How to Startup and Succeed: Start Smart and Identify and Protect your Intellectual Property; Pick the right Attorney; Practice Safe Crowdfunding!

1. HOW TO SUCCEED AT YOUR
BUSINESS: IDENTIFY & PROTECT
INTELLECTUAL PROPERTY
"TRAKLIGHT", "ID YOUR IP", "IP VAULT", and "IP CLOUD" are registered trademarks of The PIP Vault, LLC. © MMXIII The PIP Vault, LLC. All Rights Reserved.
11 June 2013
Mary Juetten, Traklight
Juliet Peters, Becker Peters

2. • ―Do it Yourself‖ Isn’t Always Low Cost
• Context is Cost Saving vs. Adding Value
TIP 1: Beware of DIY Costs

3. Equity Issues
LLC CORPVS.
NO SOLE PROPRIETORSHIP!

4. Tip 2: Know the Compensation Options

5. Compensation Options
Sweat
Equity
Vesting
Transfer
For Cause
Forfeitures

6. Tip 3: First Things First

7. Got Intellectual Property?
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 (incl. crowdfunding);
Leverage & license
• Avoid IP loss, infringement, or
business failure
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.

8. What is IP?
• Patents (utility & design)
• Copyright ©
• Trademark/Service mark TM SM ®
• Trade secrets – unsung heroes

9. IP Misconceptions
• IP is just for Tech Startups or Tech companies
& Patents are the only IP for inventors
• Trade secrets are the easiest to protect because
there is no registration.
• You can copy anything without a copyright ©
• You can copyright an idea.
• Domain = TM
• If I pay for it, I own it.
• Patents means right to make
or sell

10. Approach
WHY
WHO
WHAT
WHEN
WHERE
✔

11. WHO: IP Ownership Challenges
• Multiple Inventors
• Who you are? Employee of another company
• Proper Assignment of IP Rights – personal versus
company
• Assume that Ownership automatically extends outside
the US

12. • Idea
• URL
• Name
• Know how
• Employees
• Contractors
WHAT: Business Plan/Funding
Presentation

13. Tip 4: Short Term Thinking = Dollars out the
Door Later

14. Document your Company Formation
• Buy-Sell Language
• Provisions for Death or Divorce
• Different Classes of Units
• ―Profits Interest‖ Language
• Valuation Formula
• Deadlock Provision

15. DIY v. Hire Professionals
• Do it Yourself:
– USPTO.gov
– Copyright.gov
• Hire a Professional:
– Attorney, Consultant, Legal Zoom, Rocket Lawyer
• Secrets:
– Notary, TRAKLIGHT’s IP Vault, Copyright software

16. Tip 5: Practice Safe Crowdfunding

17. Picking the Right Platform
 How it works online!
• EQUITY BASED:
 Online Business Plan Required

18. 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.

19. Summary
IDENTIFY IP
PROTECT IP
PICK A PLATFORM
RAISE SOCIAL CAPITAL
CREATE PITCH

20. READ READ READ
Read License & Permission to Use
Check out Creative Commons

21. Ignorance is not a Defense
Be Careful:
Video
Copy
Business Plans

22. 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

23. Tip 6: Have the Right Contracts
in Place
… From the beginning!
So you own it!

24. Whether Outsourcing or Developing In-House
Development, Consulting or Work Made for Hire
Agreements
Work Made for Hire but Cover Your Bases
Master Agreement with SOW Attached
Reps and Warranties, Indemnity, Insurance
Non-Disclosure Agreements
Non-Competes?

25. Bonus Tip: Have an Advisory
Board
…And/or Technology Advisors!

26. Tip 7: Hire the ―Right Fit‖
Resources

27. Finding the Right Lawyer
• Interview at least three
• Experience—technical, business
• Philosophy
• Ask for referrals
• Flexibility
• Value

28. Resources
• Incubators & Accelerators
• Mentors
• SBDC
• SCORE
• Startup Arizona, America
• Competitions – ACA
• Innovation Challenge
• Resources – TrakLight.com - IP Cloud

29. Questions?
IDENTIFY. PROTECT. SUCCEED.
www.traklight.com

30. Thank You
Juliet Peters
Becker Peters, PLLC
Scottsdale, AZ
Juliet@beckerpeters.com
480.214.9548
Mary Juetten
Traklight
mejuetten@traklight.com
@traklight