Will You Add? - Business

Comparing Branding To The Accounting Principle Of Goodwill
When businesses engage in branding, they are trying to increase the value of their products beyond what the market values similar products. Many companies have successfully branded their products. Do you know why people choose Coca-Cola when there are similar sodas on grocery shelves? People trust and are familiar with the Coca-Cola name. They automatically choose Coke. This happens millions of times a day with millions of products and services worldwide. Choices are made based on the familiarity of a brand name.Branding may seem like an artificial way to increase the value of a product or service, but that is not the case. Familiarity and trust have worth and value. That is why billions of dollars are spent worldwide on branding.Take, for instance, the accounting principle of Goodwill. When a business is sold, an accountant will value the business by taking the purchase price minus the company's book value. The purchase price is normally higher than the book value, or what the company is worth on paper. The difference is called Goodwill. Goodwill is the premium someone would pay to buy a business. Why would someone pay a premium to buy a business? An established business normally has an established customer base that knows the business, is familiar with it, and trusts it. This trust factor has worth. A new business may take a long time to develop this type of relationship with its customers. So Goodwill has value.Goodwill has value just as a brand has value. It’s no wonder billions of advertising and marketing dollars are spent on b

Virgin Enterprises, Richard Branson's group of companies, has tried to stop others from using the word "Virgin" in names and domain names."(12)

The complaint documents filed in this federal lawsuit indicate that Virgin Enterprises believes the defendents named, "registered the domain names VIRGINTHREADS.COM, VIRGINFASHION.COM, VIRGINCIGAR.COM, VIRGINPUBLISHING.COM, and I-VIRGIN.COM with bad faith intent to profit from VEL's VIRGIN mark and with specific intent to mislead consumers."(13)

The owner of Virgin Threads, LLC, Jason Yang, says this of his current situation, "I had planned to trademark Virgin Threads soon but in November 2004, I was served with the lawsuit and my lawyer suggested that I do not try to trademark the name until after the lawsuit."

When asked if he intended to bank off the household recognition of the name Virgin, Mr. Yang responded, "No, I never considered Virgin Threads to be similar to Virgin Enterprises in any way. The thought had never crossed my mind."

While Mr. Yang continues to fight the attempt to shut down his website, the cost of the battle continues to rise. Because of this, the Virgin Threads website features a new department entitled, "Legal Fund". The unique designs sold in this section help raise money for the defense against Virgin Enterprises, with a portion of each sale going toward the Virgin Threads Legal Defense Fund.

Despite the recent headlines and media attention, the majority of the

Just Another Face in the Crowd?
Fact: Everyday the average consumer is bombarded with over 2,500 advertisements and company branding impressions. That's right, over 2,500 billboards, TV ads, magazine ads, spoken word radio ads, and the list goes on. Chances are almost 100% that at this very moment you are actually advertising, free of charge, another company's brand on your own clothing, coffee mug, cell phone, or golf bag. We see it all the time and it's happening everywhere. We then find ourselves in a state of branding hypnosis.Branding hypnosis is the first cousin of ad clutter which is an epidemic to which thousands of companies fall victim everyday. The question is: Are you spending your advertising dollars contributing to the problem also?As you are commuting to and from the office, have you found yourself nearly dislocating your shoulder reaching for the radio dial to turn OFF a radio spot? Maybe it's the local car dealer yelling at you as if you're a teenager being sold the last monster truck rally ticket. Maybe it is the mortgage company reminding you that you are an complete idiot not to refinance before rates go up again. Maybe, just maybe, it is a local retailer firing off one clich? after another telling you they are family owned and operated, open 7 days a week, and won't be undersold. How many times have you heard this? More importantly, are you doing this in your advertising?If you are a business owner who understands that radio advertising is the most effective method of getting your message out, this reminder is for you. According to RAEL, "The return on in

There is an unnerving trend facing American businesses today: small companies are finding themselves embroiled in legal battles with an alarming frequency. These independent businesses, many of which are small-scale operations that survive on a meager budget, are faced with defending their intellectual property rights- everything from their company name to the items they produce and sell. Legal battles over intellectual property have a varied effect on the general public, who will eventually pay the price of court cases aimed at those who lack the available means to fight back.

In order to understand the current battle, one must first understand what Intellectual Property is. Intellectual Property is defined as "Property that derives from the work of the mind or intellect; specif An idea, invention, trade secret, process, program, data, formula, patent, copyright, or trademark or application, right, or registration relating thereto". (1) What does this mean in layman's terms? Intellectual property is an item with commercial value, such as a new purse design, that can be protected by patent, trademark or copyright law.

Many business owners in the United States are surprised to find that Intellectual Property rights originated with the Constitution (Article 1, Section 8, Clause 8)(2), which states that Congress shall have the power “to promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.”

It seems that even the founding fathers felt that we should have the right to exclusive ownership and use of our inventions, as well as the right to reap the rewards gained by granting permission of use to others.

Protection Under the Law

Today, there are three methods through which intellectual property can be protected. These methods include patents, copyrights, and trademarks.

* A patent protects "exclusive rights to a process, design, or new invention". (3)

* A trademark protects "a name, symbol, or other device identifying a product". (4)

* A copyright protects "literary, musical, dramatic, or artistic work". (5)

The cost of enacting these methods of protection can be exorbitant. An excellent example of the fee for protecting your work is the price tag attached to a patent, which can range from approximately $400 to $1,000 or more. According to one law firm, the actual cost to file a patent for something easily described is roughly $2000, while something more complicated can incur a fee up to $10,000. (6)

While filing for a trademark is typically less expensive, the process can still rack up fees in excess of $1,000 to $1,500 per application. (7)

The average start up investment for an arts and crafts business is $9,000.(8) When you take into consideration the requirements on city, county, state and federal levels for business licences, the amount paid out for basic office supplies, the cost to generate a website or other marketing materials, and the cost of ordering the necessities to produce a final product, there is little room left in the budget for filing for these most basic protections under the law.

There is more to the story than just the fees incurred when registering for a patent. Every patent can be challenged, with many leading to trial cases with outrageous amounts of money exchanging hands. As one law firm reports, the average cost of patent litigation through trial can range from $500,000 to near $2,000,000- and that amount is only for one of the constituents! These costs can climb rapidly for high profile cases requiring intensive work by the litigator, as patent attorneys charge roughly $200-$500 per hour.(9)

Importance of Intellectual Property

People often underestimate how essential intellectual property rights can be to a business. The media is rife with examples of battles over intellectual property, which range in severity from questionable copying to blatent theft.

We can look to the recent media headlines for a more in depth view of the problem at hand.

Earlier this year, Nike, Inc. issued a formal apology to "the members of iconic Washington, D.C., hardcore act Minor Threat and frontman Ian MacKaye's Dischord Records for "the creation of a tour poster inspired by Minor Threat's album cover"".(10) Why was Nike, Inc. issuing an apology? MTV reports that, "The poster, for Nike's Major Threat skateboarding demo tour (used to promote its newest line of SB shoes), misappropriated not only the Minor Threat logo, but the imagery from the band's 1981 self-titled EP and its 1988 Complete Discography." (10) Sources have not published any further information on the topic.

Another example of this infringement of intellectual property can be found in the case of Margaret Nicole of Manhattan and Abercrombie & Fitch Co..

According to the New York Times, Abercrombie & Fitch Co. was selling a bag identical to those made by Margaret Nicole of Manhattan, and Margaret Nicole of Manhattan owner Nicole Dreyfuss "said that within two weeks, Abercrombie's lawyer, Frank J. Colucci of the New York law firm Colucci & Umans, agreed to pull the purse and make a settlement.".(11)

Defending the Store

These stories are, however, unusual. The majority of small businesses do not have the means to fight large companies when their designs are stolen or their livelihood threatened by lawsuit. Instead, they are forced to hand over the results of their hard work to colossal corporations simply because they can't afford to defend themselves.

The epitome of this instance would be the current litigation brought against the small online retailer Virgin Threads, LLC.

Virgin Threads, LLC was formed in August 2004, and is currently being sued by Virgin Enterprises. As one media outlet reported, "Virgin Enterprises, Richard Branson's group of companies, has tried to stop others from using the word "Virgin" in names and domain names."(12)

Despite the recent headlines and media attention, the majority of the c

Compromise Agreements – Why Have They Become So Popular?
Benefits of compromise agreements for youQuick Resolution – there are plenty of benefits to resolving a potential unfair dismissal or redundancy case as soon as possible. A compromise agreement can be debated and agreed in a short period of time which leaves you to get on with the rest of your life and put the unpleasant business of your old job behind you.Quick Financial Compensation – If your employer agrees financial compensation in your compromise agreement you can have the money in your bank much sooner than you would from a lengthy tribunal process. Similarly the money is guaranteed in the agreement, if you take legal action you have no definite idea of how much money you might receive.Guaranteed Reference – Often, if you leave a company on bad terms, you might suffer from a reference which doesn’t highlight all you achieved in your role. When you are arranging a compromise agreement you can make sure receiving a positive reference is part of the terms.Clean Break – the value of a new start can never be underestimated. The positive mental value you can gain from an improved working environment can be worth much more than any money settlement.Benefits of compromise agreements for your EmployerNo Potentially Damaging Tribunal – with employment tribunals often comes negative PR. For your employer the tribunal can reflect upon them badly whether they win the case or not. Avoiding possible company damaging reports can often encourage employers to explore co

e Right to their respective Writings and Discoveries.”

Protection Under the Law

Today, there are three methods through which intellectual property can be protected. These methods include patents, copyrights, and trademarks.

* A patent protects "exclusive rights to a process, design, or new invention". (3)

* A trademark protects "a name, symbol, or other device identifying a product". (4)

* A copyright protects "literary, musical, dramatic, or artistic work". (5)

While filing for a trademark is typically less expensive, the process can still rack up fees in excess of $1,000 to $1,500 per application. (7)

Importance of Intellectual Property

We can look to the recent media headlines for a more in depth view of the problem at hand.

Another example of this infringement of intellectual property can be found in the case of Margaret Nicole of Manhattan and Abercrombie & Fitch Co..

Defending the Store

The epitome of this instance would be the current litigation brought against the small online retailer Virgin Threads, LLC.

Despite the recent headlines and media attention, the majority of the

Fast Forwarding Your Business
If you think only big corporate names need to think about things like brand names, think again. Your brand says a lot about you and your business, and that's as true for a one person home-based operation as it is for a multinational conglomerate. In this article we look at how creating a strong brand for your business can help you set yourself apart from the pack and lay the right foundation for the future growth of your business.WHAT IS A BRAND?Your brand is more than just the logo on your letterhead and business cards or your business name. It is your corporate identity. An effective brand tells the world who you are, what you do and how you do it, while at the same time establishing your relevance to and credibility with your prospective customers.Your brand is also something more ethereal. It is how your business is perceived by its customers. If your brand has a high perceived value, you enjoy many advantages over your competition, especially when it comes to pricing. Why do you think people are prepared to pay stupid money for items of clothing with the initials "CK" on them? Perceived value. Perceived value as a result of very effective brand promotion resulting in very high brand awareness.Now, I'm not saying we all need to rush out and start creating brands that are going to be recognized the world over. Most of us simply don't have the time or other resources necessary. What I am suggesting, however, is that it is possible for your brand to dominate your niche.WHY DO I NEED TO CREATE MY OWN BRAND?=> Differentiationount paid out for basic office supplies, the cost to generate a website or other marketing materials, and the cost of ordering the necessities to produce a final product, there is little room left in the budget for filing for these most basic protections under the law.

Importance of Intellectual Property

We can look to the recent media headlines for a more in depth view of the problem at hand.

Another example of this infringement of intellectual property can be found in the case of Margaret Nicole of Manhattan and Abercrombie & Fitch Co..

Defending the Store

The epitome of this instance would be the current litigation brought against the small online retailer Virgin Threads, LLC.

Despite the recent headlines and media attention, the majority of the

Ten Ways To Ensure Your Business Success in 2006
It's a bright and shining new year, and you've got a clean slate. What will you do with this opportunity?Here are some ways to ensure your business success this year:1. Keep your business moving forwardIf you haven't set your goals for 2006, decide what you want NOW. Take out a notebook, put today's date on the top of the page and write out your business goals.While you're at it, you may as well create some goals for self-improvement and family and relationships. To make the most of your business in 2006 you'll not only need to be healthy, but you'll also need the support of others.Leave some space on the right side of the page for a "Due Date" column. This is the date by which you want to have achieved each goal.The next step is to create an action plan for each goal. Don't spend too much time on this, but make sure that you've broken down each goal into small, manageable steps, and have translated those steps into daily tasks.Write or type: REVIEW GOALS into each day of your daily planner, and then do it. Look at it this way: you'll never achieve what you want to achieve unless you try. So try, and give it 100 per cent of your energy.2. Expect to be successful, and repudiate your doubts on paperDo you expect your business to be a success? Are you positive that your business will be successful? Are you so determined that you'll be a success that you'll do whatever it takes?I hope you answered a loud and heartfelt "Yes!" to all three questions.If you have doubts, write the doubts down. Most o

TV reports that, "The poster, for Nike's Major Threat skateboarding demo tour (used to promote its newest line of SB shoes), misappropriated not only the Minor Threat logo, but the imagery from the band's 1981 self-titled EP and its 1988 Complete Discography." (10) Sources have not published any further information on the topic.

Another example of this infringement of intellectual property can be found in the case of Margaret Nicole of Manhattan and Abercrombie & Fitch Co..

Defending the Store

The epitome of this instance would be the current litigation brought against the small online retailer Virgin Threads, LLC.

Despite the recent headlines and media attention, the majority of the

Self Confidence Building for Job Hunters
One crucial factor to the success of your job search is confidence. Being unaware of your own potential, or being too timid to apply for suitable could result in your ending up in a job which does not stretch you and will become boring very quickly.No-one feels supremely confident all the time and a little anxiety before a job interview is perfectly normal. So is the thought that other people might be better qualified that you. However, being so anxiety that you don’t apply for any jobs, or jobs for which you are over-qualified shows a lack of self-esteem. It’s important to remember also that no-one is confident in every aspect of their lives. A student who is an excellent basketball play may be confident on the court but completely lacking in confidence when he has to write an academic assignment.How can you improve your self-esteem and use it your advantage when looking for a job? Here are a few tips to help you:Talk to someone who is familiar with your abilities and who has encouraged and motivated you in the past. This could be a family member, a friend or colleague.Find activities about which you already feel confident, no matter how insignificant or unrelated to work they may seem. So if you can sing, cook great meals, bake delicious cakes, play a sport well or have a hobby in which you are skilled, do it more often and allow yourself to be conscious of the feeling of confidence it brings. Allow yourself to enhance that feeling by basking in it afterwards.Make a list of your achievements. These can be successes you’ve had as a

Virgin Enterprises, Richard Branson's group of companies, has tried to stop others from using the word "Virgin" in names and domain names."(12)

Despite the recent headlines and media attention, the majority of the consumer market remains unaware of these lawsuits and the dangerous trend they represent. Of those who are aware, many do not realize the true effects that will result from these court battles.

If the current bias is allowed to continue unchecked, it will leave the consumer in a precarious situation- staring in the alarming visage of a monopoly. The rising costs of protecting and defending intellectual property, along with the cost to defend against percieved violations, make an extremely hostile environment for small businesses to survive in, while rendering their growth nearly impossible.

With the disproportionate resources available to each catagory of businesses, it takes only an allegation of infringement to bankrupt many of the so-called "little guys". This ability by large corporations to remove their competition from the outset leads directly to a dominance in the marketplace.

Marketpace dominance (or more plainly described as a monopoly) has a direct effect on consumers in the form of limited choices and higher prices, something even the famous 18th century English economist Adam Smith recognized when he declared: "The price of monopoly is upon every occasion the highest which can be got."

The Loss of Small Businesses

With the monopoly in place, consumers are not only limited on their choice of product, but they could easily be forced to pay inflated prices for imported goods.

Many large companies are now outsourcing their labor to other countries. As once media source reports, "Forrester Research estimates that by 2015, as many as 3.3 million US jobs and $136 billion in wages will move not only to India, but also to China, Russia, Pakistan, and Vietnam."(14)

Can we afford to lose our small companies? Here's a closer look at what small firms (with 500 or less employees) bring to the United States:

Small firms

* Represent more than 99.7 percent of all employers.

* Employ more than half of all private sector employees

* Pay 44.5 percent of total U.S. private payroll.

* Generate 60 to 80 percent of net new jobs annually.

* Create more than 50 percent of nonfarm private gross domestic product (GDP).

* Are 53 percent home-based and 3 percent franchises.(15)

As these smaller firms close their doors, local economies suffer. Ramifications from these closures can take on a ripple effect, bringing higher unemployment rates and affecting areas of life one might never suspect.

One study purports that, "The social costs of unemployment" can influence everything from mental health to the cost of social programs such as Social Security.(16)

It is clear that we, as a society, need to take steps to prevent the bastardization of our economy in every arena available. We must act to protect our small businesses from extinction.

The current system must be examined and changed to allow small businesses to protect themselves and thier intellectual property. Corporations need to be held accountable for their attempts to create a monopoly, and the resource gap must be closed in regards to the legal system.

While there is no simple solution, there are routes that can be taken to meet these requirements. However, those routes will never be opened until this problem has been acknowledged by both the public and the lawmakers.

The time has come for this acknoweldgement. It is time to put an end to this steamroller effect.

Bibliography:

(1) "intellectual property." Dictionary of Law. Merriam-Webster, 1996. Answers.com GuruNet Corp. 15 Jul. 2005. http://www.answers.com/topic/intellectual-property

(2) Articles of the Constitution, http://www.house.gov/Constitution/Constitution.html

(3) "patent." Investopedia. Investopedia Inc., 2000. Answers.com GuruNet Corp. 15 Jul. 2005. http://www.answers.com/topic/patent

(4) "trademark." The American Heritage® Dictionary of the English Language, Fourth Edition. Houghton Mifflin Company, 2004. Answers.com GuruNet Corp. 15 Jul. 2005. http://www.answers.com/topic/trademark

(5)"copyright." The American Heritage® Dictionary of the English Language, Fourth Edition. Houghton Mifflin Company, 2004. Answers.com GuruNet Corp. 15 Jul. 2005. http://www.answers.com/topic/copyright

(10)http://www.mtv.com/news/articles/1504875/20050628/index.jhtml?headlines=true

(11)http://www.nytimes.com/2005/06/19/business/yourmoney/19bags.html

(12)http://www.chillingeffects.org/weather.cgi?WeatherID=507

(13)http://www.heratyhall.com/virginthreads.pdf

(14) "A Brief History of Outsourcing", (c) Terri Kelly, accessed from http://www.globalenvision.org/library/3/702/

(15) http://www.sba.gov/advo/stats/sbfaq.html

(16) http://www.solbaram.org/articles/clm502.html

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.atriclecheck.com/article/18110/atriclecheck-The-Steamroller-Effect.html">The Steamroller Effect</a>

BB link (for phorums):
[url=http://www.atriclecheck.com/article/18110/atriclecheck-The-Steamroller-Effect.html]The Steamroller Effect[/url]

A Guide to Limited Liability Corporations

A limited liablity company or LLC is a form of business offering limited liability to its owners. In the LLC, all owners are protected from personal liability in case of business debts and claims. This feature is known as limited liability. This means that if the business owes money or faces a court case for some reason, only the assets of the business are at risk and not the personal property of the owners.

The Essential Guide To Certified Financial Planner Career And Jobs

A certified financial planner is a much-needed for all those who are looking to secure their financial future. There are a number of reputable governing boards that monitor the certification and the continuing education of these planners. These independent boards help make sure that each certified financial planner meets certain necessary requirements.

5 Easy Ways to Increase Your Business Using a Toll-Free Number

Toll-free numbers can be used by business owners to increase sales, but also promote goodwill among potential customers. Read this article on the advantages that a toll-free number may represent for your business.

Bookmark it:

Tags

Links

Will You Add? - The Steamroller Effect

Related Articles: