What Types of Intellectual Property do Buyers of Businesses Value?

What Types of Intellectual Property do Buyers of Businesses Value?

When most people think of intellectual property, they think of patents, trademarks and copyrights. They think of registrations, lawsuits, licenses. These concepts are not wrong, but they treat each company as a commodity as opposed to as the unique businesses they are.

The types of intellectual property that matter most depend on the type of business. Companies in the manufacturing space really value patents. Companies in the creative space value copyrights. CPG companies value trademarks. At least these are the primary intellectual property concerns for these companies.

The reality is that all companies could value any type of intellectual property, but the mix of the prioritization is what matters.

Also, intellectual property is more than patents, trademarks and copyrights. A list of intellectual property items that a company may value also includes:
– fictional name filings, such as registered “doing business as” (DBA) names;
– internet domain names;
– Social media handles and commonly used hashtags;
– other source identifiers, such as vanity telephone numbers or addresses;
– software and databases;
– mask works (semi-conductor chip products);
– European Community designs;
– trade secrets and proprietary know-how, technology or processes; and
– rights of publicity, such as the right to use celebrities’ names and likenesses.

All that is intellectual property? Yes.

Your Google Search is Just the Beginning

Your Google Search is Just the Beginning

What are you looking for?  Searching on Google can reveal so much information, and Google searches can certainly be a useful tool for uncovering useful material that can inform you about your brand rights, but do you know where to find this data and what to do with it?

I’ve had a number of clients come to me and tell me what they’ve learned about their brand from a quick internet search.  This is usually followed by the question “what does this mean?”  I know for every one client like this, there are dozens of small business owners going this alone.

What I usually tell my clients is that, in isolation, the information they found could mean… However, the world is no in isolation, and I need to look at all of the relevant data to make an assessment.

Brand counsel uses various tools specifically engineered to find useful information about the brand rights of third parties. Once they digest this targeted information, they can then form opinions about the risks of your brand, and the opportunities that may be present.

So go ahead, perform that Google search.  Learn all you can about the brand you want to use.  Then call me to share this as I begin a professional search for you.  (Still just $275.)

Brand News:  What is a Moke?

Brand News: What is a Moke?

A recent news story used a word I had never heard before: Moke.  Being a lover of new words, I had to read more.  I got even more excited when I learned the story involved a trademark battle.

Apparently a “Moke” is a low-speed, open-air electric vehicle.  Two different dealers of these vehicles wanted to claim trademark rights in the Moke brand.  Of course a trademark grants you exclusive rights to use a term as a brand, so each party wanted this right.

Unfortunately, these parties both referred to their products as “Mokes,” so the relevant buyers came to know these products as “Mokes” and not as “Mokes electric vehicles.”

Genericide.  It’s happened time and time again.  Zipper, Escalator, Trampoline, Aspirin.  These are all former brands that the owners allowed to become the generic name for the item.  Now anyone can use these names, which means no one can use it exclusively.

In the case of Mokes, neither dealer can claim exclusive rights.  That means we all own the word “Moke.”  Would someone please call Merriam-Webster?

Pro tip: do NOT use your brand as a noun or verb.  Brands should be adjectives.

Independent Creation is Not an Excuse

Independent Creation is Not an Excuse

I often say that intellectual property law is not intuitive. This is painfully obvious when it comes to creating a brand.

Here’s the rub:
– in the world of copyright law, independent creation is a full defense; however
– in the world of trademark law, independent creation is irrelevant.

Artists rejoice! If you paint a beautiful picture—you own it! It doesn’t matter if it’s an exact replica of an earlier painting. (This assumes you never saw the prior painting.)

Meanwhile, a business owner could be liable for “copying” someone else that they have never heard of. That’s right, if a company contacts you and says that you are infringing their company name, saying “but I never heard of you” is meaningless.

What are you supposed to do? One simple solution is to perform a search before you open your business. This search costs less than $300, but could save your business.

The phrase “but I didn’t know” is the reason I started my firm. I heard this phrase so many times from small companies when I worked for big firms and represented the large companies. These small companies were taking chances by operating in unknown conditions. This risk was not necessary, and I want to show them the way to certainty.

My mission is to inform, educate and represent small and mid-sized companies in the world of intellectual property, and specifically brand rights. Informing and educating are so important, because IGNORANCE IS NOT AN EXCUSE!

Rapunzel, Let Down Your… Registered Trademark?

Rapunzel, Let Down Your… Registered Trademark?

Fun Fact: Trademark law came into existence as a form of consumer protection.

Medieval consumers came to rely on the marks that were assigned to artisans by the guilds (i.e., “trade marks”). The original laws punished people who copied these “marks,” thereby trying to confuse consumers into buying their goods. “Likelihood of confusion” is still the standard applied today.

While the early laws were criminal (e.g., France would hang an innkeeper that sold common wine under a fraudulent label), today the laws are entirely civil. Companies sue other companies.

Given the policy behind trademark law, you might think a consumer could sue under the law. You would be wrong.

Recently consumer Rebecca Curtin brought an action against United Trademark Holdings to prevent UTH from acquiring a registration in the RAPUNZEL brand for dolls. Curtin explained that this registration would harm her as a consumer of dolls.  She alleged that the registration would decrease competition and increase prices for products related to that fictional character. (FWIW: Curtin is also a law professor.)

The Trademark Trial and Appeal Board held that Curtin was not a suitable person to bring this case. The TTAB followed precedent that states a plaintiff must claim harm to reputation or sales. In other words, trademark law does not allow consumers to sue companies. 

Even if they think they will be harmed.

And even if they are law professors.