To make your business successful then you have to register some property that can be called intellectual property. Yes, as you registered your physical property (plot, house, building) according to government policies.
What’s in it for me?
In every business, there are many competitors who try to steal their ideas or try to make their business fail for gaining more profit than him.
If you do business, or where you work as an employee in someone’s company.
Then you must have heard at some time that this “X” company has made a copyright claim on “Z” company for music, or that the product is patented by that company, its trademark Already registered or not? “X” company logo is copied from the “Y” company logo, which means “X” company will be making duplicate goods or doing some frauds.
SO, WHAT IS INTELLECTUAL PROPERTY?
The property discovered with your intellect or your mind. Your ideas you made.
They also need to be registered. Because it can also be stolen by anyone. For this government made various terms under intellectual property rights.
The most common IPR are ;
A. Patents
B. Copyright
C. Trademark.
These intellectual property rights were made by the World Intellectual Property Organisation (WIPO).
Let’s understand what these terms mean.
WHAT IS A PATENT ? AND THEIR MAIN TYPES.
PATENT :
So a patent is a right granted to an inventor by the federal government that permits the inventor to exclude others from making, selling, or using the invention for a period of time.
The patent is an agreement under which the inventor when discovering the product is given a monopoly.
When the patent is given to the inventor he is provided a license. And the person who wants to use this patent will have to give the royalty to the inventor.
The World Trade Organisation (WTO) has limited the time period of patents until 20 years. The product inventor having the patent can sell or transfer the patent to anyone.
According to The U.S Patent and Trademark Office (USPTO), there are three different kinds of patents.
1. Utility patent
2. design patent
3. plant patent.
Utility Patent :
This patent secures any of the machines, raw components of the product, the composition of products, chemicals, or processes.
Example. Fibers, computer hardware,, or medicines come under it.
Design Patent :
This patent protects the product design from illegal uses.
For example. Athletic shoe design, mobile design, cartoon character, Samsung curved display design Etc.
(ALSO READ ABOUT RETURN ON INVESTMENT WHICH IS IMPORTANT IN BUSINESS)
Plant Patent :
If you have created a new type of flower, plant, or tree by using the qualities of many types of trees, plants, and flowers together, which are not available naturally, then you can also patent them, but there should be some properties that can be useful.
For example, Through asexual reproduction of plants, or hybrids rose, silver queen corns, etc.
There are some products whose patents cannot be given to anyone. They are-
1. Rule Of Nature-
Such as air, gravity, etc these patents will not be granted to anyone.
2. Abstract Ideas-
The patents for the philosophical theories or mathematical formulae may not be granted.
3. Natural Things–
Such as soil, water. The patent will not be granted for these.
COPYRIGHT :
Copyright is the intellectual property protection provided by the laws of the United States.
The category of works that can be protected by copyright laws includes paintings, literary works, live performances, photographs, movies, music, and software.
The copyright will be valid until the whole life of the owner and 70 years after his death. In India, copyright is covered under the act of the copyright act of 1957.
TRADEMARK :
Trademark generally refers to a brand, name, tagline, logo, or symbol.
Registration of a trademark can also be obtained for a business name, distinctive catch, phrases, taglines, or captions. Unlike patents you can register your trademark for the whole time.
It will be valid until the business is successful. Properly used and promoted, a trademark may become the most valuable asset of a business. The authority of a trademark is made to prevent the illegal use of the logo.
It is also essential to obtain trademark registration for the business name under the Trademark Act.
Official site of Indian government for the registration of intellectual property is (http://www.ipindia.nic.in/)
ENTRY BARRIER :
Let us know what are other procedures to create a great entry barrier for our business.
The employer when hiring an employee can make him sign an agreement that can help the company to be secured from competitors and this will also make a good interaction with the employer and employee.
1) STANDARD FORM OF CONTACT :
In the startup of every business you should have a standard form of contact.
2) A LEGAL ADVISOR :
A legal advisor is also needed at the starting of any business which helps in solving the payment problems.
How much money will the founder deposit or credit?
How will the founder sell his stake?
What will be the work he will do?
How much money will he keep to himself?
If the company to be sold how much will the founder will get and how much will you get?
These should be in a founder agreement.
3) EMPLOYEE AGREEMENT :
Employee agreement should be made properly. Before hiring someone the agreements should be made in contracts properly. “Every sale must be governed by a well written contract”
Before making any contract one should understand these points..
A. Consider Local Labour Laws
What were the conditions of local laborers for our works?
What will be their income?
How much time period do they need for the work to be done?
These are various conditions which should be kept in mind.
B. Non Disclosure Clause
When the employee works under a particular company then it is important that the employee should not disclose their work to other company members, or the company’s competitor.
So there should be a clause of no disclosure to keep the ideas safe within the company itself.
C. Non Poach Clause
A no-poach agreement involves an agreement with another company not to compete for each other’s employees, such as by not soliciting or hiring the employees.
This is the most important clause.
D. Non Compete Clause
Under this clause the person will not involve or compete with the employer after resigning from the company.
E. Non Compete Hiring Clause
Under this clause, the employee will not join the competitor company as the employer for a certain period of time.
F. Termination Clause
Through this agreement the other competitor can not hire the same employee for a certain period of time after leaving the company.
The whole contract will be terminated and your accounts made from that company will also be terminated.
G. Arbitration Clause
An Arbitration clause is a section of a contract that deals with the parties’ rights and options in the event of a legal dispute over the contract.
In this, the parties agree not to sue each other and instead will resolve their disputes through arbitration.
(READ THIS ARTICLE ALSO FOR MORE ENTRY BARRIER)
CONCLUSION
These are some things that bind your employees with you. Through these clauses, the employee cannot join with your competitor after leaving your job.
This agreement helps in the entry barrier.
But keep in mind to make balanced agreements. The contract should protect the rights of both employee and employer.
Because trust from both sides is required for any type of successful business.
So these were the various ways that help in building a good entry barrier between you and your competitors as well as your legal documents.
FAQs
The patent is an agreement under which the inventor when discovering the product is given a monopoly.
Copyright is the intellectual property protection provided by the laws of the United States.
Trademark generally refers to a brand, name, tagline, logo, or symbol.
The property discovered with your intellect or your mind.
MEDICAL STUDENT
DIGITAL MARKETER
HEALTH & FITNESS CONSCIOUS
AUTOIMMUNE PATIENT
FROM- GWALIOR, M.P
