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One of the most common examples of intellectual property that business owners should to protect it is a name – its business name, product name or, in limited circumstances, the name of a person. Trademarking a name can be more complicated than people expect, especially when disputes arise. Dr. Dre vs. Dr. Drai A few years ago, a Pennsylvania doctor filed an application to trademark the name he uses marketing and branding his medical services: Dr. Drai. His application was challenged by California iconic rap artist and businessman, Dr. Dre. Dr. Dre filed the challenge on the basis that trademarking the name would create confusion between the two parties and lead people to believe there was a connection between the medical doctor and the music mogul. Recently, though, the court dismissed Dr. Dre’s complaint saying that there was not enough evidence to demonstrate that people would be confused or misled about the different good and services. Trademarking a name Trademarking a name is an important way to protect your image, brand and reputation, by registering it and preventing others from usurping it. The first prong can be challenging if a name is not distinctive or if it is not being used for purposes of commerce. In the case of Dr. Dre, the outcome may have been different if the medical doctor did not have immediate plans to use the name for business purposes. With all this in mind, business owners would be wise to discuss with an attorney the process of securing a trademark. This includes determining if the name is already protected, creating a valid application and responding to any challenges that may arise.

One of the most common types of disputes that arise between employers and employees is a dispute involving wages. Whether an alleged violation is the result of an oversight or deliberate actions, it can have serious consequences for the employer – it’s the newest craze by plaintiff’s lawyers. Recently, for instance, Frito-Lay Inc. resolved a wage violation dispute with 254 truck drivers. The company agreed to pay $6.5 million for failure to pay for meal and rest breaks, which are two of the most common areas of an employer’s exposure. Multiple violations In Frito-Lay, the truckers accused their employer of several wage and hour violations, alleging that the company did not keep accurate wage or hour records for the drivers and did not pay the drivers for all the hours they worked. This included paying them during meal and rest breaks, which is required under state law. Meal and rest breaks Compensation for meal and rest breaks has been a divisive issue in California and fertile ground for a lawsuit. Specifically with respect to the trucking industry, employees have been targeting their employers for failing to comply with the California requirement to provide drivers with paid meal breaks every five hours when they are driving and one 10-minute result period for every four hours. Avoiding similar situations Considering that the damages, fines and penalties for wage and hour violations can be prohibitively expensive, it is typically best to avoid such a claim in the first place by working with an attorney to review your compensation policies and ensure they are in line with state and federal laws. If you find yourself on the wrong end of a wage and hour complaint, contact an employment attorney immediately to protect your rights and minimize your exposure.

Driving a truck can be a grueling, demanding occupation, especially for drivers who travel across the country. Not only do drivers face the risk of getting in an accident, they also need to find ways to cope with the long hours of sitting behind the wheel. As such, it is important for trucking company owners to hire people capable of performing the job safely and in accordance with state and federal trucking laws. However, between the shortage of truck drivers and increasing demands on transportation companies, finding drivers who fit these criteria is proving to be quite difficult. That may or may not change if bills to lower the interstate commercial driving age from 21 to 18 are successful. What proponents of the bills say Supporters say that lowering the age for interstate drivers provides valuable opportunities for younger drivers looking for a career in trucking. There is also motivation to lower the age because, as noted in this analysis from the American Trucking Association, people between the ages of 18-20 have the highest rate of unemployment. Lowering the driving age could increase employment opportunities while possibly reversing the driver shortage. What critics of the bills say Critics of lowering the age say that teenage drivers are simply not safe or responsible enough to operate a commercial truck across state lines. They say that teenage drivers are at least four times more likely to be in a fatal crash, and they do not have the driving experience to warrant an interstate license. Instead of hiring younger drivers to address the shortage, opponents of the bills argue, more should be done to keep and attract drivers who fit the current criteria. What this means for trucking company owners today It is not yet known if the bills to lower the age will pass, though we will certainly follow up with any developments. Issues regarding regulations and hiring practices in the trucking industry can be incredibly complicated and divisive. But regardless of where you fall on a particular measure as a trucking company owner, it is crucial that you take seriously compliance with state and federal trucking laws. Should you have questions or concerns about complex regulations or insurance issues, you can consult an attorney.

People all across California dream of cashing in on their “side-hustle,” or “Passion Project ” they pursue outside of their regular job. As is the case with any business venture, there is no guarantee of success, but there are people who have turned their Passion Project into a successful business. For instance, one man started an e-commerce business that made its first $1 million within three months of launching. According to this article, he spent roughly an hour a week on the project, and ultimately, he sold his company for $10 million. If you are hoping to turn your Passion Project into a lucrative business, it is important to assume that it may one day be successful and take the steps necessary to protect it. This is particularly true if you have a friend or partner working on the project with you. While you may not have any disputes in the early stages of what starts out as a fun undertaking, once it takes on increasing debt or starts making money, you stand to either be stuck paying all the debt, or be squeezed out of the business’s imminent success if you don’t have the proper safeguards in place to determine who gets what and when. Here are three basic tips to avoid legal problems: Know your partnerships: Does your partner(s) treat you fairly who has the same vision for the company you do? If not, get out! If so, you may want to consult an attorney about how to structure and operate a business and what formalities you need to protect your share. Protect your product: Once your business entity is formed, you may wish to protect its intellectual property from unauthorized use such as your product or service, trade name, trademarks, licenses, assignments and non-disclosure agreements, etc. Comply with laws and regulations: Determine which federal, state and local regulations may apply to your business by obtaining the appropriate licenses, registrations, and filings. Penalties for noncompliance with can be devastating. There’s nothing more rewarding than watching your Passion Project develop into a going concern, so discuss your business plans and objectives with an experienced business lawyer to help ensure that it is adequately protected.

Protecting intellectual property is a high priority for business owners across California, particularly in areas such as technology, transportation, entertainment and other highly competitive industries. Everything from branding to marketing can hinge on if and how a business protects the creative elements that set it apart from others. As such, it is important to take early and deliberate steps to protect any intellectual property your company (or employees) might have. Below, we examine a few options you may want to explore. Patents: Patents can protect any inventions your company may have. You can apply for a patent to cover new technical solutions that are novel, useful and nonobvious. Copyrights: Copyrights protect literary and artistic works. These can include any drawings, ads, computer programs, films or music that you or your company creates. Copyrights could also protect slogans and logos, in some cases. Trademarks: Property that you want to distinguish as one belonging to your company can be protected with a trademark. As a business owner, you might trademark packaging, fragrances, color shades, and even words and letters that differentiate your company from another company. Beyond these protections, you can also put in place confidentiality and non-disclosure agreements to prevent employees and partners from sharing protected intellectual property and trade secrets with competitors. Having a patent, copyright or trademark in place, combined with NDA’s with your employees and vendors, are crucial steps in protecting your intellectual property. However, you must also enforce your ownership. This could mean completing licensing agreements or taking legal action against parties for unauthorized use. At every step of this process, it can be wise to have an attorney by your side. Not only can an attorney help you navigate the legal process, but he or she can also inform you of your options and rights to help you avoid costly mistakes.

If you operate a mid-to-large sized business in California, you likely have a diverse workforce consisting of different types of workers. While many of them could be full-time, regular employees, it is becoming increasingly common for such companies to hire freelancers or independent contractors as well. This hiring trend is part of the “gig economy,” which refers to the rising number of people who work in independent or short-term capacities. Due to the fact that this segment continues to grow so quickly, there have been more companies across the country confronted with disputes regarding worker classification. Why classification matters The way an employer classifies a worker is significant for many reasons – particularly in California. First, it can define the longevity of the role. Will a person be on staff indefinitely as a regular employee? Will the person be working for the company for a single project as a freelancer? Is there an end date to his or her employment defined in a contract? Classification also matters because it dictates what (if any) benefits and protections a worker receives. In general, employers are not required to provide things like health insurance, time off or a minimum wage to freelancers and contractors. Further, these workers may not be covered under certain federal laws that protect employee rights in the workplace. Finally, classification reflects the expectations of the role. An employee typically has a manager, a defined schedule and receives specific training. Non-employees often have more control over their schedules as well as the jobs they accept. How the gig economy contributes to employment disputes As discussed in this NPR article, workers in a gig economy can take on attributes of both employees and non-employees. This can make it easy for confusion and debate to arise. California courts and administrative agencies closely monitor how a worker is classified, generally relying on a multi-part test of various elements to determine whether a worker is an employee or independent contractor. Misclassifying a worker can result in a wage and hour lawsuit by the worker, as well as actions by governmental agencies seeking taxes, fees and penalties. Consequently, it is important to properly classify workers to avoid trouble; but if you get into a dispute with a worker or governmental agency, you need to retain an attorney who can aggressively advocate on your behalf to minimize or eliminate the damage.

After several years of blood, sweat and tears, your business is a success. But getting your fledgling company off the ground was only the first step. Your company has all the potential to grow, which means you may want to consider the advantages of incorporating your business The Benefits of Incorporating How long it takes to incorporate a company can vary widely. It can take anywhere from a few days to several months. Whether the process will be easy or difficult depends on factors like how you and your business partner work together, whether you choose to work with an attorney or attempt it alone and just how well you understand your company. Some business owners are put off by the seemingly-intimidating process. But with dedication and persistence, incorporation can bring major rewards, including: Acquiring limited liability protection Not being held accountable for business debts Gaining tax advantages Improving your business’s credibility Raising capital more easily Transferring funds faster The Process of Incorporating Like many other aspects of running a business, incorporation can be complex and time-consuming. The process of incorporation is composed of several steps, all of which may involve thorny legal details. For large and small companies alike, incorporation has several requisite steps. 1. Choose which type of corporation you want your business to be – an S Corporation, C Corporation or Limited Liability Company. 2. You and your co-owners or board members will have to choose a unique name for your company that generally ends in “Corporation,” “Incorporated” or “Limited.” Your name can’t imply any association with the federal government. 3. Once you have chosen a name, you must select your company’s directors. These directors will oversee financial and policy decisions for the company. 4. Then, you must file your company’s articles of incorporation for the state in which you operate. This step can be as simple as filling out the appropriate paperwork.

When business disputes arise, they don’t always start out as serious issues. As such, it can be tempting for owners and employers to dismiss them or hope the situation resolves itself. Unfortunately, this doesn’t always happen. In these situations, something that started as a small dispute can become a major problem. Because of this, it is crucial for business owners to take disputes seriously and address them sooner, rather than later. Doing so can be beneficial for a number of reasons. Swift resolutions can keep details quiet. The longer a problem goes unresolved, the easier it can be for information about the dispute to be shared. This is especially true if the other party feels a business owner is not actively engaged in finding a solution. It can minimize customer impact. Disputes between businesses and partners or vendors can adversely affect customers. For instance, a contractual dispute between Walgreens and a drug manufacturer could threaten the availability of life-saving medications for patients if they cannot reach an agreement, as discussed in this article. Fewer resources need to be spent on litigation. If a dispute can be resolved before it goes to court, neither party needs to spend additional time, energy or money on litigation. It may be easier to find an agreeable solution. Addressing a problem right away is an indication that business owners or employers take the situation seriously and are committed to finding a resolution. This can send a positive message to the other party who may be more amenable to working together to find a solution. While there are business disputes that are too contentious or complex for swift resolutions, others can be resolved with little or no unnecessary fallout when parties take the situation seriously from the beginning. With all this in mind, business owners in California would be wise to discuss potential disputes with an attorney as soon as possible. With the benefit of legal guidance and resources, business owners can address problematic situations while also staying focused on running their business.

Intellectual property rights matter, no matter what that property is used for. In an era where every action is an opportunity for a Facebook, Instagram or other social media post to promote your brand, any business needs to remember that copyrights matter. This doesn’t just refer to using a popular internet meme or a screenshot somebody else shared. It could even be an image of you or your company. Singer/celebrity Jessica Simpson currently faces a lawsuit for posting a picture of herself on Instagram. Note that it’s “a picture of herself,” not “her own picture.” Splash News and Picture Agency own this image, and British paper, The Daily Mail, had rights for its limited use. This did not include use by Simpson herself. MEASURING VALUE BY EXPOSURE While most people would think they’d have rights to a photo where they are the subject, Splash News and Picture Agency is a paparazzi company whose business is founded on the sale of rare photographs. Suing for $25,000, the company claims that Simpson’s use of the image reduced its value. As a celebrity photo company, the argument also notes that Simpson’s fans who saw the image on her Instagram post are the same customer base who buy the celebrity magazines the agency does business with. As the Professional Photographers of America explains, photo copyrights belong to the photographer immediately upon creation. Rights then transfer based on permission. Just because The Daily Mail had rights to the image, it did not grant Ms. Simpson the same rights, and she’s not the first celebrity to experience this surprising reality. READING THE FINE PRINT This lawsuit is one of many examples of how business contracts hinge on many parties. It only takes a single violation to decrease the value of a product or service. Any business matter requires careful review to make sure that the owners of property rights are protecting their brand and its use. Misuse of property can be as simple as a social media post or it can be far more egregious.

The processes and products that separate one business from the competition are often quite valuable. Business owners therefore want to be sure that they protect the features that set them apart and give them an edge over their competitors. There are numerous ways California business owners can do this. We discuss a few approaches in this post, though you are encouraged to discuss all your options with an experienced attorney to protect information. Protecting it from unauthorized employees Sensitive information is not necessarily something that needs to be shared with or accessible to every employee, especially in large companies with hundreds of employees. As such, you can protect this information from improper access by keeping a list of authorized users and making sure the information cannot be shared without permission. Placing strong passwords on the material can also be crucial. Protecting it from competitors To keep confidential information or trade secrets from competing entities, you can utilize non-disclosure agreements (commonly known as a “NDA”) or confidentiality agreements with employees. When properly drafted, these clauses can prevent employees from sharing protected information with other companies should they leave your company. Protecting it from the public In addition to the measures mentioned above, business owners can protect information from the public by examining the options for securing a patent, copyright or trademark on appropriate materials to prevent misuse. It can also be wise to pursue alternatives to litigation in the event of a dispute to prevent details about your business from going on the public records. These and other measures can ensure your business retains ownership and control over the elements of your company that allow you to stay competitive. However, if these measures fail or if a party violates them, you may have grounds to take legal action. Doing so may not undo the harm that has been done, but it can hold the appropriate party liable and allow you to recover financial damages.

Construction projects and change orders often go hand-in-hand. Throughout the course of any project, situations, conditions or preferences can change and alter how the project will continue. As such, it is crucial to have clear directions for change orders in any construction contract. The provisions that are in place can have a dramatic impact on the cost, scheduling and process of making changes during the course of a project, so be sure that your contract includes the following elements: Submission requirements: Change orders should be required to be submitted in writing. Parties should also detail the types of changes that will warrant the submission of a change order, the timing of submitting a change order and those authorized to submit a change order. Acceptance requirements: Typically, a construction contract should also state that both parties must agree to a change order for it to be enforceable. Typically, when either the owner, who requests a deviation from the plans, or the contractor encounters an unexpected problem, prepares a change order on a standard form and presents it to the owner for signature. Valuations: Changes can be expensive, and contracts should include directions on how to address and cover added costs or materials. Scheduling details: Changes can delay or expedite a project, and the contract provisions should include information on whether change orders must include anticipated schedule changes. There might also be reason to include direction on what options parties have if a change will affect the date of project completion. Without these provisions in, contractors and owners can find themselves paying a hefty price when and if a change impacts a project. A well-drafted construction contract is essential for any construction project, whether it is to renovate a small apartment or build a massive commercial building. Not only do they dictate what is being done, they also provide parties with legal protections and direction in the event of a dispute. As such, contracts should be carefully drafted and reviewed with the help of an experienced attorney.

Defects in construction can cause a number of problems for property owners and contractors. Some problems are easy to resolve and cause little more than a brief delay or minimal added costs. Other problems, however, are far more troubling and difficult to resolve. Whatever type of construction defect you may be dealing with, it could lead to legal action and an expensive lawsuit. As such, readers should be aware of some potential defenses to construction defects before they make any decisions regarding legal options and proposed settlements. There are numerous defenses to construction defect claims; below, we briefly examine three of the more common approaches. The problem is not caused by a defect. Leaks, electrical problems, and mold are all commonly cited in construction defect claims. However, to determine if these issues are the result of a defect or something else, a thorough investigation should be done. In some cases, there is another explanation for the problems. Someone else is liable for the defect. Assigning liability can be very complicated because often several parties are involved in a construction project. It is important to hold the appropriate party accountable. For instance, an engineer may not be liable for defective workmanship, and a shower door installer may not be liable for water intruding into the floor below. The project was completed 10 or more years ago. As specified in California laws, actions to recover damages for a latent defect are limited to the 10 years following substantial completion of the project, unless there are claims of fraud or misconduct. These defenses reflect the fact that construction defect claims tend to be highly technical, emotional and involve many parties. To resolve them satisfactorily, parties must be well- versed in construction issues, or work with an attorney who is.