Russell Copley, Your Virtual Incubation Manager, answers your queries about starting a business in the East Midlands.
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Question:
I am a second year undergraduate student at Loughborough University. I want to start up my own business and I need some advice. I am a UE student but I cannot open a company in my home country as most of the time I am in the UK and there are other problems involved.
I would like to become a sole trader, after registration as a self-employed. I am not quite sure when it comes to office space etc. What I was thinking about does not involve a big office or, to be honest, a computer - telephone and fax is enough. I do not know what possible solutions I have as I am a student who is living in Halls. I look forward to hearing from you.
Russell replies:
As you are a student living in Halls of Residence, I can't really comment on trading without knowing the University's policy in this respect (when I was at Derby, we had a policy forbidding any form of trading whilst living in Halls, especially over the internet - which would have breached the JANET user agreement).
I suggest the first things you do are to:
- Talk to your Hall Manager about legalities
- Contact someone locally like Marina Pickles at enterpriselufbra to see what support they can give.
- Talk to Loughborough Innovation Centre about virtual support & hotdesking options
- Keep your eyes open for future projects that aim to support student enterprise (there are a couple in the pipeline) - make sure you're registered on www.emincubation.co.uk & you will receive a weekly e-bulletin keeping you up-to-date.
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Question:
What exactly is Intellectual Property & how relevant is it to my business?
Russell replies:
Intellectual Property (IP) refers to a legal entitlement attached to the expressed form of various types of intangible subject matter, such as ideas.
In many cases, IP may be protected and controlled. If you own IP, then you are considered to have Intellectual Property Rights (IPRs), which can be used to protect your ideas and efforts.
Be aware that IPRs are limited by types of subject matter (see below), in most cases exist for a limited period, and are subject to territorial restrictions.
If a disclosure of your IP is made to a third party, ensure that they have signed a Confidentiality Agreement before a witness.
Do not publish your ideas before you have filed a patent application as this could prevent the award of a valid patent. Keep evidence of relevant dates, witnesses and records.
The various forms of Intellectual Property (IP):-
Patents
A patent is a monopoly, and gives you the exclusive right to prevent a third party from making, using, selling and importing an invention that is capable of industrial application into a country in which that patent is in force.
Such action constitutes patent infringement. The patent entitles you to take legal action against an infringer. In order to be validly patentable, the invention must, at the filing date of a patent application directed to that invention, be novel. One aspect of novelty is that the invention must be strictly confidential when filing the patent application.
A second requirement for the invention to be validly patentable is that it must involve an inventive step, i.e. it must not be merely an obvious, minor modification over existing technology.
Inventions may be in virtually any technical discipline, for example, biology, chemistry, engineering, electronics, and so on. It is therefore advisable to seek advice from a Patent Attorney who will help you prepare and file a patent application for your invention, after which you may be able to disclose the idea in order to generate revenue.
A UK patent applies only within the UK and the patent rights last for up to 20 years (with some exceptions) from the filing date of the patent application. In most countries, annual renewal fees must be paid to keep the patent alive. It is very important not to disclose your invention prior to filing, as this could prevent the award of a valid patent.
A patent or patent application may be assigned (sold) from one party to another. Alternatively, technology covered by a patent or patent application may be made the subject of a licence between various parties.
Copyright
Copyright protects original material that may be expressed, such as:
- Literary works
- Musical works
- Dramatic works
- Sound recordings
- Computer programmes
Copyright is free and protects your work from unauthorised copying or exploitation. It is an automatic right but it is important to keep evidence of authorship and ownership, as this may be required should you need to demonstrate and enforce your copyright.
The length of time for copyright varies depending on the work that is being protected. In some cases, copyright exists for the lifetime of the author plus an additional 70 years. In many cases, copyright also provides protection overseas.
In order to indicate ownership of your copyright, use the copyright symbol ©, the name of the author and also the date that the work was produced at the bottom of the page (for example, © name, date).
In order to enforce your copyright, you will need to demonstrate that the work was actually copied. Copying by a third party is judged in qualitative rather than quantitative terms.
Unregistered Design Rights
Unregistered Design Right(s) (UDR) apply to the shape, visual appearance or configuration of a commercially produced article or product.
A UDR is a free, automatic right (as opposed to registered designs which must be applied for) and last for the longer of 10 years from first sale of the article, or 15 years from making the design. It is advisable to keep evidence of relevant dates and records should you need to enforce the unregistered design rights and/or to calculate the term of protection of the UDR.
Registered design
As with unregistered design rights, a registered design applies to the shape, visual appearance or configuration of a commercially produced article, and prevents the unauthorised manufacture or reproduction of that article. In addition, a registered design may also be used to protect the pattern and ornamentation, or surface decoration of a product.
A registered design is a monopoly and can last for up to 25 years (by paying renewal fees every 5 years for a maximum of 5 periods), and must be applied for at the Design Registry of the Patent Office. Modifications to the design can be registered at a later date.
To qualify for registration, the design should be aesthetic, rather than simply technical in nature, and must be considered to have “individual character”. The article must be visible during normal use. In addition, a design must be new and not publicly disclosed before filing the application for the registered design.
If it is necessary to disclose a design to a third party before filing the application for the registration, for example, whilst in negotiation with manufacturers, it is important to ensure that they are bound by a confidentiality agreement.
Trade mark
A trade mark is “any sign” (words, logos, pictures etc.) which distinguishes the products or services of one trader from those of another, i.e. it must be distinctive. Trade marks are generally used so that customers can recognise the product or service of a particular trader or supplier.
A registered UK trade mark confers the right to its exclusive use although no protection is provided outside of the UK. Providing renewal fees are paid every 10 years, a UK trade mark may be registered forever.
To register a trade mark, applications must be made to the UK Trade Mark Registry at the Patent Office.
Know-how
Know-how relates to confidential information or trade secrets that an owner wishes to remain secret. Confidential technical information can be commercially valuable and may for example lead to the patenting of an invention.
Therefore, it is vital to take steps to protect this type of intellectual property. The best way to protect know-how is to keep it secret. Inform all parties of their duty of confidence and make use of appropriate non-disclosure agreements.
For more information, visit the website of one of EMIN’s partner organizations at www.prospectip.co.uk where you can find out more about commercializing IP and where to get training in its exploitation.
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Question:
Do I need to be creative and innovative to become an entrepreneur?
Russell replies:
Only 4% of new businesses worldwide are truly original!!
The remaining ideas stem from people who see an idea through their workplace or competitors and believe they can offer the same product or service faster, cheaper or better than is currently being provided.
Business ideas also emanate from people who have traveled overseas, pick up on an idea there and consider an opportunity for that particular idea in England.
A business idea can also be taken from one part of England and launched in another area where there is a need.
A new business is usually not original but it should be offering some benefit that is currently not being provided within that particular marketplace (a USP – Unique Selling Proposition) that differentiates it.
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Question:
Are there currently any grants available for SMEs in the region?
Russell replies:
Contrary to popular myth, there are still a number of useful grant programmes around these days. Whilst they all have some form of “application” process, they’re not all particularly onerous – especially given the scale of money that you can access!
Leaving aside the sectoral and geographically focused grants (which tend to be New Deal, Objective 2 or other specialist source funded) there are a number that I’d recommend looking at.
Business Transformation Grant – this is a new grant available to small and medium sized businesses to help drive a step change in the performance of a business. Usually involving some level of external consultancy and specialist advice, they can be revenue and/or capital funding and can contribute up to 50% of the costs of a development project. See the EMIN website, or your local Business Link, for more details.
Grants for Research and Development - these replaced the old SMART awards a couple of years ago and are designed to reduce the risks of developing new technologies and products, and the costs/risks of bringing them to market. There are 3 levels of funding available, for the 3 different stages of development, and I’d urge any company with a research and development interest to find out more. In this region, they’re managed by the East Midlands Development Agency (emda) – see their website for more details.
NTI – East Midlands NTI is an initiative backed by the region’s leading colleges and universities. NTI provides match funded grants to small and medium sized firms to invest in state of the art technology, and gain advanced technology skills through NTI approved courses.
NTI also provides grants to its Network of universities and colleges to invest in high tech equipment, and for the development of Foundation Degrees. Equipment purchased by the universities and colleges is available for use by local companies taking part in NTI programmes. See www.eastmidlandsnti.co.uk for more.
SFIE – Selective Finance for Investment,SFIE, is the Department of Trade and Industry’s capital investment grant scheme aimed at encouraging businesses to invest in land and buildings, plant and machinery to support expansion and modernisation in England’s more deprived areas. The scheme is delivered in the East Midlands region by emda.
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