Preface of Textbook
About the Textbook
About the Authors
Book Website at McGraw-Hill
DVD Contents
Stanford 1e Book Website
McGraw-Hill 1e Book Website
Book Contents
Table of Contents
Venture Opportunity, Concept and Strategy
Venture Formation and Planning
Functional Planning of the Venture
Financing and Building the Venture
  Business Plans (App. A)
  Case Studies (App. B)
Online Sources (App. C)
Sample Syllabus
Course Overview
Calendar of Sessions
Entrepreneurial Perspective
Idea or Opportunity
Gathering Resources
Managing Ventures
Entrepreneurship and You
Additional Resources
Schools Using This Textbook
Authors Blog

When entrepreneurs establish a new business, they must make some critical decisions about the detailed elements of the firm. The first steps for establishing a new firm are illustrated in figure 10.1. The choice of a legal form, name, logo, and other formal elements are critical to a successful future. The right name and logo can be the key to the path to building a significant brand. Consider Sony, Intel, and IBM as examples of firms that built a big brand. The legal form of the venture should match the objectives of the entrepreneurs, customers, and investors of the corporation. Furthermore, there should be a plan to build and protect the intellectual property of the new venture. The proper array of trade secrets, patents, trademarks, and copyrights can add up to a set of very valuable proprietary assets. For many new firms built on innovation and technology, intellectual property can provide a temporary monopoly in the marketplace.

Palm Computing, Inc. (A)
Discusses patents, licenses, and deal-making in a start-up venture. Jeff Hawkins, holds a patent on Palm Print, a pattern recognition algorithm. Focuses on Hawkins's efforts to start up a new, noncompeting venture that requires cross-licenses for the Palm Print enhancements.
Cadence vs. Avant! (A)
Chronicles the origins and evolution of a landmark intellectual property dispute between Cadence Design Systems and Avant! Corp. Cadence was the leading developer of electronic data automation software used in the computer-aided design of sophisticated integrated circuits. Chronicles the highlights of the legal battle, the marketplace battle between the firms, and the public relations struggle. Concludes by asking what the two CEOs should do in their respective positions. The central issues are: what is intellectual property, how to protect intellectual property, and how to respond effectively to perceived theft of intellectual property. Teaching Purpose: To teach issues related to protecting intellectual property and handling disputes regarding intellectual property.
Stanford Office of Technology Licensing: Crossroads in the Yamaha Alliance
Describes Stanford OTL's strategy and evolution from its founding in 1969 through January of 1997. In addition, descriptions of the technology licensing practices of both Stanford and MIT are presented in the case. It provides a detailed example of how Yamaha licensed Stanford FM synthesis technology for its electronic music products, and over a 25 year period became a one of Stanford's strategic partners in commercialization of technology.
(DVD Section 10.1) Karen Richardson: Implications of Sarbanes-Oxley
Karen explains the rigorous reporting expectations created by Sarbanes-Oxley, and their effect on a company.

Stanford Technology Venture Formation - Entrepreneurial Legal Videos
Dan Dorosin of Fenwick & West LLP discusses legal isses related to:

  • Company formation
  • intellectual property considerations, and
  • Key term sheet issues that should be kept in mind when negotiating with VCs
Elon Musk: Patents and Paypal
Patents are critical in different ways in different stages of a company. Patents in the early stage are very important to get a competitive edge. Ultimately patents that are most valuable are those on composition and matter.
David Neeleman: Ticketless Travel
Many of you are interested in technology and the application of technology. At Morris Air, we invented ticketless travel. Technology is very important and has revolutionized many things in the airline industry. At JetBlue, we call technology high-tech, high-touch. You need to be able to do both.
Elon Musk: History of SpaceX
Space X is about 30 people. They outsource all the heavy machining like welding etc. There are no lawyers at SpaceX and Elon explains why.
Eric Schmidt and Larry Page: Legal Issues
Google has been caught in the middle of free speech vs. censorship issues. The Digital Millennium Copyright Act states that if a company removes information from the internet when requested, they cannot be held liable. If the company is then counter-notified, they can put the information back up and remain legally neutral. Google has followed this policy, but it has nevertheless sparked controversy.
Katharine Ku: Licensing Success Rate
Simply having a new technology is not enough to gain a license. Kathy talks about how they assess each technology, and what recommendations they might make to the entrepreneur.

NCIIA: An IP Policy Primer
This resource is helpful to anyone who is responsible for creating or revising an institution's intellectual policy (IP) statement. This primer was greated as a place to gather preliminary information. IP professionals from a variety of backgrounds were interviewed, and good policy recommendations are provided. A worksheet is included, with key questions, such as: Is it worth inventing? What is being sold? Is it worth protection? Who is it being sold to? Am I making money and reaping other benefits?


Legal Aspects of Entrepreneurship: A Conceptual Framework by Constance E. Bagley
Identifies many of the legal issues likely to arise in the course of starting and growing a company and to suggest strategies not only for ensuring compliance with the law but also for using the law and the legal system to increase predictability, maximize value, marshal resources, and manage risk. Explains why entrepreneurs and managers cannot just rely on lawyers to deal with the legal aspects of business and suggests ways to manage legal risk and handle legal disputes. Teaching Purpose: To identify many of the legal issues likely to arise in the course of starting and growing a company and to suggest strategies not only for ensuring compliance with law, but also for using the law and the legal system to increase predictability, maximize value, marshal resources, and manage risk.



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