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Engage students in a discussion. Recall that most successful products are the result of collaboration. What do Claire and Amir provide that Chris can’t? Answer: As design engineers, they have different skill sets and educational backgrounds. They are able to draw product specifications and plans, test a variety of materials, and production processes, and build prototypes.They probably have a variety of ideas, different viewpoints, and opinions too. 2. Patent. Chris's team has created an amazing product. They'd better apply to the USPTO for a patent . (Recall lesson 10 that USPTO stands for United States Patent and Trademark Office ) The patent tells the world that their shoes’ chemical process is unique and that it may not be copied or reproduced without a license from the patent holder. The team hires lawyer Pat Entguy who submits the team’s drawings and application to the USPTO. The team also takes advantage of the provisions of the Patent Cooperation Treaty (PCT), which enables them to seek patent protection in 143 countries with just one USPTO application. The patent clerk reviews the application, determines that the idea is new and novel, and searches for prior art . Recall for students that prior art means the product has already been invented, or the design disclosed to the public. Congratulations! The HealnnHeels team receives a patent. They also receive a trademark : , and protect it overseas as provided by the Madrid Protocol . Engage students in a discussion: All sorts of local, state, and federal government agencies support various aspects of commerce. In this case, we observe how the USPTO, a federal agency, interacts with and supports business by issuing patents and trademarks to protect innovators from design theft . What is the impact of IP theft on innovation? Answer: IP theft impacts the incentive to innovate. It causes economic loss which impacts profitability, and can cause businesses to fail, jobs to be lost, etc. Students will learn more about IP theft in a lesson activity. 3. Operating Licenses and Permits. Great! The team's got their design, patent, and trademark for HealnnHeels. Their startup is moving into full operational mode. They will need to form a business entity , such as a corporation or partnership . They'll also have to pay registration and licensing fees to various local and state agencies, and obtain a taxpayer identification number (TIN) because all businesses must pay federal and state taxes. Engage students in a discussion: You will learn more about different types of business entities in an upcoming lesson. Regarding fees or taxes, no one likes to pay them, but federal, state, and local governments use the revenue they collect to foster economic growth and commerce. How? Answer: by providing things like roads for transporting goods, agencies for protecting consumers, a functioning and relatively fair, accessible, and efficient judicial system which enforces business, commercial, and property laws. The government provides flight controllers for safe skies, and maintains diplomatic and trade offices to build relationships with other nations to enable Americans to export their products for sale overseas. Successful commerce requires a balance and cooperation between business and government. 4. Financial Capital. Wow, Chris is an entrepreneur with a startup! Sounds exciting, but there’s one big problem: It is going to cost a lot of money to get the shoes manufactured and marketed, and he has only $50 left in the bank. HealnnHeels needs financial capital , which is money . Since Chris's company is a startup with no income yet, it is unlikely that a bank will lend it money. Venture capital is money used by businesses and entrepreneurs to fund startups . Venture capitalists are companies in SLIDE 11I PRODUCT PREVIEW
Lesson 11 | You’re the Entrepreneur 194
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