Copyright, Trademark, and EIN

[cthuluftaghn]

Hey all...

As I get deeper and deeper into this project, I just need to double check myself that I'm doing it right...

COPYRIGHT: The way I understand it, simply by virtue of publishing something with my name on it, I legally retain the copyright. However, to make that stand up in court, it is advisable to register the copyright with the Library of Congress... costs about $30. Registering it is not necessary to legally claim "Copyright 2002, etc. etc."... but it does create an official public record of the fact. Correct?

TRADEMARK: Registering a trademark costs over $300. If I want to say "bla bla bla is a trademark owned by bla bla bla"... I can do that without having to pay the $300 and go through the legalities. However, if I want to say "bla bla bla is a REGISTERED trademark owned by bla bla bla", then it must be done. Correct?

EIN: If I'm going to start selling stuff for a profit, it needs to (legally) be claimed as income. I could do it under my own name, but I could just as easily, for about $25, get a federal tax number and actually "be" a publishing company. In the publishing world, what is the benefit of this?

I'm just trying to find out how others out there handle these legalities. Eventually, I'll shell out the bucks for all three. But, for now, I just want to make sure I don't make any claims that I don't have the right to. Any advise/experience shared would be appreciated. Thanks!!

bd

 

[Maraxle]

First let me preface this with the standard I am not a lawyer disclaimer.

COPYRIGHT: The way I understand it, simply by virtue of publishing something with my name on it, I legally retain the copyright. However, to make that stand up in court, it is advisable to register the copyright with the Library of Congress... costs about $30. Registering it is not necessary to legally claim "Copyright 2002, etc. etc."... but it does create an official public record of the fact. Correct?

As I understand it, registering your copyright is not a matter of making it "stand up in court." It's a matter of making the copyright infringer liable for punitive damages. If your copyright is not registered, you may sue for actual damages incurred due to the infringement. If your copyright is registered, you may sue for damages plus punitive damages. This can turn a $500 lawsuit into a $50k lawsuit.

TRADEMARK: Registering a trademark costs over $300. If I want to say "bla bla bla is a trademark owned by bla bla bla"... I can do that without having to pay the $300 and go through the legalities. However, if I want to say "bla bla bla is a REGISTERED trademark owned by bla bla bla", then it must be done. Correct?

You may put the TM symbol next to your trademarked names if they are unregistered, or the circled R symbol next to your trademarked names if they are registered. An unregistered trademark is hard to defend, if I understand it correctly.

EIN: If I'm going to start selling stuff for a profit, it needs to (legally) be claimed as income. I could do it under my own name, but I could just as easily, for about $25, get a federal tax number and actually "be" a publishing company. In the publishing world, what is the benefit of this?

It's all about taxes and personal liability. If you are a sole proprietor, and someone sues your company, you are personally liable for paying the damages. They could force you to sell your house, if that's what it took to pay the damages. If you are incorporated, they can't touch your personal assets because they are separate. They can just force you to sell your business' assets. I am unfamiliar with tax law.

 

[Ranger REG]

Re: Re: Copyright, Trademark, and EIN

First let me preface this with the standard I am not a lawyer disclaimer.

As I understand it, registering your copyright is not a matter of making it "stand up in court." It's a matter of making the copyright infringer liable for punitive damages. If your copyright is not registered, you may sue for actual damages incurred due to the infringement. If your copyright is registered, you may sue for damages plus punitive damages. This can turn a $500 lawsuit into a $50k lawsuit.

* low whistle *

Now that IS a good $30 investment. Unfortunately, $30 is not enough to have a copyright cop monitor any infringement on your copyrighted material. That you must do on your own.

Assuming you are correct.

 

[Greatwyrm]

Re: Re: Copyright, Trademark, and EIN

It's all about taxes and personal liability. If you are a sole proprietor, and someone sues your company, you are personally liable for paying the damages. They could force you to sell your house, if that's what it took to pay the damages. If you are incorporated, they can't touch your personal assets because they are separate. They can just force you to sell your business' assets. I am unfamiliar with tax law.

As far as the sole proprietorship, you are correct. Be careful with a corporation, however. There are a number of rules a corporation must follow. If you break any of them, which is easy to do if one or two people are the entire corportation, it's still your financial butt in the sling.

Corporations also essentially have their profits taxed twice. Corporations pay tax as a regular person would. Then you pay tax on any dividends or salaries you draw from the corporation.

For all this stuff, you should really talk to a local accountant. There are a number of other business structures which may be available in your area that suit your situation better. S-Corps, Limited Partnerships, Limited Liability Companies, etc.

 

[Maraxle]

Re: Re: Re: Copyright, Trademark, and EIN

* low whistle *

Now that IS a good $30 investment. Unfortunately, $30 is not enough to have a copyright cop monitor any infringement on your copyrighted material. That you must do on your own.

Assuming you are correct.

Here's what I found on the US Copyright Office's site:

"If registration is made within 3 months after publication of the work or prior to an infringement of the work, statutory damages and attorney's fees will be available to the copyright owner in court actions. Otherwise, only an award of actual damages and profits is available to the copyright owner."

By the way, their site is www.loc.gov/copyright. There's a wealth of information there, and it is surprisingly reader-friendly.

 

[Ranger REG]

Exactly how long would the process take to register your copyright? I imagine that the US Copyright Office is flooded with many filled out registration forms.

 

[Maraxle]

According to their FAQ, 4-5 months. Not bad for a government agency.