Law Outside the Box

Most people are familiar with the name Eli Whitney from their history class.  Whitney is most recognized for inventing the cotton gin which in essence revolutionized the efficient use of cotton in every day products including clothing.  He was also responsible for a number of other inventions and innovations which are still in use today.

What people may not realize about Whitney is how much difficulty he had from a legal standpoint forwarding and protecting his business ideas including the cotton gin.  Even in the 1700s, the legal battle for control of his ideas nearly bankrupted him and caused him to lose his business.  It is impossible to say to what extent a well-crafted business plan would have done to help Whitney but suffice it to say, advanced preparation can head off potential known legal troubles down the road.

If you are a new business owner with a business idea or invention that you are looking to take to the next level, it is important that you give careful consideration to the legal aspects of your business.  Your business idea can be copied or stolen (often without your knowledge) and substantially impair your ability to maximize the profit and use of your idea.

When it comes to working with a great business idea, I always recommend that the inventor of that idea sit down with a knowledgeable business attorney as well as a lawyer well-experienced in the area of intellectual property (patents, copyrights and trademarks) and proactively organize a plan to address potential risks. 

I have represented a number of clients that invented or innovated a product only to see a competitor steal the idea and take advantage of that client’s idea.  In many cases, had the client taken the time in advance to evaluate the legal considerations, he/she could have stopped the competitor dead in his tracks.

As an entrepreneur, what are some important priorities you have as it relates to your business plan?