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Monday, 31 August 2009

Bootlaw - Legal Advice for Tech & Internet Start Ups

For those of you who aren't acquainted with Bootlaw, let me begin my introduction by saying:

'Every serious entrepreneur must know at least one good lawyer'.

At Bootlaw you get at least double that, sometimes quadruple as was the case at the last session. The brainchild of Barry Vitou, partner at Winston Strawn, each Bootlaw session is geared towards the needs of hi-tech start ups and provides access to education on the key legal issues that affect IT and internet businesses. Together with associate Danvers Baillieu, the two run a monthly forum for internet professionals and investors that is well subscribed to and carries a reputation that preceedes it.

For July's monthly download of digital legality, Bootlaw featured two guests in the guise of friendly barristers Ian Silcock and Louise O'Callaghan from Hardwicke Buildings. Ian gave a short presentation, dipping our toes into the warm waters of Patent Law and Litigation Strategies. Some of the key issues covered included:

  • Patents are grantable by the UK or EU patent offices

  • Expect around £400 to €2000 depending on which of these offices you register with

  • Words may have different meanings or uses in other languages so EU patents tend to run into more obstacles

  • Patenting software is a difficult process and it may be easier and cheaper to simply find ways of preventing your code from being reverse engineered

Moving on to litigation strategies, Ian cautioned against complacency and delays in dealing with legal issues arising since having an in company proceedure and delegate who can respond promptly often saves costs from escalating. Some other useful tips included:

  • Align yourself with big players in your field so that it is in their interests to see you win. For instance if you run a video sharing website and operate under terms and conditions similar in principle to a major video sharing website, it would be in that major video sharing websites interest to see that precedent was not set in a case against a small player with inadequate defence resources

  • Get an idea of total liability before commencing litigation. Whilst it may feel the right thing to do, defending your principles or moral rights may cost you far more than an early negotiated settlement and your big picture goal is to prosper. Crusades are for pressure groups not businesses and success does not always mean being right

  • Factor in to the cost of litigation the cost to you of having to your time spent preparing information, talking to counsel and responding to letters. Add to that the cost of being removed from profit making activity during that time. Finally add in the extra stress and time taken for dealing with litigation at an emotional level. You may find that unless litigation is critical to the continuation of your business, negotiating early is an option worth open minded calculation.

Winston Strawn are a leading law firm with speciality competance in hi-tech and ebiz law. To speak with them regarding this, please contact Barry Vitou or Danvers Baillieu at their London offices. Their monthly Bootlaw sessions are open to entrepreneurs, developers and investors in hi-tech and ebusiness companies and more detail can be found here

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