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Intellectual Property & Copyright Infringement

As a business owner, what do you need to know about intellectual property? A fair amount, actually. This is the first of a three-series post about it that focuses on a common mistake made by companies: copyright infringement. Keep reading to find out what it is and how to protect yourself by making sure you only use intellectual property in the public domain.

First we should start by defining intellectual property. According to the United States Patent and Trademark Office, “It is imagination made real. It is the ownership of dream, an idea, an improvement, an emotion that we can touch, see, hear, and feel. It is an asset just like your home, your car, or your bank account. Just like other kinds of property, intellectual property needs to be protected from unauthorized use.” Continue reading »

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Should I Carry Business Liability Insurance?

Owning and operating a small business comes with a lot of responsibility. Part of that responsibility is to yourself, to protect your assets and investments. Business liability insurance does that. According to Bizstats.com, over 78% of all U.S. businesses are structured as a partnership or sole proprietorship. A partnership is formed between one or more businesses in which partners (owners) co-labor to achieve and share profits and losses. A sole proprietorship is the simplest form of business entity. It means one person owns and operates the business with that owner receiving all profits and has unlimited responsibility for all losses and debts. Both entities leave small business owners assuming all the responsibility if something should happen.

Business liability insurance pays the costs if you are sued for personal injury or property damages. It usually covers the damages from a lawsuit along with the legal costs. It’s your safety net in case of the worse scenario. Surprisingly many small business owners don’t carry business liability insurance because they feel its too expensive or they don’t carry enough insurance. But what many business owners don’t realize is that without business liability insurance you’re not only putting your business at risk. You’re also putting your personal assets in the line of fire. That means your personal assets including your family’s home could be taken to pay off a lawsuit or to pay compensation for damages. If you have business liability insurance, you’re covered and don’t have to come up with the money yourself. In short, every small business should have some kind of business liability insurance. Continue reading »

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Intellectual Property & Patents

In our last post we discussed intellectual property and how it relates to copyright infringement. This week, we’d like to focus on how intellectual property relates to patents.

As we shared last week, the United States Patent and Trademark Office defines intellectual property as “imagination made real. It is the ownership of dream, an idea, an improvement, an emotion that we can touch, see, hear, and feel. It is an asset just like your home, your car, or your bank account. Just like other kinds of property, intellectual property needs to be protected from unauthorized use.”

The site goes on to explain, “Patents provide rights for up to 20 years for inventions in three broad categories:

  1. Utility patents protect useful processes, machines, articles of manufacture, and compositions of matter. Some examples: fiber optics, computer hardware, medications.
  2. Design patents guard the unauthorized use of new, original, and ornamental designs for articles of manufacture. The look of an athletic shoe, a bicycle helmet, the Star Wars characters are all protected by design patents.
  3. Plant patents are the way we protect invented or discovered, asexually reproduced plant varieties. Hybrid tea roses, Silver Queen corn, Better Boy tomatoes are all types of plant patents.” Continue reading »
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Bad Partnerships: How To Break Away

Unfortunately bad partnerships can become part of any business due to differences of opinions, leadership styles, etc. So what steps do you take when it’s time to break away?

Of course, calling a lawyer is always a good first step. Even if you part on friendly terms, it’s important to protect yourself legally. At Omni Law Group, we help with disputes between owners including claims for breach of contract, fraud, unfair business practices, breach of the implied covenant of good faith and fair dealing, interference with prospective economic advantage, trade libel and many other business torts. Continue reading »

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Should I Hire Employees or Contractors & How Do I Tell the Difference?

When you need help running your business, a common question is if you should hire employees or independent contractors. What are the main differences? And what are the pros and cons?

The main difference between employees and independent contractors is that employees provide ongoing work and independent contractors are hired for a specific project or set of projects independently.

The IRS uses three characteristics to define the relationship between a business and its workers:

  1. Behavioral Control – If a business directs/controls how the work is done.
  2. Financial Control – If a business directs/controls the financial and business aspects of the job.
  3. Type of Relationship – How the workers and owner perceive the relationship.

If a business owner has the right to control/direct how a job is completed, they’re most likely working with employees, whereas if the owner has the right to control/direct the result of the work done (as opposed to the means/methods taken), they’re most likely working with independent contractors. Continue reading »

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Non-Compete Agreements: An Overview

Non-compete agreements can help a business owner to protect his or her business from unfair competition if a former employee decides to start a business in the same field. These agreements are usually put into place at the beginning of the employer-employee relationship. While these agreements are legal in almost every state, they are generally illegal in California. Even so, there are some exceptions in which non-compete agreements can be used in California legally.

  • Keep Balance in Mind: The trick to making an agreement enforceable is to keep in mind that the employer cannot bar the former employee from starting a business, but can take certain measures to ensure use of sensitive information or trade secrets the employee might have gained as a part of the company are barred. Remember, while you may need to protect something a former employee can use to their advantage in competition with you, you must also remember the employee has a right to pursue a career or business in their field of choice. If you can balance these two interests in your agreement, the court will most likely enforce it if need be. Which brings us to the next point… Continue reading »
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Business Debt: Are You Personally Responsible?

As with many legal issues, the question of whether or not you are personally responsible for any business debts you might have is answered with “it depends.” The full answer to the question depends on what type of business you own, what type of loans you have taken, and other actions you have taken with acquiring loans or covering costs. Here are some areas to check to determine if you might be personally responsible:

  • Business Type. What type of business do you own? If you have a sole proprietorship or partnership then you are regarded legally as the same entity as your business and personally responsible for debts. However, if you have a corporation or LLC you are regarded as a separate entity and usually are not responsible. Even so, there are some other actions you might have taken that could make you responsible for certain debts. Continue reading »
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Writing Contracts: Items You Must Include

If you own a business, writing up contracts with your clients or business partners is a necessary practice. Though it can feel bothersome to do so, drawing up a contractual agreement keeps you and your business safe from potential harm from dishonest second parties or even just misunderstandings. It is important to write up a contract with all clients and other businesses you may want to partner with; taking this precaution can save you from a lot of avoidable legal trouble. Here’s a list of what to make sure include in each of your contracts:

  • The Agreement. After negotiating, offering and counter-offering, two parties come to an agreement of what service one of the parties will give for the payment the other party will give in return. Payment can be made through services in return or monetary reimbursement. Continue reading »
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Employment Litigation: Hiring an Attorney

When it comes to employment litigation, when is hiring
an attorney a wise course of action? Well, it depends:
Are you an employee or employer?

Hiring an Employment Litigation Attorney For Employers

Unfortunately, employment law issues seem to be inevitable as a business owner, which is why we recommend hiring an attorney before an employment litigation issue arises. If you find yourself being sued by an employee or other employment litigation is brought against your company, it can be extremely beneficial to have someone to guide you through the process, from the moment a claim is brought to HR.  For those companies with counsel in-house, we generally recommend relying on their expertise initially, but involving outside counsel when a release is refused and an employee is likely contemplating litigation. Companies should never try to manage employees’ legal claims without proper attorney representation.  The heartache and financial impact of working without legal counsel can potentially be great. Continue reading »

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Buying or Leasing Land for Your Business: Questions to Ask

Buying land for your business is a big step no matter how far you are in your journey as a business owner. Therefore, being prepared and knowing what to ask ahead of time is important. Whether you are starting your business or expanding, here are some questions to ask before deciding to purchase or lease that land:

  • Is this a good location for my business type and goal? For what function are you buying this land for your business? Will you be opening a store that needs to be out in the open with a busy surrounding area so as to draw customers in? Or will this be a headquarters or administration office that will need to cater to car traffic more than foot traffic and will probably need to have a larger space? Which bring us to our next question… Continue reading »
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