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Home / Articles Posted by Omid Khalifeh ( - Page 9)

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Contract Law and Its Impact on Businesses: Navigating the Legal Terrain

Contract Law & Its Impact On Businesses

Contract Law and Its Impact on Businesses: Navigating the Legal Terrain

Almost every business transaction may be viewed through the lens of contract law. Whether it’s buying office supplies, hiring staff, or negotiating a multi-million-dollar merger, a contract is at the core. The legal landscape of contract law can appear convoluted, but understanding its implications is crucial for the successful operation of any business.

Understanding Contract Law

The essence of contract law lies in the agreement between parties. This agreement involves an offer, acceptance of that offer, and a tangible exchange of consideration or value. Contract law governs how these agreements are made, implemented, breached, and rectified. It’s worth noting that contracts don’t always have to be written; verbal agreements can also be legally binding, depending on the jurisdiction and the nature of the agreement.

The Role of Contract Law in Business Transactions

Contract law plays a critical role in shaping and enforcing business transactions. From ensuring that a supplier delivers the promised quantity and quality of goods, to guaranteeing that a freelancer will complete a project within a specified time-frame, contracts provide certainty and legal enforceability to everyday business arrangements. They serve as the blueprint for business relationships, setting out the rights, responsibilities, and expectations of all involved parties.

Breach of Contract: The Pitfalls and Legal Ramifications

The breach of a contract occurs when one party fails to fulfill its contractual obligations. This could be a failure to deliver goods or services, late delivery, delivering substandard goods, or any other violation of the agreement’s terms. The implications can be severe, including legal action and damages. Therefore, having robust contracts in place, and understanding their enforcement, is crucial to protect businesses from losses and liabilities.

Remedies for Breach of Contract

In the event of a breach of contract, several remedies can be pursued. These might include compensatory damages to put the non-breaching party in the position they would have been in had the contract been fulfilled. There are also punitive damages intended to punish the breaching party, and specific performance, where the court orders the breaching party to fulfill their contractual duties. The choice of remedy often depends on the severity and nature of the breach, as well as the specific terms of the contract.

Importance of Legal Assistance in Contract Law

Given the complexity of contract law and the significant role it plays in business operations, seeking legal advice is advisable. Lawyers can help draft contracts that protect your interests, ensure you’re meeting your legal obligations, and help you navigate any potential disputes or breaches. Legal professionals can also help with contract interpretation and provide guidance on how to prevent contractual issues from arising.

Embracing Contract Law: A Key to Business Success

Ultimately, contract law is an integral aspect of the business world. It provides a framework for fair dealings, protects business interests, and offers mechanisms for dispute resolution. By understanding and effectively navigating contract law, businesses can create solid relationships with partners, suppliers, employees, and customers. This can lead to smoother operations, better risk management, and, ultimately, a more successful and resilient business.

For more information on how contracts can impact your business or to schedule a consultation, please contact Omni Legal Group at 855.433.2226 or visit www.OmniLegalGroup.com to learn more.

 

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Patent Pending Infringement

Patent Attorney Los Angeles

A patent is a legal document that gives you, the inventor, the exclusive right to make, sell, or use an invention, product, or process for a set period. Patents are a type of intellectual property protection, helping secure a competitive advantage, while fostering innovations and technological advancements.

In the United States, patents are granted by the United States Patent and Trademark Office (USPTO). Patent pending means a patent application was submitted to the USPTO. Patent pending status primarily serves as an informative notice to potential competitors. Much like a runner in a race, you don’t get the prize until you cross the finish line.

According to USPTO, from application to issuance, the current average total pendency time is over 25 months. For many years, this meant that patent applicants bore the risk of public disclosure of their invention, which could be copied without legal consequence. Luckily, pending patents now have some legal weight and protections.

Patent Pending Infringement Protection

Thanks to The American Inventors Protection Act of 1999,  there are patent pending infringement protections. In particular, you may be able to back-date damages to the date the patent application was published. However, any patent infringement litigation is only permissible if and when the patent is granted.

Monitor and Notify Potential Infringers

A patent pending may attract attention from competitors, investors, or others, who recognize the potential of the invention. Hence, it is important to remain vigilant and monitor the marketplace.

If you identify a potential infringer during the patent pending phase, it’s important to notify the other party of your concerns. Creating awareness strengthens your position in any patent infringement litigation. Compare and analyze the claims of the pending patent application with the inventions, processes, or technologies you suspect may be infringing. Send a notification letter and a copy of your application to inform them about the existence of your patent pending status and specific references to the similarities or overlaps in the protected features or elements.

Secondly, the patent claims in the published application must be substantially the same as those issued when the patent is granted. Substantial changes to the scope of the claims may impact the collection of damages from infringement litigation.

 ‘Unenforceable’ Litigation

Since the crux of a patent is to exclude others from using, selling, or making your invention, potential infringers may also attempt to discredit you. Here are a few ways this can happen:

  1. Validity – Being new, or “novel” (something not done before) is a condition of patent issuance. The infringer may assert that your invention does not qualify and attack its validity.
  2. Inequitable Conduct – The infringer may claim that you misinformed, misled, or withheld important information from the USPTO in your patent application.
  3. Misuse – The infringer may argue that you engaged in certain anti-competitive behaviors, including violations of antitrust laws.

Have Questions About Patent Infringement? Contact a Highly Experienced Patent Attorney in Los Angeles Today

If you have questions about a specific aspect of the patent application process or want to consult with an attorney about a pending patent application, contact the Omni Legal Group. Our team of experienced and highly reputable patent attorneys in Los Angeles will work tirelessly to ensure you secure the provisional patent, non-provisional patent, design patent, utility patent, or plant patent application necessary to protect your invention.

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.

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Arbitrary Trademark – What You Need to Know

Los Angeles Patent Lawyer

If you are contemplating whether to file an application for a trademark, you may be curious about the pros and cons of pursuing an “arbitrary” trademark.

Arbitrary Trademark

An arbitrary trademark possesses a unique combination of familiarity and inherent originality. In most instances, an arbitrary trademark will leverage a fairly common word which has no relation to the actual service or product offered to the general public. Instead, an arbitrary trademark will utilize the common word, or set of words, to try and convey a specific feeling to potential consumers about the brand, service or product.

Protections Afforded to an Arbitrary Trademark

Securing an arbitrary trademark can pay dividends since it features a broad array of legal protections. For example, an arbitrary trademark assigns a separate, recognizable meaning to an otherwise common word or term. In contrast to “fanciful” trademarks, the holder of an arbitrary trademark enjoys the ease and peace of mind in knowing there is an already-established connection to the word or term being used.

Another benefit to securing an arbitrary trademark is that it is not as likely to fall victim to “genericide.” This term is typically used to describe the situation where companies have a brand name that becomes synonymous with the product or service they offer. A good example would be Kleenex. An individual might say “pass me a Kleenex” about a random box of tissues, regardless of the actual brand on said box. Eventually, the word reaches a point of saturation and is deemed to be so generic that the actual company can’t prohibit others from using the term.

Drawbacks of an Arbitrary Trademark

Despite the many benefits associated with holding an arbitrary trademark, there are potential drawbacks you need to consider when deciding whether it makes sense to file an arbitrary trademark application. The first potential drawback is that an arbitrary trademark could adversely impact the image of your brand. Oftentimes, companies will trademark a business name in an effort to facilitate trust, but an arbitrary trademark relies on a fairly common, known word or term. This is risky since common words or terms may be interpreted as less personal. As a result, the arbitrary trademark could actually make it more challenging to build a rapport with your target market.

Another potential drawback is that arbitrary trademarks are, at times, more difficult than, let’s say, a “suggestive” trademark for your target customer base to remember.

Given the complexities and business implications associated with an arbitrary trademark, it is in your best interest to seek the guidance and counsel of a knowledgeable trademark lawyer in Los Angeles such as the Omni Legal Group.

Interested in an Arbitrary Trademark?  Speak to an Experienced Trademark Attorney in Los Angeles Today

Omni Legal Group represents clients throughout the greater Los Angeles area, including Beverly Hills, Santa Monica, Culver City and many other cities in Southern California. Our firm has a wealth of experience handling trademark appliances for all categories, and our Los Angeles trademark attorneys can help you register, file or answer any questions you may have regarding your trademark.

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

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Trademark Filing Fees

Trademark Attorney Los Angeles

Trademark Filing Fees – An Overview

When developing a budget for your business, it is important to consider and incorporate the filing fees associated with maintaining your trademark. Many people either underestimate or downright neglect this expense because they do not understand quite how many trademarks their business may need. For example, as a company expands, so will its branded assets. Thus, each brand asset will require a level of legal protection. With this goal in mind, let’s take a look at some of the key trademark filing fees.

Standard Filing Fees

The standard initial filing fee for a trademark is between $250 and $350 per class, depending on whether you use Trademark Electronic Application System Plus or Standard. This fee will apply to each class of goods or services. As a result, the key question is, how many classes of goods or services do you need?

The chosen category is of great importance because that’s where your trademark applies. No one else in that same category of services will be able to legally use your registered trademark. Larger businesses will likely need to file multiple applications to cover the scope of goods and services that they offer or a multiple-class amendment to allege use for previously submitted intent-to-use applications. Your fee will then apply based on the number of classes.

In addition to the initial stage filing fee, you need to be prepared to pay ongoing fees to maintain your trademark.

Maintenance Filing Fees

There are generally two categories of fees you will need to consider in order to maintain your trademark – (i) renewals and (ii) declarations. Renewal fees generally cover the actual application itself. Declaration fees focus on proving that you are actively using the trademark, which is one of the requirements for maintaining an active trademark.

Declaration fees are due between years 5 and 6, 9 and 10, and every ten years thereafter. Declaration fees are $225 per class when filing online, $325 for paper. Your fee will accompany your “Declarations of use and/or Excusable Nonuse” form. This form outlines the categories of goods you’re registering, as well as any changes or exclusions. You may also be required to submit specimens to prove your use.

The renewal fee itself is $300 for electronic filing and $500 for paper filing, also on a per-class basis. In total, your trademark renewal will likely cost you anywhere from $525 to $825 per class, depending on whether you opt for electronic or paper filing.

Routine Trademark Audits

A good way to effectively prepare for ongoing trademark expenses is by implementing an audit protocol to determine what you have and how to protect it. This is a process that may seem relatively easy, but the complexity will likely grow and become more prevalent over time. Hence, it is in your best interest to retain the services of an experienced trademark attorney in Los Angeles to help address such issues.

Ready to Take Action? Contact the Reputable Omni Legal Group and Speak with a Knowledgeable Trademark Attorney in Los Angeles Today

The professional and highly experienced Los Angeles trademark attorneys at Omni Legal Group can help navigate first-time and maintenance trademark filing fees for the life of your assets and so much more. Omni Legal Group represents clients throughout the greater Los Angeles area, including Beverly Hills, Santa Monica, and Culver City. Our firm has a wealth of experience handling trademark issues and can help you file or register yours.

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

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Action Items to Consider After Receiving a Notice Of Allowance for Your Patent Application

patent application

Action Items to Consider After Receiving a Notice Of Allowance for Your Patent Application

Depending on your unique circumstances, the patent application process can last months, or possibly even years. At some point, there is a chance you will receive a Notice of Allowance (NOA) from the United States Patent and Trademark Office (USPTO). The NOA advises that your invention is in fact eligible for patent protection.

When you receive the NOA, you may be tempted to simply pay the mandatory fee and reach the conclusion of your patent journey. However, there is a risk that, in doing so, you could be giving yourself, and by extension your patent application, short shrift. It is also important to point out that receiving an NOA is not the official end of the patent application process. In fact, there are additional steps you need to consider before agreeing to move forward.
Paying the Required Fees

The NOA will likely include details about required fees and whether revised or final drawings are necessary. You have three months from the date of issuance of the patent allowance to pay these mandatory fees. It is important to keep an eye on the three-month filing deadline. If you fail to pay the fees by the due date, you are essentially abandoning all the work you did to get to this point.

After paying the required fees, be prepared to wait an additional 4-6 weeks. At that point, you should officially obtain patent rights and protection. You can expect to receive an official patent number and date, along with a hard ribbon copy of the patent.

You may be tempted to pay the required fees right away. However, there may be an advantage to exercising patience and holding off on making the payment listed in the NOA. Consult a patent attorney in Los Angeles for the right course of action.

When you receive an NOA from the USPTO, you have one more chance to submit improvements or variations not originally covered in your patent application filings. Doing so at this point is important because a knowledgeable patent attorney can help determine whether it makes sense to make any additional filings for your patent portfolio.

It is also important to remember that you retain the right to file continuations, divisionals or continuations-in-part (collectively referred to as “child patents”) for your patent — but only while the application is still pending. If you pay the patent fee without exploring your need for the additional protection these filings may be able to provide, you could be giving up important legal rights and protections.
Considering a “Child” Patent

If you made improvements to your design, it might be in your best interest to file a “child” patent application. Your patent attorney will work to complete these filings as efficiently as possible while your primary patent application is still pending. Before deciding to just pay the NOA fee, consult with a Los Angeles patent lawyer and explore whether additional child patent applications may be beneficial and advantageous. In doing so, you can be more secure in the patent protection you have been patiently waiting to receive.

There are various types of child patents you can file, including:

• Continuation Application:
• Continuation In-Part Application
• New Design Patent Application
• Divisional Application:
Have Questions? Contact an Experienced Patent Attorney in Los Angeles at Omni Legal Group Today

If you have questions about what to do after receiving an NOA from the USPTO, contact the Omni Legal Group today at 855.433.2226. A skilled and highly knowledgeable USPTO-registered patent attorney in Los Angeles at Omni Legal stands ready to discuss your invention to determine the right type of patent application for you and the best steps to take once you receive an NOA. You can always expect the expert legal professionals at Omni Legal to give you and your invention the care and attention you deserve. 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.

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The Key Differences Between C Corporations and S Corporations

Navigating the world of business structures can be daunting, especially when deciding between a C corporation and an S corporation. Although both are popular forms of incorporation, they differ in several significant ways, from taxation to ownership rules. This blog will shed light on the key differences between these two corporate structures to help you make an informed decision when establishing your business.

 

Taxation

One of the primary distinctions between C corporations and S corporations lies in how they are taxed. C corporations face double taxation, as they are taxed at the corporate level and then again when dividends are distributed to shareholders. On the other hand, S corporations benefit from pass-through taxation, allowing profits and losses to pass directly to shareholders, who report this income on their individual tax returns. This structure helps S corporations avoid the double taxation that C corporations face.

 

Ownership Rules

Ownership rules also set C and S corporations apart. C corporations have more flexibility in this area, as they can have an unlimited number of shareholders and issue multiple classes of stock. Additionally, C corporations can have non-US citizens or residents as shareholders, as well as other corporations and partnerships. In contrast, S corporations face restrictions on ownership. They can have no more than 100 shareholders, must issue only one class of stock, and can only have US citizens or residents as shareholders. Furthermore, S corporations cannot be owned by other corporations, partnerships, or certain types of trusts.

 

Ease of Formation

When it comes to forming a corporation, both C and S corporations follow similar processes, including filing articles of incorporation, creating bylaws, and issuing stock. However, to attain S corporation status, a business must also file IRS Form 2553, Election by a Small Business Corporation, and obtain approval from the IRS. This extra step makes forming an S corporation slightly more complex than forming a C corporation.

 

Profit and Loss Allocations

Another difference between C and S corporations relates to how they allocate profits and losses. In a C corporation, profits and losses are allocated based on the percentage of shares owned by each shareholder. S corporations, on the other hand, must allocate profits and losses to shareholders in proportion to their ownership interest, regardless of any special agreements or arrangements. This requirement can limit flexibility in profit-sharing among S corporation shareholders.

 

 

In summary, the main differences between C and S corporations revolve around taxation, ownership rules, ease of formation, and profit and loss allocations. While C corporations offer more flexibility in ownership and stock issuance, they are subject to double taxation. S corporations benefit from pass-through taxation and are often a popular choice for small businesses, but they face restrictions on ownership and stock classes. Understanding these distinctions is crucial when choosing the right corporate structure for your business, and it’s essential to consult with a professional to ensure you make the best decision for your unique situation.

 

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.

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Do I Need a Lawyer to Form an LLC? Navigating the Legal Landscape

Forming a Limited Liability Company (LLC) can be a pivotal decision for aspiring entrepreneurs and small business owners looking to protect their personal assets and benefit from a more favorable tax structure. One question that often arises during this process is, “Do I need a lawyer to form an LLC?” While it’s not legally required to hire an attorney for this process, there are a few factors to consider when deciding whether professional legal assistance is necessary for your situation.

 

Engaging a lawyer when forming an LLC can offer several advantages. An attorney is well-versed in state-specific regulations and requirements, ensuring your LLC is set up correctly and complies with all relevant laws. Additionally, a lawyer can help draft an operating agreement, which outlines the rules and procedures for your company. This document is crucial for preventing disputes among members and maintaining a smooth-running organization. Furthermore, a lawyer can help you navigate complex tax issues and understand the implications of various business structures.

 

In some cases, you might not need a lawyer to form an LLC. Many states offer user-friendly online platforms and resources that simplify the process of registering an LLC, enabling individuals to complete the necessary paperwork without legal assistance. If your business structure is relatively simple, you have a clear understanding of your state’s regulations, and you feel confident in drafting your own operating agreement, you might be able to forgo hiring an attorney. However, given the relatively nominal expense and the risks associated with errors, I would still be advisable to consult with an attorney first.

 

While it’s possible to form an LLC without a lawyer, there are potential risks involved. If you don’t have a solid understanding of the legal requirements and regulations, you could inadvertently make mistakes that lead to fines or other penalties. Additionally, a poorly drafted operating agreement could cause confusion and disputes among members, which may ultimately require legal intervention. In the long run, attempting to save money by not hiring a lawyer could end up costing you more in legal fees and lost opportunities.

 

Deciding whether to hire a lawyer when forming an LLC ultimately depends on your specific situation and level of legal expertise. While it’s not mandatory to engage an attorney, doing so can help ensure your business is set up correctly and minimize potential risks down the road. If you choose to forgo legal assistance, it’s essential to familiarize yourself with your state’s regulations and have a clear understanding of the LLC formation process. Regardless of your decision, investing time and effort in the early stages of forming your LLC can help lay the foundation for a successful business venture.

 

If you would like assistance preparing an LLC, it is in your best interest to retain the services of a reputable Los Angeles business law firm such as the Omni Legal Group. Omni Legal Group is a premier 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

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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.

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Utility Patent Application Process

Utility patent Application Process

If you are looking to protect your invention, or possibly commercialize it, then you need to be proactive and consider applying for a utility patent. You may be wondering, “What is the process and amount of time necessary to secure a utility patent?” Well, the answer largely depends on whether you are handling the patent application process yourself, or if you retained the services of a knowledgeable patent attorney in Los Angeles.

For individuals who opt to apply for a utility patent without the assistance of an attorney, the application process could take up to 25 months (i.e., more than two years). In addition, there is no way to guarantee that, even after 25 months, your utility patent application will actually be approved.

Regardless of whether you decide to apply for a utility patent on your own, or with the aid of a patent attorney, there are specific issues and prerequisites you should be prepared for during the application process.

Determining Eligibility

Before you begin the utility patent application process, it is important to ascertain what specifically you are trying to protect and in what category your utility fits. For example, in order to qualify for a utility patent, your invention needs to fit into one of the categories below:

  • Machine: your invention is a device that accomplishes a particular task
  • Article of Manufacture: your invention is a single object without movable parts like a pen or board
  • Process: your invention provides a new way to obtain a result through a series of physical or chemical interactions
  • Composition: your invention is a combination of elements, compounds, or mixtures
  • New Use: your invention alters the way in which a machine, article of manufacture, a process, or composition is used

In addition to fitting into one of the above-listed categories, your utility patent must meet the following requirements:

  • Your invention is novel
  • Your invention is useful
  • Your invention is nonobvious.

Provisional versus Non-Provisional Utility Patent

An important question you will need to answer during this process is whether you want to pursue a provisional utility patent or non-provisional patent. If you opt for a provisional utility patent filing, then your invention will be protected for up to one year. People often pursue provisional patents because they are less expensive, and you can market your invention as “patent pending.”

In contrast, a non-provisional patent application will extend the protection afforded to your invention. However, a non-provisional utility patent costs more to file. Nevertheless, the additional expense may be a worthwhile investment since a non-provisional patent protects your invention for 20 years.

 

Have Questions About Securing a Patent or Protecting Your Current Patent? Take Action by Contacting a Patent Attorney in Los Angeles Today

If you need help filing a provisional or nonprovisional patent application, it is in your best interest to retain the services of a reputable Los Angeles patent attorney such as the Omni Legal Group. 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

 

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Overview of Trademark Non-Use Cancellation

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.

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About Omni Legal Group

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The Omni Legal Group was founded in Los Angeles, California by Omid Khalifeh.

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The Future of Copyright: How Technology is Shaping Creative Rights
The Future of Copyright: How Technology is Shaping Creative Rights
By Omid Khalifeh Oct 24, 2025
Starting a Business in Los Angeles? Legal Steps Every Entrepreneur Must Take
Starting a Business in Los Angeles? Legal Steps Every Entrepreneur Must Take
By Omid Khalifeh Oct 17, 2025
Navigating Patents at LA’s Top Universities: USC, UCLA, and Caltech
Navigating Patents at LA’s Top Universities: USC, UCLA, and Caltech
By Omid Khalifeh Oct 10, 2025
The Impact of 3D Printing on Intellectual Property Rights: What Every Creator Should Know
The Impact of 3D Printing on Intellectual Property Rights: What Every Creator Should Know
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