Legal Issues for Entrepreneurs

It is important for the manager, particularly the manager of a new venture, to understand and use the law as a tool in corporate strategy. Law is too vital and strategic to be left to the legal department or external counsel alone. A company should cultivate compliance strength.

It is vital to appreciate and understand the role of the law in the value creation chain. Expertise in the rules [of any game] provides a competitive advantage. In business, legal knowledge helps organisations gain profits in three ways:
· Property – Law which usually penalises monopolies is quite generous in granting ‘legal monopolies to encourage innovation and development. Copyright – the form of intellectual property at the heart of the Napster case – provides a great example of the evolution of modern property rules and their growing importance to business.
· Rules defining Markets – The law creates competitive advantage by defining the boundaries of markets.
· Legal capabilities – The development of specialised legal capabilities – resources and skills allows a company to spot opportunities, take initiatives and fend off attacks especially well, relative that is, to rivals.

Five Factors [as developed by Michael E Porter] for enterprise success continue to be the legal touchstone –
· The Merits;
· Public Legitimacy;
· Strategic Position;
· Resources;
· Access.

Here is my list of ten points [relating to the law] that entrepreneurs should keep in mind -
· Understand the Law – contemplate legal risk in any action;
· Know the Rules [and play by them];
· Cultivate Compliance for Strategic Strength [Comply with all laws, commercial or general, including and especially environmental ad waste management related laws];
· Use Contracts to Define and Strengthen Relationships;
· Use the Intangible Edge [Capture the Value of Intellectual Capital];
· Protect the Brand [Corporate Reputation, Brands, Trademarks and Domain Names];
· Harness Human Capital – Be mindful of employment law and especially of problem areas like sexual harassment. Design fair and effective human resource policies;
· Manage Disputes – Do not always litigate or rush to arbitration, deploy mediation and other conciliatory measures;
· Be Open to good legal advice – cultivate an attorney-client privileged relationship;
· Develop a legal sense – Spot legal issues before they become legal problems.

CII hosts meet on innovation,creativity, IPR in Mumbai [India]

CII in collaboration with the U.S.Chamber of Commerce & U.S. India Business Council (USIBC) & Department of Industrial Policy & Promotion, Govt. of India, will host the 2nd Annual Global Forum on Innovation, Creativity and Intellectual Property in Mumbai, India on 26-27 February 2008 at Hotel Hyatt Regency. The forum is being Organized Further innovation and Intellectual Property Rights enforcement; Develop solutions to the persistent IP challenges throughout the world and Publicize new IP initiatives, including legislative reforms.

Some of the Key sessions of the forum are: Developing new treatments and cures: the role of innovation, the process of innovation; Case studies in developing a competitive environment, Judicial remedies for IP Infringement, Creator to consumer: Protecting Intellectual Property in a digital age, Global trends in IP protection and International law Enforcement: working with brand owners to protect IP.

This is has attracted participation from 15 Countries across the World. The Key speakers for the forum are: Ronald K. Noble, Secretary General, INTERPOL, Shanker Annaswamy, Chairman, CII, National Committee of IP Owners & Managing, Director, IBM India Pvt. Ltd, David Chavern, Executive Vice President & COO, US Chamber of Commerce, K.V. Subramaniam, President and CEO Reliance Life Sciences, Sangita Reddy, Executive Director (Operations), Apollo Hospitals Group, Dr. Swati Piramal, Director, Strategic Alliances and Communication ,Nicholas Piramal Ltd, Martin Shively, Director, Worldwide Intellectual Property Operations & Associate General Counsel, Microsoft, Mr. N N Prasad, Jt. Secretary, Department of Industrial Policy & Promotion, Ministry of Industry & Commerce, Govt. of India. Hugh Stephens, Senior Vice President, International Relations & Strategic Policy, Asia Pacific, Time Warner, Ambassador Teresita C. Schaffer, Director for South Asia, Center for Strategic and International Studies, Geoffrey Yu, Senior Specialist Advisor, Ministry of Foreign Affairs and Ministry of Law, Singapore, Luiz Paulo Teles Ferreira Barreto, Vice Minister of Justice, and President of CNCP (Conselho Nacional de Combate a Pirataria), Government of Brazil, Benoit Battistelli, French IP Commissioner and Director General, National Institute for Industrial Property, France, Larry Molloy, Worldwide Vice President, Brand Protection, Johnson & Johnson Company, Jorge Amigo, Director-General, Mexican Institute of Industrial Property, Rakesh Bakshi, Director – Legal & Corporate Affairs, Microsoft Corporation (I) Pvt. Ltd, and Member, CII National of Intellectual Property Owners, New Delhi, India .

This is one of the flagship events of CII National Committee of IP Owners which spearheads CII National & International Initiatives in Intellectual Property Protection & Enforcement.

Entrepreneur Investment Opportunities: Will Your Startup Idea Fly?

Entrepreneurs are constantly coming up with creative and innovative ways to identify investment opportunities, but how do you know if your startup idea has what it takes to get off the ground and soar? Use this investment opportunities checklist to ensure your startup idea has the strategy and substance for long-term success.

Before attempting to secure investment for your startup idea, you should be prepared with the answers for any questions that an investor may have. Use the following checklist to determine whether or not your startup has the wings to attract investment opportunities.

Technical evaluation questions for startups:
What are your competitive advantages, features and benefits?
Is your product high-quality, as verified through third-party results?
Is your business idea innovative and does it solve a current market need? Will your product/service require an educational component to teach customers about its features and benefits?
Is your product hard to imitate (high barriers to competitive entry)?
Is your product environmentally safe and in line with regulatory controls?
Have you checked the idea for faults or limitations?
How soon can your idea be put into operation?
Have you secured protection on your intellectual property?


Market evaluation questions for startups:
What is your unique selling proposition for quality, service and innovation?
What customer problems are you solving and in what market niche?
What is the demand for your product - seasonal, repeat sales, etc.?
What is your competition doing in this area?
Do you have established distribution channels?
How simple or complex will the idea's execution or implementation be?
Have you considered the possibility of user resistance and difficulties?
What is your key to marketplace differentiation (performance, design, quality, economy)?


Management evaluation questions for startups:
Is your management team experienced and educated in this industry?
Have they adopted an entrepreneurial attitude with a focus on results?
Does management see the big picture and also understand details?
Does the team have experience in all necessary areas (marketing, finance, management, production)?
Are you employing outside expert advisors (legal, accounting, etc.)?
Is there outside accountability (investors, board of directors)?


Economic evaluation questions for startups:
What is your up-front investment intensity?
Are you competing on innovation and quality and not just on price?
Do you have a handle on cash flow and overhead?
Are your financial projections realistic and demonstrating high margins and profitability?
Do you as the owner have a financial commitment and is management paid for performance versus title?
What immediate or short-range gains or results can be anticipated? Are the projected returns adequate and the risk factors acceptable?
What are the long-term investment opportunities for your startup?

With well thought-out, solid answers to these questions, you should be better prepared to present your company to potential investors and increase your chances of receiving the funding you need.