Life as a small business owner can be complicated. With so much on your plate, from managing your team to making sure that the job gets done smoothly, it’s easy to overlook the potential for legal challenges that can be a threat to your business.

Depending on the industry you’re in, there are many different legal challenges that may come your way. One common legal problem small business owners face is having their intellectual property stolen.

Intellectual property refers to artwork, music, inventions, designs, etc. — essentially any creation of the mind. And, just as you protect your physical property, like by having an alarm system on your car or locking the deadbolt on your front door, your intellectual property also needs to be protected.

Without the right protection in place, small businesses have very little recourse if another company decides to take their business name, branding, logo or unique goods and services.

Here’s a basic overview of the legal protections small business owners can use to keep their intellectual property safe.

Trademarks, patents and copyrights, and when to use them

Trademarks

A trademark is used to protect symbols, names, words, colors and sounds that set brands or goods apart. In other words, it’s a source identifier of goods and services. The term Band-Aid, for example, is trademarked. While other adhesive bandages exist that are similar to Band-Aids, only Band-Aid brand bandages can use the term “Band-Aid.”

Trademarking designs, like your logo, as well as your business name and any unique slogans, prevents other businesses from stealing them and using them as their own, while also helping to prevent counterfeiting.

The more unique your trademark, the better you’ll be able to enforce it. But, before you trademark anything, you should make sure no one else is already using it.
To become a trademark owner and establish rights in your trademark, you simply have to start using it and identifying it with the symbol “TM”.

This grants rights and protections in the geographic area where you have actually sold your products. The registration extends the protection throughout the US regardless of whether you have sold in those locations. The “TM” gives common law protection and the right to sue in state court; you need a USPTO (United States Patent and Trademark Office) registration to sue in federal court under the Lanham act.

For broader protection, register your trademark with the USPTO. Once your trademark is registered, start using the ® symbol.

Patents

Patents are used to protect inventions, like a product, a unique technical solution or a newly discovered process that you’ve discovered, by preventing others from copying it or using it as their own.

There are different types of patents you can apply for — design, utility and plant. Although not everything can be patented, the vast majority of man-made inventions can.

Just like with a trademark, before you patent something, you need to make sure that someone else hasn’t previously invented and patented it. From there, you can apply for a patent through the USPTO.

Specific guidelines must be followed when applying for a patent, and the application fee is nonrefundable. It’s always a good idea to get professional help with applying for a patent. In fact, it’s virtually impossible to get a patent without a patent attorney.

Copyrights

Copyrights are used to protect original works of art, music and literature, including songs, books, films, architecture and even websites and software.The holder of a copyright has the exclusive right to change or duplicate it, as well as to display, distribute or perform it.

When you create something original, you have full copyright protection; however, when you register your copyright with the Library of Congress, you’ll get a certificate of registration and a public record.

Registering your copyright gives you public notice and the right to sue in federal court under the federal copyright act, but you can file after the infringement and still sue in federal court. You can sue in state court without filing for a common law claim.

Terms of copyrights can vary, but in general, most will last for the lifetime of the creator, plus an additional 70 years.

In order to register for a copyright, apply through the U.S. Copyright Office, where you can also search existing copyright records, view fees and learn about copyright laws.

Protecting your intellectual property is just as important as protecting your physical property, but threats to your intellectual property are just some of the many legal challenges small businesses may face.

Small Business Benefits™ members gain access to affordable legal protection that can help them protect their business and save hundreds of dollars compared to in-house legal counsel. Learn more.