Friday, August 30, 2013

The Questions

"If an individual runs a business without taking any formal steps to create an organization, she automatically has a sole proprietorship. It is, if you will, the default option. She is not required to hire a lawyer or register with the government. The company is not even required to file a separate tax return—all profits and losses flow through to the owner and are reported on her personal return." (Beatty, J. F., & Samuelson, S. S. (2012). Introduction to Business Law, 4th Ed. South-Western College Pub/page 373)  
When in the start up of a business is it advisable to trademark your brand?
Common law trademark rights arise on first use within a product category or geographic market. If you start selling products under your preferred trademark now, you can claim ownership of that trademark without formally registering it with the U.S. Patent and Trademark Office.
What should designers consider when starting their business (LLC, S-Corp, and Partnership?)
Because an LLC offers its owners the significant advantage of greater flexibility in allocating profits and losses, and because LLCs aren't subject to the many restrictions forming an LLC is often the better choice.
Should I have a contract when free lancing work?
Should write up a work contract, a basic contract one can write that is legal by law that states the job description. Details things like the effective (opening) date of the contract, the name of the employer or business name. The name of the business and what the service you will deliver, a date or approximate time frame for delivery and the agreed-upon price Payment terms, including dates and/or milestones can be a basic legal contract.
How do you protect yourself when working with a vendor outside of the United States? (Getting paid, contracts, etc…)
When working as a vendor, how do the laws apply?
Check with the local business licensing agency in your area for more specifics. Typically you need a separate business permit or license from the city or town you're working in, and you may need one for each cart or vehicle you use. The permits usually expire after one year, so make sure you renew them. Some things you can look for: Most vendors must have a permit from the local or state health and you usually have to carry a minimum amount of liability insurance.
How do I protect my brand? How do I protect my designs?
You should be aware that some matters are not protected by patent or copyright laws. The minimum period of protection for trademark agreement is seven years from the date of initial registration. Registration is renewable indefinitely and design can be protected by both copyright and trademark laws at the same time.
What were the early projects that you worked on involving fashion law that you found significant?
What are the most common legal struggles you think those in the creative field have when launching their own business or product line?
Without a business plan you might run into many unnecessary obstacles. Wanting to get into fashion your plan should detail what types of fabric and supplies you will need, how you will get them, how you will market your line and how much it will cost. You need to have a clear-cut business plan in place.
What should designers consider as they think about selling a stake in their business or getting a partner?
I always recommend that people have partnership agreements drawn up by lawyers or other legal professionals who can explain partnership issues in more detail and make sure the partnership agreement says exactly what it needs to say. Some examples questions that were given were what is the financial contribution of each partner? What is the division of work between the partners? What property is included in the partnership and how is it defined? And what happens if one partner wants to leave the partnership?
What are some of the common legal mistakes you see young designers make?

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