Entrepreneurship 101: Managing Intellectual Property with Arshia Tabrizi

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A R S H I A T A B R I Z I

B . A . S C . C O M P U T E R E N G I N E E R I N G ( H O N ) ( U O F T ) J U R I S D O C T O R ( L A W ) ( U O F T )

M E M B E R O F O N T A R I O & C A L I F O R N I A B A R S

W W W . T A B R I Z I L A W . C O M A R S H I A @ T A B R I Z I L A W . C O M

INTELLECTUAL PROPERTY (IP) FOR TECH START-UPS

Tabrizi Law Office PC

  Start-up/technology law for over 12 years   Full-service start-up practice since 2002

  Incorporation, Financing, IP, Trademark, Licensing, Web   Strategic Advisors/Partners with Clients

  Client list   NeXJ Systems (founded by William Tatham, previously

founder of Janna Systems, acquired by Siebel for $1.7 b.)   RedFlagDeals.com (acquired by YPG in March 2010)   WedSnap Inc. (acquired by The Knot Inc. in Feb 2009)   CognoVision (MaRS client, recently acquired by Intel)   6N Silicon Inc. (MaRS client, acquired by Calisolar Inc.)

Copyright 2008-2011 Tabrizi Law Office PC

Business of Innovation

  What is a start-up?   Business of innovation

  What makes a start-up?   Intangible assets

  Invention  Brand  Software  Know-how


What is IP?

  IP protects “intangible assets”   IP gives “competitive advantage”

  Keeps competitors outside market

  IP is “intellectual” property   Your “intangible” piece of real estate

  IP is a “business tool”   Service of “business objectives”

  IP is “not” just about patents


IP #1 – Trade Secrets

  What is a Trade Secret?   Information of value   Protected via secrecy

  Types of information   Source code   Algorithm   Chemical process   Business plan   Customer list   Pricing list


Trade Secrets – Tip #1

  Non-disclosure agreements (NDA)   Agreement to treat information in confidence   Disclosure to:

 Potential hire  Potential customer  Potential partner  Potential investor

  Mutual versus one-way NDA   Read them!


IP #1 – Trade Secrets

PROS CONS

 Competitors in the dark  Unlimited protection period

 WikiLeaks  Reverse engineering  Patent

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IP #2 - Patents

 What is a Patent?   Invention

  New (not “prior art”)   Not Obvious (e.g. car with 5 wheels)   Utility (commercial application)

  Why get a Patent?   20-year monopoly   Exclusive market


IP #2 - Patents

 How do I get a Patent?  Patent registry search

  Do yourself, hire someone

 Draft and file application   Description   Claims (Scope of Invention)   Previous Publication

 1-year grace period

 Rights on “registration”   ~ 3-5 years to registration


Patents – Tip #2

  Patents are “business tools”   Offensive strategy

 Litigation  License-out  Biotech, IBM, RIM  Patent trolls

  Other strategy  Cold war (defensive)  Start-up

  Venture capital   Competitors out


IP #2 - Patents

PROS CONS

 20-year monopoly  No “good guy” defense

 Tell the world  Costs: file ($3-15k), registration ($25k), enforcement (?)  Internal resources

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IP #3 - Copyright

  What is Copyright?   Right to copy   Other rights (perform, display)

  Automatic on creation   Content (website, music, text)   Software (firmware)   Documentation, drawings, designs

  Exclude competitors   Prevent copying of your creation   License your creation


Copyright – Tip #3

  Copyright assignment   Authors own original copyright   Written assignment required   Employment contracts   Consulting contracts


IP #3 - Copyright

PROS CONS

 Cheap  Automatic

 Does not protect idea  Only against copycats  Enforcing (P2P)

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IP #4 - Trademarks

  What is a Trademark?   Word

 Company name, product name

  Logo  Nike, Windows, Apple

  Registration  $1-2k per mark, 3–18 months  Market (country) analysis

  Why Get a Trademark?   Stop copying   Stop confusing marks


Trademarks – Tip #4

  Trademarks must be used   Registration not enough   Use it or lose it

 Use it  Document it


Thank You

  Tabrizi Law Office P.C.   www.tabrizilaw.com   arshia_tabrizi   [email protected]   416.510.2600 x.306


Entrepreneurship 101: Managing Intellectual Property with Arshia Tabrizi

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