Legal & IP

New Rule for Foreign Entrepreneurs

Visa to United States of America

The United States has a new rule, which allows foreign entrepreneurs a temporary initial stay of up to 2 years (which may be extended by up to an additional 3 years) to facilitate founders’ ability to oversee and grow his or her start-up entity in the United States. Some people call this a “Startup Visa”.

Who is eligible?

Entrepreneurs who have a significant ownership interest in the startup (at least 15 percent), and have an active and central role to its operations.

Free Legal Help

Good deal guys… Apply by August 10th to receive free startup legal services from UC Hastings College of the Law.

Applications are due midnight, August 10th:
https://www.surveymonkey.com/s/startuplegalgarageapplication

Be sure to mention Founders Space.

If you want help, contact startuplegalgarage@uchastings.edu

Here’s How to Incorporate Your Startup in the United States

Anil Advani, an attorney at Inventus Law, tells how to incorporate your startup as an LLC, S Corp, C Corp; the differences between California and Delaware; how to put together the initial cap table; how to elect a board of directors and officers; how to structure the founders stock, vesting and acceleration and much more!

Scott Walker Explains the Five Critical Legal Mistakes that Startups Make

Wilson Sonsini Term Sheet Generator for Convertible Notes

This tool will generate a convertible note term sheet based on your responses to an online questionnaire. It also has an educational component, with basic tutorials and annotations. This term sheet generator is a modified version of a tool that we use internally, which comprises one part of a suite of document automation tools that we use to generate start-up and venture financing-related documents.

http://www.wsgr.com/WSGR/Display.aspx?SectionName=practice/termsheet-convertible.htm

The Building Blocks of a Technology Deal

by Richard Hsu at One Page Blog

Assignment in a Change of Control

by Richard Hsu at One Page Blog

Founders Spotlight: The Royse Law Incorporator

Each week we try to feature an innovative startup or service that founders can use.

This week it’s The Royse Law Incorporator.  This brand new service is designed to help you incorporate and structure your company in Delaware or California. For an all-inclusive fee of $1,000, they will incorporate your company and provide a one hour consultation with an attorney.

http://www.royselawincorporator.com/

The $1,000 fee covers the following:

Can I close that company with the active judgment?

Question:

I am the registered owner of a defunct company that has a judgment against it.  In the Commonwealth of Virginia, can I close that company with the active judgment?

Ethan Stone

Ethan Stone

Answer by Ethan Stone, Stone Business Law

First, a quick but important clarification: I’m not your lawyer and this answer doesn’t establish a lawyer-client relationship. I’m giving a generic answer to a generic question to educate the users of this site. The information below is general in nature and should not be understood as a substitute for personal legal advice.

Tenancy Agreement Myths Busted

by Ruby Claire of Agreements.org

A tenancy agreement is a contract which binds the landlord and tenant regarding the terms and conditions of rental space. It is a legal document which specifies the responsibilities of both the parties involved.

The tenancy agreement can also be oral. Most people are not aware of the legal requirements when they enter into a contract. The letting agents take advantage of this and hoodwink their clients, so that their business continues to grow. It is necessary to know what statements are true according to law and what statements are myths when you sign a tenancy agreement. Find out the six myths related to tenancy agreements in this infographic.

Handling IP Assets in an M&A Transaction

by Richard Hsu at One Page Blog

Back by popular demand, I have once again recruited my 13 year old daughter Maya to help me illustrate how to handle IP assets in a typical carveout M&A transaction.

Richard Hsu is a Silicon Valley Technology Lawyer who believes we are so overloaded with information that if you cannot be brutally pithy and honest, it won’t get read. Even though I spend most of my time negotiating complex licenses and wrestling with thorny technology issues, I want to use that experience to provide –hopefully– useful information which can be summarized on no more than ONE PAGE.

Why You Should Patent your Inventions

Feisal Mosleh

Feisal Mosleh

By Fas Mosleh on April 5, 2012 in his BlogFeisal Mosleh New Ventures Partner at Juldee Innovation Ventures

Are you an entrepreneur in High tech? You may have a passion to launch a software startup or a new website or even a new kind of consumer electronic device like a video or camera phone.

Whatever your dream product, consider patenting any original, novel aspects by either filing a provisional or a full patent application at the US Patent Office. Why do this?

Where can I download good templates for boilerplate legal agreements?

Ethan Stone

Ethan Stone

Question: Where can I download good templates for boilerplate legal agreements, such as NDAs, Board of Advisor agreements, employment agreements, and other typical things a startup would need?

Answer by Ethan Stone, Stone Business Law

Let me start with a couple of caveats (yes, I’ll give you some links at the bottom).

First, I’m not your lawyer and this answer doesn’t establish an lawyer-client relationship. I’m giving a generic answer to a generic question to educate the users of this site.

King & Spalding’s 4th Annual PharmaU

by Richard Hsu at One Page Blog

With contributions from some of my colleagues at Pharma VenturesAquilo Partners and Linda Pullan, Ph.D., here is a short presentation I recently delivered at King & Spalding’s PharmaU on life science and collaboration agreements.

My partner sold our company, but I did not get a dime!

Ethan Stone

Ethan Stone

Question: I formed an LLC with a partner a couple years ago, and it didn’t work out. I left him with a 70% stake and bowed out. I just heard that he licensed off the software for a pitance, then he joined the company that licensed it, getting a salary and a huge signing bonus. I didn’t get a dime from this transaction, even though I own 1/3 of the LLC. Is this legal?

When negotiating VC funding, what should I look out for regarding founders termination clauses?

Question: I understand that venture capitalists like to include a founders termination clauses in most of their deals. What should I look out for with these termination clauses? And what should I include to protect myself?

Ethan Stone

Ethan Stone

Answer by Ethan Stone, Stone Business Law

First, a quick but important clarification: I’m not your lawyer and this answer doesn’t establish a lawyer-client relationship. I’m giving a generic answer to a generic question to educate the users of this site. The information below is general in nature and should not be understood as a substitute for personal legal advice.

Can I use Facebook’s TOS & Privacy Policy for my website?


Antone Johnson

Antone Johnson

by Antone Johnson at Bottom Line Law Group

QUESTION:

I’m creating a social networking site.  Is it legal for me to basically copy off Facebook’s terms of service and privacy policies and just amend them for particulars of my own site?  Or can Facebook file some sort of complaint against me for that?

ANTONE’S ANSWER:

What’s the best way to protect my innovation from being duplicated?

Naomi Kokubo

Naomi Kokubo

by Naomi Kokubo editor of Founders Space

QUESTION:

Is there a way to secure the rights to an innovative plastic card processing program (alternative to cash) targeting a specific target market?  So that large banks and financial institutions (other than the one we potentially partner with) cannot duplicate?

ANSWER:

The first thing you can do is file a provisional patent.  This is fairly easy to do and will cover you for one year.  Within that year you will need to file one or more full patents based on the provisional patent.  This is probably your best protection.

License Animation Project

Richard Hsu

Richard Hsu

by Richard Hsu at One Page Blog

Inspired by Caltech’s Mechanical Universe Project, I made a short video comparing the typical grant language of a software license, a biotech license and a patent license, all in about 60 seconds.

How do I deal with out-of-state and overseas partners?

by Geraldine Zaroukian, Managing Director of Zarig.com

QUESTION:

1.  Should I do a partnership or LLC with my partner in Florida and give shares to my partner in Portugal?  Or can I give them both ownership in the company?

2.  Do I need to have a Florida State Business License along with a Kansas License too — especially if my Florida partner picks up some business?

ANSWER: