📖 Reading: Intellectual Property Basics - What You Must Know

Using Contracts to Protect Your Business

Every time you make an important business agreement—whether it’s providing a service, buying equipment, partnering with another company, or hiring help—it’s important to make sure the terms are clear and written down. A good contract helps you set expectations, protect your business, and avoid misunderstandings or costly disputes later.

A contract is a formal agreement that explains what each person or business is expected to do. It protects both sides by making sure everyone understands their responsibilities and provides legal protection if something goes wrong. While a handshake deal might feel easier, putting the agreement in writing prevents confusion and gives you clear proof of what was decided.

Small business owners often use contracts for things like:

• Leasing a space – Whether it’s a shop, office, or warehouse, your lease should clearly outline rent, lease term, who handles repairs, and what happens at renewal.

• Serving major customers – If you’re fulfilling a large order, always use a written contract. It should include order quantities, delivery dates, and payment terms.

• Outsourcing work or services – When you hire someone to produce, design, or handle a service (like printing labels or cleaning), a contract ensures quality standards, deadlines, and ownership of the final work are clear.

• Working with large institutions – When doing business with clients like the University of Notre Dame or the City of South Bend, formal contracts are expected and help maintain accountability.

• Hiring employees or contractors – Even for small teams, written agreements help clarify duties, pay, and any specific conditions of employment.

You don’t need to start from scratch. Many reputable websites offer free or low-cost contract templates you can customize for your situation.
A good option is Rocket Lawyer, which provides templates for leases, service agreements, and partnership contracts.

When using a template, fill in all the details that apply to your business — who’s involved, what’s being delivered, how much will be paid, and when. Once your draft is complete, have a lawyer review it before signing. This approach saves time and money, since the lawyer only needs to check and fine-tune what you’ve already prepared.

As a general rule:
If money, products, or services are being exchanged — or valuable information is being shared — put it in writing. Even when you trust the other person, a written agreement protects both of you and gives something solid to refer back to if questions come up later.

Every good contract should include:

• Parties involved (names and contact information)

• Scope of work or services

• Payment terms

• Timeline or duration

• Termination clause (how either side can end the agreement)

• Signatures and dates

These elements don’t just make a contract official – they help prevent misunderstandings and give both sides a fair way to handle problems if they arise. Please reference an example lease contract agreement:

📝 Click here to see Example Lease Agreement.

Protecting Your Brand: Trademarks for Small Businesses

If you’ve created a name, logo, or slogan that represents your business, it’s worth protecting it. A trademark gives you the exclusive legal right to use that name, symbol, or design with your products or services—and prevents others from copying or using something too similar.

Trademarks are all about brand recognition and reputation. They protect what makes your business stand out from the rest. Unlike copyrights, which protect creative works like photos or written content, or patents, which protect inventions, a trademark safeguards your business identity.

Types of Trademarks

1. Word Mark – Protects the wording or business name itself (for example, “Collaboration Ice Cream”).

   • Typical federal filing cost: $250–$350 per class of goods or services.

2. Design Mark – Protects your logo or other stylized design only.

   • Typical federal filing cost: $250–$350 per class.

3. Combined Mark – Protects both your name and design together.

   • Typical federal filing cost: $250–$350 per class.

What Does “Per Class of Goods/Services” Mean?

The government groups different products and services into “classes.” You pay a separate filing fee for each class your trademark covers.

For example, if you sell candles (Class 4) and T-shirts (Class 25), you’ll pay for two classes because they’re in different categories. But if you only sell candles, you pay for one.

Think of it as protecting your trademark in each “bucket” of business activity. If you expand into new products later, you might need to file for another class.

Common Law Trademarks (™)

Even if you don’t register, you can still use a small ™ symbol next to your business name or logo to show you’re claiming it as a trademark.
However, this only offers limited protection. Someone else could use a similar name in another state or area, and you’d have little legal recourse.

Federal vs. State Trademarks

• State Trademark – Protects your brand only within your state’s borders.

• Federal Trademark – Filed through the U.S. Patent and Trademark Office (USPTO) and offers protection nationwide.

How to File a Federal Trademark?

You can file directly with the USPTO at uspto.gov/trademarks. The process includes:

1. Search the TESS database to make sure your trademark isn’t already taken.

2. Choose your trademark type – word, design, or combined.

3. Identify your class – match your product or service with the correct category.

4. Prepare materials – include a clear description and proof of use (like photos of your products, packaging, or your website).

5. Submit your application through the TEAS system and pay the fee ($250–$350 per class).

6. Track progress in the USPTO’s TSDR system.

7. Respond to any follow-up questions from the USPTO.

You don’t need a lawyer to file, but legal guidance can be helpful—especially if your brand name is complex or could conflict with others. If you’d like help reviewing your application, you can contact a local law firm familiar with trademarks, such as the following:

• Botkin & Hall LLP – South Bend, IN

• THK Law, LLP – South Bend, IN

• Irwin IP – Chicago, IL

Note: these examples are applicable to the Chicago and Michiana area. You will need to identify a local firm in your area of operation.

Registering a trademark is an investment in your business’s future. It not only helps protect your name and logo but also strengthens your brand’s credibility as you grow.

Here is a quick guide to everything you need to know about trade marks.

Sometimes, the most valuable thing an entrepreneur owns isn’t their logo or business name — it’s the creative work they’ve produced. This could include a book, a song, a video course, artwork, or even original photography central to their brand. Without protection, others could copy, sell, or use that work without permission.

That’s where copyrights come in. Copyright law protects original works of authorship, giving creators exclusive rights to reproduce, distribute, and display their work. Unlike trademarks (which protect brand identifiers), copyrights protect creative expression.

For example, if someone writes and illustrates a children’s book about South Bend landmarks, the specific text and illustrations can be copyrighted — meaning no one else can legally copy or sell them. However, others could still create their own book on the same topic, as copyright does not protect ideas, only the original way they’re expressed.

Even before official registration, creators can use the © symbol (e.g., “© 2025 Jane Doe”) to indicate ownership. However, without registration, enforcing rights in court is nearly impossible.

Copyrights are registered through the U.S. Copyright Office, not through a state agency.

• Filing website: https://www.copyright.gov/registration/

• Online filing fee: $45–$65 for most single works

• Duration: Creator’s lifetime + 70 years

Copyright Registration Process

1. Identify the work to protect (book, artwork, song, video, etc.).

2. Prepare a digital copy (PDF, JPG, MP3, or similar format).

3. Go to the U.S. Copyright Office’s online registration page.

4. Enter author details, creation date, and publication status (published vs. unpublished).

5. Pay the $45–$65 filing fee (depending on work type).

6. Upload the file and submit the application.

7. Wait for review and approval — most online filings take 3–8 months. The creator will receive an official registration certificate once approved.

If you need legal guidance:

• Identify Volunteer Lawyer Networks in your area (they offer affordable legal services for people in adverse financial circumstances).

Some businesses grow because they’ve built something entirely new — a product, a process, or even a design that didn’t exist before. Patents are the legal protection that give you, the inventor, the exclusive right to make, use, and sell your invention. This means others cannot legally copy, use, or profit from your creation without your permission.

While trademarks protect your brand (like your name or logo) and copyrights protect creative works (like books or videos), patents are all about protecting inventions and innovations. They secure your rights to something new and useful so that you can safely bring it to market.

For example, if you design a new type of ice cream machine, a patent would prevent other manufacturers from producing the same design without your approval — even if they created their own logo or packaging for it. Patents can help your business stay ahead of competitors, attract investors, and even create opportunities to license your technology for additional income. Without a patent, once your invention becomes public, anyone can legally replicate it.

Types of Patents

• Utility Patent: Protects how an invention works or is used.

• Design Patent: Protects the visual appearance or design of a product.

• Plant Patent: Protects new plant varieties that are asexually reproduced.

Filing a Patent

Patents are filed through the U.S. Patent and Trademark Office (USPTO) at https://www.uspto.gov/patents

The cost depends on the type of patent and the size of your business:

• Utility Patent: $830–$1,820 in government filing fees

• Design Patent: $420–$960 in government filing fees

• Plant Patent: $540–$1,080 in government filing fees

Small businesses and individual inventors often qualify for reduced fees. Keep in mind that attorney fees are separate and can add significant cost, depending on the complexity of your invention.

What You Should Know

The patent process is complex and technical. It often involves preparing detailed descriptions, technical drawings, and legal claims that define the invention’s scope. Because of this, it’s strongly recommended that you work with a registered patent attorney or agent.

Before meeting with a patent professional, it’s helpful to gather:

• Sketches or diagrams of your invention

• Written explanations of how it works or is used

• Records showing when and how the invention was developed

Having this information ready will make the process smoother and can help reduce attorney time and cost.

Support and Resources

If you need help understanding or preparing for the patent process, here are some resources available to you:

• Volunteer Lawyer Network – South Bend, IN

  • Offers free legal services for individuals earning below 200% of the federal poverty level.

  • How to apply: Call their intake line at (844) 243-8570.

  • Note: Identify the Network in your area of operations.

• Patent Hacks – Online Platform

  • A user-friendly, self-guided resource to help you learn about, prepare, and file patent applications. No legal background is required.

  • Website: https://www.patenthacks.com/

  • Free access for Collaboration Hub entrepreneurs:

    • Username: UPBI

    • Password: mmorri24

Labor laws define how employers and employees work together. They cover essential topics such as wages, work hours, breaks, workplace safety, and employee rights. These laws exist to ensure fair treatment, prevent discrimination, and promote safe working conditions — and they apply to all businesses, even if you only have one employee.

Understanding and following labor laws helps you protect your business, avoid penalties, and build a positive workplace culture. For a deeper look at hiring, managing employees, and compliance, please see the Human Resources section of this website.

When (and How) to Hire a Lawyer

For most everyday business needs, you don’t need a lawyer. For example:

• Registering your LLC in Indiana can be done online for a small state fee.

• Using a well-written sales agreement or free contract template can often cover common business transactions.

That said, there are moments when hiring a lawyer is worth it — especially when major money, contracts, or legal risks are involved. Since lawyers typically charge between $200–$400 per hour, the key is to prepare as much as possible before meeting with them.

For example, if you need a lease reviewed, fill out all the details, highlight your questions, and bring a draft copy. This allows the lawyer to review and advise — not start from scratch — which can save you hundreds of dollars.

When It Makes Sense to Bring in a Lawyer

• Lease Agreements: A quick review can catch hidden fees, unfair terms, or renewal traps.

• Partnership Agreements: Helps clarify ownership, decision-making, and what happens if someone leaves the business.

• Intellectual Property: For trademarks, patents, or copyrights that protect your brand or product.

• Major Disputes or Lawsuits: If you face legal action, a contract breach, or an employee claim.

Choose the Right Kind of Lawyer

Not all lawyers handle the same types of cases — just like doctors, they specialize. Choosing the right kind of lawyer saves time and money.

Common legal specialties include:

• Business / Corporate Law: Contracts, LLC formation, partnerships.

• Real Estate Law: Lease agreements, zoning, or buying property.

• Intellectual Property Law: Trademarks, copyrights, and patents.

• Employment Law: Hiring, firing, and HR compliance.

• Tax Law: IRS issues, tax planning, and compliance.

Smart Tip for Small Businesses

Start with free or low-cost resources before paying for legal help.

• Use websites like Rocket Lawyer or your state business portal for templates and filings.

• Only bring in a lawyer when the stakes are high — and make sure they specialize in your specific issue.

This way, you spend less, get better advice, and protect your business from costly mistakes.

Patents, copyrights and trademarks are all methods of protecting one’s intellectual property, or original creations of the entrepreneur that are legally protectable from being copied by others. Intellectual property is anything created by the mind or otherwise categorized as intangible creations such as brand names, designs, written creations (books, poems, software), music, and inventions. Researching and understanding the difference between patents, copyright, and trademarks will be helpful in the application process. In the United States, patents and trademarks are granted by the USPTO (United States Patent and Trademark Office) and copyright is granted by the U.S. Copyright Office within the Library of Congress. Both institutions have made applying available online.

Although it is possible to achieve a patent, copyright, or trademark on your own, patent attorneys can assist you, but is a more expensive option, or there are paid online services like www.trademarkia.com, that can aid you in the process. In addition, the UPBI program has a special relationship with Patent Hacks, and they can assist with a patent at much lower costs than attorneys.

A brief overview of patents, copyright, and trademarks

Patent: patents protect inventions from being made, used, or sold by other entities beside the inventor for a period of time. There are different patents for different types of inventions. The types of patents can be found on the USPTO website under “Patents”. The key is that your invention must be novel or include something truly original, and cannot be something that is fairly obvious.

Copyright: a copyright protects published and unpublished works including literature, music, art, software, motion pictures, digital content and photography once the work is fixed in a tangible form. This means that an idea for a novel cannot receive a copyright, but a finished novel in book form or digital form can receive a copyright.

Trademark: trademarks protect images, words, phrases, symbols, logos, or anything else used to identify a specific good or service. An example of a trademark would be the Nike “swoosh”. This logo is used on Nike products to signal Nike’s ownership. Unlike copyright, a trademark can be granted even if the trademark is not currently used in commerce, but with intent to use in commerce.

*The USPTO www.uspto.gov and U.S. Copyright office www.copyright.gov websites are great resources to refer to with any questions regarding patents, trademarks, and copyright.

Before moving forward, determine whether it is a patent, copyright, or trademark that you need in order to protect your product or service. Of these, a patent is most expensive (often $15,000 or more by the time you are done), requires an extensive patent search to see what already exists, and involves a very detailed and extensive application process. In some cases, the cost of the patent is not worth the benefit you will receive, and so it may be better to simply treat your invention as a “trade secret”. For instance, the formula for Coca Cola was never patented, it was simply kept secret for many years.

How to apply for a patent …

Patents are granted by the USPTO. The Urban Poverty and Business Initiative (UPBI), has a partnership with www. patenthacks.com, an organization which provides step-by-step guidance through the patent filing process. PatentHacks has offered their services to UPBI entrepreneurs for free. You still pay basic application fees, but not expensive legal fees. Utilize this service if it applies to your business as the patenting process can be very expensive!

1. Determine whether your invention is patentable. This means researching whether your invention has already been made accessible to the public and readily available for institutions or individuals to purchase and use.

• a.  The USPTO website, uspto.gov has a patent search tool. This can be located by clicking Learning and Resources > Resources by Audience > Inventors and Entrepreneurs. Once on the “Inventor and Entrepreneur resource page, look to the “Before you apply section”. Under this section you will see “search patents”. This link will lead you to the “Inventor Search Assistant” and from there you can begin searching to make sure your product has not already been patented.

2. Once you know that your product is one of a kind, determine the type of patent you will need.

There are 3 types of patents:

• Utility: utility patents protect inventions of useful processes, machines, articles of manufacture or compositions of matter.

• Design: design patents protect inventions of new and original ornamental designs for articles of manufacture.

• Plant: plant patents protect inventions or discoveries of asexually produced distinct or new varieties of plants.

3. Fill out the Application

Were you to hire an attorney or utilize the service provided by UPBI, this portion of the process would be done for you. The information needed to complete the application varies slightly by the patent you are applying for. However, all applications will require that you complete a specification. The specification is a highly technical legal document that will explain the invention in a way that can be understood by the public. You are disclosing to the public exactly what your new process or method of formulation is—so everyone knows exactly how your invention works or was put together. In exchange, you are receiving protection where no one can copy your approach unless they pay you for a license, and this protection last seventeen years. The trick is to ensure there is not some easy “work-around” where someone could vary a few key steps in your process or method and achieve virtually the same result. In such a case, the patent may not be enforceable. Thorough and effective research on your invention is required before completing this step. The specification will include the following:

• Title which is brief, accurate, and descriptive.

• Background which mentions the field or subject matter of the invention and describes prior inventions related to yours.

• Brief summary of what your invention can do and how it solves problems mentioned in the background section of the specification.

• Description of structure should describe the structure and operation of the invention in as much detail as possible.

• The claims section is most important and will include a brief but detailed statement of what the invention covers and does not cover. Claims need to be able to withstand challenges made in response to the invention. This section can include more than one claim.

• Drawings of the invention should precisely illustrate each aspect of the invention which was mentioned in the claims section.

4. Submit the Application using the EFS web system located on the USPTO website. This can be found under the tab labeled Patents> Application Process> Filing online.

5. Work with the patent examiner assigned to you by the USPTO. This requires responding promptly to emails from your examiner to keep the process moving forward and avoid your application from being abandoned. The examiner will notify you if your application is accepted and if it is not.

• a. If your application is not accepted, the examiner will provide you with the reasons for it being declined.

• b.  If your application is accepted, you will receive a Notice of Allowance and will be asked to provide an issue fee and publication fee.

How to Apply for a Trademark …

Trademarks are granted by the USPTO. Here are three key steps in the process:

1. Decide the grounds on which you will apply for a trademark.

• a. Use in Commerce: are you already using the mark and have proof of the use?

• b. Intent to use: do you plan to use this mark in the future? Be prepared to explain how.

2. Apply on the USPTO Website using the TEAS (Trademark Electronic App System). On the USPTO website click on the tab Trademark> Application Process> Apply Online.

• you will be given three options in which to file: TEAS regular, plus or reduced.

Things you will need to apply:

• Name and address

• Citizenship/type of legal entity

• Proof of the phrase, logo, image, or symbol

• Description of the phrase, logo, image, or symbol

• A comprehensive list of what the mark will be used on (avoid using vague terminology)

• International classes of the goods and services the mark will be placed on

• Date and proof of the first use (if applying under use in commerce)

• Signature

• Required fee

3. Wait to hear from the examining attorney. Upon approval, the mark will be published in the USPTO Gazette for 50 days and is subject to questioning by outside parties.

How to Apply for Copyright …

A copyright is registered with the U.S. Copyright Office in the Library of Congress. Here are some simple steps:

1. Determine what category your work falls under.

a. Literary work

b. Visual art

c. Performing art

d. Digital content

e. Motion picture

f. Photography

2. Fill out an online application with the U.S. Copyright Office. Do this by going to the U.S. Copyright Office then click on the tab labeled Registration > Register your work then choose the form within the category of your work. You will need the following information to complete the application:

a. Category of work

b. Title of work

c. Author(s)

d. Date of publication (if published)

e. Claimants (the person or corporation that has the rights to the work. Usually this is the same as the author (you), however, if the author has given rights to another entity, that entity will be the claimant)

f. Claim limitations (this section allows for limitations to be put on the rights of the claimant. In this section you may exclude previously published or registered work that is a part of the work being copyrighted, material that is public domain, or material owned by a legal entity not mentioned in the claimant section.)

g. Rights and permission (this is who should be contacted regarding the work, whether that be you, a lawyer, etc.)

h. Mailing address

i. Fee

j. Electronic copy of the work if possible

3. Wait for confirmation that your application has been accepted. The process typically takes between 3 and 9 months depending on the volume of applications held by the U.S. Copyright Office. If you provided an email address and applied online, you should receive notifications to your email throughout the process. If your application is done on paper and sent through the mail, you will receive notifications to the address you provided.

*All the processes mentioned above can be made easier using legal services. Legal services can be expensive, but finding firms in your area that offer free legal services can be easy. Search the web for pro bono legal services in your area, or try calling local law firms to ask if they offer any pro bono legal services that would be of help to you and your business. You may not always have the resources at your fingertips, but there is usually a way to get them. It is always worth the asking!

An operating agreement establishes basic decision-making authority, responsibilities, operating rules and guidelines for how your business will operate. This is a living legal document, meaning that it can be altered throughout the lifespan of your business. If you are starting as a single member LLC, you may not need an operating agreement. If you do not have one, the state in which you are registering your business generally has default rules that will apply to your business. However, if you have partners or co-owners in the business, it is important to create an operating agreement.

Think of the operating agreement as a rulebook for your organization. Who owns the organization? Who contributes? How are profits split up or losses allocated? What are the duties and responsibilities of the members? What are the buyout/sell-out rules if you decide to sell the company to a partner? How are decisions made? You will want your operating agreement to address any important issue that may arise operationally throughout the life span of your business venture. Here is a more specific list of fifteen issues commonly addressed in an operating agreement:

1. What percentage of the ownership is held by the members?

2. Who will manage the LLC—is it managed by the “members” who own it or by managers (who may or may not be members)?

3. What are the duties and responsibilities of the members (owners)?

4. What is the process for selecting the management team?

5. How will company books and records be kept?

6. How will major business decisions be made?

7. How frequently will meeting of the members take place?

8. For what kinds of decisions is a vote by the members (the owners) necessary? What percentage of the members must approve a decision?

9. How are profits and losses divided up among the members (owners)?

10. How distributions are allocated among the members?

11. What rights do members have to sell their ownership interest?

12. What is required for a new member (owner) to be added?

13. What is required for a member to voluntarily withdraw from the LLC, and under what conditions and process can other members vote to expel a member?

14. If a member leaves the LLC, whether the other members can or must buy them out?

15. What events will cause the company to be dissolved or shut down?

When looking at many of these questions, the focus is on partnership and member relations. If you have no partners or co-owners (note: they would be called members of the LLC), again you may not need an operating agreement.

It still may be useful to have one. As a single member LLC, an operating agreement shows that your company operates as a real business and that your personal assets are separate from your business assets. This can be helpful when going to banks for money. It can also prevent your state default rules from kicking in should a major legal issue arise with your business. With an operating agreement, you create your own default rules.

To see what one looks like, here is an example of a sample template for an operating agreement provided by Forbes Advisor:

https://www.forbes.com/advisor/business/llc-operating-agreement-template/#:~:text=An%20operating%20agree-ment%2C%20also%20known,that%20reads%20like%20a%20prenup

Though you can create your own operating agreement, it is a good idea to have a lawyer to take a look at it.