9. What is a Patent? Exclusive right to prevent others from making, using, selling or importing an invention in the United States Exists for a limited time only After expiration, invention becomes part of public domain and can be made, used, or sold by anyone
10. Copyright Examples Bundle of exclusive rights in a “creative work” Includes right to reproduce a work, to create adaptations (“derivative works”), to distribute copies, and to publicly perform/display a work Designs Patterns Sound Recordings Paintings Literary Works Software What is a Copyright?
11. What is Trade Dress? Overall look and feel of a product or its packaging Signifies to the consumer that it comes from a particular company Sum-total of the appearance of the product or its packaging, including: Trademarks Copyrights Other non-protectable design features
49. Business Uses for Social Media Increasing brand exposure Improving customer satisfaction and investment Search engine optimization Application development
50. Developer Considerations Use the proper platforms for your demographic, including geographical considerations Consider mobile applications and different types of hardware Look to user community to help determine optimal app features and feature updates Understand terms and conditions for developers – different and separate from user policies Conduct legal review before releasing an app to the public Use your trademarks properly and respect others’ trademarks and copyrights
51. Social Media Policy Basics Policy defines acceptable social media behavior for employees, third parties such as licensees and affiliaties, and other third-party users of social media resources May include one or more of the following: Information on philosophy, strategy and presence Guidelines for employees authorized to speak officially for the company, including who is authorized to speak. General employee and affiliate guidelines Terms and conditions for general user community Ensure that policy is designed to suit your organization’s needs – do not copy another organization’s policy
52. Social Media Enforcement Mechanisms Maintain library of information on major platforms’ terms and conditions and enforcement policies Facebook has takedown procedures for copyright infringement and other IP infringement, as well as an impersonation reporting mechanism Twitter also has copyright, trademark, and impersonation reporting options YouTube allows for submission of copyright complaints; videos that violate community guidelines can be flagged
54. Employee or Independent Contractor? An employer must generally withhold federal income taxes, withhold and pay social security and Medicare taxes, and pay unemployment tax on wages paid to an employee An employer does not generally have to withhold or pay any taxes on payments to independent contractors
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56. Financial Control: whether business has right to direct or control the financial and business aspects of the worker’s job
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58. Financial Control Employee Independent Contractor May incur unreimbursed expenses Generally guaranteed a regular wage amount for hourly, weekly or other period of time (big indicator, even if wage supplemented by commission) More likely to have unreimbursed expenses Often has significant investment in facilities used in performing services (not necessary, though) Generally free to seek out business opportunities Often advertise, maintain visible location, available to work in relevant market Usually paid flat fee (or hourly) Can make a profit or loss
59. Type of Relationship Employee Independent Contractor Employee-type benefits provided, such as insurance, a pension plan, vacation or sick pay Expectation that relationship will continue indefinitely If services provided are key aspect of regular business activity, more likely you will have right to direct and control activities Written contract describing relationship Expectation that relationship will continue for a specific project or period
60. Key Considerations in Hiring Business Needs Interviewing/Legal Requirements Questions to avoid Anti-discrimination laws ADA – accommodation requirements Written Job Description Key: job-related and avoid inconsistent standards Targeting Outreach Recordkeeping requirements Offer Letter Setting Compensation Equitably Fair Labor Standards Act Minimum wage Pay overtime to employees working more than 40 hrs/wk Nonexempt vs. exempt Other Compensation Issues Commissions, bonuses, advances, stipends, benefits Reference Checks Background Checks
61. Employment At-Will Doctrine An employee is “at-will” if there is no definite term of employment DC, MD, VA and PA recognize limitations to at-will doctrine Terminated employees can bring claims on: Wrongful discharge Breach of contract Breach of implied covenant of good faith and fair dealing Promissory Estoppel Employers can defeat implied contracts by using unambiguous disclaimers: “No employee will have contract of employment unless approved by company” Use disclaimers in handbooks, offer letters, and similar business communications
62. Non-competition Agreements Some employers require employees to sign non-competition agreements to prevent employees from taking their talents and the employer’s trade secrets to competitors
63. Non-Competition Agreements Cont’d Courts will critically examine and likely enforce an agreement that is: Narrowly drawn to protect employer’s legitimate business interest Not unduly burdensome on employee’s ability to earn a living Not against public policy (e.g. restrictions limiting access to medical or legal services, innovation of life-saving products) Courts consider: Temporal scope of non-compete Geographic scope of non-compete Clarity and unambiguous nature of non-compete Silver bullet: Likely enforceable if employer pays employee for duration of non-compete
64. Alternative: Non-Solicitation Agreements Employers should consider Non-Solicitation Agreements as an Alternative to Non-Competition Agreements Customers: Former, Current, Prospective Employees: Former, Current Avoiding liability: best practice is to have new hires sign statement that they agree not to disclose to you or use any of the prior employer’s confidential or proprietary information
65. Surviving With Employees in a Tough Economy Getting the right people on the bus Keep just your core people if downsizing (think of who you need in the long term) Cut expenses – including benefits if necessary Cut your own pay, if possible Be creative re: what your employees can do Don’t be afraid of change as you usually cannot survive, improve, learn, etc., without it!