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Your Guide To The Fair Use Doctrine

March 30, 2015 by stefan

 

fair use doctrineSo recently  I have been asking you guys what subjects you want to know more about. Thanks for all the feedback! I want to make sure we are getting you the information you really need to remove some of the confusion surrounding legal and business topics in the Entertainment industry and help you always move forward.

Understand that some topics are just too complex or specialized to summarize in a post so I choose ones that can be informative to as many of you as possible.

That’s why I’m excited to bring you today’s post. It’s contains some answers to a topic I get many questions about.

The topic is the Fair Use Doctrine as it applies to copyright law, trademarks, and right of publicity, which can be confusing even to some attorneys.

The purpose of Fair Use is basically to allow creators of new work to use pre-existing work if it is part of their creative process as opposed to having an intent to piggy back on the success of the pre-existing work, so there is no requirement to obtain clearance from the owner.

In other words, you may be able to use existing copyrighted works, trademarks, and images of people if they are an incidental part of your music or scene; if it is for educational purposes; or if you are doing an obvious parody (i.e, like Saturday Night Live Skits or Weird Al Yankovic).

For all you legal buffs out there who like to read about behind-the-scenes lawsuits involving pop culture, Google 2 Live Crew “Pretty Women” vs. Roy Orbison’s “Pretty Women” (the actual case is Luther Campbell v. Acuff-Rose Music, 510 U.S. 569 (1994). Fascinating reading…although if you get offended easily you may not want to download 2 Live Crew’s discography.

Now fair use sounds great but it can be pretty tricky. Only certain situations fall into this category so you can get into some trouble if you apply it incorrectly. You really need to understand how to do a proper Fair Use Analysis to see if your particular circumstances fall within the criteria.

In the video below am going to go more into what the Fair Use Doctrine is, and how the analysis generally works. Hope you enjoy the video. For those who prefer reading I have a full transcript of the video at the bottom of this post.

 

Fair Use Doctrine
– Transcript –
Hi everybody and welcome to Layers Rock. Today I thought I’d tackle a subject that I think is going to appeal to a lot of people. Whether you’re a television producer, an Indie film maker, or an online content creator, everyone seems to be interested in when the fair use doctrine applies, in other words, when a protectable element is captured in a video like a company’s trademark, artwork, or video clip, and you may not have to get a clearance from the owner of the pre-existing element because your situation satisfies one of the fair use doctrines.

Now, fair use can be a very tricky subject because it applies when there is an legal infringement, BUT the situation qualifies as fair use. So we’ll go through some of the guidelines and hopefully after viewing this video, you’ll have a better understanding. So let’s rock.

Before we jump into talking about fair use, I want to make sure you understand that I believe you should try to clear as many elements as you can in your content. You should try to get agreements, releases, consents, and waivers so that you have all the rights needed to show your content. I don’t want you to say “oh, some guy on YouTube said I don’t have to clear anything.”

That’s not fair use! Fair use is an analysis that can be used in clear cut cases or as a secondary option if you discover an element in your footage that is owned by another. You may want to go through the fair use analysis to see if you really need to obtain approval. And understand that it’s always judgment call!

Okay, so now that I have said my legal disclaimer, let’s jump into it, starting with copyright fair use.

 

COPYRIGHT FAIR USE

When you’re talking about things that are protected by copyright law, you’re talking about things like your script (dialogue for your characters), set designs, such as the artwork that appears in a shot, pre-existing video clips, and, the music that is playing in synchronization with your scene. As you see in this slide, the Copyright Act recognizes a fair use exception as long as you meet certain criteria. And that’s determined on a case-by-case basis.

Basically the criteria is set forth in the following four factors:

1. What is the purpose and character of the use? Is it a commercial use or are you using it for a nonprofit use? Nonprofit uses such as for educational purposes are more likely to satisfy this fair use factor. This factor also analyzes whether the use of a work is transformative, meaning, “Has the material taken from the original work been transformed by adding new expression or meaning? and “Was value added to the original by creating new information, new aesthetics, new insights, and understandings?” If the answer to these questions is yes then this factor (which is heavily weighted in the overall analysis) is satisfied.

2. What is the nature of your use? How are you using the protected element? Are you using it to focus on the original material or is it more of a background use that sets the scene? Was the material unpublished or established in the public? The use of published work that is used in a manner to set a scene is more likely to satisfy this factor.

3. How much of the work are you using? Are you using the entire original material? Are you using the “heart” of the original material, like a famous quote from a book or the catchy hook in a song? If you are not using a significant amount or the heart of the original material, then you will likely satisfy this element.

4. What affect does your use have on the value of the original material? If your use does not devalue the original material then you will likely satisfy this element. For example, if someone is likely to buy your video that uses a song in it, to the extent that that consumer no longer needs to purchase that song by itself, then that is not going to satisfy this element because the video and the stand-alone song are competing for the same customer which devalues the song.

These are the factors you’ll have to satisfy to claim fair use.

TRADEMARK FAIR USE

Now let’s talk about an area that’s more clear cut than copyright: trademarks. Trademarks follow a two part test called the Rogers test, which comes from a famous case involving the legendary actress/dancer Ginger Rogers.  The slide shows the specific language, but it may be easier to simplify the test by turning it around.

As long as you have artistic relevance for your use, (you are including the protected trademark for some artistic purpose) and you’re not misleading as to the source of the trademark (you are not showing the trademark of a product or service and claiming that it is owned by someone other than the true owner), than you have a good claim for fair use.

For example if you’re shooting a scene in a bar and you’re panning the place, and you film labels of alcohol behind the bar, the method that you are using likely qualifies as being artistic relevance. You are setting the scene and showing your audience that the scene is in the bar. As long as you are not misleading about a label, or somehow implying that a certain alcohol is produced by someone other than the rightful owner, then you have a good argument for fair use.

RIGHT OF PUBLICITY FAIR USE 

An area that’s a little harder to dissect is Right of Publicity. The elements are:

1 You have used a person’s identity (i.e., captured them in your content)

2. Your use is to your advantage (i.e, it will increase the value of your content)

3. The person did not authorize you to capture them on film.

4. The use will cause the person damage.

Right of Publicity, as it relates to fair use, can get a little tricky because there are different state laws that apply so it partly depends on where you are shooting your scene. You have to fit these elements within the legal framework of the applicable state.

Another consideration for right of publicity fair use is that most people want to find a way to show celebrities in their footage without obtaining permission so they look to fair use. That’ is probably not going to work because of element number four, damages. Celebrities will usually be damaged if someone is allowed to use them in footage for free because part of being a celebrity is to make money from appearances.  So, fair use usually doesn’t apply in these instances. If you’re dealing with a non-celebrity than it’s much easier and you can go through the analysis.

I hope this video was helpful for you. Again, I don’t think you should analyze these things on your own. You should present the situation to your attorney so he or she can help you make an informed decision as to whether it qualifies as fair use.

At least now you are able to recognize when to ask!

Filed Under: Entrepreneurs

Jason Brubaker From Filmmaking Stuff Teaches You How To Make, Market And Sell Your Film

September 22, 2014 by stefan

 

Jason_Brubaker_Filmmaking_Stuff-3As a weekly blogger on the business side of the entertainment industry, people often ask me what blogs I myself follow on the subject. To stay on top of things I read a handful of blogs regularly.

My favorite kind however are the ones represented by individuals who have real world experience in the entertainment industry and have real actionable advice to share. Anyone can tell you what works in theory but the real value is when you find those folks who have followed their own advice and carved out success in this very competitive space.

When it comes to Independent filmmaking, two of my favorite blogs that fit everything I just described are GoodinaRoom.com and FillmmakingStuff.com. Good in a Room is run by my friend Stephanie Palmer and I have interviewed her in the past which you see here. But today was my first chance to sit down one-on-one with Jason Brubaker from Filmmaking Stuff who I have been following on a regular basis for quite a while now.

Jason founded his website to show you how to make your film, sell it, distribute it, market it and all types of great information that you need in this new age of digital distribution. Not only that but he puts out an incredible amount of content that is really high quality and has done a great job building his reputation and brand in this space as an influencer and thought leader.

Jason has been at speaker at Sundance and countless other filmmaking events and conferences in L.A, and is an expert on the topic of the latest changes in Independent filmmaking and distribution.

Below is my conversation with Jason and, as always, we have highlights of the video below it for your convenience.

 

 Interview Highlights

0:52 Jason greets and introduces himself and tell us his specialties and the purpose of his Website.

1:17 Find out what inspired Jason to start his site and how working on his own feature film made him realize the traditional way of creating and distributing a film was flawed and not for him. Jason explains the steps he personally followed to maximize the selling of his film.

2:04 “Make, market and sell your film without the middleman!” Jason explains his companies mantra and shares with us what is now available to filmmakers to create their own studio and manage the sales, marketing and distribution of your product without the need for the traditional middle man eating into the profits.

2:55 How some savvy filmmakers have learned to control their production from ‘script to screen’ and maximize the profits for their films. and how you can do and should be doing the same!

3:12 What is the future of the traditional model for film distribution? Jason also explains what the difference is between what the big studios are doing and what the independent filmmakers should be doing and why they are different.

3:42 Jason explains the importance of internet marketing for filmmakers, how he learned pretty quickly how to drive traffic to his website to make more sales, and how you can do the same.

4:13 Learn how social media impacts your film and how to get the audience for it by working  with people who have huge social media followings as a team to potentially help your movie.

4:54 Jason teaches exactly what he means by ‘sourcing an audience’ and what your goals are once you know who your audience is.

6:30 Jason shares his most important and key concepts from his super popular ebook ‘The Filmmaker Checklist’ which contains everything a filmmaker needs to get the audience they want, how to manage those results and the tactics to convert that into sales.

7:16 Answering one of my favorite questions, Jason explains some of the biggest struggles he had in building his entertainment business. Find out the one and most important lesson he learned about how to succeed.

8:20 What is the one question Jason asks himself before making any business decision? Hint: It’s what has allowed him to make sure he is providing information his target market eats up and always want more.

8:44 Jason shares one funny ninja trick he uses to exercise time management and make sure his daily actions are having the biggest impact on his business.

9:14 Jason shares his contact information and invites the Lawyers Rock audience to reach out to him anytime they might need something from him or have questions.

e: jason@filmmakingstuff.com

w: www.filmmakingstuff.com

Bonus! Free downloads for Filmmakers http://makeyourmovienow.com

Wow! Pretty awesome interview. Jason is a wealth of great information for independent filmmakers and it was a real pleasure having him on to share with you guys.

Show him some love with some comments below and Ill see you next time.

Richard

P.S. If you are an independent filmmaker, make sure you have agreements in place to protect your work! You can find my very affordable agreement package here.

 

Filed Under: Entrepreneurs

Interview With Chica Intelligente: Digital Marketing For Entertainment

September 2, 2014 by stefan

katrinaI talk about Branding A LOT on this website. That’s because when it comes to the Entertainment world branding is not just another industry buzzword it is truly important to success. As the entertainment industry continues to put more emphasis on working with people who have their own fan influence via huge social media followings, branding will just continue to grow in importance.

Branding is so important in my opinion I’ve made it one of the main categories that you will learn about here on this site along with, Music, Reality TV, Independent Filmmaking and Entertainment Entrepreneurship.

I do have a confession to make however. I did not come to the realization of the importance of branding all by myself. Actually today’s guest was one of the biggest influences on me in realizing the importance of branding in entertainment.

She is Katrina Jefferson, the owner of a digital branding agency called Chica Intelligente, LLC (and more importantly she is my wife!).  In her business she focuses on helping entrepreneurs and entertainment industry folks using social media and other digital strategies to increase their value.  In other words, she helps brands, talent and companies increase their following so they are more attractive to the power players and have a better overall marketing strategy.

To learn some great tips on branding in entertainment watch the video. We also have highlights in text below the video. Enjoy!

( 1:00 min) : Katrina tells us about her company Chica Intelligente, a digital marketing company and she explains what services her company provides.

( 1:35 min) : Katrina has worked with some huge companies on their digital marketing strategy (Red Bull, Ford). She tells us the one challenge she sees over and over again that these different companies face.

(2:34) : What is a mistake that Katrina sees over and over again when it comes to social media campaigns?

( 2:48) Katrina explains EXACTLY what type of content you should be promoting to your social media following.

( 4:02) She gives us her BEST tips on running a successful campaign including how long ahead of time the campaign needs to be prepared and planned for and why.

(5:27) Katrina gives us her top list of big brands that are absolutely killing it online with great social media campaigns. And what you can do to copy their strategies for your own entertainment business.

(6:07) She explains what inspired her to create her company.   She also shares what things are inspiring her to continue her success in the field of entrepreneurship.

( 7:14) Katrina tells us about the importance of giving back and why it is so key for her and her company. She explains how she started a program called Souled, this project shows children how to become entrepreneurs.

(8:23) Katrina tells us about one of the biggest challenges she had with a client and how that experience pushed her to work even harder on her company.  She also shares that after that more doors opened up for her as she inspired herself to become even more creative and that helped start the programs that she is now able to create.

I hope you got some great information on Branding and Social Media from this blog post. The funny thing is that I have been trying to get Katrina on for months for you guys but we had a hard time nailing down a time. Considering we live together that shows you how busy we both are!

If you would like to reach out to Katrina you can find her at some of these places online.

Twitter: chicaintelli@twitter.com

Email: Katrina@chicaintelligente.com

Web: chicaintelligente.com

 

See you next week!

-Rich

Filed Under: Entrepreneurs

Actor Rey Valentin Shares His Formula For Success

July 17, 2014 by stefan

rey-valentin-interview2This site is primarily designed for you the Entertainment Entrepreneur. That’s why I love to feature people who are doing well in various areas of the entertainment industry so we can all learn from their experiences.

Now when you think of an actor you may think of someone like Will Smith or Tom Cruise, who have entire teams helping them manage their career. But there are hundreds of actors out there who might not be the star in 100 million dollar blockbuster movies (yet) but still have carved out a nice career for themselves.

These guys are true entrepreneurs in the entertainment industry, grinding it out every day and working hard building their brand and reputation with acting gigs. This perfectly describes our interview today with actor Rey Valentin.

Rey Valentin (IMDB) has been in shows including Generation Kill, NCIS, The Mentalist, Person of Interest and Marvels Agent Carter.  Rey currently continues working on his craft with LA Acting Classes from Bernard Hiller. He’s really on the rise and he’s going to help sharing his formula to success, to give you some lessons learned and  he’s going to tell you why the business side of entertainment is so important to get into the next level.

Here is the video of my interview with Rey. Below that is a summary of highlights in text.

Interview Highlights

(0:53)

Rey introduces himself, how he has been living in Los Angeles  since 2006, and pursuing mostly  television acting and some film as well.  He stays busy as an actor.

(1:11)

Rey talks about what the toughest things starting out in acting. Why having a solid team behind you that believes in you as much as you believe in yourself is so important.  That is what it comes down to because there is a lot of talent in Los Angeles.

(1:48)

Rey talks about how he discovered acting and how his first dream was to be a professional basketball player.  He describes how he was approached by a woman who was recruiting for her TV show which started his acting career.

(3:10)

His best advice for actors starting out today and why they need to try to break into the business as soon as possible.

(3:56)

The importance of having income coming in during the early years of your career when your trying to make it.

( 5:52)

Rey talks about the trouble he had with typecasting and fighting stereotypes.  Why it is important to have integrity in your business and to listen to your heart on how you want your career to be.

(7:26)

One of the biggest lessons he learned based on his past experiences is that its best to move forward based on what you believe is good.

(8:22)

What was the biggest break in his career where he felt he could make it as an actor.

(10:07)

What his career is transitioning to now and what he is looking forward to.

(10:46)

Rey tells us what he is working on right now. Why he is going to start producing as well as acting.

Well, this was a fun interview and I want to thank Rey again for being our guest and sharing his entertainment business experiences with us.

If you would like to follow Rey here are some places you can find him:

Facebook fan page (@reyvalentinFANPAGE)

Follow him on Twitter (@reyvalentin)

and subscribe to his Youtube page (reyvalentin251)

Please leave a comment below if you have any questions for Rey or myself and I will see you next week!

Like what you just read? Click here to download my Free Ebook teaching you what you need to know about the Entertainment Biz!

Filed Under: Entrepreneurs

Tips on Giving Great Media Interviews That No One Ever Tells You – With David Mitchell

February 18, 2014 by stefan

media interview tipsDo you ever notice that some people in the public eye give numerous interviews but still seem to always trip over their own tongue, fumble their words and use “um”, “ah” and “like” a lot?

On the other hand you will also see people in the entertainment industry who give clear, concise interviews and always seem to be right on point. It’s almost like the people who excel at interviews have been coached?

Well I’m telling you right now that from my experience most of the people who give great interviews have had some coaching or training in how to do just that!

When your in the Entertainment industry perception is everything! You don’t want to come off as a mumble mouth or people might not take you (or your client) seriously.

That is why in today’s interview I am talking to media coach David Mitchell of DAM Media Group. He is also the producer of Amalgamation Magazine, a industry quarterly magazine.

David helps people prepare for their interviews with the media (television, radio, online, etc.). That can include helping an artist, an actor, or an entertainment executive.

He is going to give us some good tips on how to prepare for interviews, what you should say…and probably more importantly what you should not say.

So lets get right to it. Here is the video of our chat with the full text underneath.

Richard

David, welcome to LawyersRock.com.  Lets jump right in. What does a media coach do?

David

Typically I get hired by publicists from the labels, managers, or attorneys. They usually call me in to assist their artist with interview preparation.

Whatever type of media, whether it is an interview for radio or TV or pre-interview or an online interview, I try to help them define their talking points, to get their message out, and to basically streamline that message within so many seconds or so many minutes; and to discuss their new album, film or some particular project that they are out there promoting at the time.

Richard

It sounds like you should be in high demand.  How you did you get your start?

David

Well, I actually question whether it is a high in demand career.  I don’t get nearly enough customers, and even some of my mentors don’t get nearly the amount of clients that they used to get.

I think at this stage of social media, people are trying to, I guess you can call it, “keeping it real”, they don’t want to get their artist too polished.  They don’t put in their budgets the type of development that they need.

I got into this, and I’ve been working for, Urban Network for 16 years and then I published my own magazine for the last 5 years.  I’ve done well over a thousand interviews, and I can really see the good interviews from the bad interviews. I thought, “hey I think I can come in here and help a few artists and maybe even some executives” and so I made a few calls to my contacts, and people are happy with the results.

Richard

And that is a perfect lead into my next question.  What are some common mistakes you see the artists making in interviews?

David

Wow! Common mistakes, I guess it depends on the artist.  Some artists tend to ramble.  You also get those artists that get those filler words, like “uh uh” and “you know what I’m saying”, and “like and like”, or the over gesture, or they don’t filter themselves during the interview, or they just lose track of their talking points.

Those are big things that we really try to concentrate, and narrow in on, when I am working with the artist.

Richard

What if you are in an interview and you get that “gotcha” question, or you just don’t want to talk about something?  What is a good way to address that?

David

Well one of the things I try to reinforce during my coaching is always be in the moment.  I know that is very Oprahesque, but listen closely to the questions that are being asked to you.

Try not to allow your mind to drift and when you do get those questions that you are asked that maybe you are uncomfortable with or that are not part of, lets say the agenda that was given prior to the interviewer by your publicist, I try to teach artists how to pivot, you know there are those pivot answers that you can give; that can kind of get you out of those uncomfortable questions.

Also remember why you are there in the first place, what is it that you are initially selling, I mean to discuss my album, film project or  next week’s game. Those are the things that we want to focus on, and I think that there are subtle ways in which you can pivot out of those uncomfortable questions or awkward moments. I teach artists how to do that.

Richard

It sounds like preparation is important.  What are some tips you can share with the audience that would help them prepare for an interview?

David

Well, I always tell artists you know, when that interview is being scheduled for you, ask your publicist or your manager, who am I speaking with, what kind of interview, is it a television interview, because that is going to be treated differently that if it were an online interview or a radio interview where you may spend you know 20 minutes on the phone talking to an audience, or you may spend 20 minutes in the actual studio talking to an audience and it becomes theater of the mind.

There are  just so many different facets to good interviewing and I really take this course that can last six to eight hours over 2 or sometimes 3 days depending on the attention span of the artist.

Richard

All great points David, thank you.  Well before you go, tell us a little bit more about yourself, how to get in contact with you, and how did you come up with that name “Amalgamation” for your magazine?

David

Well I chose a pricey word to name the magazine, amalgamation, meaning unification or blending many different elements and you can find me at amalgamationmag.com, it is a wonderful site, we ask people to come and visit us, I put out an actual printed magazine quarterly and this year I am partnering up with the Urban Network Digital to host a music conference, Back To Basics: The Music & Entertainment Summit 2014.

I was part of Urban Network for 16 years and we are bringing back the music entertainment so I am in.  It is going to be May 1st through the 4th at the Four Sheraton in San Diego, California.

Richard

Thank you David for the interview, very good information.

For more information on DAM Media Group and Amalgamation Magazine, follow this link.

What did you think of what David had to say? Do you think that we are headed towards a trend of people in the public eye “keeping it more real” and using media coaches less and less? Do you think the public prefers our celebrities unfiltered or does it open up a PR nightmare?

Look forward to your opinions, just add to the comment section below.

If you found value in this post I hope you will take a moment to share by clicking one of the social media buttons.

Cheers!

Filed Under: Entrepreneurs

The Top 5 Legal Tips Entrepreneurs Need To Succeed

January 5, 2014 by stefan

Hello everyone! I’m excited to post my first article of 2014, and launch my newly branded site.

Over the past year I focused primarily on Reality TV, but I wanted to expand to cover more areas of the Entertainment Industry since I also receive many questions about the music business, indie films, branding, and entrepreneurship. If you want to find out more about what we will be blogging about you can go here.

So on to today’s post! Today’s post is for all entrepreneurs because pretty much anyone in Entertainment who doesn’t work in-house at a studio, network, or label is a true entrepreneur.

I have put together the Top 5 Legal Tips Entrepreneurs Need To Succeed so that you can start the year off right.

 

I hope you found this information helpful, please subscribe to my newsletter and leave me a comment to let me know.

If you would like more details please see the following written post below.

All the best, Richard.

The Top 5 Legal Tips Entrepreneurs Need To Succeed

I have worked with hundreds of entrepreneurs over the years and many of the same issues pop up over and over again. The tough part is that if they had known what to look for at the very beginning when starting their company or project they could have avoided many of these issues.

In this blog post and video I am going to give you my top five legal steps that I think every entrepreneur should take while in the start up phase of the business. If you follow these 5 steps you will probably avoid many major pitfalls that I have seen over the years…and likely save a lot on legal and accounting fees.

 

All right, so here is the list. Let do this backwards like a countdown since it is the New Year, Number 5.

 

5.  Always Use Written Contracts (Avoid Oral Contracts)

 You are running a business, so don’t depend on an oral contract to protect your interests.  I know people say, “aww but an oral contract is enforceable”.  Yes, it is, but try to prove an oral contract in court! Trust me when I tell you that it’s very hard.

So, I don’t care if it is an email or pieces of paper, you need to get everything down in writing so you have a “meeting of the minds” documented and can’t be sabotaged by someone’s selective memory.

Think about it from the standpoint of what position you want to be in if there is ever a dispute. If it comes to that, it means you have a disagreement and probably two different sets of facts. If it is just your word against another person’s word, then there is a lot left up to chance. On the other hand, if there is a written contract that states what you two agreed on, it will be much easier for a third party to see where each of you are coming from.

Again, even if it is just an email between parties detailing what you both agreed to, that is better than nothing!

 

4.  Properly Categorize Workers (Independent Contractors Vs. Employees)

 Properly categorize your workers.  I know everybody wants to make everybody an independent contractor so they don’t have to pay taxes, but in reality if you have a contractor acting as an employee…then they are an EMPLOYEE. The law will come down on you hard if you miscategorize a worker, so it just makes sense to do it the right way from the start and avoid any problems.

I have seen a number of companies go out of business because they had miscategorized workers. The workers became disgruntled (with the help of an opportunistic attorney) and they won a Labor Board hearing, which classified the workers as employees and awarded missed meal time and overtime pay. If you have not been paying your workers properly, you will possibly also have to pay penalties, plus you are going to have to pay legal fees to defend against the law suit that you are probably going to lose.

Remember to keep this in mind with regards to interns as well. As Fox Search Light Pictures found out last year in an intern lawsuit that they lost in 2013, you have to be extremely careful about how you are using your interns. It is just not worth it to save a few bucks for the total devastation to your business that could possibly come later.

A very simple but inexpensive way you can help protect yourself from an employee lawsuit is by getting some really well written and comprehensive employee handbooks. If you have employee handbooks it does not necessarily mean an employee cannot bring a complaint against you but it is far less likely.

3.  Register Domain Names For Your Business (Names that Identify Your Business Brand)

 Register a few domain names that contain the name of your brand that you are trying to build.  There is nothing worse than building a brand and finding out that a cyber squatter has bought your name and plans to extort you for a large amount of money before he or she will turn it over.  Be proactive. Register and maintain those domain names early.

Most experts will advise entrepreneurs to not get ahead of themselves and spend to much money early on, but it becomes a cost/benefit analysis. Domain names are relatively inexpensive. You can register most available domain names for as low as $9.99 at places like GoDaddy.com

 

2.  Register Your Trademark

 A trademark is the legal basis of any brand, it basically is the logo or the name associated with the product or service you are offering. Registering your trademark protects you from having no recourse if someone uses a similar mark for the same product or service without your permission. Initially, protecting your brand may not be a big concern, but the point of all your work is to one day be successful and build a brand. When that happens then there will be people coming out of the woodwork trying to associate themselves with your brand.

For example, if you are a recording artist and are selling music, then your name would be in a certain class (likely Class 9 or 41) and you would register your trademark in that class. You don’t want to continuously do all that work to build your brand and have another artist come along and use a name that is similar to yours. You can’t stop people from doing bad things like this, but you can prepare your response if it does happen.

Also, note that there is a way that you can reserve your trademark while you are building your brand. That is a pretty smart way to start because initially you may not have the evidence needed to secure a trademark registration.

 

1.  Create an Entity

Drum roll please….The number one legal step I think you should consider when setting up a new business is to create an entity. That means forming a limited liability company (LLC) or incorporating (forming a corporation) for your business.

The main reason for this is that you want to keep things separate – ALWAYS keep your personal assets separate from your business assets!

Imagine someone sues you for a business matter and they end up winning a judgment against your business and you personally. They would be able to collect from your personal assets, like your bank accounts, home, car, etc. It’s one thing to lose business assets in a lawsuit, but its much more devastating if you lose personal assets. That could affect your personal and family life. You don’t want a judgment holder from a business lawsuit to be able to collect from your personal assets, and vice versa.

There are other valid reasons, like fundraising, worker issues, and tax benefits, but essentially the main reason why you setup an entity is to separate your personal and business lives.

So there you have it! If you would like a convenient PDF of my Top 5 Legal Tips For Entrepreneurs you can download that here.

 

 

Filed Under: Entrepreneurs

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