ENT 101 – MaRS Discovery District Wednesday October 10, 2012
ARSHIA TABRIZI
B.A.Sc. Computer Engineering (Hon) (UofT)
Juris Doctor (Law) (UofT) Member of Ontario & California Bars
www.tabrizilaw.com
¡ 1990-‐1995 – UofT software/hardware engineering, IBM ¡ 1995-‐1998 – joined the “dark side” – UofT law school ¡ 1998 – back to “the force” – thesis on “University Spin-‐offs” ¡ 1999-‐2001 – Wilson Sonsini Goodrich & Rosati PC (Palo Alto,
Silicon Valley) – incorporated Google, IPO’d Apple, 800+ lawyers ¡ 2002 – Tabrizi Law Office -‐ full-‐service/exclusive start-‐up practice
§ Incorporation, Financing, IP, Trademark, Patents, Licensing, Web § Strategic Partner – equity, relationships, 3-‐4/year time horizon
¡ Client list § NeXJ Systems (founded by William Tatham, previously founder of
Janna Systems, acquired by Siebel for $1.7 b.) § RedFlagDeals.com (acquired by Yellow Pages Group) § WedSnap Inc. (acquired by The Knot Inc.) § MMB Research (smart-‐energy platform, $1 m. angel round) § CognoVision (acquired by Intel)
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1. Corporate Organization § Do it right from start
2. Intellectual Property § More than just patents
3. Contracts § Why do they matter
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¡ Articles of Incorporation Ø Limited liability Ø Tax advantages Ø IP centralization Ø Venture capital Ø Range $750 (basic) – $1,500 (full) Ø Timing -‐ when to incorporate?
Ø Tip #1 – In corporate work, scrooge pays later
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¡ Corporate Structure § Founder Shares
Ø Ownership %
Ø Voting rights Ø Share classes
¡ Corporate Governance § Board, officers
¡ Tip #2 – Shareholders agreement = prenup
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¡ Customized contract § Spectrum of complexity: 5 – 80 pages § Pre-‐venture versus venture-‐ready
¡ Broad range of issues § Corporate Governance
Ø Board, decision-‐making
Ø Hire, finance, sell
§ Shareholder Exit ▪ Divorce, sale of company
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¡ Billions of dollars are at stake: § Apple v. Samsung (Android OS) § Heated auction for Nortel patents § i4i $240 m. award against Microsoft § Winkelvoss twins against Facebook
¡ IP = protecting your primary assets
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¡ Steve Jobs had dozens of patents § Stair design patent in Apple stores
¡ Apple lost GUI case against Windows ¡ Steve Jobs negotiated music rights for iTunes ¡ Steve Jobs was secretive & controlling
§ Contrast lean start-‐up practice ¡ iPhone trademark in Canada ¡ Tip #3 – IP is not only about patents
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¡ Patents v Innovation § Patents equal innovation § Patents kill innovation
¡ Questions ▪ How much innovation could Google have produced if it had spent $12b on product development instead of the purchase of Motorola’s mobile-‐related patents? ▪ Is Apple stopping Android phones good for innovation?
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¡ Patents § $10-‐15k full patent § $2-‐4k provisional patent § Prosecution, enforcement
¡ Trademarks § $1-‐2k to registration § 6-‐18 months to registration § Improper use/application => lose rights
¡ Tip #4 – digital media is about brand
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¡ Trade Secret v. Patents § Easy, cheap § No time limit § No disclosure
¡ IP Strategy ¡ NDA (Contract)
§ Watch for traps! ¡ Tip #5 – NDA’s should be mutual
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¡ Legally Binding Agreement § Customers ▪ License Agreements
§ Contractors ▪ Consulting /Development Agreements
§ Employees ▪ Employment Agreements
§ Founders ▪ Shareholders Agreement
¡ Emails / LOI’s / MOU’s ▪ Enforceable, IP, risks
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1. Protect IP 2. In writing 3. Raise money 4. Sell company 5. Manage risk
¡ TLO – strategic partners to start-‐ups
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¡ Tabrizi Law Office P.C. ▪ Incorporations, Shareholder Agreements ▪ Stock Options, Founder Agreements ▪ Venture Capital Financings, Acquisitions ▪ Intellectual Property Law (IP, Litigation) ▪ Technology Transactions (Licensing, Partnerships)
§ Contact: ▪ [email protected] ▪ arshia_tabrizi ▪ 416.510.2600 x.306
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