1. Generating and Protecting
Business Ideas
BUS1

2. Sources of Business ideas
• Spotting trends and anticipating their impact
• Identifying a market niche
• Copy ideas from other countries
• Taking a scientific approach

3. Franchising

4. Formation and operation of a
franchise
Most common type is a The franchisee sells the
‘business format franchise’. franchisor’s products/services,
The franchisor grants trades under the franchisor’s
licence to the franchisee to trademark or name, and
use their business idea. benefits from the franchisor’s
help and support
In return, the franchisor usually pays an initial fee to the
franchisor and then a percentage royalty on sales. The
franchisee owns the outlet, but the franchisor maintains
control over how products and services are marketed and
sold and how their business is used

11. Protecting a business idea
• Copyright
• Patents
• Trademarks

12. Copyrights
If a business creates or The material cannot be copied
employs someone to create without permission from the
an original piece of literary, owner of the copyright. The law
dramatic, musical or artistic allows the owners of the copyright
work, it automatically holds to decide whether it can be copied
the copyright on the work and adapted, and allows them to
charge a royalty or licence fee.
In general, the copy right protection for literary, dramatic, musical and
artistic works last until 70 years after the death of the creator! Unlike
Patents there is no requirement to register an authors copyright. The
law on copyright is governed by the Copyright, Designs and Patents Act
1988. Copyright is indicated by ©

13. Patents
If an individual invents a new To register a patent the
process, piece of equipment, inventor must provide full
component or product he or she drawings of the invention for
must apply for a patent in order the UK Intellectual Property
to prevent other people copying Office (UK-IPO), demonstrate
the invention and then making, that the ideas have original
selling, importing or using it features, and promise that
without permission the ideas are his/her own
The Copyright, Designs and Patents Act 1988 gives the patent
holders the monopoly right to use, make, licence or sell the
invention for up to 20 years after it has been registered.

14. Trademark
Trademarks can be powerful The trademark must be
marketing tools, helping registered at the Intellectual
customers to recognise the Property office. Once it has
products of a business and to been registered the
distinguish them from company has exclusive
competitors rights to its use. They are
recognised by the symbol ®