At the trial, Adli Law is defending their client, TEK Corporation, a medium-sized Italian based company, with total revenues of $20M. TEK Corporation manufactures emergency tire repair kits for automobiles. These auto repair kits can be used to repair and inflate punctured tires.

The plaintiff, American Marketing, Inc. is a subsidiary of a multi-billion dollar international conglomerate that is a competitor of TEK.

The trial is expected to conclude in late April 2013.

In his study, Professor Lemley, along with co-authors Jamie Kendall and Clint Martin, collected and reviewed data on every patent trial conducted in the United States between January 1, 2000 and June 30, 2011, endeavoring to identify factors that affect patent trial outcomes.

With patent suits continually on the rise, and significantly so since the enactment of the America Invents Act in September 2011, any factor that can increase the likelihood of success in these suits will no doubt be valuable information.

Of the 624 patent trials evaluated, 158 were bench trials and 466 were jury trials. Of the 158 bench trials, 51.3% ruled for the patent claimants, while in the 466 jury trials, 62.9% ruled for the patent claimant. These results led the authors to conclude that patent claimants do, in fact, fare better with juries.

On the other hand, the length of trial did not have an effect on the outcome of patent trials, contrary to conventional wisdom. Patent claimant wins took 7.76 days on average and alleged infringer wins took 7.74 days on average; both had a median of 7 days.

Professor Lemley noted that this result was quite unexpected. “All the patent lawyers I have talked to think that short trials favor patentees, and that long trials where the jury gets bogged down in discussions of prior art, favor defendants. We were surprised to find that wasn’t true,” advised Professor Lemley by email.

However, analysis regarding the forum in which the patent claimant files suit did produce some interesting results.

First, the study notes that more than 40% of the patent trials in the last 10 years took place in five districts: the Eastern District of Texas, the District of Delaware, the Northern District of California, the Central District of California, and the District of Massachusetts.

Second, the study dispels the widely-held assumption that Eastern District of Texas always votes for patent claimants. Admittedly, juries in that district do find for patent claimants more often than average, found the authors, but they concluded “it is not statistically significant once we consider other factors such as the number of patents, the number of defendants, whether a judge or a jury decided the issue, whether there were non-patent issues in the case, and whether the case resulted in a split decision.”

The Northern District of California had a below average jury win rate, but the authors found the result was not statistically significant, partially because there were only a small number of jury trials in that district.

Other interesting results included:

– Conducting a trial in the Eastern District of Texas, the Central District of California, or the District of Delaware is significantly correlated with a shorter trial.

– The number of patents per thousand people in the jury pool was significantly correlated with a longer trial.

Thus, the study concludes that are some factors that will, by some measure, serve as a predictor of success — juries rule more often for patent claimants than judges, and certain districts tend to produce more favorable outcomes for patent claimants, although this second factor’s statistical significance is questioned by the study.

Ultimately, given the results regarding the length of trial, and its lack of effect on outcome, the authors make the argument that it may not be necessary for parties to engage in long trials that waste party and judicial resources, when “a quick patent trial may produce the same outcome more quickly and cheaply.”

“Hopefully judges and lawyers will see our findings and think about how much time a case really needs,” said Lemley.

Tune in to get some advice on how a small business owner can avoid getting into legal trouble: http://austinsbigworld.weebly.com/the-show.html

What is a business plan?
A business plan is a plan that looks ahead, preparing for problems and focuses on future opportunities. They help pave the way for new loans to the business that are to be made or perhaps new investments. It is important that clients have a clear mission statement, as this will be the foundation of your business. Other information in the business plan might include a general outline about the product or service, industry trends, the agents involved and starting finances.

What is important in a business plan?
For many of our clients perhaps the most important business plan is one that focuses and addresses finances. This includes profit and loss, the businesses cash flow, balance sheet,
Some of the suggestions that we give our clients for a business plan include the following points:

• Mission Statement: This is just a small caption about your business
• Description of the Business: values, culture and initial plans
• Services and products: Focus on giving value to your client/buyers
• Market research: determine some of the needs in your market, where the clients are and how to reach them
• Focus and Strategy: Include in your plan certain steps to take to target your clients. This would also include organizing staff responsibilities and your budget.
• Professionals: include a list of key team players at your company, their strategies and the details on how you will be able to implement market goals.
• Financial management: make sure to include in your plan a balance sheet, profit and loss as well as cash flow.

Business Entities
How will your business be different from others, and how will your goods and services appeal to your customers? In other words: what makes you unique from your competitors? Begin thinking about different ways that businesses differentiate themselves? One might say that they are cost-effective while another might chose to focus on client relationships.

How to form legal entities and launch your company successfully
It is important before forming any business to understand some of the pros and cons about different legal entities. The pros and cons about business entities vary by state to state and consequently should be consulted with an attorney you can trust.

There are many different business entities that a client can choose from. Certain entities range from sole proprietorship, partnership, corporation, or Limited Liability Company (LLC). Within these entities you have additional choices, from a standard corporation or a small business S corporation.

Sole Proprietorship
A sole proprietorship is perhaps the simplest formation. A sole proprietorship is usually under the owners name or could be under a trade name.

There are several disadvantages to a sole proprietorship. One of the main disadvantages is the lack of a separate business entity. This means that the owner of the sole proprietorship has personal responsibility for the business. If the business dissolves then creditors can go after the owner personally.

General Partnerships
In a partnership agreement, the income or loss from partnerships passes through to the partners without any partnership tax. In fact, when forming a partnership it is important to create a partnership agreement as that will tend to define different levels of risk, such as being a general partner or a limited partner. In addition, it’s important when forming a partnership to look carefully at the agreement. The agreement will explain the arrangements when the partnership dissolves, buy/sell agreements, and what should happen if a partner withdraws.

We advise our clients before forming a general partnership to discuss some of the pros and cons. It is important to find a business attorney with experience and has worked with several business entities in the past.

Forming a Corporation
There are two forms of corporations: C corporations and S corporations. A C corporation is the most widely used business formation throughout the United States.

C corporations provide the best protection from personal liability and provide the best non-tax benefits.

S corporations are used for smaller corporations. Owners within the S corporation can take profits without first paying the corporation’s tax on these profits.

Limited Liability Company (LLC)
LLCs are very similar to S corporations and provide significant limitation of legal liability, as well as some favorable tax treatments on profits. Forming an LLC varies from state to state and it is important to trust a business attorney with experience to take care of your company’s needs.

See an experienced attorney
Before taking any steps to form a legal entity make sure you meet with one of experienced business attorneys by filling out our contact form or at 213-623-6545..

For experienced help in determining the appropriate business contracts for your new business, as well as assistance in drafting and approving contracts, a business law attorney can be of great assistance.

Common Sales-Related Business Contracts
If your new business is a company involved in the sale of goods you will need to consider the following common sales-related business contracts:

While not all of these business contracts are necessary for all sales businesses, you should consult with a business law attorney to make sure these and any other appropriate business contracts are drafted properly.

Common Employment-Related Contracts
Every business has employees, even if it is a family-run company. The type of employee varies from business to business, therefore you must be careful when filing the proper business contracts for non-compete clauses, contractors, consulting, representatives, and many other employee functions. Some of the common types of business contracts related to employment include:

Establishing a new business involves a tremendous amount of paperwork and documentation early on to avoid legal action in the future. The more complete and well drafted your business contracts are, the better they will hold up against any legal action you may later face. A business law attorney can help you prepare your business contracts early on so they serve you well in the future.

Some of the other common business contracts your new business may need are:

Again, not all of these will apply to your business, and there are many more business contracts that may be necessary to your situation. For the best advice on what you need to consider.

Hiring a Business Law Attorney
It is best to develop your business contracts early on in the business development stages so you’re not scrambling to draft them when they are required for use.

A business law attorney from the Adli Law Group P.C. will help you review your business plan and determine the appropriate business contracts. Contact us today for help with drafting your business contracts – 800-817-2949.

Consider Your Target Market

Companies want a unique name that says something about the type of business they are in. If you are a trendy, current generation business you may have the urge to base your name around a pop culture reference. While this may be a good idea in the current time, you will need to factor that many pop culture references do not have longevity.

When choosing a company name, consider what goods or services you are offering and the clientele you are selling to. If your business caters to highly educated executives, using slang in your business name may not be appropriate. Likewise, using another language in your business name may not be a good idea, either.

Playing the Name Game

Playing with various word combinations and phrases is essential to the developing of the perfect name. Remember that you want to keep it short and memorable!

Think about nouns and adjectives that describe your new business and combine parts to make a unique word. Or take an existing word relating to your company and attach a prefix or suffix that relates to your area of industry. Some businesses have created a memorable name by using an off-beat name with some sort of history.
 

Test Market Your Names

Once you’ve narrowed down your options to a few good ideas, test them out on others. Let the whole company, friends and family get involved in choosing a company name. Run your ideas by everyone and get their opinions, they may have some great suggestions you’ve never thought of.

Make sure that you have reached your final decision before ordering anything with your company name on it, or it may be costly to replace if you make a last minute change. Also, avoid generic names like “Bob’s Auto Repair” as tend to be forgettable and are also usually taken.

You will need to determine if a business name is already in use when choosing a company name. Checking with your local government agency for business development or an experienced business law attorney can help you avoid this mistake.

Help from a Business Law Attorney

For experienced help in starting your own business, including choosing a company name, a business law attorney from the Adli Law Group P.C. is there for you. We have formed lasting relationships with businesses across Los Angeles County and internationally in Europe, Asia, and the Middle East. Contact us today for a free consultation at (800) 817-2949.

Watch the video below to understand the basics of “Intellectual Property” or “IP,” if you are really savvy.

Did you enjoy the video? Find it informative? Make sure you let others know and sign up for the rest of the Intellectual Property video series here.

The proposed law defines a troll as a patent owner who did not do the inventing described and claimed in the patent and does not exploit it by making a product. A patent owner that meets this definition and loses an infringement case would be required by court to pay costs of the defendants.

Many people in the industries, such as high technology, that are regular targets of patent trolls hope that the proposed bill would deter Non Practicing Entities (NPEs) from bringing lawsuits on weak and questionable patents. “Clearly, most trolls are interested in bringing lawsuits with the hope of extracting a quick settlement,” states Dr. Dariush Adli, the President of the Los Angeles based Adli Law Group, PC, with satellite offices in Tokyo, Taipei and London, whose law firm has represented many clients concerned about troll attacks.

“Of course, not all NPEs are going to be deterred by this bill, but my view is that is that it can significantly reduce the number of frivolous suits,” added Dr. Adli, who is preparing a much anticipated webinar on the subject of defending against troll attacks.

According to Dr. Adli, the legislation would also improve the confidence of businesses to invest in innovation rather paying lawyers to fight trolls, while discouraging investment in NPEs.

Dr. Adli noted that the bill is would allow a defendant, in a troll suit, to move early in the case for a judgment that the patent owner is a non-practicing entity required to pay litigation costs if it loses.

A company is deemed not to be an nonpracticing entity under the bill if it is the original inventor or assignee of the patent, it is a university or technology transfer organization associated with a university, or it has made “substantial investment … in the exploitation of the patent through production or sale of an item covered by the patent.”

The patent owner would have 90 days to prove that it meets one of those three criteria, and the judge would then have 120 days to rule on the motion. A company found to be a nonpracticing entity would be required to post a bond to cover the full costs of litigation, which the accused infringer can recover if it prevails in the litigation.

Unlike the previous version, the new bill would apply to all patents, not just computer hardware and software patents. Critics had warned that limiting a patent troll bill to a certain technologies could run afoul of international trade agreements mandating that patent rights be uniform across all technological fields.