Protect intellectual property

A new federal law allows the government to prosecute companies and individuals suspected of stealing intellectual property rights. The Enforcement of Intellectual Property Rights Act of 2008 significantly beefs up enforcement of U.S. copyrights and trademark laws.

Businesses that depend on their brand name, creative work or other intellectual property should applaud the new law, which gives law enforcement officials a more active role in combating piracy and counterfeiting. Here are some of the key provisions of the new law:

• Allows the attorney general to bring civil action against those committing copyright infringement.

• Eliminates what were considered by many to be unnecessary barriers preventing companies from filing a lawsuit. For example, infringers no longer will escape liability because the company with a copyright made a small mistake in paperwork or does not yet have a registration.

• Allows for the seizure of documents and records concerning the manufacture, sale and receipt of items involved in violations.

• Assesses treble damages for those who intentionally use a counterfeit mark and those who intentionally supply goods and services involved in a Trademark Act violation.

• Increases the resources available to federal and local law enforcement agencies for combating IP theft; it creates grants, training programs and enforcement task forces, and funds the hiring of more agents and prosecutors.

Some consumer rights groups complain that the new enforcement law gets the government involved in what should be a civil matter. But for any company that has seen its logo used without its permission somewhere on the Internet or seen knock-offs of its products selling in department stores, the new law comes as very good news.

Collecting from businesses

Collecting from customers who haven't paid their invoices can be a daunting task for any business. Here are some tips:

The first thing that a business should do is to find out if there is some legitimate reason why the bill hasn't been paid. Perhaps the invoice is missing information that the customer requires, such as an approval or a client reference number.

Once you know there is no legitimate reason for nonpayment, you should send a formal demand letter that details the services performed or goods tendered, the amount owed and the consequences of not paying. You should consider having an attorney draft the letter for you, or at least have an attorney review it before sending. If the letter comes from you, make sure to copy your attorney.

You also need to look carefully at your contract:

• Did you fulfill all of the terms and conditions?

• Does the contract require mediation or arbitration prior to or instead of court?

• Does the contract indicate which court has jurisdiction and under which state's laws a dispute will be decided?

Before taking further action you should evaluate if it makes good business sense to pursue a claim. Ask yourself:

• What is the relative strength of your claim?

• Does the customer have any counterclaims against you?

• What is the value of the past business relationship and the potential for future business?

• How much will attorneys' fees and other related costs run?

Only after carefully weighing these factors should you proceed with a lawsuit.