Archive for the ‘Legal’ Category

How Copyright Applies on the Web

“Copyright gives the author of an original work exclusive right for a certain time period in relation to that work, including its publication, distribution and adaptation, after which time the work is said to enter the public domain”.Wikipedia
Copyright applies to the web just as it applies to anything that is created or published. The (US) Copyright Act of 1976 States that “a copyright owner does not have to file a copyright application to protect its works…rather, copyright protection forms when the works are created.”Technically this is true, but if you take it just as it states and you do not apply for copyright protection you may have to give up you idea, publication or creation. Under the same Copyright Act registration is a necessity within ninety (90) days of publication to allow the owner to receive what is referred to as “statutory damages”. The compensation you receive without registration in the court of Law cannot be compared to the statutory damages I talked about earlier. In the US they include: a sum of not less than $750 or more than $30,000 per work infringed; Attorney’s fees; costs; And, where the copyright owner can show that the infringement was willful, an award of up to $150,000 per work.
Preregistration can also be done even before the idea, creation or publication is complete .US Copyright Preregistration Information..
Copyright Explained: I May Copy It, Right? is helpful for startups .
Should Startups worry about Copyrights? Interview with M.Pavan of Whitemoney explains how copyright law is applied.

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Term Sheet

“A term sheet is a bullet-point document outlining the material terms and conditions of a business agreement. After a Term Sheet has been “executed”, it guides legal counsel in the preparation of a proposed “final agreement”. It then guides, but is not necessarily binding, as the signatories negotiate, usually with legal counsel, the final terms of their agreement.”Wikipedia
Term Sheet
A term sheet is a document that begins the process and forms the basis of your engagement with the venture capitalist. It sets out the “terms” on which the investor will invest in your business,the obligation,rights and sometimes the responsibilities of both parties involved.

If you get to a stage where the VC gives you a term sheet,it signifies expression of interest in the idea you presenting on the table for funding. The VC will lay out the terms of the investment. Term sheets usually have an expiry date, i.e., if you do not accept the terms by a certain date, the terms of the engagement will no longer be valid.
Startup 125: Term Sheet – Liquidation Preferences
Before you sign the term sheet,read this

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