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Business Basics

Dids Macdonald, Chief Executive of ACID (Anti Copying In Design) looks at some of the fundamental issues facing those who are setting up in business
For any first time entrepreneur, starting out in business can be a daunting prospect, but for designers in the giftware industry, there are important issues relating to intellectual property rights which must also be considered. Careful consideration of these issues together with a sound set of terms and conditions of business can be essential tools in the armoury to help new companies survive.

Some of the questions most often asked by new business entrepreneurs are included in ACID’s TOP TEN TIPS for start-ups:

1. WHY DO I NEED TO KNOW ABOUT DESIGN LAWS?
Knowing and understanding the various laws that protect designers is a key strength. Intellectual property is the term used to describe rights such as copyright, registered and unregistered trade marks, patents and registered and unregistered design rights. These rights give the owner the right to decide who can use their property. ACID considers that one of the most exciting developments in design law has been the introduction of the registered Community design which offers protection in 25 member states for 25 years (renewable every 5 years).

2. HOW DO I PROTECT MY IDEAS?
Pure ideas can be difficult to protect unless they are patentable inventions. Ensure you have signed confidentiality agreements in place if you enter into discussions with third parties to ensure others do not use your ideas.

3. WHAT SHOULD I DO ABOUT SHOWING PROTOTYPES FOR NEW PRODUCTS?
Never leave prototypes or idea proposals with third parties without a signed acknowledgement of your intellectual property rights ownership. If third parties are not prepared to sign such an agreement you have to ask yourself and them the question “Why not?”

4. HOW CAN I PROTECT MY DESIGNS?
Always sign, date and keep all design drawings, including any initial sketches and at key points during the design process. If you have to rely on unregistered UK or Community design rights it is essential to be able to prove that you designed the products and provide a sound design audit trail with signed and dated evidence. If relying on unregistered UK or Community design rights the onus is on you as a designer to prove copying and to provide evidence that you are the owner of the designs.

5. HOW CAN I PROVIDE EVIDENCE OF DESIGN OWNERSHIP?
Ensure that you have independent evidence of the date of creation of all of your designs. For example, send your designs to yourself in a registered envelope or join ACID and register your designs on ACID's Design Register. Better still, consider registering your designs either with the UK Patent Office
HYPERLINK "http://www.patent.uk.gov"
www.patent.uk.gov
or with the Office for Harmonisation in the Internal Market www.oami.eu.int.

6. WHAT SHOULD I INCLUDE IN MY OWN STANDARD TERMS AND CONDITIONS OF BUSINESS?
Always conduct business with others on your own standard terms and conditions which should be drafted to ensure you retain the ownership of all the legal rights in your designs. For bigger projects, draw up a specific contract to minimise the likelihood of dispute. ACID’s associate lawyers have produced a standard set of terms and conditions of business available through ACID which the organisation intends to promote as a basic industry standard.

7. WHAT IS A REGISTERED COMMUNITY DESIGN?
A registered Community design (RCD) gives an exclusive right over the appearance of a product (or part of it) resulting from its features such as lines, contours, colour shape, texture and ornamentation. Logos, motifs and typefaces can also be registered.

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8. WHAT IS A TRADE MARK?
A trade mark is a badge of origin distinguishing the goods and services of one trader from those of another, so it is always wise to register your business name as a trade mark so that others can’t use it. Don’t forget that logos can now be protected by a registered Community design which is a less expensive alternativ
ve and more accessible. If you are relying on unregistered rights in your company name you can add ™ to the name and if you have obtained a registered UK or Community trade mark you can add ®

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9. HOW CAN I DETER COPYISTS?
If you don’⁴慷瑮瀠
t want people to copy you, you have to tell them!
To deter copyists, consider including the appropriate "copyright" notice on your products, website and marketing material, such as,
© [company name] [year(s) of design]
Design Right [company name] [year(s) of design]
"All copyright, design rights and any other intellectual property rights existing in our designs and products and in the images, text and design of this [website/marketing material] are and will remain the property of [your business name]. Any infringement of these rights will be pursued vigorously."
As a member of ACID, you can use the ACID logo on all your work and packaging as a deterrent.
Include in your design an insignificant detail which serves no apparent purpose. Copyists often reproduce an entire design, including these details, which provide excellent evidence of copying.

10. HOW CAN I PROTECT MYSELF AS WELL AS MY DESIGNS?
Consider setting up in business as a limited company, rather than as a sole trader or a partnership. This should ensure that if you run into any financial problems, your own personal assets are not at risk.

Further Information
These guidelines have been prepared in conjunction with Simon Clark of ACID’s associate lawyers Berwin Leighton Paisner www.blplaw.com

September/October 2010
issue 61
available now