Derek Sullivan
Sullivan & Associates
- City
- Austin
Business Law ยท Sub-Practice
For most modern businesses, intellectual property is the most valuable thing they own โ and the least protected.
ยง Overview
Trade secrets, brand identity, software, creative works, and inventions can all be protected โ if the right steps are taken at the right time. Waiting until after a problem arises is the most expensive approach.
Business intellectual property falls into four main categories: trademarks (brand names, logos, slogans โ federally registered with the USPTO to prevent confusingly similar use by competitors); copyrights (original creative works including software code, written content, design assets, and training data โ protected automatically but registered for full enforcement rights); patents (inventions and novel processes โ utility patents, design patents, and plant patents requiring USPTO application and examination); and trade secrets (confidential business information that derives value from being kept secret โ customer lists, formulas, algorithms, manufacturing processes โ protected through NDAs and confidentiality systems, not registration). Business IP attorneys advise on clearance searches before adopting new brands, trademark applications and maintenance, copyright registration, patent strategy and prosecution, trade secret protection protocols, licensing agreements, and IP enforcement against infringers.
ยง Key considerations
ยง How attorneys approach this
โThe most common and costly IP mistake for early-stage businesses is the missing IP assignment. Founders hire contractors โ developers, designers, copywriters โ without IP assignment clauses in their agreements. The copyright and patent rights in the work created belong to the contractor who created it, not to the company that paid for it, unless an assignment is signed. Work-for-hire doctrine covers employees but not independent contractors for most work categories. This becomes a crisis at the first due diligence: a potential acquirer or investor finds that the company doesn't actually own its own software, designs, or content โ and the deal dies or the price drops substantially. A one-page IP assignment addendum in every contractor agreement prevents this entirely.โ
ยง What to look for in an attorney
ยง Ask these at your consultation
6 questions that matter
ยง Frequently asked questions
Q 01
โข is an unregistered trademark claim โ you can use it without any government registration simply by using a mark to identify your goods or services. It provides some common law rights in the geographic area of actual use. ยฎ means the mark is federally registered with the USPTO. Federal registration provides nationwide rights, the right to use the ยฎ symbol, stronger legal remedies against infringers, and the ability to register with Customs to block infringing imports. Registration also provides constructive notice โ infringers can't claim they didn't know you had rights. The registration process typically takes 8โ18 months and requires proving use in commerce.
Q 02
First, determine whether they have senior rights โ whether they registered the mark or were using it before you. If they have senior trademark rights, you may need to rebrand or negotiate a coexistence agreement. If you have senior rights (you were using the mark first or have a federal registration), you can send a cease-and-desist letter demanding they stop. For domain names, ICANN's UDRP process is an efficient alternative to litigation for recovering domains registered in bad faith. Social media impersonation and infringing accounts can often be addressed through platform reporting systems. A trademark attorney can assess which route is appropriate based on the specific facts.
Q 03
Copyright protection exists automatically from the moment an original work is created and fixed in a tangible medium โ no registration required. However, registration with the U.S. Copyright Office is strongly recommended for works you may need to enforce: it's a prerequisite to filing an infringement lawsuit, it enables you to recover statutory damages (up to $150,000 per work for willful infringement, without proving actual damages), and attorney fee recovery. Registration within 3 months of publication or before infringement begins is required to access statutory damages and attorney fees. For software, creative content, and original business content you care about protecting, registration is inexpensive and the enforcement benefit is substantial.
Q 04
U.S. patents protect novel, non-obvious, and useful inventions. Utility patents cover processes, machines, manufactured articles, and compositions of matter โ including software implemented processes and business methods in some circumstances. Design patents protect the ornamental appearance of functional items (shape, configuration, surface ornamentation). Plant patents cover asexually reproduced plants. Software can be patent-eligible if the claims are directed to a specific technical improvement rather than an abstract idea โ the eligibility standard has been narrowed significantly by Supreme Court decisions since 2014. A patent attorney or agent registered with the USPTO can evaluate whether your invention meets the threshold for protection and is worth the cost of prosecution.
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