When you are starting a new business, there are many pitfalls you want to avoid. The difficult part is that most of the time you never see them coming. If this business is your first one, understanding the legal risks and taking preventative action can save you money, time and heartache. Below are a few obstacles to be aware of:
• Don’t rely on oral agreements. When your business is first starting out, people will make promises you want to rely upon. However, having a personal relationship with the other party does not eliminate the need for a written agreement. Don’t think you will be able to just “work it out” if disputes arise. Having a written contract is well worth the time and money.
• Patent infringement. Before you spend your life savings on your new idea that is going to take the world by storm, you’d better make sure the idea doesn’t already exist. Patent infringement lawsuits can be expensive. Also, losing your idea after you are heavily invested in it can be devastating. Have a lawyer perform a search to determine if your idea has already been patented or if you should obtain a patent to protect it.
• Unfair competition. If you hire employees from your competitor, it can be a huge benefit. However, if your new hire is converting business from his old employer to you, it can cause legal troubles for you. It is important to make sure you are not violating the unfair competition laws that prevent you from using protected information to obtain new accounts.
The business world is full of legal traps, so it is imperative that you get help from a seasoned attorney that can protect your best interests. Contact the skilled attorneys at Faro & Crowder to schedule a free consultation. We are located in Melbourne and proudly serve all of Central Florida.