Bozeman Startup Attorneys & Lawyers

What Is Freedom to Operate?

Freedom to operate, also known as FTO or right to use, means you have the freedom to test, market, or sell a product or service in a specific area. Sometimes intellectual property rights only count in a country or a region, and outside of them you have the FTO to do whatever you want.

For example, let's say the U.S. government gave you a patent for a new kind of speaker. As the patent holder, you have the freedom to market and sell your speaker while no one else can. If it's a brand-new kind of speaker, you can also sell it in other countries without getting their patents.

However, your competition also has the freedom to operate in other countries, since you only have a U.S. patent. Perhaps someone else has patented the same kind of speaker in Europe, and now neither of you have the FTO to sell your speakers in each o

...

LLC Versus C Corp: What Is It?

An LLC is a business entity that is legally separate from its owners, who are known as "members." An LLC can have one member or many members.

A C Corporation refers to any corporation taxed separately from its owners. Unlike S Corporations, taxing of C Corporations occurs twice, once on the earnings and again on the salaries of the owners.

Similarities of an LLC and an S Corp

LLCs and S Corps have several similarities:

• Limited liability protection. In both an LLC and an S Corp, owners are not personally responsible for business debts or liabilities.

• Separate entities. LLCs and S Corps are separate legal entities formed through a state filing.

• Pass-through taxation. Both usually receive the pass-through tax, meaning they are not double taxed.

...

What Is a Search Fund?

A search fund is an investment vehicle, created in 1984, to help connect investors with entrepreneurs and manage a newly created company. The funds are usually set up by one or two entrepreneurs who raise investment funds from different venture capitalists to find suitable investment opportunities. The creation of a search fund is generally accredited to Professor H. Irving Grousbeck from Stanford Graduate School, who created the model to help two students who were looking to raise funds for buying a business. 

A search fund makes it possible for entrepreneurs to connect with investors and raise equity investments. There are different stages of the development of the search fund, such as:

• Raising the initial capital
• Finding an acquisition deal of companies valued between $5 million and $30 million

...

What Is Trade Dress Registration?

A trade dress registration protects the designm symbol, or trademark associated with a brand. The Trademark Act 15 U.S.C. §1052 regulates trade dress, which originally referred to the product's dressing and later expanded to include product design and packaging. A trade dress application must include designs and drawings, the associated services or goods, and a description.

A product qualifies for this registration based on the distinctiveness and functionality of its trade dress. Before accepting a trade dress application, the U.S. Patent and Trademark Office (USPTO) must see a clear "acquired distinctiveness" to protect the trademark.

A trade dress is a co

...

Chapter 11 is not a type a bankruptcy case we hear of very often. But when we do hear about it, it is usually in the news and it has something to do with a big corporation turning to the courts when it is having financial issues.

What is Chapter 11 Bankruptcy?

Many of us do not know that Chapter 11 is the only type of bankruptcy available for small businesses that are owned by limited liability companies, partnerships, or corporations. Chapter 11 allows a small business to restructure its finances by implementing a reorganization plan that is approved by the bankruptcy court. Rather than completely abolish the business, Chapter 11 helps to reorganize debts by modifying payment plans and help th

...