A


Angel investor – a person with money who provides capital for a start-up in exchange for convertible debt or equity.

Assignment – the transfer of ownership of intellectual property rights such as the sale of a patent.

B



C


Confidential disclosure agreement (CDA) – a legal contract between at least two parties that outlines confidential information that one of the parties will share with the other but is not to be shared with any other party. Also called a non-disclosure agreement (NDA).

Co-licensing – the combination of tow or more patents or proprietary property into one package, product or deal.

Copyright – a type of intellectual property protection issued by the Registrar of Copyrights in the Library of Congress. It protects your original writings, music, and dramatic and artistic creations.

Corporation – a type of business structure that is a separate legal entity apart from the people who created it. It limits the liability of the shareholders to their investment.

D


Design patent – a patent granted in the US based on new original decorative designs. Design patents are enforced for 14 years.

Disclosure – giving information to another party.

Distribution channel – the path of a product from the manufacturer to the end customer. The product flows through various intermediaries before reaching the end customer. Each intermediary has its own needs and interests that must be addressed.

E


Entrepreneur – a person who starts or organizes and operates a new business and assumes the associated risks.

Examiner – patent examiner or patent clerk who reviews and approves patent applications. They research patent applications on both technical and legal grounds.

F



G


Grant – an award of funds that do not need to be paid back. Usually awarded by an agency of the federal government or private foundation for the development of your invention idea.

H



I


Idea – a thought that leads to a possible course of action or solution to a problem. Ideas are not patentable.

Industry trade show – an exhibition, convention or conference organized for a specific industry. It allows inventors and businesses to gain market information on products and trends and demonstrate and showcase their products, services and solutions.

Infringement – violation of an intellectual property right such as a patent, copyright or trademark.

Injunction – a court order that requires a party to stop doing something permanently such as infringing on another party’s intellectual property rights.

Intellectual property (IP) – a work or invention for which one has ownership rights and may seek protection via a patent, copyright, trademark, service mark, trade secret or know how.

Invention – a new product or process that is created and is unique.

Inventor's notebook – a notebook that an inventor uses to record all notes, thoughts, sketches and drawings in relation to a specific invention. It may become a legal document to prove ownership of the invention or “first to invent”. All entries should be dated and initialed or signed. Blank pages should be identified as such.

J


Joint venture (JV) – a business entity formed between two parties for a specific business activity.

K


Know how – closely held experience or knowledge that has value to someone else.

L


Licensee – the person or business that holds a license to use or sell intellectual property.

Licensing – act of giving a person or business permission to use intellectual property.

Licensor – the person or business that gives another party the right to use or sell intellectual property.

Limited Liability Company – a legal business entity in the US, which offers limited liability to the owners. It has characteristics of both a partnership and a corporation. It has members instead of shareholders.

M


Maintenance fees – the renewal fees that must be paid to keep a patent current. Usually paid on a set time schedule from the date of issuance. Not applicable to design patents.

Manufacturing agreement – an agreement that an inventor makes with a manufacturer to define the terms of production and distribution of the invention to the target market.

Market – the demand for a product or service. It may be a specific customer group.

Market analysis – the detailed study of the make up, needs and actions of a specific market so that your product or service may be developed and promoted to meet its needs or wants.

N


Non-disclosure agreement (NDA) - a legal contract between at least two parties that outlines confidential information that one of the parties will share with the other but is not to be shared with any other party. Also called a confidential disclosure agreement (CDA).

O



P


Patent – intellectual property protection rights for your invention granted by a government authority. In the United States that authority is the USTPO.

Patent attorney – an attorney who specializes in helping clients obtain and maintain intellectual property rights. They must be licensed by the Patent Office in the United States. Other countries have other certification requirements.

Prior art – related information, ideas or inventions that are in existence in the public domain prior to your invention. Prior art is typically related to a patent’s claims of originality.

Proprietary property – intellectual property that is exclusively owned or controlled by a person or business.

Prototype - a preliminary model of an invention that demonstrates its major purpose and function.

Provisional patent – an application for a patent that reserves the right to convert to a patent within one year. It is used in the United States.

Q



R


Royalty payment – payments based on the use of intellectual property. Royalty payments may take many different forms and be based on a multitude of variables and conditions.

S


SBIR – Small Business Innovation Research Program is a United States program managed by the Small Business Administration (SBA). It issues grants and contracts to small businesses to stimulate innovation and competition based on various government agency needs.

Seed capital – early investment in a project or start-up business.

Service mark – a symbol, name or words used to legally represent a service.

Start-up – a new business venture usually based on a business plan.

STTR – Small Business Technology Transfer Program (STTR) is a United States federal government program. The STTR program issues grants to expand public/private sector partnerships between various government agencies and nonprofit research institutions.

T


Teaming agreement – an agreement between two persons or entities to enter a business relationship to work together toward a common mutual goal.

Technology transfer – the transfer of research based intellectual property, skills or knowledge to another for further research or commercialization. Can occur between industries, universities, businesses and governments.

Temporary restraining order (TRO) – a temporary court order, which tells one party to stop doing something such as stop infringing on another’s intellectual property right.

Trademark – a symbol, name or words that is used to legally represent a company or product.

Trade secret – a class of intellectual property that is not in the public domain. It is held secret and is subject to individual state laws.

U


USTPO – United States Patent and Trademark Office is an agency of the US Department of Commerce that issues patents and trademark registrations. It is located in Alexandria, Virginia.

Utility patent – a type of patent also referred to as a functional patent. It covers the functioning or operation of a machine or other device. A utility patent lasts for 20 years from the filing date (assuming all maintenance fees are paid on time).

V


Venture capital (VC) – money provided to high growth potential companies in exchange for equity and some degree of control.

W


Working capital – the operating cash required to run a business and meet its day to day needs. It is very important to conserve working capital in a new business or startup or during a new product launch.

X



Y



Z