Startups and International Technology Business

North America, Europe and Asia Pacific

Archive for October, 2012

Investor Guide: Buying a New Business and Investment in New Venture Due Diligence

Posted by Rahul Dev on October 9, 2012

Article Source: http://techcorplegal.com/Blog_Technology_Law_Business_Research/2012/10/09/due-diligence-for-buying-a-new-business-and-investment-in-new-venture/

Determination for buying a business can be broadly divided into three main categories – Legal, financial and operational. The most important of the three is OPERATIONAL. The business is expected to function as per the purchaser’s needs; this function is ensured by the operational part. The transfer of a business may cause deterioration of profitability due to lot many reasons. Discontinuing of the employees or the non allocation of the contracts, may be some reasons for the business to be aborted. These are true in cases of leases and indebtedness. However, it is also required by the buyer to make enquiries about the IP of the company.

Various documents that may be required to conduct due diligence before buying a new business include, labor agreements, collective bargaining agreements, personnel manuals and employee handbooks, loan documents related to indebtedness of the company, financing documents, list of directors, officers and key employees and their compensation, employment agreements related to directors, officers and key employees, including confidentiality or non competition agreements, intellectual property licensing agreement which includes software, patents, copyrights or trademarks, agreements with third parties including outside brokers, agents, distributors, franchisees, suppliers, vendors etc., IP Documentation including patents, trademarks, copyrights and other intellectual property owned or used by the company, Ownership of all domain names etc.

Many people are excited to invest in start-ups as they not only make profit but also help the debutant company making its mark. To get committed investors it is necessary to make the funds higher for the company. However, the fact remains that start-up companies, if not all, but fail. Some people promoting the investments are deceptive and only fiddle with the investor’s money and move to next attempt. A company with a super business model and elaborated plan can also defraud the investors. A smart investor needs to have important information about the start-up before investing.

Importance of company’s financial statements or offering memorandum: If the company refuses to show the memorandum, the investor should give it a no, as it shows that the company does not want to provide any information to the investors. A small company may not have a formal memorandum due to lack of money, in this case, financial statements can be asked for. For independent verification, an outside accountant should prepare the financial statements. For verifying the claims, taking a copy of past tax returns is also beneficial.

Importance of company’s business plan: A business plan is the company’s main asset which ultimately leads to the success of the company. It provides objectives of the company, details of the marketing goods and services and the resources required by the company. The investor should have a team ofa lawyer (specializing in business law), an accountant and investment adviser.

Importance ofa Business Lawyer: an experienced business lawyer acts as a mediator between the investor and the company and helps in discussing main protections and better terms. Therefore, the deal can be easily negotiated between the investor and the company. Also, the economics and the legal terms of the transaction can be only understood by the help of thebusiness lawyer.

To conclude, it can be aptly said that investing in a start-up business is not less than a gamble but a proper investigation and preparation can lead to a profitable journey.

Visit our Business Blog homepage: http://research.techcorplegal.com/

International Technology Business & Patent Law Firm in India: Patent Drafting, Patent Searching, Patent Filing in India, PCT National Phase Filings in India: http://www.techcorplegal.com/

International Business & Management Company in Singapore: Starting a Business in Singapore: http://www.techcorpgroup.com/

Contributors: Prity Khastgir andRahul Dev

We regularly update ourFacebook pageand share similar stories onTwitter. You can also check out our premium service offerings for Mobile Applications, Social Media & Cyber LawsandPharmaceuticals, Biotechnology, Food & Healthcare
To know more about us, get connected with us on
LinkedInor mail us atinfo [at] techcorplegal [dot] com

Our Business Law Services: Company & Individual Representation, Business Litigation & Corporate Law, Business formation & Review of Business Formation Documents, Cyberlaw, New Media, & Internet/Technology, Entertainment, Sports, & Media, Contract Negotiation, Review, & Drafting, Intellectual Property ("IP"), Real Estate Transactions and Landlord/Tenant Disputes, Employment Law, Securities, Mortgage, Banking & Finance, Mergers & Acquisitions, Legal Malpractice / Ethics Violations / Company Policies / Website Terms & Conditions, Brand Identity & Positioning, Brand and Intellectual Property Licensing and Development, Compliance, Preparation of Business Plans, Business Process, Efficiency Consulting, & Outsourcing, Investment & Strategic Ventures, Project Finance & Management, Competitive Landscape Analysis, Right Time to Incorporate a Legal Entity, Finance, Funding & Venture Capital, Type of Entity: Company vs. Partnership vs. Sole Proprietorship, Right Location (Jurisdiction) to Incorporate a Company, Company Incorporation in India, Partnership, Sole Proprietorship & LLP in India, Setting up Liaison / Representative / Branch/ Project Office in India, Franchising in India, Licensing in India, Retail in India, Things to do Before Quitting a Job and Starting a Business, Selecting a Business Name, Branding & Trademarks, Shareholders & Stock Options, Tax Planning & Management, Employees, Interns, Human Resource (HR) Management & Labor Laws, Joint Ventures, Corporate Restructuring, Mergers & Acquisitions, Commercial Disputes, Litigation & Arbitration, Foreign Direct Investment & Foreign Exchange Regulations in India

Our Patent, Trademark & Legal Services: Patent Searching: Worldwide Patent Searching, Patentability Search, Invalidation Search, Freedom to Operate/ FTO Search, Infringement Search, State of the Art Search, Patent Process and Support Services Outsourcing: Patent Drafting, Patent Illustrations, Patent PCT Filing in India: Patent Filing, Market Research before International Filing, Patent Prosecution and Patent Grant Services in India: Patent Prosecution in India, Preparing Response to Office Action, Post Patent Grant Services for Licensing Inventions: Patent Licensing, Licensability Analysis, Patented Technology Commercialization Services for Individuals, SMEs, Companies: Patent / Technology Commercialization, Due Diligence & SWOT Analysis, Worldwide Trademark/ TM Searching and Filing Services: Trademark Searching, Trademark Filing, Trademark Prosecution & Licensing, Trademark Due Diligence, Legal Research, Process and Support services Outsourcing: Legal Research, Contract Management, Litigation Support, Patent Litigation Support, Medical Litigation Support

Posted in Uncategorized | Leave a Comment »

Entrepreneurs and Startups Guide: To Patent or Not to Patent | The Curious Case of Patents

Posted by Rahul Dev on October 4, 2012

Article Source:

http://techcorplegal.com/Blog_Technology_Law_Business_Research/2012/10/04/the-curious-case-of-patents-to-patent-or-not-to-patent-entrepreneurs-dilemma/

A patent is the grant of a right to an inventor by the patent office that gives the holder the legal right to exclude others from making, using, or selling the invention in that particular country. The patent law generally allows patents relating to any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, exact definition of which may vary from one country to another. Generally, a majority of patents are improvements, but they still relate to something new, i.e. something that does not already exist.

A major hurdle faced by every entrepreneur and technology business during early stage of operation is to decide whether to protect the idea behind the business or not. The major fear is that if not done, anyone can steal it. However, on the basis of pure business sense, the idea is more of an opportunity than an invention. Although patent is a valuable business tool, it may not be the top priority for every business during early stages. Accordingly, prior to investing time and money in securing a patent, it should be ensured that it is a smart business move. Going by the statistics, only a small percentage of all patented products ever make it to market.

In contrast, for inventors and startups in technology business, their future is usually dependent on the success and failure of a new invention, or an improvement to an existing invention, and hence, a patent can become the most valuable asset. It will provide the required protection from a competitor to exactly duplicate the ideas.

This dilemma of filing a patent or not can be understood by analyzing the role of Benjamin Button played by Brad Pitt in the movieThe Curious Case of Benjamin Button,which is a 2008 American fantasy drama film directed by David Fincher and stars Brad Pitt as a man who ages in reverse, i.e. when he is actually 7-year old, he physically appears 77, while at the age of 63 years, he appears 21.

Based on the similar analogy, a single patent is not strong usually enough to stop competitors when it is young. Once the business passes through initial hurdles and gets into the groove, the patent rights can be strengthened by developing and protecting all the improvements and new features, thereby resulting in a strong patent portfolio. By the time all the patents comprising a portfolio are granted, the strength of the portfolio will be as strong as ever to enforce corresponding rights for stopping the competitors from duplicating the core products without obtaining a license.

To decide whether to file a patent or not, it is crucial to ensure that the patent filing fits within the business strategy. In other words, patents that do not directly support the core business are usually not worth the time and money spent on them.

Even after a patent is filed, it is a tedious and lengthy process to prosecute the patent and get it granted. Generally, when businesses are struggling to launch a product, intellectual property issues are often the last things on their priority list. But still, protecting the ideas and inventions, and at the same time making sure that the rights of others are not infringed could make or break the business in the long term.

While deciding whether to file a patent or not, it is always advisable to conduct a thorough patent search, which resolves two important issues. First, it will help ensure that the idea hasn’t already been patented, and second, it will bring out a list of other patents that might be infringed in case you go ahead with the product in present form.

Analyzing certain commercial parameters is also helpful in deciding about patents. For example, a basic prototype can be developed to determine the product’s functionality, as this will bring out an almost final design prior to filing a patent. Conducting an initial market research to define the market and determine its size also helps in determining the commercially viability of the product.

To conclude, it is always better to keep an open mind when deciding about patents. While most patent attorneys recommend filing a patent without giving much thought, it is always better to execute some of the above-mentioned steps to take at a wise decision.

Visit our Business Blog homepage: http://research.techcorplegal.com/

International Technology Business & Patent Law Firm in India: Patent Drafting, Patent Searching, Patent Filing in India, PCT National Phase Filings in India: http://www.techcorplegal.com/

International Business & Management Company in Singapore: Starting a Business in Singapore: http://www.techcorpgroup.com/

Contributors: Prity Khastgir andRahul Dev

We regularly update ourFacebook pageand share similar stories onTwitter. You can also check out our premium service offerings for Mobile Applications, Social Media & Cyber LawsandPharmaceuticals, Biotechnology, Food & Healthcare
To know more about us, get connected with us on
LinkedInor mail us atinfo [at] techcorplegal [dot] com

Our Business Law Services: Company & Individual Representation, Business Litigation & Corporate Law, Business formation & Review of Business Formation Documents, Cyberlaw, New Media, & Internet/Technology, Entertainment, Sports, & Media, Contract Negotiation, Review, & Drafting, Intellectual Property ("IP"), Real Estate Transactions and Landlord/Tenant Disputes, Employment Law, Securities, Mortgage, Banking & Finance, Mergers & Acquisitions, Legal Malpractice / Ethics Violations / Company Policies / Website Terms & Conditions, Brand Identity & Positioning, Brand and Intellectual Property Licensing and Development, Compliance, Preparation of Business Plans, Business Process, Efficiency Consulting, & Outsourcing, Investment & Strategic Ventures, Project Finance & Management, Competitive Landscape Analysis, Right Time to Incorporate a Legal Entity, Finance, Funding & Venture Capital, Type of Entity: Company vs. Partnership vs. Sole Proprietorship, Right Location (Jurisdiction) to Incorporate a Company, Company Incorporation in India, Partnership, Sole Proprietorship & LLP in India, Setting up Liaison / Representative / Branch/ Project Office in India, Franchising in India, Licensing in India, Retail in India, Things to do Before Quitting a Job and Starting a Business, Selecting a Business Name, Branding & Trademarks, Shareholders & Stock Options, Tax Planning & Management, Employees, Interns, Human Resource (HR) Management & Labor Laws, Joint Ventures, Corporate Restructuring, Mergers & Acquisitions, Commercial Disputes, Litigation & Arbitration, Foreign Direct Investment & Foreign Exchange Regulations in India

Our Patent, Trademark & Legal Services: Patent Searching: Worldwide Patent Searching, Patentability Search, Invalidation Search, Freedom to Operate/ FTO Search, Infringement Search, State of the Art Search, Patent Process and Support Services Outsourcing: Patent Drafting, Patent Illustrations, Patent PCT Filing in India: Patent Filing, Market Research before International Filing, Patent Prosecution and Patent Grant Services in India: Patent Prosecution in India, Preparing Response to Office Action, Post Patent Grant Services for Licensing Inventions: Patent Licensing, Licensability Analysis, Patented Technology Commercialization Services for Individuals, SMEs, Companies: Patent / Technology Commercialization, Due Diligence & SWOT Analysis, Worldwide Trademark/ TM Searching and Filing Services: Trademark Searching, Trademark Filing, Trademark Prosecution & Licensing, Trademark Due Diligence, Legal Research, Process and Support services Outsourcing: Legal Research, Contract Management, Litigation Support, Patent Litigation Support, Medical Litigation Support

Posted in Uncategorized | Leave a Comment »

LAW FIRM IN INDIA: GUIDE TO OFFSHORE OUTSOURCING TO INDIA, POSSIBLE LEGAL ISSUES

Posted by Rahul Dev on October 1, 2012

Article Source: http://techcorplegal.com/Blog_Technology_Law_Business_Research/2012/09/30/guide-to-offshore-outsourcing-to-india-possible-legal-issues-and-law-firm-in-india/

OFFSHORE OUTSOURCING

The practice of engaging an external organization for performing in a country where the products or services are not developed or manufactured is termed as “Offshore Outsourcing”. The business is performed by a foreign country in a foreign country. Sending work overseas with higher wages reduces the country’s own domestic employment and domestic investment. In countries like United States and United Kingdom the customer service jobs and jobs in IT sector have been or are potentially affected.

COST – not the only reason for offshore outsourcing

It is definitely one of the main reasons for offshore outsourcing but there are other reasons as well. When it is decided to outsource the work initial investment is needed in terms of infrastructure, recruitment, training, etc, while the cost advantage is seen much later. There are savings in offshore outsourcing, but the quality and value addition is realized only after the outsourcing begins. NASSCOM reported that India’s great attraction as the outsourcing destination is its unbeatable value proposition and the PQR (Productivity, Quality and Rate) factor. India is at an advantageous position due to its active government support and stable political climate. According to a cyber lawyer, India is at the 12thposition that has cyber legislation apart from countries like the US, Singapore, France, Malaysia and Japan.

OFFSHORE OUTSOURCING to INDIA

India is the most highly sought country as it has become a crucial necessity for the business organizations that are trying to reduce their overhead expenses. India is looked upon by many countries as a base in foreign land where their operations and business can be expanded and the outsourcing arrangements can be made for testing the grounds. Technically skilled manpower is highly available in India. After US India is the second largest exporter of software and has many software companies with ISO 2000 certification than any other country in the world. India is rated as number one choice for offshore outsourcing by a World Bank funded study.

Indian Laws

From the perspective of doing business in India and offshore outsourcing to India, the most important law which regulates all aspects relating to a company is the Companies Act. It contains provisions relating to formation of a company, powers and responsibilities of the directors and managers, raising of capital, holding company meetings, maintenance and audit of company accounts, powers of inspection and investigation of company affairs, reconstruction and amalgamation of a company and even winding up of a company. In addition, the Indian Contract Act is another legislation which regulates all the transactions of a company. It lays down the general principles relating to the formation and enforceability of contracts; rules governing the provisions of an agreement and offer; the various types of contracts including those of indemnity and guarantee, bailment and pledge and agency. It also contains provisions pertaining to breach of a contract. The other major legislations include: the Industries (Development and Regulation) Act 1951; Trade Unions Act; the Competition Act, 2002; the Arbitration and Conciliation Act, 1996; the Foreign Exchange Management Act (FEMA),1999; laws relating to intellectual property rights, etc.

Legal Issues in Offshore Outsourcing

There has been number of legal issues in offshore outsourcing to India as more and more global organizations are outsourcing their business processes and IT services here. If an organization is outsourcing to India, it should be made sure that the organization is aware of Intellectual Property protection and the data privacy and protection in India.

Taxation in India: Offshore outsourcing decision is greatly influenced by taxation policy of India. Before outsourcing, the tax associations should be understood. This is an important legal issue as different countries have different tax laws. The outsourcing provider can be consulted about which tax provision would be suitable in the legal contract.

Choice of Law & Contracts in India – While executing a legal contract, the laws of a single country are not sufficient. Accordingly, prior to signing a legal contract, it should be made sure that the law governing the contract is decided. Consequently, if the choice of law is expressed in the contract, it will definitely be supported in the Indian courts.

We are a full service law firm based in India, providing services to clients worldwide. As an international law firm, we offer specialized services to our clients for setting up business in India and assisting our clients with all regulatory compliance. We work closely with leading US and European law firms and attorneys in India.

Our Intellectual Property Services portfolio includes detailed analysis for the preparation and prosecution of patents, Drafting of Provisional Patent application, Drafting of Non-Provisional Patent application, Competitor Patent Analysis, Claim Charts, Patent Infringement Research and Analysis, Patent Validation & Invalidation Research and Analysis, Freedom-to-operate & Product Clearance Search and Analysis etc.

Our law firm assists the clients in incorporating a private limited company in India, a public limited company in India, Limited Liability Partnership (LLP) in India, partnership firm in India etc. As an international law firm, we also help our clients in incorporation of the offshore companies across multiple jurisdictions worldwide.

The law firm provides a diverse range of corporate law services, including Initial public offerings, business counseling, mergers and acquisitions, financial transactions and investment management, bankruptcy, franchising and licensing, consumer and advertising laws, trade regulations and practices, etc.

Visit our Business Blog homepage: http://research.techcorplegal.com/

International Technology Business & Patent Law Firm in India: Patent Drafting, Patent Searching, Patent Filing in India, PCT National Phase Filings in India: http://www.techcorplegal.com/

International Business & Management Company in Singapore: Starting a Business in Singapore: http://www.techcorpgroup.com/

Contributors: Prity Khastgir andRahul Dev

We regularly update ourFacebook pageand share similar stories onTwitter. You can also check out our premium service offerings for Mobile Applications, Social Media & Cyber LawsandPharmaceuticals, Biotechnology, Food & Healthcare
To know more about us, get connected with us on
LinkedInor mail us atinfo [at] techcorplegal [dot] com

Our Business Law Services: Company & Individual Representation, Business Litigation & Corporate Law, Business formation & Review of Business Formation Documents, Cyberlaw, New Media, & Internet/Technology, Entertainment, Sports, & Media, Contract Negotiation, Review, & Drafting, Intellectual Property ("IP"), Real Estate Transactions and Landlord/Tenant Disputes, Employment Law, Securities, Mortgage, Banking & Finance, Mergers & Acquisitions, Legal Malpractice / Ethics Violations / Company Policies / Website Terms & Conditions, Brand Identity & Positioning, Brand and Intellectual Property Licensing and Development, Compliance, Preparation of Business Plans, Business Process, Efficiency Consulting, & Outsourcing, Investment & Strategic Ventures, Project Finance & Management, Competitive Landscape Analysis, Right Time to Incorporate a Legal Entity, Finance, Funding & Venture Capital, Type of Entity: Company vs. Partnership vs. Sole Proprietorship, Right Location (Jurisdiction) to Incorporate a Company, Company Incorporation in India, Partnership, Sole Proprietorship & LLP in India, Setting up Liaison / Representative / Branch/ Project Office in India, Franchising in India, Licensing in India, Retail in India, Things to do Before Quitting a Job and Starting a Business, Selecting a Business Name, Branding & Trademarks, Shareholders & Stock Options, Tax Planning & Management, Employees, Interns, Human Resource (HR) Management & Labor Laws, Joint Ventures, Corporate Restructuring, Mergers & Acquisitions, Commercial Disputes, Litigation & Arbitration, Foreign Direct Investment & Foreign Exchange Regulations in India

Our Patent, Trademark & Legal Services: Patent Searching: Worldwide Patent Searching, Patentability Search, Invalidation Search, Freedom to Operate/ FTO Search, Infringement Search, State of the Art Search, Patent Process and Support Services Outsourcing: Patent Drafting, Patent Illustrations, Patent PCT Filing in India: Patent Filing, Market Research before International Filing, Patent Prosecution and Patent Grant Services in India: Patent Prosecution in India, Preparing Response to Office Action, Post Patent Grant Services for Licensing Inventions: Patent Licensing, Licensability Analysis, Patented Technology Commercialization Services for Individuals, SMEs, Companies: Patent / Technology Commercialization, Due Diligence & SWOT Analysis, Worldwide Trademark/ TM Searching and Filing Services: Trademark Searching, Trademark Filing, Trademark Prosecution & Licensing, Trademark Due Diligence, Legal Research, Process and Support services Outsourcing: Legal Research, Contract Management, Litigation Support, Patent Litigation Support, Medical Litigation Support

Posted in Uncategorized | Leave a Comment »

 
%d bloggers like this: