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Stuttering Startups: Legal Hazards You May Want To Avoid

Stuttering Startups: Legal Hazards You May Want To Avoid

Starting a “startup” and running the business would bring up several challenges throughout. It is common to face failure at the beginning of any enterprise. As an entrepreneur, your tenure would be marked with initial hiccups and hit-n-miss opportunities. Legal matters are one of the leading junctures which an entrepreneur often overlooks, often leading to hassles later on. Besides giving shape to your startup, you need to keep yourself updated on legal steps, to ensure a smooth-sail into progress. Here are some of the points you should learn about:

Choosing the legal structure of the startup

Your future plans would depend heavily on the legal structure of your startup. It has an impact on the kind of investors you can accept, your tax liability, your personal legal liability, and so on. By selecting the wrong kind of structure you might end up with unlimited personal liability for debts incurred by your company .So, you need to keep various factors in consideration, which include: type of business, administration control, tax registration, management and ownership, funding, profit sharing, business regulatory and many more like this.

Business registration

In India, business registrations and licenses are extremely important to operate a business lawfully in a territorial jurisdiction. It may include com VAT registration, PAN registration, TAN, service tax registration, etc. Unless it happens, the entrepreneurial venture could become a subject of scrutiny under government authorities. Also, shareholders need to be kept in mind as often frauds and breech in agreement often happen due to lack of shareholder’s agreement. It is of essentiality to have a shareholder’s agreement, even if the people in question are friends or family members

Trademark registrations

One of the common mistakes that startups commit is by not registering their trademarks. This can turn to be costly as to survive in a competitive market, organizations often end up stealing ideas and other entities. You must protect your intellectual rights, not only for yourself but also for the organization as a whole. Go for the trademark registration and bear the responsibilities of an owner.

Avoid loose language

In the rage of marketing, some people commit grave mistakes of promoting overblown or exaggerated advantages of their product or services, which has unprecedented negative outcomes. Fraudulent cases are rampant, with consumers being smart enough to take the organization to court. Therefore, you should not opt for a loose language while describing the products and services that are utterly false. A carefully thought campaign would benefit on the longer run.

Rights of employees

The legal jurisdiction has brought forwards great deal of reformation, in context to employees and their rights. . Failing to adhere to employee laws in regards to vacations, sickness and disciplinary action can result in a court case. It’s of essentiality to keep yourself abreast about employee rights to prevent any nasty occurrences down the line. Cases of bullying and sexual harassment in workplace, often lead to the strictest punishment being awarded. The goodwill can only be maintained through satisfied employees.

Do not miss out the evidence

Legal issues crop up due to employee disagreements, client satisfaction and so on. By not keeping evidence, you are bound to be at the defeated end.  The most positive thing in this instance is reverting to complaint with evidence, putting your case across. Every business related decision needs to be documented in writing. Contracts, emails, and even note-taking apps are aids for you to prove innocence. It is always preferable to have proof to strengthen your case.

Agreements with a third party

While you negotiate for a third-party agreement, you should also include a non-disclosure agreement, which protects your rights of intellectual property. It should highlight all the points of agreement in the case of a breach, dispute or termination occurs. At the end, you will have proper documentation that prevents any harm to your startup.

Why your business needs Trademark Registration? How Trademark is important for your business?

Why your business needs Trademark Registration? How Trademark is important for your business?

When you are looking to start your own business, one of the first things that you will need to arrange for is the trademark for your company or enterprise. Trademark registration is a crucial aspect of your business as it makes your brand an official identity. Your target customers are going to make important purchasing decisions based on your trademark and the reputation of your brand. Therefore it is necessary that you put special importance on registering your trademark from the beginning. Here are some reasons why registering trademark is important for your business.

Trademarks make a brand unique and distinct from other brands in the market

Your trademark makes your brand unique and different from others within the same industry. This makes your brand immediately recognizable and identifiable for your target customers. In today’s world where business firms face a lot of competition from their rivals, it always helps to stand out and grab the attention of your target customers easily. For a customer, a trademark makes it possible for them to immediately know the company they are dealing with and the quality of services or products that they are likely to get.

Trademarks function as important communication tools

Trademarks always serve as effective communication tools for a business organization. When it comes to your brand, the trademark can communicate specific emotional and intellectual messages and attributes regarding you, your organization and the products and services offered by your company. In short, it can shape up your company’s reputation and determine how your target customers think about your brand or business. The best thing about a trademark is that it does not even need to be a single word. You can also choose a specific design or logo that can be identified by all customers.

Trademarks are considered to be valuable assets

Your company’s trademark can grow in value over time. As you are able to grow your business reputation, your trademark will increase in its value. By having a proper trademark in place, you can actually expand your enterprise further over time. Eventually you can use your trademark to merge with another company should you want to enter a partnership.

Trademark makes it easier for companies to make the best use of digital marketing

When you are looking to promote your company through social media platforms or the search engine, you will need to make sure that your brand is immediately recognizable by your customers. Having a distinct trademark allows you to do just that. By having a trademark for your brand, you can promote it effectively to get higher traffic rate for your site or social media profiles which will certainly help you earn greater revenues.

Trademarks help in recruiting employees

When you are looking to hire new employees, it will be easier for you to find prospective candidates since they are already familiar with your trademark and brand. Every individual wants to work for a high profile company and your trademark will ensure them that their careers are in good hands.

What Can Be Patented And Cannot Be Patented In India?

What Can Be Patented And Cannot Be Patented In India?

Brought up first in the year of 1856, the Patent Law in India permitted new manufacturers to a certain set of privileges for a period of up to 14 years. From then onwards, new laws were introduced, amended, repealed and rest still in effect. Interestingly, the Indian parliament has failed to define the term “Patent,” leading to an ambiguous understanding in people. Consequently, this failure of providing the definition in the Indian Patent Act was largely criticized.

To be very clear from the start, it is almost impossible to distinctively identify what and what cannot be patented. However, there are specific mentions in the law that doesn’t permit patentability to a so-called invention. Let us proceed steadily on what’s what about patentability in India.

Definition of patent

An inventor of a process, product or solution receives the exclusive rights for his/her invention for a specific period of time from a sovereign state. During this period, it protects the invention from being used, manufactured or sold as it violates the rules of a patent.

Patentable entities in India

An invention can be brought in for patent registration under the Indian Patent Law only if it qualifies certain criteria, in terms of its novelty, inventive step and industrial applicability. As mentioned in several articles also, these three terms are the basis for granting an invention a patent status.

Further defining them in simple terms:

  • Novelty or New – Nowhere an “invention” would be considered for the exclusive rights of a patent if it has already been in the public domain or included in any publication worldwide. Complete novelty is the first criteria and the invention has to qualify this for being accepted for a patent status.
  • Inventive step – It encompasses two conditions: The first that the invention adds a feature to the already existing knowledge of techniques and has economical significance or both. Second, it shouldn’t be an obvious thing for a person who is skilled in the art.
  • Applicability – It should have an industrial applicability.

Now that we have explained in the above, we would also like to add that these definitions are also quite contested in the court of law. Therefore, people should hire legal help to manage with these matters.

Non-patentable entities in India

Here again, there is a list of exclusions that doesn’t allow an invention to get patented. The following briefly points out the scope of non-patentability:

  • Any frivolous idea that stands opposite to the established laws of nature and public health cannot be granted a Patent status.
  • Any invention that proves fatal or detrimental for human, plant or animal life cannot be considered for patentability.
  • Machines, which can be arranged and rearranged individually, run in a new way cannot be acceptable as an invention.
  • An invention from the traditional knowledge, which already has been known in any form cannot receive the status of patentability.
  • Artistic, dramatic, literary or musical work, cinematographic works, television productions does not comply with the criteria.
  • A newly substance made from existing substances yet not increasing its efficacy has no qualifications as an invention.
  • Mixing two or more substances that merely results in its aggregation of properties do not receive approval for patentability.

In the above, there are also certain conditions that are still debatable and found inconclusive. Hence, a legal expert can guide better.