Along with websites, e-newsletters, and social media, in today’s digital-everything world, many companies now have their own mobile apps. In fact, some companies' primary digital platform is their mobile app. And as smartphones, iPads, e-tablets, and other mobile devices become more popular, having an app may soon become as ubiquitous for businesses as having an email account.
While coming up with a unique idea for your company’s app and finding a developer who can bring that idea to life are among the most crucial aspects of app development, creating an app also involves several critical legal issues. Indeed, many of the legal issues related to app development are so important, if you don’t handle them properly, not only your app, but your entire business could be put in jeopardy.
Unfortunately, we live in a litigious society. And if your small business is in the US, the odds of you being sued are high. About 40 million lawsuits are filed every year in the US, forcing businesses to spend more than $22 billion in commercial litigation costs. Walmart gets sued 5,000 per year, or about 20 times every day.
Small businesses are often the target of lawsuits because of improper entity formation or the lack of asset protection. Almost 90% of all small businesses will be sued during their business lifetime. The Small Business Administration study of 65,000 businesses showed that 35%- 53% of small businesses get sued every year.
Read MoreChoosing the correct entity for your new company will be one of the most critical business decisions you will make. Should your business be run as a corporation, an LLC, a partnership or something else? What are the differences, and which one will work best for you?
Read MoreWhether you start your business on a shoestring or have millions in venture capital behind you, one thing is certain. The success of your business depends on you and the actions you take, and sometimes the actions you fail to take. Below are the seven most common legal mistakes made by startups and how to avoid them.
Read MoreSuccession Planning is a process designed to help you prepare for a possible change in leadership or ownership, such as a key employee leaving your business, an owner/operator passing away or the sale of the business. With careful planning, the remaining owners and employees will be able to make quick changes within the business to help it continue to run smoothly.
Read MoreSo you have formed your business entity and found some funding. Now, you’re ready to hire your first employee. Before you leap into becoming an employer, however, there are certain requirements you should be aware of in order to comply with the law.
Read MoreWhen starting your business, you’ll want to ensure you have adequate funding to help pay for any expenditures. By understanding what type of funding is available to you and the potential advantages, you will be able to make the best choice for your business. Funding options that you may want to consider include loans or investments from friends and family, bank loans, angel investors, and venture capital funds.
Read MoreBefore you register your business, it’s important to consider the best entity type to register. Choosing the appropriate business entity type is important because it can impact how your business is run. You need to consider the purpose of your business and the amount of control you would like to have. Your choice can also affect how much you pay in taxes, the forms you are required to file, your personal liability, and your ability to raise money. Although you may be able to convert to a different business structure later, it is important to carefully consider which structure is appropriate when starting your business because there may be some restrictions associated with changing entity types. The most common types of business entities are sole proprietorships, partnerships, limited liability companies (LLCs), corporations, and cooperatives.
Read MoreThe $1.9 trillion American Rescue Plan Act of 2021 (Act) that President Biden signed into law on March 11, 2021 includes a new $28.6 billion Restaurant Revitalization Fund (the Fund). The Fund will provide much-needed grants instead of loans to restaurants, bars, food trucks, brewpubs and similar businesses, with the exception of publicly traded companies and/or those businesses (together with any affiliated businesses) with more than 20 locations, regardless of whether those locations do business under the same or multiple names. In other words, the Fund supports small (or small-ish) businesses and sets aside $5 billion for restaurants whose annual revenue is $500,000 or less.
Read MoreA trade secret may consist of any formula, pattern, device, or compilation of information that is used in your business and can provide an advantage in the marketplace over competitors who do not know it. Trade secrets can protect almost any information that has value to your company and is not known by your competitors.
Read MoreCopyrights give exclusive legal rights to an author or the author’s assignee to reproduce, distribute, perform, display and prepare derivative works of any original work of authorship. Original works of authorship include literary, dramatic and artistic works, architecture and ornamental designs. Copyright protection is automatic the moment your original work of authorship is fixed in tangible form such as by a writing, recording, drawing or even in computer code.
Read MoreThere are three types of patents in the United States: utility patents, design patents and plant patents. A utility patent protects the way a machine, article or process is used and works. A design patent protects the ornamental design of an item. A plant patent protects asexually-reproduced plants. An invention can be granted either a utility patent, design patent, or both.
Read MoreYou may want to consider filing a federal trademark application if you haven’t done so yet. A trademark is any symbol, word, slogan, design, or any combination associated with your particular goods and/or services. A trademark can also be a sound, color, or smell. Anything can be considered a trademark if it helps avoid confusion among consumers by distinguishing your specific goods and services from that of others.
Read MoreIntellectual property law protects copyrights, trademarks, trade secrets, and patents. Copyrights refer to any original work of authorship and cover creative works such as literature, illustrations, films, and songs. Trademarks cover branding such as a business or product name, symbols or slogans associated with a particular entity or person. Trade Secrets cover propriety business information such as recipes, formulas, and processes. Patents are granted as an exclusive right to the inventor for new and novel inventions, such as a device, design, or method.
Read MoreWith the shift to remote work likely here to stay for many, companies and their employees are regularly relying on remote conferencing tools such as Zoom, Microsoft Teams, WebEx and other platforms to conduct business. Companies should be aware of a recent decision from the Chancery Court in Delaware that denied a preliminary injunction to a trade secret owner because it found the company had failed to take “reasonable precautions” to protect the confidentiality of its trade secrets during a Zoom conference.
Read MoreThe Economic Injury Disaster Loans (EIDL) being distributed under the CARES Act have been a godsend for many small to midsize companies during the pandemic. However, many are surprised to find that there are strange and problematic requirements hidden in the legal documents.
Read MoreThe United States Supreme Court unanimously decided in March of this year that private copyright holders can no longer sue individual states for copyright infringement using the cause of action created by the CRCA. Frederick L. Allen v. Roy A. Cooper, III, Governor of North Carolina, 589 US (2020).
Read MoreWhat is an employee stock option incentive plan, and why does my startup need one?
There is a misconception that exists among the startup community that employee stock option incentive plans and agreements are only available to midsize or larger companies.The truth is that these plans are tools that the most creative startups are using at an increasing rate to incentivize and retain their founders and key employees, usually as a substitute for or supplement to normal income or bonus structures.
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