Starting Up

Starting Up

 

Starting a business is an empowering yet daunting time. The start-up costs are generally high and the returns in the first few months are low or non-existent.

 

Here you will find advice on some of the key areas of concern when starting your business. 

Hiring & Managing Employees

Software Development Agreement


What is it? Software is intellectual property. A software development agreement is an agreement between a business or an individual and a developer by which the individual or business hires the developer to create and deliver a specific piece of software. Why is it important? This agreement is important as it clarifies the relationship between the developer and the hirer or employer. Risks When you engage a software developer if you want the software created to belong to your company or to you, you must ensure that you agree and insert an ownership clause in the agreement. If there is no ownership clause the software created by the developer will automatically belong to the developer even if your company has spent millions of pounds developing the software.




Freelancer Agreement


What is it?

You may use a self-employed freelancer to do a specific task eg work on a project, design your website or do your marketing for a specific period.The standard contract used to hire a freelancer is a consultancy agreement. This agreement clarifies the basic terms of your relationship with the freelancer eg the work to be done, fees payable and other terms of the agreement eg a non-solicitation clause, confidentiality clause, data protection, ownership of any intellectual property created by the freelancer, indemnification clause for any losses you incur due to the freelancer’s breaches of third party intellectual property. Etc.

Why is it important?

More specialist freelancers may want you to sign up to their own bespoke terms and conditions when you instruct them. If that is the case you must ensure that you check all the clauses carefully to ensure that they do not conflict with your requirements and that you are happy with the terms eg consultant to be liable for breaches of your Intellectual property and third party intellectual property, confidentiality, fee payable, data protection, indemnification clause etc.

Risks

You should also ensure that you are aware of the IR35 tax rules. If a freelancer is providing services to you through a company your arrangement may be subject to the IR35 tax rules. This means that the freelancer may have to pay tax and national insurance as if they were employed by you. HMRC has a useful tool at www.gov.uk to enable businesses check employment status for tax purposes.




Internship Agreement


What is it?

An intern may be a volunteer, a worker or an employee. An internship agreement is an agreement between an intern and an employer where the intern agrees to provide their services in exchange for training provided by the employer or business with no expectation that the internship will result in employment with the business.

Why is it important?

If your intern will just be shadowing staff and will be unpaid you won’t need a contract but it is good practice to send your intern a letter confirming the agreement terms. If you want your intern to work for your business rather than just shadow staff your intern will either be an employee or a casual worker.

Risks

You must have a proper contract for their status and treat them accordingly. If your intern is an employee or a casual work you must pay them the national minimum wage(NMW). If you do not pay them the NMW you are at risk of HMRC prosecuting you or the intern suing you in court.




Staff Handbook


What is it? A Staff handbook is an important living document for your employees that sets out your company’s operational policies, values and culture for current and future employees. There is no legal obligation to have a staff handbook, however as there are certain policies that you must give your employees by law (eg disciplinary and grievance policies and health and safety policies) it is best practice to start a handbook when you hire your first employee as it sets expectations for what behaviour is acceptable and desirable across your business and can protect you legally. Why is it important? A staff handbook can be contractual or non-contractual(i.e. binding or non-binding). It is best practice to make it non-contractual so that you can change it at your discretion without having to consult staff. Make sure you keep your handbook updated to reflect the law and ensure that the issue date is clearly shown on the handbook. Risks If you do not have a staff handbook and you are in dispute or engaged in legal proceedings with an employee it will be more difficult to verify your policies and procedures.




Job description


What is it? A job description sets out the scope of the role (i.e. duties and responsibilities), any skills, experience and qualifications required, the ethos and culture of your business, salary and other staff benefits. It is important as it helps you clarify what you are looking for and will also help candidates determine whether they have the skills and experience for the role. Why is it important? Always review your job description before every recruitment exercise to ensure it accurately describes the job in question. Failing to do so may dissuade suitable candidates from applying or encourage unsuitable candidates to apply. Risks It is essential that you avoid using discriminatory words in your job description eg “bright, energetic, young man” or “ an Italian” person when you actually require someone who speaks Italian as these would indicate a preference based on gender, disability, age and ethnicity.




Job offer letter


What is it? You should always confirm a job offer in writing and ask the candidate to confirm their acceptance of the offer. Why is it important? A job offer letter is a letter offering employment after an interview and summarising the basic terms of employment (if you are providing the employment contract with the offer letter) or summarising the main employment terms (if you will not be providing the employment contract until a later date) Risks Always ensure that the offer letter specifies the conditions to which the offer is subject eg “subject to satisfactory references” and that you retain a signed copy of the offer letter and contract in the staff member’s personnel records.




Non-executive director letter of appointment


What is it? This is a formal letter appointing a person as a non-executive director of a company. It sets out the key terms of the appointment and the director’s duties and responsibilities. Why is it important? As a director is more likely to be exposed to confidential information and have more responsibility this contract will include clauses which help to protect the business’s interests eg garden leave, confidentiality, non-solicitation clauses and restrictive covenants.




Senior employment contract


What is it? This is a more complex contract of employment between a senior employee or director/executive and an employer . It sets out the employment terms and conditions of employment and the standard areas of the employment. Why is it important? As a senior executive is more likely to be exposed to confidential information and have more responsibility this contract will include clauses which help to protect the business’s interests eg garden leave, confidentiality, non-solicitation clauses and restrictive covenants and ensure any intellectual property created by the employee belongs to the business.




Zero hours contract


What is it?

This is a casual agreement between an individual and a business where the worker works “as and when” the employer needs the labour. There is no guarantee of any set hours and the worker is not obliged to work the hours offered.

Why is it important?

A zero-hours contract should be used where the business simply wishes to hire a worker on a casual basis and would benefit from not having to give the worker a guaranteed number of hours and days of work. This contract is useful for seasonal work or special events eg in the agriculture business, hospitality and catering business; when a business is entering a new market and is unsure of how many staff members it will need; in cases of unexpected absence from work eg to provide cover where there is sudden sickness or absence from work etc.

They are often used in the healthcare, agriculture, hotels, restaurants and education sectors. In the UK workers operating under zero-hours contracts are entitled to rest breaks, annual leave, sick pay and protection from discrimination and must be paid the national minimum wage for hours worked.

Risks

Zero-hours contracts are controversial due to the uncertainty of the work and the fact there is no guaranteed employment. They do however serve a purpose by providing a flexible labour market and a route into more permanent employment.

You should ensure that your zero-hours contract clearly sets out your employee’s employee status, rights and obligations.




Consultancy agreement


What is it?

A consultancy agreement is a contract between a self-employed person (Consultant) and a customer requiring the consultant’s services.It is similar to the standard contract used to hire a freelancer.

Why is it important?

This agreement clarifies the basic terms of your relationship with the freelancer eg the work to be done, fees payable and other terms of the agreement eg a non-solicitation clause, confidentiality clause, data protection, ownership of any intellectual property created by the freelancer, indemnification clause for any losses you incur due to the freelancer’s breaches of third party intellectual property. Etc.

More specialist freelancers may want you to sign up to their own bespoke terms and conditions when you instruct them. If that is the case you must ensure that you check all the clauses carefully to ensure that they do not conflict with your requirements and that you are happy with the terms eg consultant to be liable for breaches of your Intellectual property and third party intellectual property, confidentiality, fee payable, data protection, indemnification clause etc.

Risks

You should also ensure that you are aware of the IR35 tax rules. If a freelancer is providing services to you through a company your arrangement may be subject to the IR35 tax rules. This means that the freelancer may have to pay tax and national insurance as if they were employed by you. HMRC has a useful tool at www.gov.uk to enable businesses check employment status for tax purposes.

From April 2020 if you are a medium or large business the responsibility for determining whether the IR35 tax rules applies to the consultancy and for payment of the income tax and national insurance on behalf of the freelancer lies with the company to whom the freelancer provides the services.




Employment contract


What is it?

An employment contract is an agreement between the employer and employee setting out the rights and duties of the employer and employee. An employment agreement is vital as it forms the legal relationship between the employer and the employee.

Why is it important?

If you have employees, you are legally obliged to provide them with a written statement of their basic terms of employment in writing no later than two months after they start work. From 6 April 2020 this obligation will extend to casual workers and all new employees must be provided with this written statement and additional information on or before the staff member’s first day of work.

Risks

If things go wrong an employment agreement will clarify the legal relationship between the employer and employee and will help the court or tribunal in providing a solution in the event of a dispute between the employer and employee. Think of an employment contract as your passport to nurturing good employment relations with your staff and running a good, progressive business.

If your employee will be part-time do note that part-time staff and fixed term staff (temporary employees) must be treated equally with full-time staff. This means that a part-time or temporary employee on the same role must get the same pay or benefits as a comparable full-time member of staff pro-rated for the length of time they will be with you. Comparable employees are those doing the same or broadly similar work at the same place of work or at a different location.





Managing licenses


Running an online business


Protecting your IP


Business Relationships


Writing a business plan


Business Relationships

Trademark (UK, EU, US, China)


What is it?

One of the best ways of protecting your business name, brand and logo from being copied is to register a trademark. A trademark is a distinctive sign eg name, brand, logo or tagline (or a combination of these) used by a business to distinguish its goods and or services from those sold by another business and to identify its business as the source of those goods and services.

In the UK, trademarks are granted by the UK Intellectual Property Office (UK IPO) Registering a trademark increases the protection it receives and stops others from using it.

You may be able to register a trademark over

  1. words (eg the trademark “Nandos”)
  2. pictures and words (eg the Pure Business Law trademark).
  3. slogans (eg the Lidl strap line “Big on quality, Lidl on price”)
  4. colours (eg the Cadbury Dairy Milk purple as owned by Kraft ).
  5. sounds (eg the Match of the Day theme song played when their logo appears at the beginning of football matches) and
  6. Logos (eg the Mac OS logo);
  7. 3D shapes (eg the Pepsi cola bottle shape)
Why is it important?

Registering a name or a logo gives you the following three benefits:

  1. Allows you to object if someone else applies to register ay name or logo that is similar to your trademark for the same of similar goods or services. This protection does not cover an application to use the same name or branding for a different type of business. For instance if you register “Fast-Sports” for a trade mark for selling sports cars, no one could register “Fast-Spots” for anything to do with selling cars but they may be able to register it as a trade mark for a dry-cleaning business because that has nothing to do with cars.
  2. If another business tries to use the same or similar branding on similar goods or services thereby infringing your trademark you can take legal proceedings to stop them.
  3. Your business’s goodwill and reputation have commercial value so registering a trademark is an easy way to protect your hard work and creativity.

Registering a trademark gives you the exclusive right to use it for 10 years, after which you must make an application to renew it to the Intellectual Property Office (IPO). Their website is at www.ipo.gov.uk.

You can register your trademarks in the UK, the EU and or internationally. All registrations last for 10years and are renewable indefinitely in further 10-year periods. The most suitable registration for your brand will depend on where you do business eg UK, EU or internationally.

Risks

If you do not register your name, brand or logo as a trademark you will not be able to easily stop other people using your trademark and you may end up allowing other businesses to profit from your hard work.




Patent (Worldwide)


What is it?

Protect your invention through a patent. A patent gives you an exclusive right over a novel invention that you have created. It gives you the exclusive right to use and reproduce your invention and stop people copying your invention without your permission. For instance, only Apple can make and sell Apple phones.

In the UK, patents are granted by the UK Intellectual Property Office (UK IPO) To have a patent over something you have created, you must register it at the IPO. Patents generally last for up to twenty years.

You can only patent a novel invention and cannot patent something that is already in the public domain. This means that your invention must be new (i.e. you cannot patent something which already exists eg a literary work, method of medical treatment, a diagnosis, scientific theory or a discovery) . You also cannot patent something which is already the subject of a patent application pre-dating your application. This means that you must carry out extensive market research examining trade journals and academic papers relevant to your industry market and searching for patents and patent applications on the patent registers worldwide. Obtaining a patent is expensive and time consuming. You should enlist the help of a professional eg lawyer or patent agent before starting an application for a patent.

Why is it important?

Should I register my invention as a patent?

Yes, you should if you believe that you have created a novel product or process which is so important to your business that you wish to pay a patent application fee to prevent others from using it.

Risks

Registering your invention as a patent ensures that:

  1. You can prevent others using your product or process if they intend to use it for commercial purposes.
  2. You can profit from your patent by only permitting certain people to use it for commercial purposes and only on condition that they pay you or give you a percentage of the profits they make from using your patent.

Risks

If you do not register your invention as a patent, you will not be able to easily stop other people copying your ideas and you may end up allowing other businesses to profit from your hard work.

You can use free online databases to search for patents eg Ipsum the UK IPO’s search facility, the Patents Journal (for UK applications that have been filed but not yet published), Espacenet – the European Patents Office’s (EPO’s) free database for worldwide patents including UK patents and Patentscope – the World Intellectual Property Organisation’s (WIPO’s ) free database for worldwide patents including UK patents. Note that these databases may not be up to date.

As an alternative you may prefer to use professional search services such as :

  1. The PATLIB (patent library) centre
  2. A Patent attorney through the Chartered Institute of Patent Attorneys at www. cipa.org.uk




IP Assignment Agreement


What is it? An IP assignment agreement transfers rights and ownership in an IP created by one person to someone else or to a business. It can be used to transfer rights in a trademark, patent, logo, designs or any other IP. Why is it important? An IP assignment agreement is important when a business is sold, and the founder created intellectual property before becoming a part of the company or a company employs a someone whether consultant or employee to do some work.




Registering Designs


What is it?

Register your design to stop someone else from using it.

A design right is a right that you have which can protect your original design from being copied by someone else.There are two different types of design rights – registered and unregistered design rights which can protect the look or appearance of a product from being copied.

Why is it important?

Design rights can exist in computer icons, logos, graphic designs, packaging and clothing. The rights do not arise by reference to the particular product but rather in the shape or look of either the whole of the product or part of that product. For instance, a registered design right in a motif used on a book will be infringed if someone else uses the same design motif on a duvet cover.

In the UK, design registrations are granted by the UK Intellectual Property Office (UK IPO).

Risks

Even if you do not register your design, it will still be automatically protected as an unregistered design right. However this right is more limited right because it only protects you against unauthorised copying and does not prevent other people creating similar designs independently.

For businesses in the UK these unregistered design rights arise automatically in the UK and the EU for some designs under both UK and EU law if the relevant criteria are met. In the UK, unregistered design rights arise as soon as the relevant designs are recorded in some way eg in a drawing and in the UK as soon as they are made available to the public. However, the protection granted differs slightly in each jurisdiction. For instance in the UK unregistered design rights will automatically protect either the shape or configuration of the whole or part of an article for up to 15 years, whereas in the EU unregistered design rights will automatically protect not only the appearance of the whole or part of any industrial or handicraft product resulting from its features but also its lines, shape, texture, contours and materials but only for up to 3 years.

You should therefor keep a watching brief and consider whether such a right has arisen as soon as you believe that either you or your employees (in the course of their employment) have created an original design.

Brexit

The UK and the EU have agreed that there will be an implementation period (ie transition period) from the date the UK left the EU i.e. 31 January 2020 until 31 December 2020 or a later date if the transition period is extended. During this period there will be no changes to unregistered design rights.

UK unregistered design rights

UK unregistered design rights will continue after the transition period and provide up to 15 years of protection. However, after the transition period the UK Government has advised that only UK residents or businesses incorporated in the UK will be eligible for UK registered designs.

EU unregistered design rights

From the end of the transition period unregistered design rights in the EU (ie unregistered Community designs) will no longer be valid in the IK. The government has advised that it will immediately replace the unregistered Community design rights with UK unregistered design rights ( to be known as UK continuing unregistered design rights) and which will offer protection in the EU and UK for the rest of the three year terms previously attached to the unregistered Community design right. This means you will continue to be protected in the EU and UK for unregistered Community designs that existed before the end of the transition period.

If you are concerned about how to protect your unregistered design rights in the UK and EU after the transition period please contact our IP lawyers for further advice on 01234 938089.




Non-Disclosure Agreement (NDA)/Letter of confidentiality


What is it?

This agreement protects confidential information belonging to your business including IP and other information which you do not want to be made public.

Why is it important?

It is important to have an NDA in place before sharing any confidential or sensitive information in business meetings with people with whom you intend to do business eg investors, prospective co-founders, suppliers, consultants and the like. A letter of confidentiality is similar to a non-disclosure agreement. The party disclosing confidential information imposes restrictions as to the use of this confidential information to the party receiving it.

Risks

If you do not have the required safeguards in place to protect your intellectual property during business meetings or negotiations you may have your designs, inventions or work stolen or copied by the person with whom you are negotiating. This could be disastrous for your business.




one-way confidentiality agreement


What is it? A one-way Confidentiality agreement is similar to a non-disclosure agreement but imposes restrictions as to the use of this confidential information only on one party.




Assignment of intellectual property


What is it?

An IP assignment agreement transfers rights and ownership in an IP created by one-person eg trademark, patent, logo, designs or any other IP to someone else or to a business.

Why is it important?

An IP assignment agreement is important when a business is sold, and the founder created intellectual property before becoming a part of the company or a company employs a someone whether consultant or employee to do some work. If you assign IP rights to another business, you are transferring ownership of the IP.

It is more common to licence intellectual property rights than to assign them in business. Licensing allows a third party to have rights over the IP and do certain acts with the IP that they would not otherwise have been able to do but you keep ownership of the IP. You can limit the licence to a certain area eg the UK, Middle East, Africa etc or to a certain period of time eg 1 year, 2 years etc.

Risks

If for example you assign your IP to a business and it fails, you would have lost your IP. If on the other hand you licence your IP to another business, you are in ultimate control and can stipulate how the IP should be used and when it has to be returned. You can also stipulate that the IP be returned to you if the business goes into liquidation or on the happening of certain events.




Copyright


What is it?

Copyright is the exclusive right to use and reproduce in public any material you have created if it falls into one of the following categories:

i) Written work such as books, plays film scripts, web content, articles, essays, professional opinions, tables, compilations and databases;

ii)Artistic works such as paintings, drawings, photos, maps, charts, plan, diagrams etc;

iii)sound recordings;

iv)Films, music and broadcasts; or

v) computer programs.

Why is it important?

Copyright arises automatically when you create the work so there is no need to register copyright to own a work that you have created. You should be wary of any person that asks you to pay them to register your copyright in a work that you have created as it will be a scam.

Businesses as well as individuals can own copyright. Copyright usually lasts for 70 years.

You can buy someone’s copyright via a document called a Deed of assignment or give them a licence to use your copyright. As a general rule if an employee creates a work in the course of their employment their employer (ie the business ) will own the work.

However, if the work in question is not part of the agreed duties of the employee the employee will own the work. To ensure that copyright work created by employees is owned by the business you should include appropriate intellectual property clauses in your employment contracts.

Risks

If you commission a piece of work from a freelancer the copyright in the work will belong to the freelancer unless the parties have agreed otherwise. It is important to ensure that the position on ownership of the copyright in writing before work starts to ensure that the business owns the copyright in the work produced by the freelancer.





Protecting your IP

Trademark (UK, EU, US, China)


What is it?

One of the best ways of protecting your business name, brand and logo from being copied is to register a trademark. A trademark is a distinctive sign eg name, brand, logo or tagline (or a combination of these) used by a business to distinguish its goods and or services from those sold by another business and to identify its business as the source of those goods and services.

In the UK, trademarks are granted by the UK Intellectual Property Office (UK IPO) Registering a trademark increases the protection it receives and stops others from using it.

You may be able to register a trademark over

  1. words (eg the trademark “Nandos”)
  2. pictures and words (eg the Pure Business Law trademark).
  3. slogans (eg the Lidl strap line “Big on quality, Lidl on price”)
  4. colours (eg the Cadbury Dairy Milk purple as owned by Kraft ).
  5. sounds (eg the Match of the Day theme song played when their logo appears at the beginning of football matches) and
  6. Logos (eg the Mac OS logo);
  7. 3D shapes (eg the Pepsi cola bottle shape)
Why is it important?

Registering a name or a logo gives you the following three benefits:

  1. Allows you to object if someone else applies to register ay name or logo that is similar to your trademark for the same of similar goods or services. This protection does not cover an application to use the same name or branding for a different type of business. For instance if you register “Fast-Sports” for a trade mark for selling sports cars, no one could register “Fast-Spots” for anything to do with selling cars but they may be able to register it as a trade mark for a dry-cleaning business because that has nothing to do with cars.
  2. If another business tries to use the same or similar branding on similar goods or services thereby infringing your trademark you can take legal proceedings to stop them.
  3. Your business’s goodwill and reputation have commercial value so registering a trademark is an easy way to protect your hard work and creativity.

Registering a trademark gives you the exclusive right to use it for 10 years, after which you must make an application to renew it to the Intellectual Property Office (IPO). Their website is at www.ipo.gov.uk.

You can register your trademarks in the UK, the EU and or internationally. All registrations last for 10years and are renewable indefinitely in further 10-year periods. The most suitable registration for your brand will depend on where you do business eg UK, EU or internationally.

Risks

If you do not register your name, brand or logo as a trademark you will not be able to easily stop other people using your trademark and you may end up allowing other businesses to profit from your hard work.




Patent (Worldwide)


What is it?

Protect your invention through a patent. A patent gives you an exclusive right over a novel invention that you have created. It gives you the exclusive right to use and reproduce your invention and stop people copying your invention without your permission. For instance, only Apple can make and sell Apple phones.

In the UK, patents are granted by the UK Intellectual Property Office (UK IPO) To have a patent over something you have created, you must register it at the IPO. Patents generally last for up to twenty years.

You can only patent a novel invention and cannot patent something that is already in the public domain. This means that your invention must be new (i.e. you cannot patent something which already exists eg a literary work, method of medical treatment, a diagnosis, scientific theory or a discovery) . You also cannot patent something which is already the subject of a patent application pre-dating your application. This means that you must carry out extensive market research examining trade journals and academic papers relevant to your industry market and searching for patents and patent applications on the patent registers worldwide. Obtaining a patent is expensive and time consuming. You should enlist the help of a professional eg lawyer or patent agent before starting an application for a patent.

Why is it important?

Should I register my invention as a patent?

Yes, you should if you believe that you have created a novel product or process which is so important to your business that you wish to pay a patent application fee to prevent others from using it.

Risks

Registering your invention as a patent ensures that:

  1. You can prevent others using your product or process if they intend to use it for commercial purposes.
  2. You can profit from your patent by only permitting certain people to use it for commercial purposes and only on condition that they pay you or give you a percentage of the profits they make from using your patent.

Risks

If you do not register your invention as a patent, you will not be able to easily stop other people copying your ideas and you may end up allowing other businesses to profit from your hard work.

You can use free online databases to search for patents eg Ipsum the UK IPO’s search facility, the Patents Journal (for UK applications that have been filed but not yet published), Espacenet – the European Patents Office’s (EPO’s) free database for worldwide patents including UK patents and Patentscope – the World Intellectual Property Organisation’s (WIPO’s ) free database for worldwide patents including UK patents. Note that these databases may not be up to date.

As an alternative you may prefer to use professional search services such as :

  1. The PATLIB (patent library) centre
  2. A Patent attorney through the Chartered Institute of Patent Attorneys at www. cipa.org.uk




IP Assignment Agreement


What is it? An IP assignment agreement transfers rights and ownership in an IP created by one person to someone else or to a business. It can be used to transfer rights in a trademark, patent, logo, designs or any other IP. Why is it important? An IP assignment agreement is important when a business is sold, and the founder created intellectual property before becoming a part of the company or a company employs a someone whether consultant or employee to do some work.




Registering Designs


What is it?

Register your design to stop someone else from using it.

A design right is a right that you have which can protect your original design from being copied by someone else.There are two different types of design rights – registered and unregistered design rights which can protect the look or appearance of a product from being copied.

Why is it important?

Design rights can exist in computer icons, logos, graphic designs, packaging and clothing. The rights do not arise by reference to the particular product but rather in the shape or look of either the whole of the product or part of that product. For instance, a registered design right in a motif used on a book will be infringed if someone else uses the same design motif on a duvet cover.

In the UK, design registrations are granted by the UK Intellectual Property Office (UK IPO).

Risks

Even if you do not register your design, it will still be automatically protected as an unregistered design right. However this right is more limited right because it only protects you against unauthorised copying and does not prevent other people creating similar designs independently.

For businesses in the UK these unregistered design rights arise automatically in the UK and the EU for some designs under both UK and EU law if the relevant criteria are met. In the UK, unregistered design rights arise as soon as the relevant designs are recorded in some way eg in a drawing and in the UK as soon as they are made available to the public. However, the protection granted differs slightly in each jurisdiction. For instance in the UK unregistered design rights will automatically protect either the shape or configuration of the whole or part of an article for up to 15 years, whereas in the EU unregistered design rights will automatically protect not only the appearance of the whole or part of any industrial or handicraft product resulting from its features but also its lines, shape, texture, contours and materials but only for up to 3 years.

You should therefor keep a watching brief and consider whether such a right has arisen as soon as you believe that either you or your employees (in the course of their employment) have created an original design.

Brexit

The UK and the EU have agreed that there will be an implementation period (ie transition period) from the date the UK left the EU i.e. 31 January 2020 until 31 December 2020 or a later date if the transition period is extended. During this period there will be no changes to unregistered design rights.

UK unregistered design rights

UK unregistered design rights will continue after the transition period and provide up to 15 years of protection. However, after the transition period the UK Government has advised that only UK residents or businesses incorporated in the UK will be eligible for UK registered designs.

EU unregistered design rights

From the end of the transition period unregistered design rights in the EU (ie unregistered Community designs) will no longer be valid in the IK. The government has advised that it will immediately replace the unregistered Community design rights with UK unregistered design rights ( to be known as UK continuing unregistered design rights) and which will offer protection in the EU and UK for the rest of the three year terms previously attached to the unregistered Community design right. This means you will continue to be protected in the EU and UK for unregistered Community designs that existed before the end of the transition period.

If you are concerned about how to protect your unregistered design rights in the UK and EU after the transition period please contact our IP lawyers for further advice on 01234 938089.




Non-Disclosure Agreement (NDA)/Letter of confidentiality


What is it?

This agreement protects confidential information belonging to your business including IP and other information which you do not want to be made public.

Why is it important?

It is important to have an NDA in place before sharing any confidential or sensitive information in business meetings with people with whom you intend to do business eg investors, prospective co-founders, suppliers, consultants and the like. A letter of confidentiality is similar to a non-disclosure agreement. The party disclosing confidential information imposes restrictions as to the use of this confidential information to the party receiving it.

Risks

If you do not have the required safeguards in place to protect your intellectual property during business meetings or negotiations you may have your designs, inventions or work stolen or copied by the person with whom you are negotiating. This could be disastrous for your business.




one-way confidentiality agreement


What is it? A one-way Confidentiality agreement is similar to a non-disclosure agreement but imposes restrictions as to the use of this confidential information only on one party.




Assignment of intellectual property


What is it?

An IP assignment agreement transfers rights and ownership in an IP created by one-person eg trademark, patent, logo, designs or any other IP to someone else or to a business.

Why is it important?

An IP assignment agreement is important when a business is sold, and the founder created intellectual property before becoming a part of the company or a company employs a someone whether consultant or employee to do some work. If you assign IP rights to another business, you are transferring ownership of the IP.

It is more common to licence intellectual property rights than to assign them in business. Licensing allows a third party to have rights over the IP and do certain acts with the IP that they would not otherwise have been able to do but you keep ownership of the IP. You can limit the licence to a certain area eg the UK, Middle East, Africa etc or to a certain period of time eg 1 year, 2 years etc.

Risks

If for example you assign your IP to a business and it fails, you would have lost your IP. If on the other hand you licence your IP to another business, you are in ultimate control and can stipulate how the IP should be used and when it has to be returned. You can also stipulate that the IP be returned to you if the business goes into liquidation or on the happening of certain events.




Copyright


What is it?

Copyright is the exclusive right to use and reproduce in public any material you have created if it falls into one of the following categories:

i) Written work such as books, plays film scripts, web content, articles, essays, professional opinions, tables, compilations and databases;

ii)Artistic works such as paintings, drawings, photos, maps, charts, plan, diagrams etc;

iii)sound recordings;

iv)Films, music and broadcasts; or

v) computer programs.

Why is it important?

Copyright arises automatically when you create the work so there is no need to register copyright to own a work that you have created. You should be wary of any person that asks you to pay them to register your copyright in a work that you have created as it will be a scam.

Businesses as well as individuals can own copyright. Copyright usually lasts for 70 years.

You can buy someone’s copyright via a document called a Deed of assignment or give them a licence to use your copyright. As a general rule if an employee creates a work in the course of their employment their employer (ie the business ) will own the work.

However, if the work in question is not part of the agreed duties of the employee the employee will own the work. To ensure that copyright work created by employees is owned by the business you should include appropriate intellectual property clauses in your employment contracts.

Risks

If you commission a piece of work from a freelancer the copyright in the work will belong to the freelancer unless the parties have agreed otherwise. It is important to ensure that the position on ownership of the copyright in writing before work starts to ensure that the business owns the copyright in the work produced by the freelancer.





HR Policies

Commercial lease


What is it? A commercial lease is an agreement between a landlord and a business for the rental of a property for business purposes for a set period in return for the business paying rent to the landlord. It sets out the rights and obligations of the landlord and the business in relation to the property. The law relating to business leases differs from the law relating to residential leases. You will need a business lease if you have a business and wish to carry on your business from the commercial property. A properly written commercial lease is vital to carry on your business.




Home office rental agreement


What is it?

A home office rental agreement is an agreement between an owner or lessee of property to share their home office space with another person. These agreements are usually used by start-ups and home-based businesses and will be in the form of a licence agreement. The licensor will be the owner or tenant of the property and the licensee will be the sharer who may be an individual or a company. If more than one individual sharer it is essential that they be all named on the agreement so that they remain jointly and severally liable under the rental agreement. The licence fee should be inclusive of the service costs eg internet, utilities, etc.

Why is it important?

If your business is a lessee, you must check your lease and check with your landlord to ensure that the grant of a licence to the sharers will not be a breach of your obligations as a tenant.




Office sharing agreement


What is it?

Office space can be expensive in city centres and town centres. An office sharing agreement is an agreement between an owner of office space and another business which wants to share its office space. It is used where the owner of the property or lessee wants to share their office space with a business or individual or where two businesses or sole traders want to share the same office space. This agreement will be in the form of a licence agreement. If the office space is one room the licence will not grant each business or individual a defined and fixed space within the room but will grant the businesses and individuals the office space. The licence fee should be inclusive of the service costs eg internet, utilities, etc.

Why is it important?

If your business does not own the property you must check your lease and check with your landlord to ensure that your grant of a licence to the sharers will not be a breach of your obligations under your business tenancy.




Rent deposit deed


What is it?

A rent deposit is a sum of money paid by a commercial tenant as security to their landlord prior to or at the grant of a commercial lease in respect of a commercial property rental.

A rent deposit deed is the document which sets out how the landlord will safeguard a commercial tenant’s deposit. It works in a similar manner to rent deposits for residential lettings however in this case the deposit is usually held by the commercial landlord and not by a government- backed tenancy deposit scheme as in the case of residential rent deposits.

Why is it important?

A rent deposit deed protects the landlord and the tenant. Under the rent deposit deed, the deposit remains the property of the tenant however if the tenant does not pay the rent or breaches any fundamental term of the lease the landlord can take money out of the deposit in recompense.

Rent deposit deeds are standard in commercial leases and provide peace of mind to a commercial landlord especially if the prospective tenant eg a start-up business or a sole trader cannot prove his/her trading credentials and creditworthiness. It gives a guarantee of easy access to funds should the tenant default. It is also beneficial for the tenant as it is akin to “savings” which will be returned to the tenant in future with any accrued interest if there is no breach of covenant and it is also a fund which the landlord may use to set off any breach of covenant by the tenant without the tenant having to incur further expense.




Lease agreement


What is it? A lease is an agreement between a landlord and a business for the rental of a property for a set period in return for the tenant paying rent to the landlord. It sets out the rights and obligations of the landlord and the tenant in relation to the property. A lease can be for business or residential use. Why is it important? A commercial or business lease is an agreement between a landlord and a business for the rental of a property for business purposes. A residential lease is an agreement between a landlord and an individual for the rental of a property for residential use. The law relating to business leases differs from the law relating to residential leases. You will need a business lease if you have a business and wish to carry on your business from the commercial property. You will need a residential lease if you wish to rent property from a landlord for residential purposes.




Building Works and Construction agreement


What is it? Before you get building work done, check if you need permission or approval. Get quotes, check there is insurance in place and get a written contract. A building works/construction contract is a written agreement between the parties involved in the building or alteration of any structure. It sets out the rights and obligations of the parties and other parties involved eg sub-contractors, the administration procedures and the contract administrator if there is one. Why is it important? If you are a builder or a contractor doing work for a client or you are the client, you must ensure that the work arrangement is clear and that your contract sets out your work rights and obligations as well as the obligations of your client or the builder/contractor. A contract can be created for a specific project or you may wish to use a standard contract with amendments to fit the project. An example of a standard works contract is the JCT minor works building contract, which is designed for small, basic construction projects where the work is of a simple nature. Risks When checking the contract ensure that the contract describes the purpose of the contract; the work that will be done; the financial information eg the contract prices, deposit, schedule of progress payments, snagging, final payment and interest; payment due date and fees; project description; the handling of variations to the work order; dispute resolution; insurances and a signature line. Always ensure that your client signs the contract before you begin the work. Our construction solicitors can provide you with guidance on the different types of construction contracts and on which type of agreement is best for you. We can also help you negotiate a contract to protect your rights, assist you in reviewing contracts before you sign and provide you with representation in case of a breach of contract. Give us a call today at 01234 938089 or contact us online to learn more about the legal assistance we can provide.




Co-working agreement


What is it?

A coworking agreement is an agreement that offers an occupier (individual or business) shared office space for terms ranging from weekly, month-to-month to as long as five to ten years. Instead of a rental agreement you enter into a service contract with your prospective occupant/licensee. The co-worker pays an occupancy or licence fee not rent.

The space offered can range from one or several desks in an open plan office space in a building occupied by several businesses to a private office in a multi-occupied office building. Co-workers pay for the space they occupy, networking access, the communal areas – eg common room, kitchens etc, internet connection, special events and the use of meeting and conference rooms.

A coworking agreement is not considered a lease. It is far closer to a licence eg an agreement that a gym user signs to attend a gym or even an agreement that a guest signs to lodge at a hotel. A coworking agreement should contain clauses that reflect the communal nature of shared spaces and a collaborative and positive working atmosphere.

Why is it important?

A properly drafted coworking agreement should clearly define the space to be used by the occupier and the amenities to be shared with the other occupants. The agreement should also outline these essential areas eg description of services to be provided– ie hours of access to office space, internet access, mail and workshops; use of services; duration of the licence – weekly, monthly or yearly; renewals and terminations; rules of the premises/code of conduct- including inappropriate use of the premises and prohibited activities ; confidentiality- in view of the communal nature of coworking a confidentiality clause is essential; payment terms; limitation of liability, insurance and possibly disclaimers.

Risks

For landlords and tenants, the main advantage of a coworking agreement is that it is more cost-effective and provides flexibility to businesses. When properly drafted it poses far less risk than a traditional commercial lease as it is generally simple and straightforward, and does not have the significant legal costs, long contracts and drawn out legal process that commercial leases have.





Managing licenses


Running an online business


Protecting your IP


Business Relationships


Writing a business plan


Starting an online business

Commercial lease


What is it? A commercial lease is an agreement between a landlord and a business for the rental of a property for business purposes for a set period in return for the business paying rent to the landlord. It sets out the rights and obligations of the landlord and the business in relation to the property. The law relating to business leases differs from the law relating to residential leases. You will need a business lease if you have a business and wish to carry on your business from the commercial property. A properly written commercial lease is vital to carry on your business.




Home office rental agreement


What is it?

A home office rental agreement is an agreement between an owner or lessee of property to share their home office space with another person. These agreements are usually used by start-ups and home-based businesses and will be in the form of a licence agreement. The licensor will be the owner or tenant of the property and the licensee will be the sharer who may be an individual or a company. If more than one individual sharer it is essential that they be all named on the agreement so that they remain jointly and severally liable under the rental agreement. The licence fee should be inclusive of the service costs eg internet, utilities, etc.

Why is it important?

If your business is a lessee, you must check your lease and check with your landlord to ensure that the grant of a licence to the sharers will not be a breach of your obligations as a tenant.




Office sharing agreement


What is it?

Office space can be expensive in city centres and town centres. An office sharing agreement is an agreement between an owner of office space and another business which wants to share its office space. It is used where the owner of the property or lessee wants to share their office space with a business or individual or where two businesses or sole traders want to share the same office space. This agreement will be in the form of a licence agreement. If the office space is one room the licence will not grant each business or individual a defined and fixed space within the room but will grant the businesses and individuals the office space. The licence fee should be inclusive of the service costs eg internet, utilities, etc.

Why is it important?

If your business does not own the property you must check your lease and check with your landlord to ensure that your grant of a licence to the sharers will not be a breach of your obligations under your business tenancy.




Rent deposit deed


What is it?

A rent deposit is a sum of money paid by a commercial tenant as security to their landlord prior to or at the grant of a commercial lease in respect of a commercial property rental.

A rent deposit deed is the document which sets out how the landlord will safeguard a commercial tenant’s deposit. It works in a similar manner to rent deposits for residential lettings however in this case the deposit is usually held by the commercial landlord and not by a government- backed tenancy deposit scheme as in the case of residential rent deposits.

Why is it important?

A rent deposit deed protects the landlord and the tenant. Under the rent deposit deed, the deposit remains the property of the tenant however if the tenant does not pay the rent or breaches any fundamental term of the lease the landlord can take money out of the deposit in recompense.

Rent deposit deeds are standard in commercial leases and provide peace of mind to a commercial landlord especially if the prospective tenant eg a start-up business or a sole trader cannot prove his/her trading credentials and creditworthiness. It gives a guarantee of easy access to funds should the tenant default. It is also beneficial for the tenant as it is akin to “savings” which will be returned to the tenant in future with any accrued interest if there is no breach of covenant and it is also a fund which the landlord may use to set off any breach of covenant by the tenant without the tenant having to incur further expense.




Lease agreement


What is it? A lease is an agreement between a landlord and a business for the rental of a property for a set period in return for the tenant paying rent to the landlord. It sets out the rights and obligations of the landlord and the tenant in relation to the property. A lease can be for business or residential use. Why is it important? A commercial or business lease is an agreement between a landlord and a business for the rental of a property for business purposes. A residential lease is an agreement between a landlord and an individual for the rental of a property for residential use. The law relating to business leases differs from the law relating to residential leases. You will need a business lease if you have a business and wish to carry on your business from the commercial property. You will need a residential lease if you wish to rent property from a landlord for residential purposes.




Building Works and Construction agreement


What is it? Before you get building work done, check if you need permission or approval. Get quotes, check there is insurance in place and get a written contract. A building works/construction contract is a written agreement between the parties involved in the building or alteration of any structure. It sets out the rights and obligations of the parties and other parties involved eg sub-contractors, the administration procedures and the contract administrator if there is one. Why is it important? If you are a builder or a contractor doing work for a client or you are the client, you must ensure that the work arrangement is clear and that your contract sets out your work rights and obligations as well as the obligations of your client or the builder/contractor. A contract can be created for a specific project or you may wish to use a standard contract with amendments to fit the project. An example of a standard works contract is the JCT minor works building contract, which is designed for small, basic construction projects where the work is of a simple nature. Risks When checking the contract ensure that the contract describes the purpose of the contract; the work that will be done; the financial information eg the contract prices, deposit, schedule of progress payments, snagging, final payment and interest; payment due date and fees; project description; the handling of variations to the work order; dispute resolution; insurances and a signature line. Always ensure that your client signs the contract before you begin the work. Our construction solicitors can provide you with guidance on the different types of construction contracts and on which type of agreement is best for you. We can also help you negotiate a contract to protect your rights, assist you in reviewing contracts before you sign and provide you with representation in case of a breach of contract. Give us a call today at 01234 938089 or contact us online to learn more about the legal assistance we can provide.




Co-working agreement


What is it?

A coworking agreement is an agreement that offers an occupier (individual or business) shared office space for terms ranging from weekly, month-to-month to as long as five to ten years. Instead of a rental agreement you enter into a service contract with your prospective occupant/licensee. The co-worker pays an occupancy or licence fee not rent.

The space offered can range from one or several desks in an open plan office space in a building occupied by several businesses to a private office in a multi-occupied office building. Co-workers pay for the space they occupy, networking access, the communal areas – eg common room, kitchens etc, internet connection, special events and the use of meeting and conference rooms.

A coworking agreement is not considered a lease. It is far closer to a licence eg an agreement that a gym user signs to attend a gym or even an agreement that a guest signs to lodge at a hotel. A coworking agreement should contain clauses that reflect the communal nature of shared spaces and a collaborative and positive working atmosphere.

Why is it important?

A properly drafted coworking agreement should clearly define the space to be used by the occupier and the amenities to be shared with the other occupants. The agreement should also outline these essential areas eg description of services to be provided– ie hours of access to office space, internet access, mail and workshops; use of services; duration of the licence – weekly, monthly or yearly; renewals and terminations; rules of the premises/code of conduct- including inappropriate use of the premises and prohibited activities ; confidentiality- in view of the communal nature of coworking a confidentiality clause is essential; payment terms; limitation of liability, insurance and possibly disclaimers.

Risks

For landlords and tenants, the main advantage of a coworking agreement is that it is more cost-effective and provides flexibility to businesses. When properly drafted it poses far less risk than a traditional commercial lease as it is generally simple and straightforward, and does not have the significant legal costs, long contracts and drawn out legal process that commercial leases have.





Managing licenses


Running an online business


Protecting your IP


Business Relationships


Writing a business plan


Buying & Selling Goods & Services

Commercial lease


What is it? A commercial lease is an agreement between a landlord and a business for the rental of a property for business purposes for a set period in return for the business paying rent to the landlord. It sets out the rights and obligations of the landlord and the business in relation to the property. The law relating to business leases differs from the law relating to residential leases. You will need a business lease if you have a business and wish to carry on your business from the commercial property. A properly written commercial lease is vital to carry on your business.




Home office rental agreement


What is it?

A home office rental agreement is an agreement between an owner or lessee of property to share their home office space with another person. These agreements are usually used by start-ups and home-based businesses and will be in the form of a licence agreement. The licensor will be the owner or tenant of the property and the licensee will be the sharer who may be an individual or a company. If more than one individual sharer it is essential that they be all named on the agreement so that they remain jointly and severally liable under the rental agreement. The licence fee should be inclusive of the service costs eg internet, utilities, etc.

Why is it important?

If your business is a lessee, you must check your lease and check with your landlord to ensure that the grant of a licence to the sharers will not be a breach of your obligations as a tenant.




Office sharing agreement


What is it?

Office space can be expensive in city centres and town centres. An office sharing agreement is an agreement between an owner of office space and another business which wants to share its office space. It is used where the owner of the property or lessee wants to share their office space with a business or individual or where two businesses or sole traders want to share the same office space. This agreement will be in the form of a licence agreement. If the office space is one room the licence will not grant each business or individual a defined and fixed space within the room but will grant the businesses and individuals the office space. The licence fee should be inclusive of the service costs eg internet, utilities, etc.

Why is it important?

If your business does not own the property you must check your lease and check with your landlord to ensure that your grant of a licence to the sharers will not be a breach of your obligations under your business tenancy.




Rent deposit deed


What is it?

A rent deposit is a sum of money paid by a commercial tenant as security to their landlord prior to or at the grant of a commercial lease in respect of a commercial property rental.

A rent deposit deed is the document which sets out how the landlord will safeguard a commercial tenant’s deposit. It works in a similar manner to rent deposits for residential lettings however in this case the deposit is usually held by the commercial landlord and not by a government- backed tenancy deposit scheme as in the case of residential rent deposits.

Why is it important?

A rent deposit deed protects the landlord and the tenant. Under the rent deposit deed, the deposit remains the property of the tenant however if the tenant does not pay the rent or breaches any fundamental term of the lease the landlord can take money out of the deposit in recompense.

Rent deposit deeds are standard in commercial leases and provide peace of mind to a commercial landlord especially if the prospective tenant eg a start-up business or a sole trader cannot prove his/her trading credentials and creditworthiness. It gives a guarantee of easy access to funds should the tenant default. It is also beneficial for the tenant as it is akin to “savings” which will be returned to the tenant in future with any accrued interest if there is no breach of covenant and it is also a fund which the landlord may use to set off any breach of covenant by the tenant without the tenant having to incur further expense.




Lease agreement


What is it? A lease is an agreement between a landlord and a business for the rental of a property for a set period in return for the tenant paying rent to the landlord. It sets out the rights and obligations of the landlord and the tenant in relation to the property. A lease can be for business or residential use. Why is it important? A commercial or business lease is an agreement between a landlord and a business for the rental of a property for business purposes. A residential lease is an agreement between a landlord and an individual for the rental of a property for residential use. The law relating to business leases differs from the law relating to residential leases. You will need a business lease if you have a business and wish to carry on your business from the commercial property. You will need a residential lease if you wish to rent property from a landlord for residential purposes.




Building Works and Construction agreement


What is it? Before you get building work done, check if you need permission or approval. Get quotes, check there is insurance in place and get a written contract. A building works/construction contract is a written agreement between the parties involved in the building or alteration of any structure. It sets out the rights and obligations of the parties and other parties involved eg sub-contractors, the administration procedures and the contract administrator if there is one. Why is it important? If you are a builder or a contractor doing work for a client or you are the client, you must ensure that the work arrangement is clear and that your contract sets out your work rights and obligations as well as the obligations of your client or the builder/contractor. A contract can be created for a specific project or you may wish to use a standard contract with amendments to fit the project. An example of a standard works contract is the JCT minor works building contract, which is designed for small, basic construction projects where the work is of a simple nature. Risks When checking the contract ensure that the contract describes the purpose of the contract; the work that will be done; the financial information eg the contract prices, deposit, schedule of progress payments, snagging, final payment and interest; payment due date and fees; project description; the handling of variations to the work order; dispute resolution; insurances and a signature line. Always ensure that your client signs the contract before you begin the work. Our construction solicitors can provide you with guidance on the different types of construction contracts and on which type of agreement is best for you. We can also help you negotiate a contract to protect your rights, assist you in reviewing contracts before you sign and provide you with representation in case of a breach of contract. Give us a call today at 01234 938089 or contact us online to learn more about the legal assistance we can provide.




Co-working agreement


What is it?

A coworking agreement is an agreement that offers an occupier (individual or business) shared office space for terms ranging from weekly, month-to-month to as long as five to ten years. Instead of a rental agreement you enter into a service contract with your prospective occupant/licensee. The co-worker pays an occupancy or licence fee not rent.

The space offered can range from one or several desks in an open plan office space in a building occupied by several businesses to a private office in a multi-occupied office building. Co-workers pay for the space they occupy, networking access, the communal areas – eg common room, kitchens etc, internet connection, special events and the use of meeting and conference rooms.

A coworking agreement is not considered a lease. It is far closer to a licence eg an agreement that a gym user signs to attend a gym or even an agreement that a guest signs to lodge at a hotel. A coworking agreement should contain clauses that reflect the communal nature of shared spaces and a collaborative and positive working atmosphere.

Why is it important?

A properly drafted coworking agreement should clearly define the space to be used by the occupier and the amenities to be shared with the other occupants. The agreement should also outline these essential areas eg description of services to be provided– ie hours of access to office space, internet access, mail and workshops; use of services; duration of the licence – weekly, monthly or yearly; renewals and terminations; rules of the premises/code of conduct- including inappropriate use of the premises and prohibited activities ; confidentiality- in view of the communal nature of coworking a confidentiality clause is essential; payment terms; limitation of liability, insurance and possibly disclaimers.

Risks

For landlords and tenants, the main advantage of a coworking agreement is that it is more cost-effective and provides flexibility to businesses. When properly drafted it poses far less risk than a traditional commercial lease as it is generally simple and straightforward, and does not have the significant legal costs, long contracts and drawn out legal process that commercial leases have.





Managing licenses


Running an online business


Protecting your IP


Business Relationships


Writing a business plan


Letting a commercial property

Commercial lease


What is it? A commercial lease is an agreement between a landlord and a business for the rental of a property for business purposes for a set period in return for the business paying rent to the landlord. It sets out the rights and obligations of the landlord and the business in relation to the property. The law relating to business leases differs from the law relating to residential leases. You will need a business lease if you have a business and wish to carry on your business from the commercial property. A properly written commercial lease is vital to carry on your business.




Home office rental agreement


What is it?

A home office rental agreement is an agreement between an owner or lessee of property to share their home office space with another person. These agreements are usually used by start-ups and home-based businesses and will be in the form of a licence agreement. The licensor will be the owner or tenant of the property and the licensee will be the sharer who may be an individual or a company. If more than one individual sharer it is essential that they be all named on the agreement so that they remain jointly and severally liable under the rental agreement. The licence fee should be inclusive of the service costs eg internet, utilities, etc.

Why is it important?

If your business is a lessee, you must check your lease and check with your landlord to ensure that the grant of a licence to the sharers will not be a breach of your obligations as a tenant.




Office sharing agreement


What is it?

Office space can be expensive in city centres and town centres. An office sharing agreement is an agreement between an owner of office space and another business which wants to share its office space. It is used where the owner of the property or lessee wants to share their office space with a business or individual or where two businesses or sole traders want to share the same office space. This agreement will be in the form of a licence agreement. If the office space is one room the licence will not grant each business or individual a defined and fixed space within the room but will grant the businesses and individuals the office space. The licence fee should be inclusive of the service costs eg internet, utilities, etc.

Why is it important?

If your business does not own the property you must check your lease and check with your landlord to ensure that your grant of a licence to the sharers will not be a breach of your obligations under your business tenancy.




Rent deposit deed


What is it?

A rent deposit is a sum of money paid by a commercial tenant as security to their landlord prior to or at the grant of a commercial lease in respect of a commercial property rental.

A rent deposit deed is the document which sets out how the landlord will safeguard a commercial tenant’s deposit. It works in a similar manner to rent deposits for residential lettings however in this case the deposit is usually held by the commercial landlord and not by a government- backed tenancy deposit scheme as in the case of residential rent deposits.

Why is it important?

A rent deposit deed protects the landlord and the tenant. Under the rent deposit deed, the deposit remains the property of the tenant however if the tenant does not pay the rent or breaches any fundamental term of the lease the landlord can take money out of the deposit in recompense.

Rent deposit deeds are standard in commercial leases and provide peace of mind to a commercial landlord especially if the prospective tenant eg a start-up business or a sole trader cannot prove his/her trading credentials and creditworthiness. It gives a guarantee of easy access to funds should the tenant default. It is also beneficial for the tenant as it is akin to “savings” which will be returned to the tenant in future with any accrued interest if there is no breach of covenant and it is also a fund which the landlord may use to set off any breach of covenant by the tenant without the tenant having to incur further expense.




Lease agreement


What is it? A lease is an agreement between a landlord and a business for the rental of a property for a set period in return for the tenant paying rent to the landlord. It sets out the rights and obligations of the landlord and the tenant in relation to the property. A lease can be for business or residential use. Why is it important? A commercial or business lease is an agreement between a landlord and a business for the rental of a property for business purposes. A residential lease is an agreement between a landlord and an individual for the rental of a property for residential use. The law relating to business leases differs from the law relating to residential leases. You will need a business lease if you have a business and wish to carry on your business from the commercial property. You will need a residential lease if you wish to rent property from a landlord for residential purposes.




Building Works and Construction agreement


What is it? Before you get building work done, check if you need permission or approval. Get quotes, check there is insurance in place and get a written contract. A building works/construction contract is a written agreement between the parties involved in the building or alteration of any structure. It sets out the rights and obligations of the parties and other parties involved eg sub-contractors, the administration procedures and the contract administrator if there is one. Why is it important? If you are a builder or a contractor doing work for a client or you are the client, you must ensure that the work arrangement is clear and that your contract sets out your work rights and obligations as well as the obligations of your client or the builder/contractor. A contract can be created for a specific project or you may wish to use a standard contract with amendments to fit the project. An example of a standard works contract is the JCT minor works building contract, which is designed for small, basic construction projects where the work is of a simple nature. Risks When checking the contract ensure that the contract describes the purpose of the contract; the work that will be done; the financial information eg the contract prices, deposit, schedule of progress payments, snagging, final payment and interest; payment due date and fees; project description; the handling of variations to the work order; dispute resolution; insurances and a signature line. Always ensure that your client signs the contract before you begin the work. Our construction solicitors can provide you with guidance on the different types of construction contracts and on which type of agreement is best for you. We can also help you negotiate a contract to protect your rights, assist you in reviewing contracts before you sign and provide you with representation in case of a breach of contract. Give us a call today at 01234 938089 or contact us online to learn more about the legal assistance we can provide.




Co-working agreement


What is it?

A coworking agreement is an agreement that offers an occupier (individual or business) shared office space for terms ranging from weekly, month-to-month to as long as five to ten years. Instead of a rental agreement you enter into a service contract with your prospective occupant/licensee. The co-worker pays an occupancy or licence fee not rent.

The space offered can range from one or several desks in an open plan office space in a building occupied by several businesses to a private office in a multi-occupied office building. Co-workers pay for the space they occupy, networking access, the communal areas – eg common room, kitchens etc, internet connection, special events and the use of meeting and conference rooms.

A coworking agreement is not considered a lease. It is far closer to a licence eg an agreement that a gym user signs to attend a gym or even an agreement that a guest signs to lodge at a hotel. A coworking agreement should contain clauses that reflect the communal nature of shared spaces and a collaborative and positive working atmosphere.

Why is it important?

A properly drafted coworking agreement should clearly define the space to be used by the occupier and the amenities to be shared with the other occupants. The agreement should also outline these essential areas eg description of services to be provided– ie hours of access to office space, internet access, mail and workshops; use of services; duration of the licence – weekly, monthly or yearly; renewals and terminations; rules of the premises/code of conduct- including inappropriate use of the premises and prohibited activities ; confidentiality- in view of the communal nature of coworking a confidentiality clause is essential; payment terms; limitation of liability, insurance and possibly disclaimers.

Risks

For landlords and tenants, the main advantage of a coworking agreement is that it is more cost-effective and provides flexibility to businesses. When properly drafted it poses far less risk than a traditional commercial lease as it is generally simple and straightforward, and does not have the significant legal costs, long contracts and drawn out legal process that commercial leases have.





Managing licenses


Running an online business


Protecting your IP


Business Relationships


Writing a business plan


Sale and Purchase of Commercial Property

Commercial lease


What is it? A commercial lease is an agreement between a landlord and a business for the rental of a property for business purposes for a set period in return for the business paying rent to the landlord. It sets out the rights and obligations of the landlord and the business in relation to the property. The law relating to business leases differs from the law relating to residential leases. You will need a business lease if you have a business and wish to carry on your business from the commercial property. A properly written commercial lease is vital to carry on your business.




Home office rental agreement


What is it?

A home office rental agreement is an agreement between an owner or lessee of property to share their home office space with another person. These agreements are usually used by start-ups and home-based businesses and will be in the form of a licence agreement. The licensor will be the owner or tenant of the property and the licensee will be the sharer who may be an individual or a company. If more than one individual sharer it is essential that they be all named on the agreement so that they remain jointly and severally liable under the rental agreement. The licence fee should be inclusive of the service costs eg internet, utilities, etc.

Why is it important?

If your business is a lessee, you must check your lease and check with your landlord to ensure that the grant of a licence to the sharers will not be a breach of your obligations as a tenant.




Office sharing agreement


What is it?

Office space can be expensive in city centres and town centres. An office sharing agreement is an agreement between an owner of office space and another business which wants to share its office space. It is used where the owner of the property or lessee wants to share their office space with a business or individual or where two businesses or sole traders want to share the same office space. This agreement will be in the form of a licence agreement. If the office space is one room the licence will not grant each business or individual a defined and fixed space within the room but will grant the businesses and individuals the office space. The licence fee should be inclusive of the service costs eg internet, utilities, etc.

Why is it important?

If your business does not own the property you must check your lease and check with your landlord to ensure that your grant of a licence to the sharers will not be a breach of your obligations under your business tenancy.




Rent deposit deed


What is it?

A rent deposit is a sum of money paid by a commercial tenant as security to their landlord prior to or at the grant of a commercial lease in respect of a commercial property rental.

A rent deposit deed is the document which sets out how the landlord will safeguard a commercial tenant’s deposit. It works in a similar manner to rent deposits for residential lettings however in this case the deposit is usually held by the commercial landlord and not by a government- backed tenancy deposit scheme as in the case of residential rent deposits.

Why is it important?

A rent deposit deed protects the landlord and the tenant. Under the rent deposit deed, the deposit remains the property of the tenant however if the tenant does not pay the rent or breaches any fundamental term of the lease the landlord can take money out of the deposit in recompense.

Rent deposit deeds are standard in commercial leases and provide peace of mind to a commercial landlord especially if the prospective tenant eg a start-up business or a sole trader cannot prove his/her trading credentials and creditworthiness. It gives a guarantee of easy access to funds should the tenant default. It is also beneficial for the tenant as it is akin to “savings” which will be returned to the tenant in future with any accrued interest if there is no breach of covenant and it is also a fund which the landlord may use to set off any breach of covenant by the tenant without the tenant having to incur further expense.




Lease agreement


What is it? A lease is an agreement between a landlord and a business for the rental of a property for a set period in return for the tenant paying rent to the landlord. It sets out the rights and obligations of the landlord and the tenant in relation to the property. A lease can be for business or residential use. Why is it important? A commercial or business lease is an agreement between a landlord and a business for the rental of a property for business purposes. A residential lease is an agreement between a landlord and an individual for the rental of a property for residential use. The law relating to business leases differs from the law relating to residential leases. You will need a business lease if you have a business and wish to carry on your business from the commercial property. You will need a residential lease if you wish to rent property from a landlord for residential purposes.




Building Works and Construction agreement


What is it? Before you get building work done, check if you need permission or approval. Get quotes, check there is insurance in place and get a written contract. A building works/construction contract is a written agreement between the parties involved in the building or alteration of any structure. It sets out the rights and obligations of the parties and other parties involved eg sub-contractors, the administration procedures and the contract administrator if there is one. Why is it important? If you are a builder or a contractor doing work for a client or you are the client, you must ensure that the work arrangement is clear and that your contract sets out your work rights and obligations as well as the obligations of your client or the builder/contractor. A contract can be created for a specific project or you may wish to use a standard contract with amendments to fit the project. An example of a standard works contract is the JCT minor works building contract, which is designed for small, basic construction projects where the work is of a simple nature. Risks When checking the contract ensure that the contract describes the purpose of the contract; the work that will be done; the financial information eg the contract prices, deposit, schedule of progress payments, snagging, final payment and interest; payment due date and fees; project description; the handling of variations to the work order; dispute resolution; insurances and a signature line. Always ensure that your client signs the contract before you begin the work. Our construction solicitors can provide you with guidance on the different types of construction contracts and on which type of agreement is best for you. We can also help you negotiate a contract to protect your rights, assist you in reviewing contracts before you sign and provide you with representation in case of a breach of contract. Give us a call today at 01234 938089 or contact us online to learn more about the legal assistance we can provide.




Co-working agreement


What is it?

A coworking agreement is an agreement that offers an occupier (individual or business) shared office space for terms ranging from weekly, month-to-month to as long as five to ten years. Instead of a rental agreement you enter into a service contract with your prospective occupant/licensee. The co-worker pays an occupancy or licence fee not rent.

The space offered can range from one or several desks in an open plan office space in a building occupied by several businesses to a private office in a multi-occupied office building. Co-workers pay for the space they occupy, networking access, the communal areas – eg common room, kitchens etc, internet connection, special events and the use of meeting and conference rooms.

A coworking agreement is not considered a lease. It is far closer to a licence eg an agreement that a gym user signs to attend a gym or even an agreement that a guest signs to lodge at a hotel. A coworking agreement should contain clauses that reflect the communal nature of shared spaces and a collaborative and positive working atmosphere.

Why is it important?

A properly drafted coworking agreement should clearly define the space to be used by the occupier and the amenities to be shared with the other occupants. The agreement should also outline these essential areas eg description of services to be provided– ie hours of access to office space, internet access, mail and workshops; use of services; duration of the licence – weekly, monthly or yearly; renewals and terminations; rules of the premises/code of conduct- including inappropriate use of the premises and prohibited activities ; confidentiality- in view of the communal nature of coworking a confidentiality clause is essential; payment terms; limitation of liability, insurance and possibly disclaimers.

Risks

For landlords and tenants, the main advantage of a coworking agreement is that it is more cost-effective and provides flexibility to businesses. When properly drafted it poses far less risk than a traditional commercial lease as it is generally simple and straightforward, and does not have the significant legal costs, long contracts and drawn out legal process that commercial leases have.





Managing licenses


Running an online business


Protecting your IP


Business Relationships


Writing a business plan


Planning & Highways

Trademark (UK, EU, US, China)


What is it?

One of the best ways of protecting your business name, brand and logo from being copied is to register a trademark. A trademark is a distinctive sign eg name, brand, logo or tagline (or a combination of these) used by a business to distinguish its goods and or services from those sold by another business and to identify its business as the source of those goods and services.

In the UK, trademarks are granted by the UK Intellectual Property Office (UK IPO) Registering a trademark increases the protection it receives and stops others from using it.

You may be able to register a trademark over

  1. words (eg the trademark “Nandos”)
  2. pictures and words (eg the Pure Business Law trademark).
  3. slogans (eg the Lidl strap line “Big on quality, Lidl on price”)
  4. colours (eg the Cadbury Dairy Milk purple as owned by Kraft ).
  5. sounds (eg the Match of the Day theme song played when their logo appears at the beginning of football matches) and
  6. Logos (eg the Mac OS logo);
  7. 3D shapes (eg the Pepsi cola bottle shape)
Why is it important?

Registering a name or a logo gives you the following three benefits:

  1. Allows you to object if someone else applies to register ay name or logo that is similar to your trademark for the same of similar goods or services. This protection does not cover an application to use the same name or branding for a different type of business. For instance if you register “Fast-Sports” for a trade mark for selling sports cars, no one could register “Fast-Spots” for anything to do with selling cars but they may be able to register it as a trade mark for a dry-cleaning business because that has nothing to do with cars.
  2. If another business tries to use the same or similar branding on similar goods or services thereby infringing your trademark you can take legal proceedings to stop them.
  3. Your business’s goodwill and reputation have commercial value so registering a trademark is an easy way to protect your hard work and creativity.

Registering a trademark gives you the exclusive right to use it for 10 years, after which you must make an application to renew it to the Intellectual Property Office (IPO). Their website is at www.ipo.gov.uk.

You can register your trademarks in the UK, the EU and or internationally. All registrations last for 10years and are renewable indefinitely in further 10-year periods. The most suitable registration for your brand will depend on where you do business eg UK, EU or internationally.

Risks

If you do not register your name, brand or logo as a trademark you will not be able to easily stop other people using your trademark and you may end up allowing other businesses to profit from your hard work.




Patent (Worldwide)


What is it?

Protect your invention through a patent. A patent gives you an exclusive right over a novel invention that you have created. It gives you the exclusive right to use and reproduce your invention and stop people copying your invention without your permission. For instance, only Apple can make and sell Apple phones.

In the UK, patents are granted by the UK Intellectual Property Office (UK IPO) To have a patent over something you have created, you must register it at the IPO. Patents generally last for up to twenty years.

You can only patent a novel invention and cannot patent something that is already in the public domain. This means that your invention must be new (i.e. you cannot patent something which already exists eg a literary work, method of medical treatment, a diagnosis, scientific theory or a discovery) . You also cannot patent something which is already the subject of a patent application pre-dating your application. This means that you must carry out extensive market research examining trade journals and academic papers relevant to your industry market and searching for patents and patent applications on the patent registers worldwide. Obtaining a patent is expensive and time consuming. You should enlist the help of a professional eg lawyer or patent agent before starting an application for a patent.

Why is it important?

Should I register my invention as a patent?

Yes, you should if you believe that you have created a novel product or process which is so important to your business that you wish to pay a patent application fee to prevent others from using it.

Risks

Registering your invention as a patent ensures that:

  1. You can prevent others using your product or process if they intend to use it for commercial purposes.
  2. You can profit from your patent by only permitting certain people to use it for commercial purposes and only on condition that they pay you or give you a percentage of the profits they make from using your patent.

Risks

If you do not register your invention as a patent, you will not be able to easily stop other people copying your ideas and you may end up allowing other businesses to profit from your hard work.

You can use free online databases to search for patents eg Ipsum the UK IPO’s search facility, the Patents Journal (for UK applications that have been filed but not yet published), Espacenet – the European Patents Office’s (EPO’s) free database for worldwide patents including UK patents and Patentscope – the World Intellectual Property Organisation’s (WIPO’s ) free database for worldwide patents including UK patents. Note that these databases may not be up to date.

As an alternative you may prefer to use professional search services such as :

  1. The PATLIB (patent library) centre
  2. A Patent attorney through the Chartered Institute of Patent Attorneys at www. cipa.org.uk




IP Assignment Agreement


What is it? An IP assignment agreement transfers rights and ownership in an IP created by one person to someone else or to a business. It can be used to transfer rights in a trademark, patent, logo, designs or any other IP. Why is it important? An IP assignment agreement is important when a business is sold, and the founder created intellectual property before becoming a part of the company or a company employs a someone whether consultant or employee to do some work.




Registering Designs


What is it?

Register your design to stop someone else from using it.

A design right is a right that you have which can protect your original design from being copied by someone else.There are two different types of design rights – registered and unregistered design rights which can protect the look or appearance of a product from being copied.

Why is it important?

Design rights can exist in computer icons, logos, graphic designs, packaging and clothing. The rights do not arise by reference to the particular product but rather in the shape or look of either the whole of the product or part of that product. For instance, a registered design right in a motif used on a book will be infringed if someone else uses the same design motif on a duvet cover.

In the UK, design registrations are granted by the UK Intellectual Property Office (UK IPO).

Risks

Even if you do not register your design, it will still be automatically protected as an unregistered design right. However this right is more limited right because it only protects you against unauthorised copying and does not prevent other people creating similar designs independently.

For businesses in the UK these unregistered design rights arise automatically in the UK and the EU for some designs under both UK and EU law if the relevant criteria are met. In the UK, unregistered design rights arise as soon as the relevant designs are recorded in some way eg in a drawing and in the UK as soon as they are made available to the public. However, the protection granted differs slightly in each jurisdiction. For instance in the UK unregistered design rights will automatically protect either the shape or configuration of the whole or part of an article for up to 15 years, whereas in the EU unregistered design rights will automatically protect not only the appearance of the whole or part of any industrial or handicraft product resulting from its features but also its lines, shape, texture, contours and materials but only for up to 3 years.

You should therefor keep a watching brief and consider whether such a right has arisen as soon as you believe that either you or your employees (in the course of their employment) have created an original design.

Brexit

The UK and the EU have agreed that there will be an implementation period (ie transition period) from the date the UK left the EU i.e. 31 January 2020 until 31 December 2020 or a later date if the transition period is extended. During this period there will be no changes to unregistered design rights.

UK unregistered design rights

UK unregistered design rights will continue after the transition period and provide up to 15 years of protection. However, after the transition period the UK Government has advised that only UK residents or businesses incorporated in the UK will be eligible for UK registered designs.

EU unregistered design rights

From the end of the transition period unregistered design rights in the EU (ie unregistered Community designs) will no longer be valid in the IK. The government has advised that it will immediately replace the unregistered Community design rights with UK unregistered design rights ( to be known as UK continuing unregistered design rights) and which will offer protection in the EU and UK for the rest of the three year terms previously attached to the unregistered Community design right. This means you will continue to be protected in the EU and UK for unregistered Community designs that existed before the end of the transition period.

If you are concerned about how to protect your unregistered design rights in the UK and EU after the transition period please contact our IP lawyers for further advice on 01234 938089.




Non-Disclosure Agreement (NDA)/Letter of confidentiality


What is it?

This agreement protects confidential information belonging to your business including IP and other information which you do not want to be made public.

Why is it important?

It is important to have an NDA in place before sharing any confidential or sensitive information in business meetings with people with whom you intend to do business eg investors, prospective co-founders, suppliers, consultants and the like. A letter of confidentiality is similar to a non-disclosure agreement. The party disclosing confidential information imposes restrictions as to the use of this confidential information to the party receiving it.

Risks

If you do not have the required safeguards in place to protect your intellectual property during business meetings or negotiations you may have your designs, inventions or work stolen or copied by the person with whom you are negotiating. This could be disastrous for your business.




one-way confidentiality agreement


What is it? A one-way Confidentiality agreement is similar to a non-disclosure agreement but imposes restrictions as to the use of this confidential information only on one party.




Assignment of intellectual property


What is it?

An IP assignment agreement transfers rights and ownership in an IP created by one-person eg trademark, patent, logo, designs or any other IP to someone else or to a business.

Why is it important?

An IP assignment agreement is important when a business is sold, and the founder created intellectual property before becoming a part of the company or a company employs a someone whether consultant or employee to do some work. If you assign IP rights to another business, you are transferring ownership of the IP.

It is more common to licence intellectual property rights than to assign them in business. Licensing allows a third party to have rights over the IP and do certain acts with the IP that they would not otherwise have been able to do but you keep ownership of the IP. You can limit the licence to a certain area eg the UK, Middle East, Africa etc or to a certain period of time eg 1 year, 2 years etc.

Risks

If for example you assign your IP to a business and it fails, you would have lost your IP. If on the other hand you licence your IP to another business, you are in ultimate control and can stipulate how the IP should be used and when it has to be returned. You can also stipulate that the IP be returned to you if the business goes into liquidation or on the happening of certain events.




Copyright


What is it?

Copyright is the exclusive right to use and reproduce in public any material you have created if it falls into one of the following categories:

i) Written work such as books, plays film scripts, web content, articles, essays, professional opinions, tables, compilations and databases;

ii)Artistic works such as paintings, drawings, photos, maps, charts, plan, diagrams etc;

iii)sound recordings;

iv)Films, music and broadcasts; or

v) computer programs.

Why is it important?

Copyright arises automatically when you create the work so there is no need to register copyright to own a work that you have created. You should be wary of any person that asks you to pay them to register your copyright in a work that you have created as it will be a scam.

Businesses as well as individuals can own copyright. Copyright usually lasts for 70 years.

You can buy someone’s copyright via a document called a Deed of assignment or give them a licence to use your copyright. As a general rule if an employee creates a work in the course of their employment their employer (ie the business ) will own the work.

However, if the work in question is not part of the agreed duties of the employee the employee will own the work. To ensure that copyright work created by employees is owned by the business you should include appropriate intellectual property clauses in your employment contracts.

Risks

If you commission a piece of work from a freelancer the copyright in the work will belong to the freelancer unless the parties have agreed otherwise. It is important to ensure that the position on ownership of the copyright in writing before work starts to ensure that the business owns the copyright in the work produced by the freelancer.





 
 
 

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