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PDF Editor FAQ

How do I form an LLC?

Great question. First, it is important that you’re sure that registering your business as an LLC is the best legal formation for your needs. While an LLC makes your taxes easier to complete, you don’t really save any money (in regards to taxes) because you choose to incorporate as an LLC. However, an LLC can certainly help you protecting your personal assets. Now, for the actual answer of how to set up an LLC, I am going to presume that you’ve done your research and that you’ve decided that an LLC is absolutely the best choice for you.LLCs are easy to set-up. While there are some documents you’ll need to complete, it’s less time consuming than some of the other business entities. Your first step is to determine what you’d like to name your business. Make a list of two or three options because you’re going to need to visit the Secretary of State website for your state and run a name search to make sure that the name you want isn’t being used or wouldn’t be so similar to another business that it could cause confusion.Next, decide where you want to incorporate. You could choose the state that you’re in or you could choose a state like Delaware or Nevada. Many new business owners find it easier in the long-run to register their business in their home state because it is much easier to find an attorney or learn about the law in your area.The next step involves completing the appropriate forms. Each state has its own set of forms for registering an LLC. The forms are usually available for free on the Secretary of State website. When you download the forms (usually in PDF format), make note of the filing fee that you’ll need to pay when you complete the forms. Some states allow you to submit your forms and pay your registration fee online. Some states may require that you mail in the forms along with your fee.Read the documents carefully before you complete them. Make sure that you are turning in any document that is requested of you. Finally, keep in mind that you’ll have to pay a renewal fee each year. You should also know the process of how to dissolve your LLC in whichever state that you’ve chosen to register it in the event that you decide to end your business.Hopefully, this will get you headed in the right direction. If you need any help forming your LLC, check out LawTrades. We’ve helped thousands of small businesses get their start and we’d love to help you, too.

What has changed in Trademark Rules 2017?

On 06th March, the new Trademark Rules 2017 came into force. With this, the earlier 2002 rules underwent a major overhaul. The primary purpose behind this change is to simplify the Trademark registration process.Another motive for this change is improving the ease of doing business in India. Special provisions for startups, individuals, and small scale industries bear witness to this fact.In line with the PM’s Digital India initiative, the new rules promote E-filing by way of a 10 percent discount on filing fee. But, the new rules have their pros and cons. Moreover, the Trademark Rules 2017 hold different things in store for different entities.So, below is an analysis of all the changes in these rules along with their perks as well as flaws.Trademark Rules 2017: All That Has Changed1. Changes in trademark application formsThe previous rules provided for a humongous number of 74 forms, one for each type of application. The Trademark Rules 2017 bring this number down to a paltry 8. The following table provides an insight into the use of each form.TM-A - Applying for Registration of Regular/Collective/Certificate/Series Trademarks for Goods or Services in One or More ClassesTM-C - Obtaining Search Certificate for Copyright Registration of an Artistic WorkTM-G - Applying for Registration/Continuation/Restoration/Alteration in Details of a Trademark AgentTM-M - Requesting Inclusion of a Mark in the List of Well-Known Trademarks/Applying for Amendment in Trademark Application/Seeking Registrar Preliminary Advice or Grounds of Decision/Applying for Regulation of Certification Trademark or Deposition of Regulation of Collective Trademark/Requesting Review of Registrar’s Decision/Certified Copy/Duplicate Registration Certificate/Extension of Time/Inspection of Documents/Particulars of Advertisment/Registrar’s Order in a Contesting Proceeding/Any Other Miscellaneous Matter not covered by other FormsTM-O - Filing Notice of Opposition with the Registrar of Trademarks/Applying for Rectification of Register or Invalidation of a Trademark or a Related Counter-StatementTM-P - Requesting Replacement of Subsequent Proprietor as Registered Proprietor/Amendment to details of Registered Proprietor or Registered User/Amendment of Registered Trademark or Specification of Goods or Services/Conversion of Goods/Dissolution of Association between TrademarksTM-R - Requesting Renewal/Renewal with Surcharge/Restoration of a TrademarkTM-U - Applying for Recordal/Cancelation/Variation/Amendment in Details of Registered User or Intervention in Proceedings by Third PartyIt is clear that reducing the number of Forms is a laudatory step. This is because it makes the entire process much more simple and hassle free.Instead of remembering and filling a different form for each process, now it is easier to file an application for all the different applications related to Trademarks or Copyright.The naming of Forms according to the type of application makes the entire process even simpler. For instance, TM-R stands for Renewal or Restoration application. TM-C stands for Copyright Search Certificate. TM-U stands for Registered User Applications and so on.2. Registration of a trademarkWith a single form to apply for all kinds of Trademark Registration applications, the process is easier than before. Significant changes are the reduction in the number of forms and increase in fee.Let’s understand this with the help of an example. P is an individual who needs to file a Trademark Registration application for his/her business logo. Earlier, filing an application for registration would mean submitting a number of forms.TM-1 was filed for a regular application. Power of Attorney authorising an agent to file the application was filed in form TM-48. There were as many as 18 Forms for filing different kinds of applications. For example, TM 64 for collective marks and TM 4 for certification Trademarks.The Trademark Rules 2017 do away with the complex procedure, providing a single form TM-A for all kinds of applications. Now all you have to do is fill a single form, instead of trying to find out which form to fill for a registration application.One major change is the compulsory User Statement or Affidavit which is explained in more detail below.As an individual, you don’t have to pay the fee of Rs. 10,000. You can obtain Trademark Registration for Rs. 5,000 (Rs. 4,500 for E-filing). So, the fee remains more or less the same as earlier.Other requirements of filing representations of Trademark remain the same.Not changing the primary requirements is a wise step. A complete revamp of the existing system would have caused a lot of confusion and chaos.3. Well-known trademarksThis is a significant change from the earlier rules. Earlier, the judiciary had the power to decide if a mark is well-known or not.Moreover, such a situation would arise only in cases of infringement. But, now an applicant can request the Registrar to determine whether a Trademark is well-known or not by filing Form-M along with the fee of Rs. 1,00,000.This step seems to be arbitrary and may work differently for different parties. It gives virtually unbounded power to the Registrar. It also promotes exercise of unfettered discretion.The judiciary exercises utmost caution in determining the status of a mark. But, the Registrar may not do so. It may prove to work to the advantage of influential parties and to the disadvantage of others.4. Increase in feeWith the coming into force of the Trademark Rules 2017, Government fee for almost all kind of applications has almost doubled. In some cases, the rise is even more than 200 percent.For instance, earlier the application fee for each class was Rs. 4000. Now, the government fee for the same is Rs. 10,000 (9,000 if the party opts for E-filing).Earlier, the fee for registering a subsequent proprietor used to start from Rs. 5,000. Now, the fee is Rs. 10, 000. Another example is the application for Search Certificate for Copyright Registration. The new rules hike the former fee of Rs. 5,000 to Rs. 10,000.The intent behind such a steep hike in the applicable fee might be to prevent filing of frivolous applications. However, raising the fee as much as 200 percent (more, in some cases) is hard to justify.The former fee of Rs. 5,000 for Copyright Search Certificate was pretty high in itself. It brought the Government fee for Copyright Registration of Artistic Work (for commercial use) to Rs. 7,000. Now, a 200 percent increase will make it go further up to Rs. 12,000.This means trouble for small businesses or individuals proprietors. They can hardly afford to shell out an amount this high to get a Copyright Registration for their business logo or other artistic work.5. Concession to small businesses, startups and individualsThe huge jump in the government fee means shelling out more fee. But, the new rules provide much-needed relief to entities in need of concession.There is only an increase of Rs. 1,000 for individuals, startups and small enterprises. This means that the Government fee for these parties is Rs. 5,000 instead of RS. 10,000. A further discount of 10 percent on E-filing reduces the fee even more.With an E-filing fee of Rs. 4,500 there is not much increase in the earlier fee.This is good news for these parties and also a considerate step. The government’s motto of promoting small business as well as entrepreneurs will receive a definite boost with this concessional fee.6. Promoting e-filingThis rule is in complete sync with the Digital India Drive. The fee schedule specifies a 10 percent discount for E-filing of every kind of application.Moreover, for some applications, the new rules don’t allow physical filing at all. For instance, the application for expedited issue of Copyright Search Certificate can only be made online. Same is the case with expedited processing of an application for Trademark Registration. Online filing is also compulsory for determining a well-known Trademark. For certification or transmission of an international application too, you need to apply online.This is another welcome step. Reducing unnecessary paperwork will achieve at least two results. First, it will enable faster processing of application. This will reduce processing time to a great extent. Second, less or minimal paperwork will improve the efficiency as well as productivity of the Government Office.7. Compulsory filing of user statement or affidavitEarlier, the Registrar exercised discretion when it came to User Statements in respect of marks claiming prior use. The applicant only needed to specify two details. First, the date since the mark was being used. Second, the person using it. Registrar could ask such person for an affidavit to this effect.Now, there is no more room for Registrar’s discretion in this matter. If the user is claiming use of the mark before the date of application, filing an affidavit is compulsory.Compulsory filing of one more document may be inconvenient for the applicant. But it is too early to comment on any other adverse impact that it may have.8. Registration of sound marksThe Trademark Act consists of provisions concerning Sound Marks. However, the 2002 rules did not mention them. The Trademark Rules 2017 contain specific mention of these marks. Rule 26 (5) specifies the format for submitting a sound mark for registration.Insertion of this rule is a welcome step as it gives some clarity on the mode of submission of a Sound Mark.ConclusionTrademark Registration in India has undergone a major change. The new Trademark Rules 2017 make the entire process much easier with a number of new Rules. So, the final verdict on the Trademark Rules 2017 leans more in their favour than against them. Steps such as discount on E-filing, only a minor increase in fee for applicants who need it, and making the entire process of registration simpler definitely deserve praise. Some changes do remain questionable. For example, the whopping increase in fee and the discretion granted to the Registrar in a case of well-known Trademarks.However, as of now, the overall changes which the Trademark Rules 2017 bring seem to be positive. Some amendments in the future may correct the not-so-great and dubious parts of these rules.Originally published at PocketLawyer.com on March 14, 2017.

I have a business plan. Can I copyright or patent it?

Technically, you can't patent an idea for a business – for example, if you have a unique idea for an online store or a new chain of themed restaurants. However, you may be able to protect and patent a method of doing business – if it meets very specific criteria and requirements.Why I think it’s not worth to file for a Business Method Patent?The reality is that most business ideas are not eligible to be patented as a Business Method. And when these ideas are patentable, the likelihood that a legal case against a potential infringer will fail is quite high. Courts in US, Australia and around the world are getting tougher on patents that are based on little more than a way of doing business.Many beginner entrepreneurs think that being granted a patent will offer them automatic protection and nobody would ever dare to copy their idea. The reality is way different. If someone copies an idea/invention which you hold a patent on, you will need to sue this person. That means you will need to hire a lawyer and pay for the expensive hourly rate and accept the fact that you may lose your court action.In addition to that, you are expected to spend a lot of money just to launch a patent application. Application fees plus patent attorney fees to file a patent will be more than $10,000. You can file a patent on your own, but you may be shooting yourself in the foot. A bad written patent may limit the scope of your protection and your patent will be useless. Another misunderstanding about patents is the belief that you can launch an International Patent. It doesn’t exist. You need to launch individual patent applications in every single country you want to patent your idea in. Many patent attorneys charge between $25,000 and $150,000 to file patents overseas, depending on the number of countries chosen. In the US, patents must be maintained three times during their life-cycle. Payments are due at years 3.5, 7.5 and 11.5 after the patent’s grant date. In each renewal tranche, the maintenance fees about double. For this reason, many patents are abandoned when maintenance payments are due. The investment required to maintain patents is fairly substantial, costing as much as $7400 in the third (E3) renewal tranche for a large entity.If you cannot patent a business idea, what can you do?There are a few ways to protect your business idea and make the life of a copycat more difficult. You can have people to sign a Non Disclosure Agreement if you want to build your business without disclosing important information in the early stages. Obviously this is only a temporary solution. Another interesting initiative to prevent copycats from stealing business ideas is the copycat report system developed by a company called katcops.This article discusses all the options you have if you can or cannot patent your business idea. It’s worth reading if you want to understand things in more details. Can You Patent a Business Idea? A Complete Guide for Beginners

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