When your company has a new product there are a thousand things to consider. These includes critical steps like:
- Identifying consumer needs;
- Determining the competition;
- Testing the prototype for your product or deciding how to collect customer feedback for your company’s new service;
- Setting the pricing;
- Creating an effective marketing strategy;
- Setting scalable goals; and
- Following up after the product launch.
But besides this checklist for the nuts and bolts of the launch, you must also consider the legal issues. You should be certain that you examine the key legal issues to protect your business and avoid expensive errors. While each product and launch is different, here are a few common legal issues that may arise:
Protect Your IP. One of the initial legal aspects when launching a new product is protecting your intellectual property (“IP”). Your IP includes trademarks, patents, copyrights, and trade secrets, and making sure you’ve secured your IP rights keeps others from infringing (using) your product without your express permission. Trademarks protect a product’s name or logo so it remains distinct in the market, and registering your IP give you legal options if another party attempts to reproduce or use your product.
Ensure Regulatory Compliance. There will be various federal, state, and local regulations to review based on the type of product you’re launching and your industry. Compliance with all applicable regulations helps you avoid fines, delays, and product recalls.
Draft Clear, Legally Binding Contracts. There may be a number of contracts at play when launching a new product. You may need to have agreements with vendors, distributors, employees, and customers, so clear and binding contracts are a must. A well-drafted contract can prevent legal disputes and clearly detail the parties’ roles and obligations.
Conduct a Comprehensive Risk Assessment. Another task is to pinpoint any and all potential legal risks that could come up in your product launch, which lets you address potential problems before they become serious and expensive legal issues.
Draft Terms and Conditions. You need to have clear terms and conditions for your product because this governs the way in which your product can be used and what customers can expect. The terms and conditions should include information about warranties, returns, and limitations of liability. This important step can help to prevent misunderstandings with customers, misinterpretations of the language, and decrease the chance of legal disputes. Your terms and conditions should be easy for customers to understand and easily accessible.
Secure Distribution Agreements. This is one more essential legal consideration when you’re launching a new product. Distribution agreements define the relationship between you and your distributors. They detail how your product will be marketed, sold, and delivered. A clear distribution agreement can help to avoid disagreements and keeps your product in line to efficiently hit your target market. The primary terms of a distribution agreement are pricing, payment terms, the scope of the contractual obligations, the duration of the contract, quality standards, dispute resolution methods, and territory rights.
Takeaway
A successful product launch also involves coordination with a business attorney who can help you protect your product, protect your business, and protect your idea. At LOVE LAW FIRM, we’re proud to represent manufacturers and distributors of various types of goods. We’d be happy to talk to you about what your needs are and how we can help.
LOVE LAW FIRM is here to help you build your business—not just bill you for it – that’s what we say, “Build. Not Billed.”®
If you liked this article, check these out as well:
Copyrights vs. Trademarks vs. Patents
Understanding Fair Use and Intellectual Property
Francine E. Love is the Founder & Managing Attorney at LOVE LAW FIRM PLLC which dedicates its practice to serving entrepreneurs, start-ups and small businesses. The opinions expressed are those of the author. This article is for general information purposes and is not intended to be and should not be taken as legal advice.
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