Intellectual property & franchising law - things you should know.
Author:
Rockliffs Solicitors and IP Lawyers
Publish Date: May 8, 2007
Many individuals (including legal professionals alike) often misunderstand what makes up intellectual property and can be confused when it comes to its true nature.
There are numerous components to intellectual property, which include copyright, trademarks, confidential information, trade secrets, patents and designs. Many of which (in varying degrees) may apply to your business or franchise operation.
Understanding what intellectual property really means will enable you to better protect it and allow your business goodwill to grow more rapidly. Increasing the value of your business and thus making it more attractive to other parties, whether that be purchasers, investors or franchisees.
For instance, you may have a business that is involved in the selling of items direct to the public as a retailer. You have developed a name for yourself over time in your particular industry and now you look towards expanding your business and wonder “What should I do to protect my future growth?”
Alternatively, you may have a concept that is new and groundbreaking and you want it to grow rapidly.
Part of the answer is that you should seriously consider the advantages of registering your trademark with IP Australia. This provides you with further protection under the Trade Marks Act 1995 (Cth) that can only be obtained once you have a registered trademark.
You then decide you want to franchise your business, to assist in its future growth, so what next?
There are many steps along the way before holding yourself out as a franchisor.
You should fully understand the nature of your business and have in place a detailed instruction manual that can be used by your franchisees as a tool to follow, in their franchise business.
You need to also have the necessary disclosure document available to the franchisee that is required and is mandatory by the Franchising Code of Conduct Australia wide. Appropriate legal expertise and advice here is important in the preparation of this document.
The most fundamental document (of a legal nature at least) is the franchise agreement. The franchise agreement itself will deal with many matters between the franchisor and the franchisee. It sets up the legal relationship and obligations between the parties.
Essential in this legal document is the grant of rights over certain intellectual property for a territory or region. Accordingly, understanding the nature of this intellectual property and its scope is very important for the appropriate protection of your franchise system.
These agreements are often complex legal documents that require expert legal preparation and review for a franchisor or franchisee alike.
For more information, on this and other areas of law, speak to Steven Clare (solicitor) with Rockliffs Solicitors.
There may be many other considerations and this is not meant as an exhaustive list. This is not intended to act as legal advice and is merely provided as general assistance and not otherwise and should not be relied upon, as every circumstance is unique in nature.
For further information or assistance please contact Rockliffs on 02 9299 4912 or email us at lawyers@rockliffs.com.au