2. Start on the Right Trak
Do NOT start with creating a:
Campaign
Pitch
or
Business Plan
THIS APPLIES TO ALL FINANCING!
Disclaimer: This is intended to be general information. Nothing in this presentation constitutes
legal advice. Please consult with an attorney before making any intellectual property protection
decisions.
4. Why Care…
• IP theft costs US companies $250
billion annually
• 100% of all companies have IP
• 700K new startups annually vs. 20%
protected IP after 1st year
• IP is most valuable asset and not on
your Balance Sheet
• Exclude competition; Attract
investment; Leverage & license
• Avoid IP loss, infringement, or
business failure
10. WHAT: Campaign or Plan
•
•
•
•
•
•
•
•
Idea
URL
Name
Know how
Video
Employees
Contractors
Partners
11. STEP 2: Protect IP
• Do it Yourself:
– USPTO.gov
– Copyright.gov
• Hire a Professional:
– Attorney, Consultant, Legal Zoom, Rocket Lawyer
• Secrets:
– Notary, TRAKLIGHT IP VAULT, Copyright software
12. WHEN: Key Dates to Remember
• Date of Idea/Invention (First to Invent First
INVENTOR to file)
• Date of Use
• Date of Filing
• Date of Conversion
• Renewals
13. Step 3: PICK PLATFORM
How it works online!
• EQUITY BASED:
Online Business Plan Required
14. 10 Requirements
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Registration & Incorporation in US
Names – Directors, Officers, >20% SH
Business Description & BUSINESS PLAN
Prior years Tax Returns
Financial Statements
Use of Proceeds
Offering Details & Progress Updates
Share price & methodology (VALUATION)
Ownership & capital
Capital (existing, offering & differences)
15. GET READY NOW
Equity is not yet Legal (Oct 23rd update!)
Create a Pipeline
Same steps as other Financing Sources
16. EQUITY is not Easy
Requirements include:
Financial Statements
Background Checks
Valuation
Business Plan
25. RESOURCES
•
CfPA, CfIRA
•
Crowdfundingroadmap.com Annual Oct
14th – 16th Convention & Bootcamp
•
Crowdfundcast.com – podcast
•
Getting Started with Crowdfunding
Investing for Dummies in a Day
•
Crowfunding Hatchery
•
Traklight.com/IP Cloud – free resources
& paid coaching
•
Crowdbuilder by Leverage PR- in-depth
publicity instruction, task and milestone
management, to integrated calendars
and media lists
26. STEP 5: CREATE PITCH
ONLINE
`
Campaign
Business Plan
Projections
27. READ READ READ
Read License & Permission to Use
Check out Creative Commons.org
28. Ignorance is not a Defense
Be Careful:
Video
Copy
Business Plans
31. RESOURCES
•
CfPA, CfIRA
•
Crowdfundingroadmap.com Annual Oct
14th – 16th Convention & Bootcamp
•
Crowdfundcast.com – podcast
•
Getting Started with Crowdfunding
Investing for Dummies in a Day
•
Crowfunding Hatchery
•
Traklight.com/IP Cloud – free resources
& paid coaching
•
Crowdbuilder by Leverage PR- in-depth
publicity instruction, task and milestone
management, to integrated calendars
and media lists
32. Take Free Risk Quiz
Mary Juetten
mejuetten@traklight.com
@traklight
Facebook.com/traklight
Notas del editor
If you take nothing away, please
Kaufman study – not a lot of primary research on IPIP Loss – customer list stolen, create a brand and materials but infringing, and computer code not belonging to youIt is not just legal, it is good business. Not just IP attorneys but business attorneys. TI makes more from licensing than products, 40% of US companies’ value does not appear on BS (50% in the EU)
Car – represents Patents – think how many different patents are in a car.Coke – design of the bottleWebsite copyrightTrademark – Coke – protect from Brand confusion – l bought the wrong cookies! Looked it up Fig Newtons 1914ish and Newmans 1997 – hmmmmmm.Coke is $100 billion dollar brand and only $40 billion on the balance sheet…
Example of startup – to show that actually patents least amount of the time - NAME, BRAND, BLOG, Customer or Supplier List, and then Invention or Product – has 100% IP. Patents are more rare for startups! Trade secrets – cheapest but can be easiest to lose.If you patented the wheel (which I found out recently is not the actual tire) if you did not have the right to make a tie rod Example of focus on IP patents, miss the boat on the others, some simple things like protecting Trade Secrets with employees.1 – Simply does not. Only protected in the US. And also actions within the US can impact outside - example patents – until March 2013 changes, once you file in US, you have disclosed your invention and kills ability for international patents. Also, if you publicly disclose your invention with enough detail, you have also killed your ability for international patents 2 – simple ex. copyright – when many parties are doing a project – like these slides to more complex & problematic – patents – if more than one person listed on a patent as owner – regardless of contribution – EACH owner has the right to independently exploit the patent WITHOUT consulting the other.Example of a person who goes to a university and gets one idea from a professor and puts into patent – are they required to list that person as an inventor? 3 – who is actual owner of the IP – if individual inventor or person who filed, need to have a formal written assignment to the Company to assign all the rights otherwise…. 4 – May have a patented process but if an exclusive license to use or sell has been executed, then important to disclose and to understand how/if that impacts your ability to attract investors. 5. For example if you have a contractor developing software for you and they in turn use some freeware and you are charging for the software. You pay the invoice for the contractor and you think that you own this new software. Issues – copyright infringement because free ware used and then resold; if you have not expressly outlined who owns the IP in the software in your contract, you may have not retained the rights to the software. Contractors are not same as employees.
Approach is methodical, like a checklist
Knowledge is PowerGet informed and you will save time and money.ABSOLUTELY get attorneys or consultants.
First INVENTOR to FILE and can Disclose and File.
Registration & Incorporation in the U.S.Name, legal status, address, website, etc.2. Names of directors, officers, and 20%stockholders3. A description of the business and theanticipated business plan of the issuer4. Prior year tax returns5. Financial statements6. Description of intended use of raisedcapital & proceeds7. Target offering amount, deadline, andregular progress updates through the lifeof the offering8. Share price and methodology fordetermining the price9. Description of the ownership and capitalstructure of the issuer, including a lot ofdetail about the terms of the securitiesbeing sold10. Terms of any other outstanding securitiesof the company, including a summary
Microventures, CircleupSoMoLend is debtAngel List – accredited investors
Not all the requirements but not to be done over night.
Pebble Watch campaign was an outlier
Quality not quantify
DNA Zoo Tees. Funding used to fulfill orders and “ramp up production”
Insert the screen shot of the successful Campaign.
Ask Audience what IP for each Case.Maria’s restaurant example - Have the name, working on the signage and everything, do not use yet but want to save money and wait to file until in use (means offered for sale) BUT someone else files – they win – explain Common Law TM but you do not have because not offered (explain Breanna’s pool concept – know your rights). Trade secrets need to be protected – process or recipes – have employees sign off and mention trade secrets specifically – also trade secret is different every state but need to take reasonable steps to protect something of value.Inventor – Phillip with Smart Focus, the need to document in proper inventors’ notebook and file patents but WAIT you infringed on a TM, any funding presentation, competition (crowdfunding will end up with a huge issue because Enabling Public Disclosure – all 3 are needed. Make sure all inventors’ listed – remember that if listed do NOT have to consult with you. Example from PGCC where the first guy said he did not have IP protection and was there seeking help and the second guy left an important piece at home.Website – copyright every 3 months for blog, careful re copyright taking others’ photos – just because no C does not mean that not still copyright issue. Also if you have videos done, make sure you have the copyright.Software created by outsiders – if they violate copyright and put into your code, can be a problem if not shown (open source read the T&Cs regardless). Need to have all IP assigned. Have business attorney check documents.DO NOT FORGET ABOUT managing IP – need to look for dates, renewals, maintenance fees etc.