THE DEGREES OF DISTINCTIVENESS: CHOOSING A STRONG TRADEMARK

The spectrum of trademark strength goes from fanciful made up names to generic unprotectable names. The stronger and more distinctive the mark, the easier it is to register and protect your mark. 

FANCIFUL / COINED 
By far the most protectable names are words that are not in the dictionary. These are made up names with no meanings. Think Google, Xerox, Kodak, Spotify, Exxon. Downsides of fanciful marks are that since they have no meaning, you will likely have to invest a significant amount of money into marketing to associate your name with your product or service to create a link in a consumers mind. 

ARBITRARY
Arbitrary marks use real words but not in association with what the word is typically known for. Apple for computers, Blackberry for cellphones, Gap for clothing.

SUGGESTIVE
A suggestive mark suggests what the good or services being offered is, without describing them. It takes an extra step for a consumer to make the connection between the name and the good or service. Examples would be: Airbus for airplanes, Lyft for car rides, Greyhound for bus transportation, KitchenAid for kitchen products. While suggestive marks are not as strong as arbitrary or fanciful marks, they are still acceptable trademarks. 

DESCRIPTIVE 
Descriptive words cannot be registered unless secondary meaning is established. You can do this by either showing that consumers recognize the brand due to heavy marketing and advertising, or after 5 years, it is deemed to have acquired distinctiveness and you can try to apply for the primary register. An example would be American Airlines or Sharp for televisions. Both were deemed descriptive, then gained secondary meaning over time thus becoming gaining protection as a trademark. 

GENERIC 
Generic marks use the common name for a product or service that it is selling. Generic marks are never able to be used as trademarks for the for product or services they describe. Examples: Apple to sell apples, Blackberry to sell blackberries, Car Dealership for a car dealership. Generic marks cannot be registered. The reasoning behind this is because let’s say you want to register a brand called Apple to sell apples. That would mean that you would have the exclusive right to use the mark Apple to sell apples, and you could stop anyone selling apples from describing their apples as apples. Can you see why that would be an issue? The same logic applies for descriptive marks say, if you want to brand your green apples as “Green Apples”. However, if you want to call your company Apple to sell computers, this is totally fine. 

PRINCIPAL REGISTER VS SUPPLEMENTAL REGISTER 
The principal register is where you want to be registered when it comes to trademarks. Strong marks like fanciful, arbitrary, and suggestive marks will automatically be granted registry with the principal register. Descriptive marks that have acquired secondary meaning will also be found here. 

Non-distinctive marks such as descriptive marks that are capable of acquiring distinctiveness over time or marketing efforts will be offered registration with the supplemental register. After 5 years of use, you can try to apply for the principal registry. 

Registration under the supplemental register does not give exclusive rights, and your mark will not have an opportunity to become incontestable. 

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How To Form A Nonprofit Organization 501(c)(3) in California

Nonprofits! We’ve all heard of them, but how do you set one up and what are the requirements to become one?

Well, at minimum a 501(c)(3) entity must be organized and operated exclusively for one or more of the following purposes:

Charitable
Scientific
Educational
Literary
Religious
Testing for public safety
Foster national or international sports competition
Prevention of cruelty to children or animals

The requirement of “exclusive” means you must organize your nonprofit and primarily operate only for these purposes.

How To Form A Nonprofit Organization 501(c)(3) in California

How to Create a Nonprofit Organization in California, Step by step:

  1. Come up with a name for your organization, and do a search on the Secretary of State website to ensure that it’s available for use.
  2. If you plan to use the same name to refer to your services, you should get a trademark clearance search as well to make sure you’re not infringing on someone else’s brand.
  3. Once you’ve cleared your name for use, reserve the name with the Secretary of State if you don’t plan on submitting your articles and other requisite information right away. In California, this reserves the name for you for 60 days.
  4. Draft your Articles of Incorporation and file with the Secretary of State. Draft carefully because your articles are difficult to change.
    *You can also order a minute book, seal, and membership certificates at this time.
  5. Draft your corporate bylaws, and appoint your initial directors (unless you already appointed them in your Articles).
  6. Apply for your EIN number. It’s like a social security number for your business, a tax identification number for the IRS.
  7. Apply for Federal Tax Exemption using Form 1023. Tax exemption is often used synonymously with the term nonprofit but nonprofit is the kind of entity, whereas tax exemption is the tax status. Tax exemption is not usually not granted automatically, and a requirement for most nonprofits, thus you must fill out Form 1023 and apply for tax exempt status.

    Form 1023 requires you to submit things like a description of the activities that your organization has done so far, and what it intends to do in the future. The activities must comply with tax-exempt purposes under 501(c)(3) and you’ll have to give a lot of information about the relationships of the directors, officers, and key employees.

    For smaller organizations expecting to make less than 50k a year and have less than 250k in assets, you may look into the 1023-EZ.
  8. If you’re in California, notify the California Franchise Board of the IRS to determine tax exemption.
  9. File a Statement by Domestic Nonprofit Corporation with the Secretary of State.
  10. Register with the Attorney General’s Registry of Charitable Trusts. There are exemptions to this requirement if you’re a religious organization, educational institution, hospital, etc. But if you need to register, you file a form CT-1 within 30 days of first receipt of assets (usually when you open a bank account and despoit funds), then Form RRF-1 with the Attorney General’s office every year after with your annual return filed with the IRS.

    This IS a requirement, and many NPO’s are not aware of this rule and do not comply thus the AG office is cracking down on this so please do so if you don’t meet any of the exemptions.

    *Other registrations may be required depending on the type of NPO you are, applicable exemptions you qualify for, and which states you solicit donations from, or which states you perform activities in.
  11. Obtain necessary business licenses and permits to operate or solicit funds for your non profit organization.
  12. Start doing good for society!

Let us know if you need help setting up a 501(c)(3) charitable organization!

Catherine Tang
Attorney at Law
+1-808-397-9999
mail@USAatty.com

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Attorney Disclaimers And Why You Need Them

Someone asked me this on Instagram regarding the disclaimer I add to most of my legal posts on social media so I thought I’d share my answer here:

“I’m curious to learn more about the legal importance of your disclaimer. Specifically, the post itself gives some tips on what you consider good practice to do, and it concerns potential legal issues. How can this not be “legal advice”? What is the problem with giving advice? I can’t imagine it would be possible to hold you responsible for advice you give without any contract between us?”

– gwen_ro

Great question, I’m glad you asked.

You would be surprised how many people think they can replace a lawyer with a google search. The advice I have given is general advice, not applied to any particular scenario. This is an important distinction because “legal advice” is typically defined along the lines of “a specific response tailored to the facts given by a questioner, and given as if it were definitive.” Giving legal advice under this definition would make me someone’s lawyer, subject to liability and malpractice if anything goes wrong.

The disclaimer is to make it clear that I am not providing legal advice for anyone’s particular scenario, I am not their lawyer, and they should seek one before acting on what they read because a single fact can completely change the accuracy of what I have posted.

A reasonable person would not read my posts and then conclude that they are okay to act on it because “their lawyer” said so…. but it does happen, and in law we like to err on the side of caution. Unfortunately, just because they likely won’t win the case, doesn’t mean they can’t try to sue. Following proper procedure makes the case easier to dismiss, and avoid any issues with the ethics board. An ounce of prevention… 😉

And actually it is good practice according to our ethical guidelines (at least in California) for me to disclaim where possible.


For an example of how quickly things can change and why you shouldn’t act without actually consulting a lawyer on your particular situation, when I say:

“Typically, the person who takes a picture owns the copyright”

….this is generally true but can easily change depending on the circumstances. For example, where an employee takes a picture under conditions within the scope of their employment, the company owns the copyright without the need for a contractual assignment. Where an independent contractor takes a photo for a company, the independent contractor owns the copyright. Under Copyright Law, certain acts by an independent contractor can allow the business to own the copyright. BUT in the State of California, if you choose to enforce your rights on this, the independent contractor then becomes categorized as an employee, subject to completely different rules with wide reaching effects much beyond that of copyright law.

And I can go on and on, as most of law has a general rule, subject to 5 exceptions with 20 exceptions to the exception. But basically, the disclaimer is for “CYA” purposes.

Hope this helps 🙂

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How Living Overseas Made Me A Better Lawyer

I was climbing my way up the legal ladder in sunny Southern California and all was going pretty well when one day I decided to drop everything and leave to the other side of the world for an undetermined amount of time. People thought I was crazy. That I was giving up my legal career, that I “belonged” in LA and that this was bad move for my future. I didn’t know how it would all turn out or what exactly I would be doing, but I am certain that my decision to move overseas has made me a better lawyer in ways staying in my comfort zone and choosing a traditional path would have never done. Here are 6 ways living overseas has made me a better lawyer: 

It has made me a better communicator.

I spent 2+ years communicating entirely with people who don’t speak English as a native language, whether they were Thai, French, Italian, Chinese. It has taught me to be clear in my communications, to ask questions to clarify meanings, and learn to recognize ambiguity and miscommunications before they’re made. It’s made me a more patient and understanding person- all necessary skills of an effective lawyer.

I have more understanding of different cultures.

By virtue of living in a huge international city overseas, you get exposed to, and learn so much about different people and cultures. I’ve gotten to know bits and pieces of so many different people from around the world, their stereotypes, preferences, what’s acceptable where they’re from, what we can laugh about. I can speak their language. It’s made me more relatable. An attorney needs the ability to build rapport with their clients to best serve them.

I have better understanding of people.

On a similar note, I’ve become more versatile. In LA I rarely ventured out of my socio-economic circle. Overseas, I live in a city that is a true melting pot and have spent time with people I would have never crossed paths with in LA. I can spend a day and get along with the rickshaw driver from Cambodia who spent his childhood without parents as a monk in a Buddhist temple. I can entertain billionaires at the St Regis and help them game plan their next business steps while simultaneously exchange tips for their next exotic vacation destination. I can empathize with the stay at home mother of three young kids who’s divorcing her husband and get her in the right mindset and legal strategy. I can get my nails done with a foreign attorney working at a competing firm and share the differences in law in our respective countries.

It’s given me insight to law around the world.

It’s given me a first hand insight and understanding of international law and policy. Law in a single country is complex. Laws involving multiple countries each of which are different and conflicting? It’s a whole ‘nother level. When you’ve handled cases in country A, involving one person from country B, and another person from country C…. handling a case where all issues and parties are from the same country is a piece of cake. 

It’s taught me that we’re not that different after all.

It’s taught me that no matter how different we are, in the end we are all the same. We all have the same emotions, desires, fears, frustration etc. The stress a Colombian client feels over their impending legal problems is no different from the stress a Californian feels. The happiness when their case is settled in their favor is of the same intensity. The gratefulness to their lawyer who got them through one of the most challenging times of their lives is a universal feeling.

It’s taught me purpose.

It’s taught me that being a lawyer is what I really want to be. I’m not sitting in my office waiting for my next vacation. I’ve seen the world and I’m choosing to do this. I’m practicing because I want to be practicing. I want to help, I want to make a difference. I want to do my part towards advancing more justice in the world. The world is beautiful. It’s even more beautiful when you find meaning in what you do. 

Most lawyers have followed what we were told to do our entire lives to get to where we are. We went to school, we excelled at all we did, we took a job at a firm, and we worked hard. Really really hard. While that path is certainly admirable and proven, that is not the only way. Whether you’re a lawyer or not, don’t be afraid to take risks and do something differently from how things were always done. You will find your way.

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Website Privacy Policy Requirements

If you have a business and your business has a website, chances are you need a privacy policy to be compliant with privacy laws. Failure to do so can result in huge fines or prosecution.

This week I’m researching privacy laws for my own purposes as I develop a website for my law firm but I thought I’d share some of the things I’m learning.

A privacy policy is basically a type of online contract between a company and the users of its website. Though a user may never read it, they impliedly agree to its terms by using the website.

PRIVACY POLICY ARE REQUIRED

Commercial website operators and online services that are accessible to California consumers are legally obligated to develop and post privacy policies on their websites. This means that you do not need to be a California company to be required to abide by this law, you just need to possibly service someone in California. Similar laws apply to other states, countries, and for companies dealing with residents of Europe under the GDPR.

The basic purpose is disclosure. You must tell consumers what data you are collecting and for what purpose.

All privacy policies must be catered to the individual company. No single privacy policy works for all companies doing business online. A good privacy policy must be specifically tailored to a company’s requirements.

The GDPR or CCPA may apply to your website depending on your location and business activities. An accurate opinion for your situation should be obtained from a lawyer who can draft and implement a policy that complies with applicable laws and reflect your business and data collection practices.

If you have a website that serves California residents, feel free to send me your email if you’d like a copy of a general privacy policy that is in compliance with California privacy laws. It is probably not sufficient as-is for your needs, but it’s a good base to start off of.

Lastly, I will leave you with a quote from a privacy & cybersecurity law professor Shaun Jamison, whom I consulted regarding this post:

“Honestly, if you don’t have a privacy policy, you just aren’t living up to industry standards. Some people will refuse to do business with you.”

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Influencer Contracts and How To Draft Them

Influencer marketing is big these days and it works. How do I know? After growing my Instagram to 20,000 followers in one year, I was invited to work with  many prominent companies around the world as an influencer such as with the amazing resort above. As a lawyer who has worked as an influencer, I know exactly what terms you need to include in your influencer contracts to protect yourself, whether you are the business or the influencer. Some of the things you should be thinking about when drafting your agreements are:

  1. The exact scope of work. What is each party agreeing to do in exchange for what? Be specific.
  2. Draft and sign a contract BEFORE you send products, take photos, do whatever it is you are doing.
  3. Typically, the person who takes the photo owns the copyright. If you are a business, perhaps you should consider having the influencer assign the rights to you, or as the influencer maybe you want to keep the rights and license the photos to the company. 
  4. Collaboration agreements are often cross-border/international as the influencer does not live in the same geographical location as the business. Should any issues arise, which state or country laws apply? Agree beforehand.
  5. Define how you are going to pay/get paid. How much, how often, where the money goes, what happens when a payment is late.
  6. Many influencers will post a photo, then delete it shortly after. Always define exactly how long the content needs to stay up, whether the company needs to approve posts beforehand, if the company can continue using the photos indefinitely, etc.
  7. If you have any uncertainties about the terms you are agreeing to, you should always consult an attorney! We make sure you are getting a fair deal.

Happy collaborating 🙂 

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