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     Email newsletter from Bovarnick & Associates                                      February 2008

Community Engagements

Rob will be making three appearances in the next 60 days:

On March 24, Rob will be speaking to the Kutztown Chamber of Commerce; the topic of his discussion will be "20 Lethal Legal Small Business Land Mines to avoid."

In April Rob will appear on the Comcast CN8  "Money Matters" show.  The exact date of when the show will appear hasn't been determined.  A VCR alert will be sent out in early April.

 

On April 24, Rob will be speaking at a seminar entitled "Recognizing the Blind Spots in the World of LLPs, LLLPs, LLCs and Partnerships in Pennsylvania." Rob will be speaking about Series LLCs, Fiduciary Duties, Derivative Standing, Piercing the Veil and Asset Protection. If you are interested in attending, go to www.lorman.com

 

 

 

 

 

Interview

Barbara Berschler

The Power of Trademarks and Copyrights

 

Barbara Berschler, who has been practicing law, since 1985, is Of Counsel with Bovarnick and Associates, focusing on intellectual property issues for the Firm and its clients.  Barbara received her law degree from Temple University and her masters in intellectual property law from American University.

 

 

Why did you become a trademark and copyright attorney?

 

            I considered that intellectual property issues affected most businesses.  You have either developed your own intellectual property or you are using someone else's intellectual property.  Owners of most small to medium sized businesses do not have ready access to legal advice concerning copyright and trademarks, two of the main types of intellectual property.  I returned to law school to focus on those topics so that I could offer such counsel to my business clients.

 

Why should a business owner take steps to protect its intellectual property?

 

            Just as a business owner wants to protect his tangible business assets such as vehicles, real estate and equipment, so too, must the intangible assets that a business acquires be protected because they have definite value.  Understanding exactly what intellectual property the business owner has and then taking appropriate steps  to protect that property, for example trademarks, copyrights, and patents, will then increase the underlying value of the business.  Moreover, it is often the intellectual property of a business that can give it the competitive edge.

 

Is it difficult to get a trademark or copyright? 

 

            The answer is "no."  In the case of a trademark, as long as you are using the mark in the context of your business, it is a trademark and you can stop others from using it.  And in the case of copyright, if you create the work to which the copyright is attached, you own the copyright from the moment of creation. 

            Where things get a little more complicated is when you want to enforce your rights with respect to infringement by others of your trademark or your copyright in a work.  Therefore, you can register a trademark with the United States Patent and Trademark Office (USPTO).  If you successfully do that, the mark will likely be recognized in all 50 states.  And for copyright protection, you must have it registered with the Copyright Office in order to bring a lawsuit, should that prove necessary.

 

Aside from your logo what other things can be trade marked? 

 

            A trademark can be a word, such as "Apple." It can be a slogan such as "All the news that is fit to print." It can be a design such as the Nike "Swoosh."  As you can see, a trademark can take a variety of forms. 

 

What are the various expenses associated with obtaining a  trademark or a copyright? 

 

            In both instances, there are government filing fees involved.  In the case of trademarks, the USPTO charges between $275 and $325 per international class as their filing fee.  That means if you wish to use the mark to represent a number of goods and services, you may have to pay a multiple of the filing fee.  So if your business is involved in educational services and you also want to sell textbooks, you would pay two times the basic fee.  Often, I recommend that a business owner have a professional search performed to find out if anyone is already using the mark my client wants to adopt.  The fees of such searches can vary.  If you are having a trademark designed, you have to engage a designer.  And of course, there is the fee an attorney would charge to file the application with the USPTO and follow-up with any inquiries from that office. 

            Registering the copyright in a work can be less expensive.  The actual filing fee with the Copyright Office is somewhat in flux now, as they are getting ready to offer filing online, which will be less than filing with paper.  Currently, the filing fee with a paper registration form is $45.00 per work.  If you expect to file for multiple copyright registrations, you might want to work with an attorney first, and then proceed on your own once you have worked out any kinks.

 

 

 

           To read more about Barbara, please click here.

 

 

What is a Series Limited Liability Company? 

  

Evening Bulletin

"ASK THE ATTORNEY"

by

Robert M. Bovarnick

 

 

I know about Limited Liability Companies.  A friend of mine mentioned a Series Limited Liability Company.  What is it and does it make sense for me to use it?

 

A Series LLC is a single legal entity that has the ability to divide its assets and liabilities among various cells or "Series".  There are only a few states that acknowledge Series LLCs, Delaware being one of them. 

 

The various cells each may have different economic arrangements.  A Series LLC would be beneficial for a person who has numerous assets, but desires to segregate the liabilities, management or ownership within a single LLC.  For example, an individual who would benefit from this structure would be somebody who owns several pieces of real estate, and wishes to keep each property separate for liability purposes but also desires to have all projects maintained under one LLC for ease of administration and management.  The reasons behind this are precisely the same reason a single Shareholder or Shareholder group might set up multiple corporations to manage different assets or operations, or a holding company might be set up with a number of operational subsidiaries or Members might set up multiple LLCs to accomplish the same objectives. 

 

Essentially, the LLC itself establishes the distinct Series in accordance with the statutory requirements.  The assets and operations of each Series should, at least in theory, be protected from liability arising out of debts incurred by other Series, or even the LLC itself.

 

The primary benefits of a Series LLCs are as follows:

            1.         The business owner has the ability to hold all of his investment properties or lines of business in one LLC without the costs of forming and maintaining multiple LLCs or subsidiaries. 

 

            2.         Liabilities can be segregated within a Series LLC and therefore provide better asset protection benefits than those obtained through ownership of multiple LLCs.

 

            3.         A new Series within the umbrella, aka "Master" LLC can be added easily by a simple amendment to the LLC agreement without additional filings with the Secretary of State.

 

            4.         A Series within the umbrella LLC may be dissolved easily without affecting the other LLCs under the umbrella LLC.

 

            Since the Series LLC is so new, there are very few reported opinions or IRS revenue rulings to provide guidance.  Also, there are many unanswered questions, including:     

 

1.                  Is a Series LLC a single entity or two or more entities?

2.                  Will a Series LLC be respected in other states?

3.                  Will separate Series be respected in other states for liability purposes?

 

As a result, before you decide that you want to be the first on your block to have a Series LLC, you should speak with your lawyer and accountant to determine whether the benefits outweigh the possible risks.

 

 

 

 

I enjoy being able to share with everyone the Firm's continuous growth and development.  Whenever you get the chance, pick up the phone or send me an email and let me know how you are as well.

 

 

Sincerely,

Rob

 

 

 

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Bovarnick and Associates, LLC. | Two Penn Center Plaza | 1500 J.F.K. Boulevard | Suite 1310 | Philadelphia | PA | 19102