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.

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?

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.

 

Is your sustainability message a bit stale? Spice it up and make it memorable!

Even though we are heading into warmer months of spring and summer, here’s proof that your sustainability messaging doesn’t have to be boring: In late January, the World Wildlife Fund launched a website (sweaterday.ca) for National Sweater Day (February 9). The premise? Canadians were encouraged to lower their thermostats a few degrees and put on a sweater to stay warm – thereby making grandmothers happier all over the country.

We spend a lot of time in the Shelton creative department discussing creative strategy and the best way to make things “stick” with customers – what makes a campaign memorable and what makes people act sustainably. Some of you might recall former President Jimmy Carter’s famous “sweater speech,” in which he encouraged everyone to minimize their energy consumption and break out the cardigans. Thirty-two years later, the same request was made of Canadians through a completely different approach – and without political agenda. Let’s take a look at what this new sweater campaign did right.

First, “The Granny Call Centre” took a request for sacrificing one’s personal comfort (which we know is a huge motivator for consumers) and put a fun, positive spin on it. Its approach was human and universal  – most of us have a beloved grandmother, and most of us have received an overdone/overblown/oversized sweater from her at least once. It even made the sacrifice seem downright cozy, if not a bit tongue-in-cheek: as one Scottish granny says, “Don’t be ornery – just put on your sweater!” By taking an age-old, grandmotherly adage and marrying it with an accepted societal joke, the campaign became a prescriptive instrument of engagement and awareness.

Secondly, the campaign has the potential to create change by going viral. This fun, buzz-worthy campaign can be passed along to friends and family to create change through subtle peer pressure – people wearing sweaters and lowering the thermostat not because of kind, rosy-cheeked grannies, but because their hipster Canuck friend Dan found a fun, slightly loopy campaign online and decided to play along.

Regardless of how folks get there, the end result is positive. Wonder if any of those grannies are familiar with the term ‘win-win’?

Guest article by Stephanie Alexander, Senior Copywriter for Shelton Group, LLC

Why Family Businesses are Special Today

Family-owned businesses are stable and optimistic, even in times of economic uncertainty. A recent national study by Kennesaw State University, the American Family Business Survey of family-owned businesses, studied the strengths, challenges and changes since a previous study done in 2002. It found that family business owners:
1 | Are optimistic about future growth - Even during some generally depressed business conditions, family business owners express optimism. Figures confirm that family businesses are better able to weather economic hardship and stabilize the economy than their non-family counterparts.
2 | Lack a sense of urgency about retirement and succession planning - Family businesses face some significant succession challenges. Over forty percent of business owners expect to retire in the next ten years, but many are less certain about retirement. Almost one third have no plans to retire, ever. Nearly another third report that retirement is eleven or more years away. This means that many owners plan to die running their business, which is not beneficial to their family, the business, its employees or its customers. Furthermore, nearly one third have no estate plan beyond a simple will.
3 | Select women as leaders - There has been an almost five-fold increase in the number of women leaders in family businesses in the last decade, far more than the increases seen in non-family businesses. The trend indicates that increased female leadership of family businesses should continue.
4 | Hold themselves and their employees to a higher ethical standard - Since family businesses are family and relationship oriented, they operate more ethically. Family owners have a major influence on their business and their values are emphasized in the business. Family orientation seems to translate into more ethical behavior and the resulting actions contribute significantly to their family’s identity in their communities.
5 | Expand on traditional management - There is a misconception that due to the relational nature of family businesses they are less professional. In one way this may be true, with only a few businesses having a written strategic plan or formal planning process. This is only one higher level of professional behavior. Despite the lack of formal strategic planning, they use other types of planning tools. Buy-sell agreements, business valuations, boards of directors, formal recruiting, performance appraisals, and benefits administration indicate their professionalism.
6 | More unified family values - Family unity and cohesion are critical to family business success and an important goal. Family members that agree on values, attitudes, and beliefs exhibit that unity and cohesion. The practice of these values result in increased levels of employee loyalty, commitment, and organizational citizenship. Similarity of values between family members in business and their customers can also improve relationships and foster economic stability.
7 | Place their trust in family members as key advisors – Overwhelmingly the business owner’s spouse is seen as their most trusted advisor, followed by their accountant, a business peer, parent, lawyer, and financial advisor.

A Brief Press Release "How To" for Small Businesses

Press releases are a Great way to publicize your business and, best of all, they don’t cost anything but some time and effort.  There is always a trade-off for “free,” however.  Unlike a paid advertisement, there is no guarantee that a press release will be published, who will publish the information, or how the content will be edited.  On the positive side, if the information you released is published as an article in the media, that exposure, via a credible third party, offers a legitimacy that advertising does not. 

Typically, the objective of a press release is to attract favorable media attention to your business, product(s), or services.   Your objective is to pitch an angle about your business to the media that their particular audience will perceive as news, entertainment, or useful information.  If the audience will benefit, then the chances of getting your release printed are good.  Remember, the press is always looking for news.   

Small businesses often do not realize that they truly do have “news” to write about.  Community newspapers especially are often particularly interested in local business news.  You can write about sales growth, new or improved products or services, new offices or personnel, industry awards or recognition, participation in special industry events, philanthropic activities, and even “thought leadership,” or what your company’s stand is on key issues, views on trends, expert analyses, etc. 

Before releasing news, think about:

• Relevance.  Does your news relate to the community, a hot issue, or a prominent individual?
• Timeliness.  Does your news relate to a holiday, event or a particular time of year?
• Uniqueness.  Is your news unusual or thought provoking?

Creating a template for your releases will save time.  Be sure to include a date if the news is time-specific or use “FOR IMMEDIATE RELEASE,” if you simply want the news released right away.  List a contact name, phone number and e-mail address.  Use a strong headline, typed in all capital letters to bring attention to your news.   Keep the release to one page.   Begin the release with the city and state from which the press release originates and the date.  Your first paragraph should highlight the purpose of the release and include the “5 W’s” (who, what, when, where, why).  Tell your story concisely and precisely, limiting that first paragraph to three sentences.  Additional paragraphs should provide more detail about the story.  Quotes from company executives or customers are very effective.  Use bullets to break-up your copy.  Your final paragraph should include a short “boilerplate” paragraph about the company and links to the company website.  Use “###” at the close of the release to indicate the end.

Avoid jargon and self-promotion.  The purpose of your press release is to communicate news or information, not to blatantly advertise your company. 

When distributing your release, consider your media and select carefully.  Don’t waste time on media that are not a good fit for your news.  Decide whether to distribute by fax, e-mail or mail. 

What makes a business an ethical business?

If you ask any business owner whether their business is ethical, they will probably tell you that they think it is ethical.  Usually they have some reasoning to go with it, if nothing else “because I am ethical”.  In the same vein, almost all drivers believe that they are “above average drivers” when asked.  When evaluating whether your business is ethical or not, you need to look at your organization as a whole, beyond the individual component.  Rest assured there were both ethical and unethical employees at companies such as Enron, which, as you know, had large-scale ethical misconduct. It is just that given the corporate culture, many were sure they were doing “the right thing”, which to them often meant short-term profits or financial statement tweaking to appease stakeholders.  Worth mentioning, Enron did have a code of ethics and in other cases of unethical business behaviors, some of those businesses beforehand promoted an image of being ethical without evaluating whether they really were.

The best place to begin evaluating your organization’s ethics is with your organizational culture.  What does it value?  Profits first and then everything else?  There is a perceived paradox in which one assumes bottom line is sacrificed in lieu of being good, but the reality is that ethical companies with ethics programs are on average more profitable than companies without ethics programs.  Having an ethical corporate culture among your employees is foremost to being an ethical organization. 

To help develop that culture it helps to have a code of ethics that doesn’t get stuck on individual issues, but instead develops a framework for ethical decision-making.  It is impossible to imagine all the individual ethical issues that will arise and address them, so instead have a written framework for ethical decision-making, plus it is imperative to have an escalation process for situations when the individual cannot be sure of how to handle a decision.

The next step is ethical training: Share this code of ethics regularly with your employees in a meaningful way, not merely reading a document that is initialed and then filed in HR.  Discuss, interpret and try to apply the code to real life or potential decisions people in your organization may face to see how it works.

Finally, you need to have ethical leadership.  More than anyone else management needs to demonstrate ethical behavior to make your ethics program a success.  Your employees will make note if you cut corners to make a buck and will do the same for themselves.

After you have your program in place, monitor and adjust it as needed and keep your ethics program alive rather than a piece of paper locked away once written.  If you need help writing a code of ethics, please contact us at Wyoming Entrepreneur for help.

Jim Drever

Holds a Certification in Teaching Business Ethics, University of New Mexico

 

Americans are Fed Up --- But Not With Small Businesses

In a recently published survey by the Pew Research Center entitled "The People and Their Government: Distrust, Discontent, Anger and Partisan Rancor, respondents were grouped by whether they were "content", "frustrated" or "angry" with the federal government.  As of March, 2010, 19% were content, 56% were frustrated and 21% were angry (with 5% marking "don't know". 

Small business faired much better than the federal government or large corporations.  When respondents were asked whether they felt small business had a positive effect on how things are going in the US, 73% of the contented, 74% of the frustrated and 68% of the angry respondents said "yes". 

This contrasts with 36%, 24% and 23% of the respondents respectively who felt that large corporations were rated positively.  Banks and financial institutions ranked the worst, with the respondents showing a postive rating at 39%, 18% and 16% respectively.

It seems like small business is the place to be if you want to be positively viewed by the American public.  What do you think?

The survey can be found here: http://people-press.org/reports/pdf/606.pdf

The Great Sell Off of American Businesses

According to a Federal Reserve survey, approximately 50,000 businesses changed hands in the United States in 2001.  By 2004, the survey reported the number of companies sold increased to 350,000, and it went on to project that in 2009, 750,000 would be sold.  While there are 23 million businesses in the United States, about 17 million of them are small mom-and-pop businesses.  Will all the companies be sold?  Probably not.  Historically, about one third will be passed on within the family and two thirds will be sold.

Just looking at the baby boomer population numbers, a fair approximation of the coming flood of business sales is evident.  A tidal wave of baby boomers reaching retirement, judging from the Federal Reserve survey mentioned earlier, indicates that the selling wave has already begun.  It should steadily rise over the next 10 years or so, peak during the 2020s, and then slowly taper off the following 10 years.  So, over the next two decades it appears that there should be a lot of opportunities to purchase some great businesses.

What does that mean for our current business owners?

If you’re a business owner, the best thing you can do for yourself is to begin thinking about exit-planning now, even if you have no intention of selling your company.  The second thing is to get professional help from a financial professional trained in this field when you do.  Once you have sold your business, you will only know how much you got for it, but not how much you could have gotten if you would have had professional advice.  The difference could be substantial.  Usually at least 20 percent more and as much as two to three times as much as when you sell it yourself, according to Dennis Roberts, CEO of the McLean Group LLC, a national, middle-market investment bank.  The dark side for the business owner in all of this is that these sales will happen in a relatively short amount of time because of the wave of business owners hitting age 65 in the next 20 years, and there are a lot of them.  At some point, there will begin to be a glut in the market place and a need for more buyers, which could conceivably drive prices down.  The best way to avoid getting caught in that is to get ready now.

Wyoming Business Leadership Institute: April 16-18 in Laramie

The second class of the Wyoming Business Leadership Institute, a collaboration between the UW College of Business and the Wyoming Business Council is scheduled for April 16 - 18 in Laramie.

The three day seminar is aimed at business owners, managers and entrepreneurs and designed to help participants strengthen management and leadership skills, increase company profitability, develop succession planning to ensure company sustainability, and receive customized training geared toward company needs.

Folks that participated in the first class found it to be extremely helpful.  The class costs $950 and the application deadline is April 1.  For more information go to www.wyomingbusinessinstitute.com

Were you one of the previous participants?  If so, let us know what you thought about this program.