For many people, intellectual property is a somewhat difficult concept to understand, those things that are “untouchable,” so to speak.  Creations of the mind, intellectual property refers to things such as logos, images, symbols, artistic or literary works and other property typically meant to be used in commerce.  How do you legally protect those things that are more of an idea, rather than physical property?  Trademarks, copyrights, and patents are some of the ways people and businesses protect their intellectual property.  However, there are some myths that can actually hurt you, including the following:

Using someone else’s trademarked brand.  Just because you offer a product or service that is different in some way from another company who has a trademark does not mean you can use that company’s trademarked brand.  Say for example you decide to open a health supplements store called New Balance, and because you don’t sell shoes you assume you are not infringing on the shoe manufacturer’s trademark.  This could be a sticky issue and cause confusion among consumers.  Best to speak with a trademark attorney before jumping to conclusions.

Using a design you paid for in any way you see fit.  Many people pay others to design things for their business, such as a book cover if you are an author, or a business website.  Does it give you free reign to use the design however you like, because you paid for it?  Not necessarily.  Even if you paid $8,000 to have your website designed or $3,000 for a book cover design, you are not the owner of the work without a written “work for hire” agreement.  In order to own any material that is copyrighted so that you can use it any way you desire, have a lawyer draw up a work for hire agreement that contains specific language which is legally binding.

If you alter another person’s creative work substantially, you can sell or distribute your version of the work without infringing on the original artist’s copyright.  Not necessarily!  Copyright infringement is measured by substantial similarity.  Several specific considerations are used in determining whether the average person would find your version and the original creative work substantially similar.  Again, consult with a skilled Los Angeles copyright attorney when you want to use someone else’s creation to build on.

Intellectual property is a someone “sticky” area, so when in doubt it’s always best to seek out the guidance of one of our highly experienced Los Angeles business attorneys at the Law Offices of Spotora & Associates.

According to recent reports, there is expected to be more than 750,000 franchised outlets in operation in the United States by the end of 2013.  Amongst these reports includes that of the International Franchise Association which estimates that these franchises will generate more than $800 billion in sales, and employ over 8 million individuals.  Essentially, franchising is a huge portion of our economy today, making up about 3.4% of the U.S. Gross Domestic Product.

So it’s apparent that franchising is a substantial portion of the economy in America, but why?  Here are a few of the reasons so many people are gravitating toward franchising as their new career:

1.  Franchising creates better brand recognition.  The general public typically feels more comfortable purchasing goods from companies whose brands they are familiar with and recognize.

2.  Reduced fear in starting a business.  Many people dream of owning their own business, but the proposition of actually doing so can be frightening; they fear the risk involved.  With a franchise, an individual can own a business that is already successful and established, reducing the likelihood of failure.

3.  Almost unlimited potential for growth.  The US economy is huge; not only in our own country, but in other economies around the world there is almost unlimited room for more franchise outlets to be established in both competitive and single brands.

4.  Market power.  Because most franchises are recognized, it’s possible to keep costs at a minimum due to the ability to negotiate better leases and supply arrangements.  Ultimately, this allows consumers to enjoy lower prices, and the franchise to enjoy a profit.

5.  Entrepreneurs are naturally motivated to work hard toward success.  In most cases, individual owners are entrepreneurs who are highly motivated to generate profits by providing quality products and services.  Franchisors and franchisees alike work diligently to ensure their businesses succeed.

6.  Competition results in a constant growth in franchising.  New ideas and concepts lead to the creation of new categories of services and goods.  In other cases, individuals may improve on concepts that already exist, making them unique in some way.  This ultimately means that more options and variety lead to additional franchised outlets, meaning more opportunities for those interested in the franchising business.

At Spotora & Associates our Los Angeles business attorneys have extensive experience in the area of franchising.  From incorporating and review of franchise agreements to legal compliance, purchase and sales agreements and product/service distribution agreements, we are prepared to help individuals navigate the intricacies of franchise law.

Nearly every business owner has heard of the term “unfair business practices,” but what exactly does it mean?  We know that for the most part, companies and corporations operate in a manner that is honest and open; however, there are many businesses (in fact, more than you might think) that do not adhere to such standards.  Ultimately, when another company has no scruples and stoops to practices that are deceptive, it can be harmful to the success of your business, and even your future.  These harmful or deceptive practices are what are often referred to as unfair business practices.

Some examples of this include any act that would be considered unconscionable, and which could affect either business partners, consumers, or both such as misrepresentation, competition that is considered unfair, even fraud.  Perhaps a company has falsely promoted a product, claiming that it offers a certain benefit or contains a “magical” ingredient.  One business may engage in misrepresentation to disparage the services or products of another company.  Many people can be affected by these deceptive or unfair practices, including someone who pays for services that were rendered, an individual who buys products or goods from a company, even someone who works with a business in an advertising or promotional capacity.

The fact is, a business owner and his or her business can be put in a very precarious situation when another business practices in a way that is unfair; your company’s success could actually be in jeopardy.  Considering the competitive nature in many industries today, some participate in unfair business practices in order to get ahead, or literally try to harm a competing company’s reputation or brand.  However, a Los Angeles business lawyer can review the situation to determine if legal action should be taken.  At the Law Offices of Spotora & Associates, we are dedicated to helping business owners find the best resolution to the situation, and recognize the serious issues that can arise out of unfair business practices.

Soap opera buffs have no doubt heard the recent news that two long-running soaps, All My Children and One Life to Live, are back.  However, recently there has been a bit of “drama” going on behind the scenes that has resulted in Prospect Park filing a lawsuit against ABC for breach of contract.  According to news reports, ABC is being sued to the tune of $25 million for damages.  ABC allegedly borrowed characters from One Life to Live, and killed off two characters from All My Children, ultimately going beyond the parameters of the two companies’ agreement.

Before making any dramatic adjustments to storylines, ABC was to review these changes with and get approval from Prospect Park.  Additionally, ABC reportedly will not release URLs for the two soaps which is preventing Prospect Park from giving fans of the shows an opportunity to watch the soaps online before their re-launch.  The production company says that avid fans should not worry whether the re-launch of the programs will be delayed, however what’s on the mind of many people is why ABC has given the production company such a hard time.  Prospect Park believes that the television network is hoping to see the production company fail in the re-launch of the two popular soap dramas.

According to the Huffington Post, tension has been mounting for quite some time between ABC and Prospect, who contends that the production company gave permission to ABC to “borrow” characters from One Life to Live who would appear on General Hospital for a limited time.  The gist of the story was that these seven actors would be able to remain employed by portraying characters on GH while Prospect was ramping up for production of the online versions of AMC and OLTL.  Ultimately, Prospect Park is suing for breach of contract, saying that they did not get what they paid for, and that ABC did not deliver on their promise, that the television network engaged in egregious conduct.  It has also been alleged that ABC failed to transfer ownership of Allmychildren.com and Onelifetolive.com to Prospect.

As skilled Los Angeles business attorneys, we can only imagine how dramatic this lawsuit is likely to be; how it turns out is sure to be of interest to many.  We urge companies involved in contract disputes to contact our business law attorneys today for exceptional legal guidance and representation.