders or part time independent contractors
are not also employees of another company that could be a competing business.
Further, the work or contribution they could be doing for their new company could
belong to the employer creating conflicting and competing interests.
- 5. Failing To Properly Secure The
Intellectual Property Rights From
Co-Founders, Employees, Licensees Etc.
- 6. Disclosing An Invention Outside Of The Time
Limitation To File A Patent
- A patent gives the owner of the patent exclusivity over the right to that invention for a certain period
of time in a particular jurisdiction. then to ensure that any parties that an inventor wishes to disclose
to, signs a non-disclosure agreement (“NDA”) that has been vetted by a lawyer. In addition, business
plans should note that all information contained in them are confidential and proprietary.
- A patent gives the owner of the patent exclusivity over the right to that invention for a certain period
of time in a particular jurisdiction. then to ensure that any parties that an inventor wishes to disclose
to, signs a non-disclosure agreement (“NDA”) that has been vetted by a lawyer. In addition, business
plans should note that all information contained in them are confidential and proprietary.
- 6. Disclosing An Invention Outside Of The Time
Limitation To File A Patent
- 7. Failure To Sign Agreements
With Co-Founders
- Proper shareholder agreements, intellectual property assignment rights from
employees, and co-founders assigning all intellectual property rights to the company
are important. By incorporating early instead of waiting later, a company can ensure
that the founders are issued shares “subject to vesting”. All founders should assign all
inventions, ideas, and anything they worked on or contributed to the company’s
proposed business. This way, if a founder leaves, a company is not in jeopardy of
losing the intellectual property rights that go with it.
- Proper shareholder agreements, intellectual property assignment rights from
employees, and co-founders assigning all intellectual property rights to the company
are important. By incorporating early instead of waiting later, a company can ensure
that the founders are issued shares “subject to vesting”. All founders should assign all
inventions, ideas, and anything they worked on or contributed to the company’s
proposed business. This way, if a founder leaves, a company is not in jeopardy of
losing the intellectual property rights that go with it.
- 7. Failure To Sign Agreements
With Co-Founders
- 8. Use Of Generic Non-Disclosure Agreement
And Templates
- A business may fail to customize an NDA by using templates they obtained
from others or on the internet. instead of obtaining proper legal advice, a
startup may use generic templates, like shareholder agreements, found on
the internet. The danger is that legal concepts found in foreign laws may
not be applicable to contracts in the business owner’s jurisdiction. For
instance, a template from the internet may have a clause stating that the
governing law is in London, UK but the parties may both reside in British
Columbia.
- A business may fail to customize an NDA by using templates they obtained
from others or on the internet. instead of obtaining proper legal advice, a
startup may use generic templates, like shareholder agreements, found on
the internet. The danger is that legal concepts found in foreign laws may
not be applicable to contracts in the business owner’s jurisdiction. For
instance, a template from the internet may have a clause stating that the
governing law is in London, UK but the parties may both reside in British
Columbia.
- 8. Use Of Generic Non-Disclosure Agreement
And Templates
- 9. Failing To Put Together A Proper
Pitch Deck Or Business Plan
- It is important for a business to have a good business plan which can even be a
one page business plan. Without the competitive edge including intellectual
property rights or a good business plan, it is difficult for investors, backers or
funders to want to invest in a business. Most important, are the legal disclaimers
to ensure that the business owner is not violating securities law as further
discussed below.
- It is important for a business to have a good business plan which can even be a
one page business plan. Without the competitive edge including intellectual
property rights or a good business plan, it is difficult for investors, backers or
funders to want to invest in a business. Most important, are the legal disclaimers
to ensure that the business owner is not violating securities law as further
discussed below.
- 9. Failing To Put Together A Proper
Pitch Deck Or Business Plan
- 10. (Unknowingly) Violating Securities Laws
- Founders need to be aware that by pitching, sharing a business plan or asking for money could put
them offside securities laws. There are securities laws and rules when presenting to potential
investors. it’s important to add a disclaimer on any opening slide presentations to make it clear that the
business is not soliciting investment from the attendees or potential investors. Investing money in the
right legal advice at the outset to protect a business’s brand, inventions, intellectual property and
proprietary interests will protect a business in the long run.
- Founders need to be aware that by pitching, sharing a business plan or asking for money could put
them offside securities laws. There are securities laws and rules when presenting to potential
investors. it’s important to add a disclaimer on any opening slide presentations to make it clear that the
business is not soliciting investment from the attendees or potential investors. Investing money in the
right legal advice at the outset to protect a business’s brand, inventions, intellectual property and
proprietary interests will protect a business in the long run.
- 10. (Unknowingly) Violating Securities Laws
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