Reib Law April 2021

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SHATTERPROOF NEWSLETTER

APRIL 2021

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When it comes to creating content for your website or marketing materials, chances are you don’t have immediate access to a full-time team of graphic designers, web designers, and copywriters in your home office. Instead, you probably use freelancers to create funnels that look good and covert. I’m definitely one of those business owners. I’m on Fiverr every day trying to find freelancers to create my content for me. However, while hiring freelancers benefits your business in terms of cost savings and convenience, it also exposes you to some unique legal and financial complications — especially when it comes to your company’s intellectual property (IP). So many businesses have intellectual property as their primary assets. Recently, I had a client who was trying to secure a copyright from a freelancer they hired. Luckily, he was able to get a hold of him, because when the only point of contact between businesses and freelancers is through a website like Fiverr, sometimes freelancers just disappear when the job is done, leaving you to deal with the legal mess. While you automatically own the copyrights of anything that an employee produces for you, freelancers typically retain full copyrights to their work — unless they’ve signed a written agreement stating otherwise. Depending on the freelancer’s type of work, you can use legal agreements to secure ownership in a few ways. One is to include a work-for-hire clause in their independent contractor agreement, which states that you, not the freelancer, own all copyrights to the deliverables they produce for you under the agreement. It, therefore, allows you to use their work however you want. Work-for-hire clauses do come with a few caveats, however. If the freelancer doesn’t sign the agreement before they start working, it may be too late for you to acquire full ownership. What’s more, work-for-hire clauses will only transfer ownership of a few types of content to you from the freelancer, including: DO FREELANCERS OWN THE CONTENT THEY PRODUCE FOR YOU?

• Contributions to a collective work, such as a magazine or anthology • Parts of an audiovisual work or motion picture • Translations • Supplementary works, such as forewords, editorial notes, appendices, bibliographies, or charts • Compilations created by selecting and/or arranging preexisting works • Instructional texts • Tests and answer materials for a test • Atlases These categories do not cover a large number of materials you might hire freelancers to create, so a work-for-hire clause might not give you full ownership of them. Many business owners aren’t aware of these limited categories and falsely assume the work-for-hire clauses are all they need. For all work that falls outside the work-for-hire domain, you’ll need to include an assignment clause in the employment agreement, in which the freelancer transfers some or all of their copyrights to the work to you. Without such a clause, they will retain all copyrights, even if the agreement contained a work-for-hire clause. Adding an assignment clause to a freelancer contract isn’t complicated, and it can be used in conjunction with a work-for-hire provision. In the agreement, you simply add a brief clause stating that if the materials fall outside of what the work-for-hire clause covers, the freelancer still assigns all copyrights to your company. The inclusion of both a work-for-hire clause and an assignment clause will ensure maximum protection of your intellectual property. These agreements need to be precisely worded, so you should have your lawyer review all your freelance contracts — even those created by another lawyer. If you don’t have a lawyer and need help drafting new agreements, download my “10 Step Guide To A Bullet Proof Agreement” on https://reiblaw.com/10-steps-to-bulletproof – Scott Reib

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HOW TO GET FROM ‘ZERO TO ONE’ CREATE AND NURTURE ORIGINAL BUSINESS IDEAS

“What important truth do very few people agree with you on?”

Throughout the book, Thiel shares his wealth of knowledge garnered from a long, successful career of recognizing and acting on original ideas. According to him, and anyone else who has ever tried creating something wholly unique,

That’s entrepreneur and author Peter Thiel’s favorite interview question. To Thiel, a person’s answer to that question provides insight into whether they’ll be able to find success as an entrepreneur. Ideally, if you can answer with something like “Most people believe in X, but the truth is the opposite of X,” then you’re well on your way from zero to one and creating an original business idea. That’s what Thiel explores in his book “Zero to One: Notes on Startups, or How to Build the Future.”

developing an original idea is no easy task. The difficulty of originality even led Mark Twain to once say “There is no such thing as a new idea. We simply take a lot of old ideas and put them into a sort of mental kaleidoscope.”

But in “Zero to One,” Thiel proves that coming up with original ideas is possible,

and he provides readers with helpful tips and lessons for how to get there. One such lesson: Stop trying to be the next Bill Gates or Mark Zuckerberg because “if you’re copying these guys, you aren’t learning from them.” Thiel uses his favorite interview question to try to identify original thinkers. These are the people who take their businesses from zero to one because they looked at past successes and thought, “I can do it differently, and I can do it better.” If you want to be in that group, then reading Thiel’s advice in “Zero to One” is a great place to start.

“Zero to One” is all about coming up with and nurturing unique ideas, which are the foundation of

game-changing businesses. As a co-founder and investor in a number of companies that have changed the business landscape, Thiel has some authority on this subject. He co- founded Cofinity (which later became PayPal) and invested in startups like Facebook, SpaceX, Lyft, and Airbnb whose ideas were so novel at the start that they were perceived as risky by many.

BRING A LITTLE DISNEY MAGIC TO YOUR BUSINESS WITH THE DISNEY INSTITUTE’S ONLINE COURSES

Disney brings us some of our favorite movies and TV shows, toys, and memories at one of their several theme parks around the world. Their success has been nearly unparalleled, and just like they want to share happiness with everyone who visits their theme parks, they want to share their business success tips with new and seasoned entrepreneurs through the Disney Institute’s Online Professional Development Courses. Having been one of the most successful media companies for decades, the Disney Institute’s courses are chock full of content and wisdom for individuals looking to start their own small business and leaders of well-established large businesses, too. Course instructors include several leaders of the various branches of Disney, including Disney’s Animal Kingdom Theme Park, Walt Disney Motion Pictures, and many more. Course topics include leadership excellence, quality of service, employee engagement, and several other topics any business leader would find valuable.

course description comes with a general overview of the concepts covered. For example, in Disney’s Approach to Leadership Excellence course, core concepts of the course include many of the qualities that have led Disney to be a leading company in the world, such as leading with your legacy in mind, establishing values and vision, and sustaining and protecting your business culture. Course information also includes related courses available through the Disney Institute as well as course schedules and pricing information. You can take these classes at your own pace from your own home. Each course takes roughly 3–4 hours total to complete. If it’s your first time taking a course through the Disney Institute, you’ll get Disney Institute Alumni status, which gives you exclusive access to more learning events, courses, and products. If you’re looking for a way to introduce a little bit of that Disney magic into your business, the Disney Institute’s online courses just might be your magic wand.

Through the Disney Institute website, you can learn more about each course before you decide to take it. Each

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ENSURING THE SUCCESS OF YOUR BUSINESS

The family-owned business is often hailed as the backbone of the American economy. However, according to Forbes, only 30% of family businesses survive into the second generation. Ensuring the success of your business isn’t as simple as handing the keys to your child and hoping they’ll make something of what you gave them. If you’re planning on leaving control of your business to your children after you pass away, here are a few considerations to make. THROUGHOUT THE GENERATIONS

ENSURE THEY’RE QUALIFIED TO RUN THE BUSINESS. One reason family businesses can fail is because the founder puts their children in positions of leadership they are not qualified for. So, instead of just making your kids managers in an effort to “keep it in the family,” encourage them to learn the skills necessary to run your business in school and maybe work at similar businesses before coming back to yours. That way, they’re more likely to be qualified for the job and keep the business running long after you’re gone. GET OUTSIDE HELP ON THE SPECIFICS. You can legally transition ownership of your business to your children in several ways. You could set up a trust, transfer your business shares to them, structure an installment sale to one or more of your kids, or go down one of several other routes. It’s up to you. However, when it comes to ensuring your business is handed down with the least stress and frustration possible, it’s best to enlist the help of an expert attorney.

GAUGE YOUR CHILDREN’S INTEREST IN YOUR BUSINESS. Whether you run an insurance brokerage or a sandwich shop, you can’t expect your kids to share your passion for your business. They might share it — but they might not. When you’re putting together a business succession plan, gauge your children’s interest in taking over the business.

If you have multiple children, maybe one of them is more interested than the others. Maybe all of them are equally interested, or maybe none of them are interested.

Visit the REIBLAW website at ReibLaw.com/findlaw to set up a free consultation.

RHUBARB OAT BARS

We want your feedback!

Inspired by TasteOfHome.com

In editions of this newsletter, we’ve covered everything from business contracts to how to handle the former spouse who wound up with everything because there was no business succession plan in place. But now we’re wondering: What would you like to see? You know those legal questions that Google can’t give you a satisfactory answer to? The ones that keep you up at night as you wonder whether it’s time to call a lawyer? We want to answer those. Send us your questions, and we’ll use them to address the topics you want to know more about. Text your questions and curiosities to 972.677.3002 .

INGREDIENTS

• 1 1/2 cups fresh rhubarb, chopped • 1 cup packed brown sugar, divided

• 1 cup old-fashioned oats • 3/4 cup all-purpose flour • 1/2 cup sweetened shredded coconut • 1/2 tsp salt • 1/3 cup butter, melted

• 1 tsp fresh lemon juice • 4 tbsp water, divided • 4 tsp cornstarch

DIRECTIONS

1. Preheat oven to 350 F and grease an 8-inch square baking dish. 2. In a medium saucepan, bring rhubarb, 1/2 cup brown sugar, lemon juice, and 3 tbsp water to a boil. 3. Reduce heat to medium and cook until rhubarb is tender (about 5 minutes). 4. In a small bowl, combine cornstarch and remaining water, stirring until smooth. 5. Gradually add to the rhubarb mixture, return to a boil, and

cook until thickened. Remove from heat and set aside.

6. In a large bowl, combine

oats, flour, coconut, salt, and remaining brown sugar. Stir in butter until mixture is crumbly. 7. Press half of the oat mixture into the prepared baking dish, spread rhubarb mixture on top, then sprinkle with remaining oat mixture. 8. Bake 25–30 minutes until golden brown. Cool completely before enjoying!

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‘Zero to One’: A Book Review INSIDE THIS ISSUE 1 2 2 3 3 4 Rhubarb Oat Bars AI Is Helping Us Explore Space!

How to Ensure You Own Content Created by Freelancers

Biz Tool of the Month: Disney Institute’s Online Courses

How to Successfully Transfer Your Business to Your Kids

GENIUS TECHNOLOGY

3 WAYS AI IS CHANGING OUR LIVES FOR THE BETTER

Artificial intelligence (AI) became a household feature when Apple introduced us to Siri, and it expanded with Amazon’s Alexa and Google Home. However, AI can do so much more than tell us the weather or answer our customer service questions. Today, AI is more advanced than ever, and as engineers continue to tweak its capabilities, it continues to shape the way we think about the future. Here are three ways AI is expanding beyond computer programs.

the orbiter sends back. This has already led to the discovery of dozens of once-hidden craters in the orbiter’s photos.

DETECTING DISEASE Our health has never been more in focus than it is today, and innovators know that. Some AI devices now can detect illness just by smelling someone’s breath. The bots are designed to pick up on certain odor cues that the body gives off while fighting diseases, like cancer or diabetes. While these machines are still in the implementation and development phases, they have the potential to improve diagnostic testing and find diseases in the near future. CREATING BETTER ENGINEERING PLATFORMS Engineers have thankless, albeit powerful, jobs. While they’re responsible for some of our biggest achievements, much of their job is spent tinkering with existing models to improve small components for greater success. Thanks to AI, Stanford University professor Chris Re surmises that engineers may be able to spend more time playing with greater ideas instead. Machine-learning technology is capable of understanding where the pitfalls in a device lie and how it would need to be improved. This can cut down on time spent doing mundane work, and instead, engineers can move innovation along faster than ever.

EXPLORING MARS Putting humans on Mars is NASA’s ultimate goal, so it’s probing for safe landing sites on the big red planet with the help of AI. For the past 15 years, scientists have relied on the Mars Reconnaissance Orbiter to send photos and other valuable data

to NASA. One of the crucial aspects of the planet that NASA needs to study is the craters, both old and new. But expecting the orbiter to find these with precision hasn’t always been easy. In 2020, NASA scientists developed an AI software that could detect fresh craters on Mars’ surface in the photos that