Does a Start-up Need to Be Based in Silicon Valley to be Successful?

Does a start-up have the best chance to succeed if based in Silicon Valley?  Or would the same start-up be just as successful, if not more successful, if it were based somewhere else?  This firm has developed a large client base supporting start-ups and tech-focused small businesses outside of Silicon Valley, so we have personal…

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Applying Lessons From the Downturn to Run a Better Business Today

If you ran a business through the downturn as I did, then you probably experience the same nervousness that I do whenever you hear bad economic news or poor economic forecasts.  However, whether you are building a business or a law practice, it’s important to recognize that many of the lessons we learned in surviving…

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Department of Justice Reverses Course on Apple Encryption Case

The Department of Justice appeared to be reversing course in its case against Apple this afternoon, when it filed a motion to vacate the hearing scheduled for tomorrow in order to explore a possible method of decrypting the terrorist iPhone at issue proposed by a third party over the weekend.  I have written more about…

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Challenging the Silicon Valley Belief in the Necessity of Venture Capital

I would argue that there is a widely held belief among entrepreneurs in Silicon Valley that you can’t build a successful company without venture capital money.  However, the average company in Silicon Valley or the rest of the United States never receives an investment of venture capital.  Are the companies launched without an investment of…

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It Pays to be Cautious When Asked to Sign a Contract with an Employer

As a Silicon Valley tech transactions attorney, I regularly receive calls from engineers, developers, and other employees in the technology industry who have concerns about something that an employer has asked them to sign in the past or is asking them to sign at the time of the call.  Inevitably the person calling is torn…

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Latest Data Breach Involving Taxpayer Data Stored in Tax Preparation Software Suggests Need for Greater Government Regulation

With all the recent calls for greater FTC regulation of consumer data generally, it’s interesting that there has been very little commentary about the need for greater regulation of taxpayer data.  However, the disclosure of a second data breach since the first of the year affecting a major tax preparation software company suggests that consumers…

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What Were the Most Significant Internet Developments in 2015?

Internet lawyers habitually follow trends and developments in Internet law.  My colleague Santa Clara Law Professor Eric Goldman has just compiled his latest list of what the top Internet developments were in 2015.  Among the items making his list are the well-publicized Ashley Madison database breach, stronger geographic borders on the Internet, and the FTC’s…

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Do entrepreneurs focus excessively on landing venture capital?

In my work with entrepreneurs and new business ventures, I am often surprised to find how many of them are convinced that they cannot build a business without venture capital financing and how few of them have even considered the idea that there might be very good reasons why they should not pursue venture capital…

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FTC Signals to Health Software Companies an Intention to Increase Scrutiny over Advertising Claims

The FTC has just reached a settlement with Lumos Labs over claims that the company was deceptively advertising the health benefits of its Luminosity software program.  The FTC’s action over this issue should serve as a warning to the health software industry regarding how health software companies are advertising their products.   I addressed this issue…

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Availability of Contingency Fee Deals Could Generate Increased Patent Litigation from Tech Transfer Offices

Is an uptick of patent litigation initiated by university tech transfer offices on the horizon?  The Tech Transfer eNews Blog is reporting that law firms are increasingly extending contingency fee deals to universities, and that this move is eliminating the barriers preventing universities from pursuing patent litigation. The article is linked here: Contingency Fee Deals…

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Should FTC Regulation Increase Over Commercial Use of Data?

Should the Federal Trade Commission be doing more to regulate how businesses are using consumer data? The LA Times just ran a column by David Lazarus where he took that position and argued that U.S. privacy laws should be more like European privacy laws, where there is a “right to be forgotten.”   He makes…

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Tax Considerations to Contemplate in Structuring Start-up Business

If you are contemplating how to structure your new business as an entrepreneur, you may want to think ahead to the day when you will be able to sell off the business you have built and consider the linked article below which discusses the tax consequences of selling a small business: Tax Death When Selling…

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Choosing the Right Partner for an IP Purchase Transaction

If you are looking to buy or sell IP, have you ever taken the time to consider what qualities will make a prospective partner a good candidate for a deal?  I recently looked at this issue in a Silicon Valley IP Licensing Law Blog Posting: Taking Time to “Date” Before Pursuing an IP Acquisition “Marriage”.

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Responding to an Infringement Letter as a Start-up

If you receive an infringement demand letter as a start-up, is the best response a combative response? I discussed this issue in the Silicon Valley IP Licensing Law Blog in the context of a start-up CEO who won a patent infringement suit against an alleged patent troll at the link below: Should You Follow the…

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The Pitfalls of Exclusive Licensing Deals

If you are considering a licensing offer and are convinced that any such agreement will have to be an exclusive deal, but find yourself coming up with creative language in an attempt to limit the scope of the exclusivity offered, then you may want to step back and proceed with caution as I discuss in…

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Ironic Practice of the Unauthorized Commercialization of Attorney Content

Have you ever wondered why there are so many business models being developed today that seem to rely entirely on commercializing legal content created by lawyers, generally without the prior authorization of the attorney or law firm that created it?  I suspect that nearly every lawyer that gives speeches or writes content to build his…

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Choose the Name of your Start-Up Wisely

When you decide to start a business, or get “pushed” into it as many people are when their salaried job suddenly disappears, it’s easy to overlook the importance of choosing a name among all the other decisions you are having to make.  In my recent blog post to Silicon Valley IP Law Blog, I addressed…

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Implications of FCC Net Neutrality Rules on Software Industry

The topic of net neutrality has been the subject of controversy for months, but the FCC has recently taken this debate to a new level by adopting new rules that will allow it greater regulatory authority over the Internet.   What does this mean exactly for the public generally and for the business world?  I’ve explained…

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Has Your Start-Up Lost its Focus Over Financing?

As anyone who has ever started a business well knows, one of the great challenges is to stay on focus and avoid distractions that create barriers to your success.  But in Silicon Valley, it is not uncommon at all to see entrepreneurs who seem to have lost their focus and who are chasing goals other…

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California Legislators Contemplating New Regulation of Drones

The increasing popularity of drones apparently has caught the attention of CA lawmakers, who have just introduced SB 142, which would prohibit the unauthorized use of unmanned aerial vehicles over private property.  I guess my question is what to do with all the child-sized violators, who accidentally run the new toy drones that they received…

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