SF Fashion Investors

The future of Fashion tech has arrived, technology’s impact on the fashion and retail sectors has been difficult to ignore. The shift from in-store retail shopping to the world of e-commerce has forced traditional retailers to rethink business strategies and adapt to rapid changes in technology and consumer preferences. Yet, many overlook the endless opportunities to integrate technology into apparel products other than health and fitness wearables. As one of the leading San Francisco and Silicon Valley Intellectual Property, Startup and Fashion Tech law firms we have been watching this trend emerge. As in other sectors, new technologies have begun to revolutionize how businesses in the fashion industry operate. Brands are using Artificial Intelligence to incorporate custom shopping experiences based off of social media tools and platforms, to better impact purchasing decisions. And, some brands are integrating technology features into their designs to help you shine like a diamond in a crowd. New technologies are not only changing how the modern fashion industry functions, but also how its products interact with a consumer whose purchasing behavior is constantly reshaping. In light of growing industry demand for new solutions, tech entrepreneurs have been quick to respond with innovative products to help propel the $2.4 trillion fashion sector well into the 21st century. Accordingly, Fashion Technology, or Fashion Tech, has become a rapidly growing and vibrant ecosystem. In 2009 total investments in Fashion Tech totaled $50 million; by 2014 the number had risen to $2.8 billion. Continued demand for Fashion Tech has led to the creation of our newest (invite-only) pitch event, San Francisco Fashion Investors, whose focus is to identify, guide, and develop the next...

HOW TO WRITE A STATEMENT OF WORK FOR CONSULTING SUCCESS

Paperwork Before you start a project there are two main documents you want to have ready,  a “Consulting Agreement” and “Statement of Work”. The consulting agreement should be “standard paperwork”. While it is important, the more important and interesting piece of the puzzle that you need to put a lot of effort into is the “Statement of Work” (SoW), which is what we’ll focus on here. Your lawyer should be able to give you a consulting agreement template, often for free. But in my experience, the clients usually push for their version of it to keep things uniform, save lawyer fees, and avoid surprises. Either should be fine as long as your lawyer reviews it. Not getting your lawyer to review your paperwork is false economy. I’d suggest that you too read the agreement thoroughly, though you may think it is boring. You’ll be able to ask your lawyer well informed and incisive questions as a result. Importance of SoW If you draft the SoW well, you’ll give both you and your client a lot of clarity on what exactly to expect. This is a vital precondition to the success of the project. You can’t exceed nebulous expectations. Our primary goal is to get clarity on requirements, payment, and schedule. Sections I’d suggest including at least the following sections in your SoW: Requirements A brief description of the project Technology Architecture / Designs / Mockups Resources Out of Scope Cost and Schedule Estimates Project Deliverables Acceptance Procedure Example Statement of Work Acme Corp Marketplace Project 1. Requirements Build a single-page web application and backend that functions as a marketplace...

You have an Idea for a Startup

How often are we at dinner with our friends, or grabbing coffee with a co-worker, when an idea strikes us… Wouldn’t it be great if there was startup company that ______? There should be a startup service that______! Why can’t they just add ______ to _______, I would use that all the time! What should be your first step? (Besides a killer algorithm that isn’t buggy, of course) First – you must think of a startup name! A name that grabs the user, but also encapsulates the idea of your product. Thought of a startup name? Dreaming of the way the logo will look like as Apple’s Featured App of the Week? Not so fast… you must make sure that you have the right to use the name in connection with your product and brand. There are several things you can do in the comfort of your own home, to check whether or not a name is available to use. Trademark Search  A simple trademark search will let you know if you will be able to trademark the product and use the startup name and logo in commerce.  You can conduct a trademark search on the www.USPTO.gov. State of Delaware – Division of Corporations You may use the Delaware Division of Corporations Entity Search to check if the name of your corporation is available. The name of your corporation cannot be the same of the name of any other corporation, although slight variation in the name is perfectly acceptable. You can conduct the search here: Internet Presence  Once you have figured out what the name of the corporation will be, it’s wise to reserve the name of your new corporation as a domain...

Non Disclosure Agreement and Startup Investors

Mutual Non Disclosure Agreements AKA NDA A mutual non – disclosure binds both parties to confidentiality. Definition of Confidential Information  The information that is bound to confidentiality is all information that the parties exchange. It is important to take note of the specific definition of what “information” includes, as written in your NDA. Intellectual Property Ownership A great concern for any company is to maintain full control and possession of its intellectual property. It’s important to specify whether or not the disclosure of confidential information would disturb the ownership of intellectual property. It’s preferable for any start up to include a provision that explicitly states that confidential information remains the Disclosing party’s property. Governing Law The governing law section is not one to skip over. By signing the non – disclosure agreement, you consent to be sued in the state specified in the clause, if a legal dispute shall arise. NDA Enforcement Before you disclose your startup corporation’s confidential information you should be aware that you need to resources to enforce your agreement. This means you will need a legal ‘war chest’ to pursue any violators. Even with an NDA you should be very careful who you share your confidential information with. As a general rule you can show someone WHAT your product does, without showing HOW it works. The HOW is what you want to protect. NDA’s and Investors Typically Angel or Venture Capital (VC) investor will not sign an NDA. Investors are pitched startups all day long; they fear that if they sign an NDA from each startup they will be exposing themselves to significant legal risk. Since investor...

Venture Capital, Investments and Form D

Venture Capital, Investments and Form D Startups and Privately held companies that are raising capital investment are required to register with the Securities and Exchange Commission, or file a Form D with the SEC to declare an exempt offering of securities. Form D is a notice that a Startup company is issuing an offering of securities that is exempt from registration with the SEC. Using Form D, a Startup company discloses information about the company and the offering to the SEC. This information includes names and the addresses of the Startups  executive officers, the size of the offering, and the date of the first sale. The form can be found here (https://www.sec.gov/about/forms/formd.pdf) Form D must be filed within 15 days after the first sale of securities in the offering . The date of first sale is the date on which the first investor is contractually committed to invest (ex: the date the Startup receives the investor’s subscription agreement or check). The form is filed online, for free, using the EDGAR system. If you would like to set up a free consultation with an experienced San Francisco business attorney, please reach out to us at Sutter Law Firm....

Professional Law Corporation

        Professional Law Corporation Attorneys that seek to incorporate their law practice in California must be aware of the various nuanced rules that govern the formation and practices of their professional law corporation. Governing Body The governing body of a Professional Law Corporation is the California State Bar. In accordance with the rules promulgated by the California State Bar, the corporation must be certified by the California Secretary of State and registered with the State Bar. The professional corporation must apply for a certificate of Registration as a Law Corporation. In order to apply for the certification, the law corporation must have a certified copy of the law corporation’s articles of the incorporation, as well as the proper bylaws excerpts. Name of the Corporation The name under which the law corporation intends to practice law must comply with the California State rules of Professional Responsibility and shall not be misleading. Ownership and Transfer of Shares The exact language from Rule 3.157 of the Law Corporation Rules of the State Bar must be used in the bylaws, when discussing the ownership and transfer of shares in the corporation. The purpose of the professional law corporation is to practice law, therefore the shares of the corporation must be owned by either an attorney at law or the corporation. What if a shareholder of a professional law corporation is disbarred or passes away? Rules regarding the transfer of shares are different depending on the circumstances of the removal of the attorney from the practice of law. Shares of a deceased shareholder must be sold or transferred to the law...