Business Escrow Explained

Business Escrow Explained

Escrow is a third-party process requiring the payment of a fee to an independent individual or entity that will act as an “escrow agent”. If the transaction goes as planned, the funds and property placed in escrow will be transferred in accordance with an agreement that was negotiated between the parties. If, on the other hand, the contract is not fulfilled or is breached, the contents of the escrow account can be returned to the parties.

Additional Protection

The additional layer of protection is through California’s Escrow Law (i.e., California Civil Code Section 1057). Specifically, Code Section 1057 sets forth binding standards for interim or “escrowing” transactions and restrictions on how escrow may be utilized. There is also an escrow agent whose primary responsibility is ensuring the funds and property involved in the transaction are exchanged in accordance with the agreement. The escrow agent essentially serves as a temporary custodian of the assets in order to protect both buyer and seller against claims of breach of contract if and when they have to return any portion of the escrow to either party.

The Two Types of Escrow Processes in California

There are generally two types of escrow arrangements used in California transactions: (i) bilateral escrow and (ii) unilateral escrow.

Bilateral escrow is an arrangement in which the parties to a transaction are granted an equal right to request the escrow agent to maintain funds and property during a transaction. On the other hand, unilateral escrow is an arrangement in which only one party has the authority to request the escrow agent maintain funds and property.

Prerequisites for a Valid Escrow

There are generally three prerequisites that must be met for a valid escrow in California:

• Valid contract between the Grantor and Grantee – The agreement between the parties, whether an actual written agreement or verbal agreement, must clearly set forth that an escrow is involved. In addition, both parties need to agree to the terms of the escrow.
• Delivering the Deposited Item, or Items, to the Depositary – For an escrow arrangement to be valid, the grantor’s item, or items, must be delivered by them to an individual or entity authorized to hold the item, or items, during the pendency of the transaction.
• Communicating the Negotiated Conditions to the Depositary – The terms of the escrow need to be relayed to the escrow agent so they are aware of what conditions must be met before they turn over possession of the property to either party.

Have Questions about the Business Escrow Process? Contact an Experienced Los Angeles Business Litigation Attorney at Omni Legal Group Today

Escrow is a helpful tool that can assist business owners in mitigating the risk of dealing with unknown third parties or business entities over the phone or via online transactions. Business escrow also affords a level of due diligence from both sides participating in an agreement, which may help improve communications and trust between parties negotiating an agreement. Of course, before entering into the escrow process, it is imperative to ensure that you have a clear understanding of how an escrow works. This is where the business litigation attorneys at Omni Legal Group can help. Omni Legal Group is a premier Patent, Trademark, and Copyright law firm located in Los Angeles. For further information or to schedule a consultation please contact Omni Legal Group at 855.433.2226 or visit www.OmniLegalGroup.com to learn more.

Overview of Trademark Non-Use Cancellation

Some people mistakenly believe that if they successfully register a trademark, they are bestowed perpetual legal right and ownership over that mark. In reality, a trademark can be canceled (also known as being declared “dead”) if the mark has not been used for three years, or if you fail to maintain your trademark filings.

During the trademark application process, the applicant agrees that the trademark will either be used in commerce with the goods or services listed in the registration or it will not be used in commerce due to special circumstances. Most applicants indicate their mark will be used in commerce. As a result, when that mark is dormant and not used in commerce with goods and services, it is at risk of being canceled. If this happens, a competitor can step in and purchase the canceled trademark.

Four Ways Trademarks Get Cancelled or Abandoned

There are generally four scenarios in which a trademark winds up canceled or abandoned. Those include:

1. An application was unsuccessful in securing trademark registration.
2. The trademark registrant failed to maintain the necessary filings with the United States Patent and Trademark Office (USPTO). Specifically, new trademarks need to be renewed after five years. After that, your mark will need to be renewed after year nine. Failing to meet the deadlines will result in a canceled trademark.
3. The trademark registrant failed to use the mark in commerce with the goods and/or services described in the registration application. As mentioned earlier, you are obligated to use your trademark. Failure to use the mark for three years will likely result in the “death” of your trademark registration.
4. A competitor decides to file a third-party petition. You need to be prepared for the possibility of a competitor filing a petition to cancel your trademark if they believe it is too similar to their own mark.

Develop a Trademark Monitoring Strategy

It is important to maintain a robust trademark monitoring strategy. Why? Because such a strategy can help prevent trademark non-use cancellation by tracking your use of the trademark to ensure it is being used in commerce with the goods and/or services described in the registration application. An effective monitoring strategy will also keep tabs on what trademarks your competitors are registering.

Have Questions? Schedule a No Obligation Consultation with an Experienced Trademark Attorney in Los Angeles Today

If you have questions about strategies to properly monitor your trademarks, or you want to begin the process of registering a trademark, then it is imperative to work with a reputable and experienced trademark attorney in Los Angeles such as the professionals at the Omni Legal Group.  Omni Legal Group represents clients throughout the greater Los Angeles area, including Beverly Hills, Santa Monica, Culver City, and many others. For further information or schedule a no obligation consultation, please call Omni Legal Group at 855.433.2226 or visit www.OmniLegalGroup.com to learn more.

What Can and Cannot Be Patented in the United States

There are many different types of innovations and inventions that can be patented in the United States. Nevertheless, there are certain things that generally cannot be patented; hence, it is important to have a baseline of knowledge of what qualifies for a patent before beginning the patent application process.

Different Types of Patents

Patents are typically broken down into specific patent types. The types of patents include:

• Design patents
• Utility patents
• Plant patents

Design and utility patents are, by far, the most common types of patents pursued in the United States.

Design Patent

Generally, a design patent protects the ornamental features of an invention, i.e., what it looks like. For example, you can get a design patent on a new lampshade as long as it looks different from other lampshades. Design patents can be used effectively to prevent direct knock offs of inventions as well as protect a portion of an invention, such as a bumper of a vehicle.

Utility Patent

Utility patents are used to protect processes/methods (a method of making a golf ball), apparatuses/machines (mechanical devices from hammers to rocket engines), and

Plant Patent

A plant patent is typically pursued when you have created a brand-new plant sub-species. As you might expect, this type of patent is fairly rare. Nevertheless, if you are in need of a plant patent, make sure to retain the services of a patent lawyer who is experienced in this specialized area of patent law.

What Cannot be Patented

There are specific limitations on what can be patented in the United States. Why? Because your invention may actually be protected by another type of intellectual property protection, or your invention is not eligible for a patent for other reasons. For example, if you are looking to protect a business name or logo, then you need to secure a trademark, not a patent. Similarly, if you are looking to protect a piece of music, a photograph, or another type of artistic expression, then you need to secure a copyright, not a patent.

A trickier aspect of patent law arises with phone applications (i.e., apps). It is important to understand that, in general, anything that is new and useful is likely eligible for a patent. However, being “useful” is insufficient. This is particularly true of software and types of phone applications. The inability to patent a phone app is because, in many instances, they are just spreadsheets on steroids that are presented in an easier to read or format that is more understandable. Hence, the USPTO typically does not consider a phone app to be an invention.

Have Questions about the Patent Application Process? Contact the Highly Reputable Omni Legal Group Today

If you have an invention and want to obtain a patent, retaining the services of a reputable and experienced patent attorney is extremely important. Whether you are in need of, or have, a provisional patent, non-provisional patent, design patent, utility patent, or plant patent application, Omni Legal Group is here to help. Omni Legal Group is a premier Patent, Trademark, and Copyright law firm located in Los Angeles. For further information or to schedule a consultation please contact Omni Legal Group at 855.433.2226 or visit  www.OmniLegalGroup.com to learn more.

Compensation Range Now Required for Businesses Posting Job Openings in California

California joins several states (e.g., Washington, Colorado, New York City, etc.) now requiring specific businesses to provide a compensation range in any job posting. Specifically, all private employers in California with 100 or more employees are required to provide pay data reports to the California Civil Rights Department, even when they are submitting Employer Information Reports (EEO-1) to the Equal Employment Opportunity Commission (EEOC).

The new California law mirrors federal law requiring private employers with 100 or more employees to file annual EEO-1s with the EEOC. Employers are obligated to submit reports detailing the following data points:

• Number of employees organized by ethnicity, racial background, and sexual orientation in 10 different job categories
• Number of employees, organized by ethnicity, racial background, and sexual orientation whose annual earnings are within the pay bands utilized by the United States Bureau of Labor Statistics survey relating to Occupational Employment Statistics.
• The median and mean hourly rate within each job category, for each combination of ethnicity, race, and sexual orientation.
• Total number of hours worked by every employee in every pay band during a reporting year.
• An employer’s North American Industry Classification System (NAICS) code.
• An employer’s clarifying remarks about the information provided (not required).

Potential Penalties for Failing to Comply with SB 1162

If an employee claims they were harmed by a business failing to comply with the new pay disclosure requirements, then they have the option to take legal action. Specifically, an employee can file a complaint with the California Division of Labor Standards Enforcement (DLSE) within one year of the date the employee learned of a violation. In addition, an employee has the option to file a civil action for injunctive relief.

If the DLSE decides that a California business violated the pay disclosure law, the employer could be subjected to a large civil penalty (i.e., up to $10,000 per violation).

How Penalties are Determined

The labor commissioner is empowered to determine the specific amount of a penalty. The labor commissioner will review the totality of the circumstances, including any previous violations, when deciding the size and scope of the penalty. However, it is important to note that no penalty will be assessed for a first violation when an employer is able to demonstrate that all job postings for all positions have been proactively updated to include a compensation range.

Take Action and Make Sure Your Business is Compliant with the New Pay Range Disclosure Law and Schedule a No-Cost Consultation With a Knowledgeable Los Angeles Business Litigation Lawyer Today

The new pay range disclosure law is just one of many regulatory requirements that California business owners need to understand, satisfy, and ultimately ensure compliance. Failing to do so could expose your business to expensive and time-consuming litigation. If you need assistance achieving compliance with the new pay range disclosure law, and other business laws in California, consider contacting Omni Legal Group. Our firm represents clients throughout the greater Los Angeles area, including Beverly Hills, Santa Monica, Culver City, and many others. Our team of highly reputable Los Angeles business litigation attorneys possess a wealth of experience handling business law claims with hundreds of different results in an assortment of cases. For further information or schedule a no obligation consultation, please call Omni Legal Group at (855) 433-2226 or visit www.OmniLegalGroup.com to learn more.

Is Filing a Provisional Patent Application Prior to Marketing a New Product a Good or Bad Idea?

If you are in the process of a developing a new, innovative product, there will come a time when you need to address an important question – should you focus on marketing the new product or invest the time in filing for a provisional patent application? The answer is…it depends. For additional context, let’s look at some key features and distinctions between provisional patents and non-provisional patents.

Provisional Patents

Provisional patent filing was first offered by the United States Patent and Trademark Office (USPTO) in 1995 to provide U.S. inventors a simple, cost-effective option that established parity between U.S. and non-U.S. filers. In contrast to a non-provisional patent application, a provisional patent application does not issue as a patent. Nevertheless, it does provide the right to the inventor to file a subsequent non-provisional patent application that claims priority to the provisional patent application.

There are notable benefits to filing a provisional patent application. Here are just a few examples.

Patent Pending Status

One of the biggest benefits associated with a provisional patent application is that provides the inventor the option to indicate their product holds a “patent pending” status. Attaining the “patent pending” status provides an array of benefits, most notably an immediate advantage over other inventors and business owners looking to market a competing product. In addition, the “patent pending” status further discourages competitors from making and distributing similar products that could potentially infringe on your future potential patent.

This status lasts for one year commencing from the date of filing. After one year, the inventor has the option to file an application for a non-provisional patent and claim priority to the corresponding provisional patent application.

Less Resource Intensive

Provisional patent applications are generally less costly when compared to the expense associated with filing a proper non-provisional patent application. In addition, provisional patent applications involve less formalities and less drafting. In addition, a provisional patent application does not need to be examined by USPTO examiners.

Scope of Disclosure is Key

If you decide to file a provisional patent application, it is important to understand that the scope of the disclosure and drawings will likely play a large role at the time of its conversion to a non-provisional patent application. Why? Because the corresponding non-provisional application is unable to expand or claim more than what was described in the original provisional patent application.

As you can see, considering the various benefits associated with holding a provisional patent, it may be worthwhile for inventors to prioritize filing this type of application rather than focusing primarily on marketing your new product.

Contact Omni Legal Group to Schedule a No-Cost Consultation with an Experienced Patent Attorney in Los Angeles Today

If you are interested in filing a provisional or non-provisional patent application, the Omni Legal Group is here to help. Our team of patent attorneys in Los Angeles excel at protecting inventions using provisional and non-provisional patent app. Omni Legal Group is a premier Patent, Trademark, and Copyright law firm located in Los Angeles. For further information or to schedule a consultation please contact Omni Legal Group at 855.433.2226 or visit  www.OmniLegalGroup.com to learn more.

How are Online Transactions Affecting Businesses?

How are Online Transactions Affecting Businesses?

Even before the pandemic sped up the industry, there had been a steady growth in online business transactions. With over 10,000 fintech startups registered in the US alone, there’s a huge market for online business solutions and the resultant payment solutions necessary to enable the transactions.

A cultural shift has seen the world embrace more cashless solutions as business transactions have moved into the digital space. As Generation Z and millennials before them experience increased disposable income, businesses have been forced to adapt. Some of the most profitable American companies have been those providing business transactions that are available digitally; think Apple, Amazon and Walmart. Keeping with the trend, cryptocurrencies and NFTs (non-fungible tokens) are looking like less of the future and more of the present.

This ease of completing business transactions and the payment processes attached to them have led to increased business volumes globally. Digital business transactions have lowered the associated costs of business and reduced the bureaucracies that previously hampered international trade. Order a meal, product, or service on your phone, and have it delivered to your doorstep without having to talk to anyone directly, or sometimes at all.  There are more opportunities for trade and financial activity with people living continents away from each other.

A challenge with this boom in business transactions has been the privacy and safety of data. Many platforms offer seamless transactions, with pre-saved passwords and history saved to ensure that recommendations, purchases, and deliveries are faster. Data, the identities, credentials, and histories associated with millions of clients, is a key asset. So important an asset that there are companies and individuals ready to pay millions for it. The sheer number and value of the data mean that security breaches can lead to losses far beyond reputation and trust; financial ruin is a likelihood.

With the risks attached, businesses entrusted with client data must ensure they operate within laws that protect their clients. Failure to safeguard their clients’ data has seen leading tech giants like Amazon and Meta fined hundreds of millions of dollars in fines. Even on a smaller scale, lawsuits can be filed and end up costing your business lost revenue in fines.

Another more serious effect of data breaches associated with business transactions is the loss of client trust. Consumer trust, the feeling that your business will act in their best interest is a priceless asset in your business. It can keep generations as loyal clients of a brand, and once it is lost, it is very difficult, sometimes impossible, to get back.

As a practical precaution, businesses and brands can encrypt passwords, back up data and employ the use of anti-virus and malware protectors. Additionally, they should ensure their handling of client data is done legally, which ensures that they avoid lawsuits and best of all, have the surety that they are protecting the data entrusted to them.

More and more businesses will go online, remember the 10,000 registered start-ups, and lead to an even bigger boom in business transactions, which then calls for stricter data privacy and safety solutions.

Have Questions About Your Obligations on Data Handling or Usage? Take Action by Contacting a Los Angeles Business Transaction Attorney Today!

If you need help determining the legalities surrounding client data usage, it is in your best interest to retain the services of a reputable business transaction attorney such as the Omni Legal Group. Omni Legal Group is a premier Business, Patent, Trademark, and Copyright law firm located in Los Angeles. For further information or to schedule a consultation please contact Omni Legal Group at 855.433.2226 or visit  www.OmniLegalGroup.com to learn more.

How to Navigate Class Selection in a Trademark Application

Registering a trademark can be a difficult and stressful process. Why? Because one of the key aspects of the trademark application process is selecting the correct “class” for your trademark. There are 45 classes in total, and it is up to you, the applicant, to select the right one.

The class selection process may be intimidating to some considering each class relates to a specific type of good or service, but often results in ambiguities and misinterpretations of what good or service should fall into which class. This is where the counsel and guidance of an experienced trademark lawyer can prove to be invaluable.

Class 42

Your product might fall under one of the most common trademark classes, such as class 42 (also known as the “Science and Technology Services” class).

Class 42 includes services that deal with scientific and technical services such as:

• Service software
• Technical research
• Computer programming
• Chemistry services
• Architectural services
• Design services
• Biological research
• Chemistry research
• Cloud computing and seeding
• Computer technology consulting
• Construction drafting
• Electronic data storage
• Environmental protection research

This class is geared towards services handled by trained professionals such as chemists, engineers, computer programmers, physicists, etc. It also encompasses scientific research such as medical research and findings. For example, a class 42 trademark might be pursued for cosmetic research, biological research, and even computer data recovery.

Classes That Commonly Coordinated with Class 42

Class 42 includes an array of services in technical and scientific fields. However, there are situations in which class 42 does not cover all areas of technical services. In such circumstances, it is essential that you invest the time, or seek the counsel of an experienced trademark attorney, to identify other classes your service falls into. It’s important to understand the different components of what you’re looking to register as a trademark. It’s possible that your product or service actually falls under multiple classes. If this is the case, your application will need to include a set of classes. Here are some commonly related classes that are often paired with Class 42:

• Class 9: Electrical and Scientific Apparatus
• Class 36: Insurance and Finance Services
• Class 37: Construction and Repair Services
• Class 38: Telecommunications Services
• Class 39: Shipping and Travel Services
• Class 40: Material Treatment Services
• Class 41: Education and Entertainment Services
• Class 43: Food Services
• Class 44: Medical and Vet Services
• Class 45: Legal and Security Services

Registering a Class 42 Trademark

The first step in registering a Class 42 trademark is to conduct a trademark search for existing marks within that class. Once this search is complete, the next step is to prepare and file your trademark application with the United States Patent and Trademark Office. The last step of the trademark process is to maintain your trademark status. If these steps seem intimidating or overwhelming, it is strongly recommended you contact an experienced trademark attorney to help guide you through the process.

Have Questions? Contact the Reputable Omni Legal Group Today

As you can see, properly assessing and choosing the class your service falls under can be difficult and is rife with potential pitfalls. Nevertheless, if you have the counsel of an experienced trademark attorney in Los Angeles, such as the expert professionals at Omni Legal Group, you can be rest assured that everything will be handled accordingly. Omni Legal Group is premier Patent, Trademark, and Copyright law firm located in Los Angeles. Our legal team of highly experienced patent & trademark attorneys, specialize in protecting your intellectual property securing your patents, trademarks, and copyrights. Whether it’s a provisional patent, non-provisional patent, design patent, utility patent, or plant patent application, Omni Legal Group will see it through. For further information or to schedule an appointment please call 855.433.2226 or visit www.OmniLegalGroup.com to learn more.

Design Patent vs. Utility Patent

The United States Patent and Trademark Office typically categorizes a design patent as one that protects “the way an article looks”. The design patent not only protects the shape, size, and form of your invention, but it also protects any surface embellishments that might be integral to your invention. Design patents are extremely important when the main feature of your product is the physical shape or look. An added benefit to a design patent is that they typically cost less than utility patents and take less time to process. While design patents can be useful, there are some reasons why it might not be enough. For example, a design patent typically only protects superficial features of the invention, and a competitor can often change small parts of the design to escape your patent protection. Thus, it is imperative to have an experienced patent attorney review your invention and determine if a design patent is sufficient.

The more common form is a utility patent. The utility patent protects the process by which something is made and works. The primary different is that, while a design patent protects the physical shape and form, a utility patent protects the mechanism by which something works and the assembly. Utility patents are often more common because most inventions require their functionality. These types of patents are more expensive and time intensive. Utility patents can take 2-3 years to obtain. In most cases, though, the utility patent provides the most comprehensive level of protection against infringement.

In many cases, it is useful to obtain both a utility patent and a design patent. For example, in the case of Apple’s iPhone, a design patent can protect the shape and aesthetic of the phone, while a utility patent can protect the mechanisms and functionalities of the phone. With both a design and utility patent, Apple’s iPhone can maintain the most comprehensive level of protection against those attempting to copy their product. If you have invented something with design and utility in mind, it may be useful to have both types of patents to protect your invention in the most effective way.

Have Questions? Contact an Experienced and Reputable Patent Attorney in Los Angeles Today

If you have an invention and want to obtain a patent, retaining the services of a reputable and highly experienced Los Angeles patent attorney, such as the professionals at Omni Legal Group, is imperative for a successful outcome. Whether you are in need of, or have, a provisional patent, non-provisional patent, design patent, utility patent, or plant patent application, Omni Legal Group is here to help. Omni Legal Group is a premier Patent, Trademark, and Copyright law firm located in Los Angeles. For further information or to schedule a consultation please contact Omni Legal Group at 855.433.2226 or visit  www.OmniLegalGroup.com to learn more.