Wyoming Entrepreneur Blog

The American Invent Act, First to File, and Provisional Applications

This blog continues the discussion from last week about patents.

The America Invents Act, First to File, and Provisional Applications

Karen Kitchens, Intellectual Property/Documents Librarian, Wyoming State Library, karen.kitchens@wyo.gov

President George Washington signed the first U. S. patent statute in 1790.  Since that time, United States patent law has uthorized the granting of rights to the first to invent a patentable
invention, contingent upon meeting rigorous terms and conditions.  This means that the date the inventor envisioned the invention is the “date of invention” – thus the date of ownership.  Generally, this date preceded the date of filing with the United States Patent and Trademark Office (USPTO).  Soon, this will no longer be the case.

As of March 16, 2013, one of the most debated provisions of the America Invents Act (AIA) will take
effect.  As of this date, the “first-to-invent” system will change to the “first-inventor-to-file” system.  This provision changes the legal ownership of a patent onto the entity that is the first to file with the USPTO, thus bringing the U.S. system closer in line with most of the rest of the world.  The new version of § 102 (35 U.S.C. § 102) declares that a person is entitled to a patent unless the claimed invention was publicly disclosed prior to the effective filing date of the patent application. The exception to this being, (1) the disclosure was made less than one year before the filing of the patent
application (by the inventor themselves) and (2) the disclosure was made by the inventor or someone who derived the inventive subject matter from the inventor. 

Once this provision takes effect, filing patent applications as quickly as possible may
be in the best interest of the inventor.  In order to stay competitive, inventors of all sizes (including small business owners) will need to file patent applications quickly in order to stay ahead of competitors.  Filing a provisional patent application may be one way to quickly get a patent
application on file at the USPTO.  A provisional application allows filing without a formal patent claim, oath or declaration, or any information disclosure (prior art) statement. It provides the means to establish an early effective filing date in a later filed non-provisional patent application.  A provisional application also allows the term “Patent Pending” to be applied in connection with the description of the invention.  Provisional applications have a pendency lasting 12 months from the date the provisional application is filed.  The 12 month pendency period cannot be extended.  This means, once a provisional is filed, you will have 12 months to file a non-provisional.  A provisional patent application may or may not be the path for you.  Provisional patent applications do not mature into a granted patent without further submission.  All provisional applications automatically become abandoned when the pendency period expires by operation of law.  Thus, all potential patent applicants are encouraged to gather as much information as possible on this option.  The USPTO website is the foremost information source on provisional patent applications. 

For further updates on AIA, check out the USPTO AIA Blog. 

A Blog version of this article and an opportunity to post comments is available at http://www.wyomingentrepreneur.typepad.com/blog/.

 For more information about the services of Wyoming SBDC, MRC or PTAC, or to ask a question, please call 1-800-348-5194, e-mail wsbdc@uwyo.edu or write 1000 East University Avenue, Department 3922, Laramie, WY 82071-3922. Additional help is available on our website www.wyomingentrepreneur.biz.

 

The Wyoming SBDC, MRC and PTAC partnership
program is funded in part through a cooperative agreement with the U.S. Small
Business Administration. Additional support is provided by the Wyoming Business Council and the University of Wyoming.

America Invents Act and Fast Track Patent Examination

WYOMING BUSINESS TIPS

A weekly look at business questions from the Wyoming Small Business Development Center (SBDC), Wyoming Market Research Center (MRC) and the Wyoming Procurement Technical Assistance Center
(PTAC), a partnership of business assistance programs at the University of Wyoming.

Can you tell me more about the changes happening with patent applications?  Anne, Cheyenne.

I checked with Karen Kitchens, an intellectual property librarian to give us an update.  This week and next she is providing us some input into changes in the patent process.

Anya Petersen-Frey, MBA

Regional Director SE Wyoming

 The America Invents Act and Fast Track Patent Examination

Karen Kitchens, Intellectual Property/Documents Librarian, Wyoming State Library, karen.kitchens@wyo.gov

 Fast tracking your U.S. patent application may be the right move for your small business.  Using traditional filing avenues, you can anticipate an average wait time of nearly three years until your patent’s final determination.  Such a long wait period may negatively affect the valuation of your business, as you do not have any incontrovertible rights while a patent application is pending.   Remember, the rights granted to patent holders include the rights to exclude others from making, using and selling your invention. These rights do not take effect until after the United States Patent and Trademark Office (USPTO) completes its examination of the patent application.

As of September 26, 2011, the USPTO began offering a Track I Prioritized Examination Program, as part of the America Invents Act (AIA).  This program gives inventors an opportunity to have their patent application reviewed within a reduced timeframe, for a fee.  To participate in the Track I
program, the applicant must pay an additional fee to the USPTO on the same day the patent application is electronically filed.  For patent applications that have already been filed, the Track I fee must be paid upon or after the filing of a request for continued examination, but before the USPTO issues a first office action. For companies with less than 500 employees (considered a small entity), the Track I fee is $2,400.  This is a 50 percent discount on the $4800 fee for the fast track option. 

The AIA also created a new applicant status called micro-entity.  To qualify as a micro entity, an applicant must:

• 
  Qualifyas a small entity;
• 
  Have not been named as an inventor on more than 4 previously filed patent applications;
• 
  Did not, in the calendar year preceding the calendar year in which the applicable
  fee is paid, have a gross income exceeding 3 times the median household income;
  and
• 
  Have not assigned, granted, or conveyed (and is not under obligation to do so) a
  license or other ownership interest in the application concerned to an entity
  that, in the calendar year preceding the calendar year in which the applicable
  fee is paid, had a gross income exceeding 3 times the median household income.

A micro-entity is entitled to receive a 75% discount on fees for filing, searching, examining, issuing, appealing, and maintaining patent applications and patents.  The micro entity 75% discount will apply to fees for filing, searching, examining, issuing, appealing, and maintaining patent applications and patents.  Micro entity fees were included in the FY2013 fee schedule proposed in May 2012, the first fee setting by the USPTO under the authority granted by the AIA.  However, these fees might not actually be implemented until as late as March 2013.   A 17-month implementation timeline is located on the USPTO website here. 

Patent ownership is a critical factor that some venture capital companies consider when investing in entrepreneurs and small businesses who hope to grow their businesses. Therefore, prioritized patent examination may be a good investment for your small business.  

A Blog version of this article and an opportunity to post comments is available at http://www.wyomingentrepreneur.typepad.com/blog/.

 For more information about the services of Wyoming SBDC, MRC or PTAC, or to ask a question, please call 1-800-348-5194, e-mail wsbdc@uwyo.edu or write 1000 East University Avenue,
Department 3922, Laramie, WY 82071-3922. Additional help is available on our
website www.wyomingentrepreneur.biz.

 The Wyoming SBDC, MRC and PTAC partnership program is funded in part through a cooperative agreement with the U.S. Small Business Administration. Additional support is provided by the Wyoming Business Council and the University of Wyoming.

Averting the "Fiscal Cliff"?

Congress Approved Eleventh-Hour Agreement with the American Taxpayer Relief Act 2012! 

Yesterday, January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012, averting the "Fiscal Cliff."  The Act allows the Bush-era tax rates to sunset after 2012 for individuals with income over $400,000 and families with incomes over $450,000; permanently "patches" the alternative minimum tax (AMT); revives many now-expired tax extenders, including the research tax credit and the American Opportunity Tax Credit; and provides for a maximum estate tax of 40 percent with a $5 million exclusion.  In addition to an extension for most taxpayers of the lower individual income and capital gains tax rates, marriage penalty relief, and more than 50 other tax benefits popularly referred to as the "Bush Tax Cuts," the legislation makes over 100 changes to the Internal Revenue Code.

Highlights of The American Taxpayer Relief Act of 2012 include:

• 39.6% tax rate for incomes above $400,000 ($450,000 families)
• All other Bush-Era Tax Rates extended
• 20% Maximum Capital Gains/Dividend Tax Rate
• Permanent AMT Patch
• Five-Year Extension of American Opportunity Tax Credit
• One-Year Extension of Business Tax Extenders
• And more!

According to Commerce Clearing House (CCH, a Wolters Kluwer business)

The next battle will be over the debt ceiling: Lawmakers will have to turn to discussing how to deal with the nation's $16.4 trillion debt ceiling next, which will need to be raised as early as mid-February to prevent a default.  And, according to House Speaker John Boehner, R-Ohio,"Without meaningful reform of entitlements, real spending controls, and a fairer, cleaner tax code, our debt will continue to grow, and our economy will continue to stumble."

What is your thoughts on deficit reduction and tax simplification?

Customer Retention The Old Fashioned Way – Using New Fangled Tools

One of the things I hear for business clients frequently is that they don’t understand how customers think today.  Actually times haven’t changed that much, but there are new tools that make keeping your customers happy actually work more like things did in my great grandfather’s time.  Back then you purchased from the retailer down the street.  You knew him and he knew you and your family.  There was a relationship, and with that relationship came flexibility.  The old “mom and pop” stores often ran tabs, gave discounts and remembered what their customers liked.   Then came the age of mass marketing where consumers were numbers and entries on a balance sheet, and the personal approach was lost.

 

What’s happening today is a return to the times when merchants and customers had personal relationships.   The difference is that technology has opened a window to enable these relationships to occur between people who are located a great distances from each other.   Karl Wirth, writing on the Marketing Profs website talks about the “7 P’s of Customer Retention”.  These are:

 

1.  People.   To retain customers you need to build a relationship with your customer as a person, not just a customer.  Start by hiring people who show they care about others.  Many companies now have a “chief customer officer” to ensure that the entire company maintains a people focus.
2. Product.   Without the right product, you won’t really be able to accomplish any of the “P’s”.  Make sure that your product provides value quickly, retains value over time and is of high quality.  Commodity items don’t generally have loyal customers, so make sure your product is special.
3. Place.  Location matters when you are locating a physical store, but if you are an online retailer, place still matters.  Your site needs to be easy to find, easy to navigate, and friendly to the customer.  What goes for “bricks and mortar” goes for online merchants as well.
4. Price.  If you have a relationship with your customer as a person, then you take care of each other.   The new expectation is that customers expect retailers to look after them.  This can be by providing deals for returning customers or by adding services or features without charging more.  Turn your employees loose and they will help you find ways to maintain this relationship.
5. Promotion.  You should promote to existing customers differently than you do to potential customers.  Why?  Because you should know them.  Target promotions to your customers based on their likes and needs.
6. Processes.  This is where the new technology comes in.  Where the old corner store owner new his customer by chatting with them when they came in, today’s businesses should use social media, customer surveys and other tools to engage and understand their customers.
7. Positioning.  Wirth says “If you want to retain your customers, you have to know who you are and communicate that clearly and repeatedly to them so they know who you are as well. Foremost, however, is this: Your actions must communicate your positioning. Those actions are showcased in the people you hire, the product you ship or service you deliver, the price you charge and the discounts you provide, the place and promotions you choose, and the processes you put in place.  Combined, your words and actions say "This is who we are and what you can expect of us."”
   
   

Bottom line: If you want to succeed with today’s customers, put on your great grandpa’s store apron, and adopt his attitude of treating his customers like friends and neighbors, rather than number and profit centers.  I think you’ll find your customers respond.  

What are you doing to retain customers in today's world?

 

The Economic Census – Vital Data for Business

During November and December over 4 million US business and around 11 thousand Wyoming businesses will receive 2012 Economic Census forms from the U.S. Census Bureau.    This means that while many businesses will take part in the Census, not all will be asked to participate.

If your business receives a form, you will be asked for basic operating data for your business, data that is tailored to your specific industry and company size.  Information includes number of employees, payroll and value of goods or services produced in 2012.  You will be able to respond either in paper or online.  Responses are due no later than February 12, 2013.  It is important to note that all information is confidential and your compliance is required by law.

The Census is the basis for the economic indicators that are used every day in the US, like the Gross Domestic Product, monthly retail sales and producer price index.  The statistics from the Economic Census are used by businesses, local governments and investors to make smart decisions. 

Without the Economic Census and the data it provides about our US economy, businesses and governments of all sizes would be working in the dark in trying to solve the numerous challenges that our country and economy faces in the years to come.  Filling out the Economic Census form is not only a legal requirement, it’s a smart investment in growing our local, state and national economy.

If you’d like to see the type of information that the Census provides, you can go online to www.census.gov/econ/census/.  This site gives more in-depth information about what the Census is and why it is so important for all Americans.  It also gives you a look at the type of economic statistics that come out of the Census, with ideas on how you can use them in your business or community.

The Economic Census isn’t new, in fact the concept dates back to the 1810 Census, when questions were asked about manufacturing along with questions about population.  The Economic Census provides detailed statistics that are important for industries and communities.  Trade associations, chambers of commerce, and businesses rely on this information for economic development, business decisions, and strategic planning.

As the manager of the Wyoming Market Research Center, every single day I use information that is based on the Economic Census to help Wyoming businesses find out about their industry, their community and their markets.   Accurate and believable data from the Census is vital to creating sensible business plans, loan applications and for simply running day-to-day business.

 

Another PowerPoint Presentation?

"Just put together a quick PowerPoint for it."

How many times have we heard this advice when preparing for a presentation? By now, PowerPoint should be included in thesauruses as a synonym for presentation. But despite being overused, sometimes it really is the only choice you have when presenting. When given no other options, there are always some basic but powerful ways to make your PowerPoint presentations better. Guy Kawasaki covers some of these in a great video available here, but I've included some other pointers as well:

• Don't read to the audience - This is my biggest pet peeve when listening to a presentation. I can read what's on your slides. They should serve as a cue for you to elaborate on the topic, not as the script for your presentation. Highlight main points, trust that I can read them, and use your slides as note cards to keep you on track.
• Keep your slides brief - Don't fill a slide with text. Slides crowded with text are difficult to read and will draw your audience's attention away from what they should be paying attention to - you. If you use bullet points, which I prefer, limit yourself to four or five at most.
• Use large text - Depending on how large your audience is, it may be difficult to read your slides from the back of the room. 28- to 32-point font is recommended. This will help you keep your slides brief as well. 
• Don't be afraid to use different, interesting, or creative formats - All slides don't have to follow the typical Title-Subheading-Bullet Points format. In fact, varying the style of your slides can keep the audience more engaged. Using something unique like a single word or a picture with no text will enable your audience to refocus on what you're saying instead of what's on the slide.
• Don't get caught up in using effects - There are plenty of choices for slide transition effects, sounds, and graphics to spice up your slides, but resist the urge to overuse them. Simple fades in and out of slides are fine, but some transitions are distracting and can look unprofessional. Also, along with sounds and graphics, they can draw attention away from your actual presentation. The content of your presentation, not the effects, should be the audience's focus.
• Don't read to the audience - I'm including this one twice because, yes, it annoys me that much.

Whether you like it or not, giving a presentation with PowerPoint is probably going to be unavoidable. So as long as you're going to use it at some point, it's worth learning a few simple tips to help make the presentation more effective and enjoyable for the audience.

I Need to Build My Brand But I Don't Even Know What My "Brand" Is...

After discussing an article about Oreo's new branding strategies with some colleagues recently, one thing became clear: people have many different ideas on what your "brand" really is. My first instinct was logos/graphics: your brand is something I recognize immediately when I see it on TV or in a store. When I see this:

...I know I'm looking at Pepsi.

But product mix is part of your brand, too, others pointed out. The Oreo article points out that they've become known for creating unique versions of their classic cookie (I'll pass on the candy corn flavor, though). Somebody else offered an even more nebulous explanation of what a brand is: a company's brand is how it makes you feel.

Ask anyone in business and you'll get dozens of additional answers - it's your company's personality, it's a promise, it's your reputation, etc. So which is it? Well, really, all of them are right. Your brand, essentially, is everything people think of or associate with your business when they see your logo, hear your name, use your products, etc.

So, great. A brand is everything you do or say. But how do you "build" it? Again, we could come up with dozens of different opinions here, but I always focus on one thing when it comes to branding: consistency. Be consistent in every aspect of your business:

• Logo - Don't change it often and, if you must change it, keep it as similar to your previous logo as possible (colors, fonts, style, etc.).
• Marketing Message - Don't try to be everything to everyone. If you're a "fun" company, be playful.
• Product Mix - If you built your business by offering high quality, long lasting products, don't try to also add a cheaper, lower quality option.

This really only scratches the surface of what you can do to build your brand. Above all else, though, I think it's important to remember that a well-established brand lets customers know exactly what to expect. This expectation might come from seeing a logo, hearing an advertisement, using a product, or something else entirely. But when I think of your brand, I should know exactly what I'm getting.

 

 

 

Your retail store CAN create an amazing holiday marketing campaign!

The holidays are just around the corner, but you still have time to plan and deliver an amazing marketing and sales strategy for the busy season ahead. Small town shops CAN compete with big box and online stores! That power comes from greeting your clients personally, giving them a positive, memorable shopping experience and helping them find other stores in the neighborhood that share your “hometown experience” philosophy.

Revisit the principles of retailing and remember why you have chosen to share your products in the public marketplace. Present your retail space in the best possible light by appropriate merchandising. Merchandising is an art that communicates the image, lifestyle or value system for your products. Examine your store from the perspective of a customer. Is the window inviting? Is the glass sparkling clean? Is the interior of your store clean and organized? Are decorations tasteful and music appropriate? Is lighting pleasant and targeted, especially as the wintery days get shorter? Lighting is the key to creating drama and proper lighting has been shown to increase sales by 25%!

Ensure that your employees are prepared for the busy days of greeting customers, offering assistance in providing the kindest, most helpful, and most professional service to enhance your brand and reputation long after the holidays. A couple of tips… When engaging customers, greet them in the front third of the store. Make eye contact and smile…offer to answer questions and then allow the customer to browse. Whenever possible, it is best for sales people to face the entrance, allowing them to acknowledge new shoppers, even if they are engaged with another customer at the moment. If you are offering sales or specials, make sure your employees are aware of the specifics. Also be clear and consistent on return, refund and warranty policies.

Now is the time to develop relationships with other stores in your shopping neighborhood that offer products that complement your merchandise. For example, if your store sells evening gowns, mention that the store across the street carries tuxedos and the shoe store next door may have the perfect pair of dressy heels to complete the ensemble. Customers appreciate recommendations that validate their purchases… and appropriate recommendations will help them save time, money and resources. The business relationships that are forged can be the best line of defense as you promote the value of shopping locally. Each business will be looking out for their neighbor, differentiating your neighborhood as a positive shopping experience for their customers.

Finally, engage your customers with a carefully designed follow-up campaign after the holidays. Holiday sales present an opportunity to gather email addresses and collect a fan base that will allow you to inspire your customers to remain connected with their community and local retailers all year long.

Wishing you and your retail store a wonderful holiday season!

Success?? When can I dare to say my business is successful?

It’s that time of year when Wyoming takes the opportunity to showcase our awesome entrepreneurs who have accepted the challenge of opening their own businesses across the state by sharing “Success Stories” in the upcoming annual WEDA (Wyoming Economic Development Association) publication. As we invite our clients to share their stories, they often say, “Give me a little more time. I’m not sure I fit into the Success category just yet.”  My response? “Success comes in many forms. The bottom line of your financial statements only tells a fraction of your story.” Every time an individual steps out on the edge, takes a leap of faith that they can sell their product or service and begins down the path of entrepreneurship…another Success has been charted. Whatever the reason or dream that initiates that journey, we see passion and excitement of people who are following and nurturing their dreams. The follow-through that transforms a dream to reality is the very foundation of Success.

 

One successful Wyoming entrepreneur began his career by working for a local electric company, but knew he and his wife could build their own business by taking their experience and creating a positive customer experience for their own clients.  The business has been open for less than a year, but is growing steadily by word-of-mouth, website presence, and superior workmanship. Now he is able to drop his young daughter off at school, they are expanding the scope of their projects, and are learning time management, bookkeeping and scheduling, in order to grow the business to the next level!

 

Take a moment to ask yourself, “What makes my business successful? What am I able to do in this business that gives me great joy? How am I sharing my success with customers, employees, family and friends?

 

Your answers will set your business apart from your competition and will clarify your goals. As we approach the Thanksgiving season, take time to consider and express your appreciation to those who have encouraged and believed in you as you moved forward… and consoled you when your business roadmap took an unwanted turn.  Are you picturing the faces of your family, your banker, your customer, your employees, and your suppliers? I dare to say, “You have an enthusiastic audience on the sidelines, applauding your courage and your Success!”

10 Tips for Family Business Success

I recently read an article from Nation’s Business regarding this topic.  The article, written by Sharon Nelton, was several years old, but had some interesting insight into family business from David Bork, a consultant who has been advising family businesses since the late 60’s.  Here are some of the qualities he feels are essential for families in business together.

1)       Shared values – Your family should share similar values concerning people, work, and money.  This way you can have a shared vision for the future of the business.

2)      Shared power – Not the same as “equal” power.  It refers to mutual respect for each other.  Respect of their talents and abilities among generations, spouses and siblings.  Decisions should be deferred to the person with expertise in that area of business.

3)      Traditions – The family should foster new and renew old traditions that bond the family together and sets them apart from other families.

4)      Willingness to learn and grow – The family should be open to new ideas and new approaches to solving problems within the business.  Problems are only new opportunities to learn and grow together, even when you might have differing opinions.

5)      Build relationships – Take time away from the family business to have fun together. The enjoyable times can help you survive the hard times and will help sustain family relationships.

6)      Genuine Caring – You should express your feelings of concern for family members openly, to let them know that you do care about them.  Sometimes it’s the little things you do that will say that you “really” care about another family member.

7)      Mutual respect – You must have respect for one-another to be able to do business together.  Knowing that your family can depend on you and that you can depend on others builds trust and mutual respect.

8)      Support for each other – Even if a family member is having struggles, family members should assist and support one another.  During times of grief, pain or even shame, you should be supportive of family members.

9)      Respect privacy – When you are in business with family members there is a lot of togetherness.  Be respectful of one another’s individual privacy and that of each family unit within the extended family.  Don’t step over the line.

10)  Interpersonal boundaries – A common family business related problem is conflict between two family members.  Resist getting caught in the middle of a conflict that really needs to be resolved between the two family members.

According the Bork, understanding which of these traits you have, or need to work on, will help strengthen your family bonds and the success of your family business. What do you think?