Many startup companies don’t realize the importance of hiring a business attorney.  Considering today’s technology-focused world, there are numerous reasons startup companies should spend the money for a lawyer who is skilled in copyright and intellectual property laws, trademarks, incorporating, agreements, contracts, and more.  In addition, many new companies make decisions without knowing whether they’re legal, just pushing the envelope, or even perhaps breaking the law.  As a Los Angeles startup company, do you really need to consult with an experienced Los Angeles business lawyer?  The answer is simple:  absolutely.

Here’s a quote you may or may not be familiar with by Guy Kawasaki:  “Ideas are easy.  Implementation is hard.”  Never a more true sentence spoken!

It really makes no difference whether yours is a digital startup or you’re just getting started with a brick-and-mortar business.  Every startup benefits by acquiring an attorney who specializes in the areas of business, including entity formation, founder agreements, and more.  In the early stages of a startup company, legal needs may vary in the areas of licensing, employment, partnership, and other areas depending on the nature of the startup, and its growth.  Mergers, acquisitions, and securities regulations are other areas many business attorneys specialize in, and that startups may eventually need guidance with.

Of the startup companies who do, why hire an attorney?  There are countless reasons, not the least of which include a business lawyer who is laser-focused on the success of his/her client provides long-term, strategic value in addition to focusing on risk-management for startups, and smart growth strategies.

If yours is a startup company, do you understand how to legally hire employees, compensate them, or even terminate an employee?  How is the proper way to go about protecting intellectual property, or advertise in a way that’s in compliance with federal rules?  If you intend to partner with another company or enter into an agreement, do you know all the rules and how to accomplish your goals without conflict?  Online, how can you maintain user privacy on your company website?  There are literally hundreds of questions startup companies have, which makes hiring a capable and trusted LA business lawyer critical to your success.

At Spotora & Associates, we understand the needs of startup companies, and how your success hinges on the guidance and support of a skilled and experienced attorney.  Avoid legal issues that could devastate the success of your business by consulting with a lawyer early on.

Recently, Total Recall Technologies, a Hawaii-based company, filed a lawsuit in a California U.S. District Court claiming fraud, breach, and other allegations against Oculus VR Inc. The lawsuit involves reality glasses, a product that has been touted by Oculus VR over the past three years, according to news reports. In 2014, social media giant Facebook purchased Oculus for a reported $2 billion. Now, Total Recall Technologies alleges that patented information from the company was taken by Oculus founder Palmer Luckey during the time he was employed by the company to develop a prototype head-mounted display product.

Luckey signed a confidentiality agreement, according to the complaint which requests punitive and compensatory damages from Oculus. The lawsuit also alleges that Luckey developed the converted information in order to market the Oculus Rift, his own virtual reality headset, violating agreements with Total Recall Technologies. While Luckey may argue that he used his own plans and knowledge in the development of the virtual reality headset, news article say the dispute is quite complex and highly fact-specific, entailing a thorough discovery process in order to learn what Luckey knew and whether he did actually breach or violate any specific provisions in the contracts between the two companies.

Did Luckey develop his product in a way that is different and unique from the products he may have worked on when associated with TRT, based on his own knowledge and plans, or were the agreements of any contracts between the two companies violated? A Reuters article states that Luckey was hired in 2011 by TRT to build a prototype head mounted display; at that time, he signed a confidentiality agreement, however the founder of Oculus is accused of using information he learned from his partnership when launching the Facebook Oculus Rift VR (virtual reality) headset.

Total Recall Technologies is seeking an unspecified amount in compensatory and punitive damages in the lawsuit against Luckey and Oculus.

Strangely, it is a bit curious as to why TRT has waited so long to bring a lawsuit against Oculus VR and Luckey. Perhaps the company decided to go forward at a point when Facebook became the owner of Oculus? A representative for the company says that the case is “meritless,” and that Oculus will be vigorous in its defense against TRT.

The lawsuit claims, according to Polygon, that “Without informing TRT, Luckey took the information he learned from the partnership, as well as the prototype that he built for the TRT using design features and other confidential information and materials supplied by the partnership, and passed it off to others as his own.”

Of the current modern virtual reality headsets, the Oculus Rift is the most widely known according to a Forbes article, and is scheduled to become available in the market during the first quarter of 2016 following a hugely successful Kickstarter campaign that resulted in raising $2.4 million, a drop in the bucket when compared to the $2 billion Facebook invested.

As highly experienced Los Angeles business attorneys and intellectual property attorneys, we understand that working with new technological advances may complicate already complex industries. Yet the huge majority of costly lawsuits and conflicts such as these are avoidable with the help of an experienced legal professional. If you are a former employee or an employer facing similar circumstances, contact Spotora & Associates, PC for the best way to proceed today.

Today virtually every company, regardless of size, is a “tech” company; nearly every business has some connection to the Internet, and indeed today most have websites.  Social media platforms have become a critical component of online marketing strategies for companies big and small.  Considering the use of logos, images, business names, symbols, copyrights, trademarks, and all that is necessary for businesses to compete today, is cyber liability insurance really necessary?  The short answer – yes.

Think about it for just a moment:  Even companies who do not actually conduct business online, such as perhaps an auto collision repair shop, still use the Internet to interact with insurance providers via web portals.  In a tech-savvy world, much can happen and does on a daily basis.  Defamation, copyright or trademark infringement, data breach, the risks are increasing for not only large corporations, but small companies as well.

Cyber crime is one of the biggest threats today for companies who conduct any business activity at all online.  Unfortunately, many individuals neglect to realize how vulnerable their businesses are to cyber crime, and fail to take action to reduce exposure.  Employee error can result in cyber crime, so staff must be diligently trained on data transmission.  Companies whose websites or other online systems are “hacked” leave their customers’ personal data (such as name, banking information, credit card numbers, etc.) vulnerable, and often in the hands of criminals.

On the Internet, anything can happen.  Many companies do all possible to ensure their websites and other online properties are secure, however many criminals are extremely intelligent.  Data breach is an extremely serious matter, as are intellectual property infringement, defamation, and employee error.

Is cyber liability insurance a good idea?  Absolutely, considering the growing trend of cyber crimes committed upon businesses of every size.

The Internet presents many challenges for businesses today; at Spotora & Associates, our Los Angeles business attorneys assist with all technology related, from licensing agreements to protecting and defending your intellectual property on the Internet.  As seasoned LA business attorneys, we understand the challenges companies face today in a “virtual” world; let us help you with your needs.

In October of 2014, a judge rejected a lawsuit filed by writers Stephanie Counts and Shari Gold claiming copyright infringement of their work by Fox’s ‘New Girl’ television series.

In January of last year, the writers sued William Morris Endeavor (WME) Entertainment, Fox, Liz Meriwether (showrunner of New Girl) and executive producer Peter Chernin for allegedly basing the ‘New Girl’ series on the writers’ own proposals for a movie or television series which they said would have been titled Square One.  As defendants in the suit, Fox demanded a dismissal of the charges saying in court documents that “the only similarities between the works arise from general, non-protectable ideas.”  In October, U.S. District Judge Stephen Wilson rejected the lawsuit against Fox and the other defendants, saying the copyright infringement claims were ambiguous.

The judge ultimately dismissed the claim without prejudice, meaning the writers could bring the claim against the defendants again.  However, after the plaintiffs/writers had rejected a settlement offer of $10,000 allegedly extended by Fox and switched lawyers, the statute of limitations came into play, suggesting that perhaps they did not obtain an explicit tolling agreement in order to extend the time to file the claim.

Ultimately, on June 12 of this year Judge Wilson granted WME (William Morris Endeavor) Entertainment’s motion to dismiss the idea theft claim.  This time the judge dismissed the claim with prejudice, meaning the plaintiffs cannot file a lawsuit against the defendants again.  The Court found that Counts and Gold failed to allege any facts which would excuse the writers from timely filing of the claim.

As Los Angeles business attorneys specializing in entertainment law, we know these types of copyright infringement claims are made frequently in the entertainment industry.  Writers, designers, and other artists or “creatives” often feel that their ideas and works have effectively been stolen.  In some situations this is indeed the case, in others it may not be.  Do not allow the statute of limitations to dictate the outcome of your claim. For copyright infringement and other entertainment issues, trust the team at Spotora & Associates for unparalleled legal guidance and support.