BizTech Law Blog
It is undeniable that the internet is here to stay, playing an increasingly critical role in our ability to obtain and disseminate information. No matter the application – business, entertainment, politics, etc. – the internet has become a staple of everyday life. For many individuals with disabilities, however, navigating the internet can be a less than satisfying endeavor.
Crowdfunding, some would say, is the new social networking platform of raising money from people online. While crowdfunding is a relatively new term and concept, traditional principles of law still apply. Artists, startups and online creators using this new platform are governed by Intellectual Property principles.
Intellectual Property (IP) refers to the creations of the mind; and most commonly include ideas or inventions, literary and artistic works, symbols that identify your brand, names, logos and/or competitive business ideas or information. Under this broad umbrella of Intellectual Property, there are generally four categories that govern the use of Intellectual Property:
- Trademarks
- Patents
- Copyrights
- Trade Secrets
Before pitching or disclosing your concept to an online crowdfunding community to raise money these four categories of protection and the potential resulting consequences should be thoroughly examined. Failure to do so could result in the inadvertent theft, infringement or forfeiture of your IP rights. Let's take a deeper look at these four categories.
The JOBS Act, which became law on April 5, 2012, included for the first time in the U.S., a legal structure that will permit the use of general solicitation in connection with small, non-registered investment offerings in the context of crowdfunding. The SEC still needs to adopt implementing regulations before this funding vehicle becomes available and the market decides if it is viable. This will take several months, if not a year. In the meantime, and even after investment crowdfunding becomes available, regular, non-investment crowdfunding may be a viable alternative for your enterprise.
The JOBS Act, which became law on April 5, 2012, included for the first time in the U.S., a legal structure that will permit the use of general solicitation in connection with small, non-registered investment offerings in the context of crowdfunding. The SEC still needs to adopt implementing regulations before this funding vehicle becomes available and the market decides if it is viable.
The title of the JOBS Act dealing with crowdfunding sets out a framework, but requires the SEC to fill in the details by adopting regulations. There are far too many topics for which the SEC is required to adopt regulations to provide a complete list in this article. But examples include regulations that:
