The founders must consider voting rights, board rights, founder salaries and information rights (Da Rin and Hellmann, 2017). The founders must consider voting rights to understand how much control they are surrendering and if the founders will have some decision making ability. For instance, if voting is decided by basic majority and the investors have …
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Patents can be used as a sword to provide a company with a legal monopoly on a new technology (Bagley and Dauchy, 2012). This will slash other competitors and prevent them from commercialising the technology. It allows the firm to exclusively profit from an idea providing they can successfully prove in a patent application that …
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Entrepreneurial ventures have three main exit types: initial public offering (IPO), acquisition or to dissolve the company. An entrepreneurial firm usually cannot remain entrepreneurial forever as they are characterised by growth and intuitively it is not possible to grow forever. An Initial public offering is described as the most desired entrepreneurship strategy despite most world …
Trademarks are used to maintain the reputation and reliability of firms, so they are not confused with other firms (Bagley and Dauchy, 2019). For instance, if anyone was allowed to use the trademark M for McDonalds then the reputation of McDonalds for its distinctive taste and quality could quickly fall. Building a positive reputation for …
The proponents of patents claim that patents are a necessity for innovation as they give confidence to the innovator that they will be rewarded for their investment. However, this is predicated on the assumption that first mover advantages, building loyalty and continually innovating cannot generate a sustained competitive advantage. In fact, the race for companies …
Copyright law protects literacy works and other works such as musical compositions and computer software. A copy right gives the owner of the original work the exclusive legal right to obtain certain economic benefits from the work (Bagley and Dauchy, 2019). The works should be original and require an element of creativity - facts are …
Protection with a range of mechanism — patents, secrecy, lead time advantages and the use of complementary marketing and manufacturing capabilities. Prominent motive of patenting is the prevention of rivals from patenting related inventions. Different reasons for patenting in ‘discrete’ industries such as chemicals (usually to block competitors), versus ‘complex’ industries such as telecommunications (force negotiations) Absence …
1) What is the role of the term sheet? Term sheets outline contractual obligations and rights for the investor and the entrepreneur in an investment deal. They create governance structures to deal with a variety of outcomes that an entrepreneurial venture may face. They clarify expectations for both the entrepreneur and the investor in terms …
1) What is the relationship between investment, valuation, and ownership? What fundamental economic exchange is at play? Relationship is that investment = ownership * valuation. Supply and demand is at play, and the market determines valuations. The investors want a low valuation, but entrepreneurs want a high valuation. More supply of ventures needed funding will …
1.1 Intellectual Property and Cyber Law – Chapter 14 – Bagley, Dauchy, 2012 The entrepreneur’s guide to Business Law by C.E Bagley & C.E Dauchy Intellectual property represents approximately 70% of an average firm’s value. Entrepreneurs must take steps to protect their own assets and to avoid violating others intellectual property rights. 1.1.1 Trade secret …
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