What you need to know…

When you file a trademark, patent or copyright with the US Patent and Trademark Office, US Copyright Office or other IP-related government entities, your application becomes public information and anyone can access these databases. So-called marketing companies take your information and then solicit their victims via email or regular mail for services seemingly related to intellectual property or domain name registrations – services that you don’t actually need.

The solicitations may include:

(1) Offers for legal services to file your IP in another country.

(2) Trademark monitoring services

(3) Invoices for renewals (coinciding with your registration dates)

(4) Recordation fees for trademark registration with U.S. Customs and Border Protection

(5) Offers to include your trademark listing on private registries or directories

(6) Invoices for foreign registration

(7) Notifications that an unauthorized 3^rd party seeking to register your trademark or domain and will be approved unless you respond and pay the listed fees

These companies send out notices and invoices under official looking letterhead and often times, use government sounding names such as the “TM-Collection – International Register of Trademarks-Hungary,” The Asian Domain Registration Service” or “US Customs and Border Protection (CBP) Bureau.” Oftentimes they use scare tactics such as:

another company is attempting to register your intellectual property in their country and that if you do not respond, we will assume you have authorized this registration. Click here for more information on this scam.

Other times these scammers will simply send you an invoice in order for you to register your trademark from Hungary, for example, (in the amount of $1650.00 or otherwise be advised that you that you will lose your rights to register in the future).  Again, the solicitations are worded in such a way so as to appear that these fees are an ordinary charge and that you are obligated to pay to protect your intellectual property.

Alternatively, victims who already own a “.com” domain name are warned by so-called international domain registries that they need to buy all of the other variations from .net, .biz, .cn ,etc. in order to protect their trademarks within their countries. The truth is that you don’t need the help of these officious third parties as you can easily register alternative domains yourself with reputable registrars in your home country for a few dollars each a year.

If you receive any kind of renewal or listing notice, here are the six basic things you should do to avoid a scam:

• Check the source of the official correspondence – communication from the USPTO will either come from an address in Alexandria, Virginia or an email return address would end in “@uspto.gov.”
• Research the exact name of the organization that sent out the invoice and see whether they show up on any watch lists (or simple google their names)
• Read every word of the document. If it’s a “legal” trick, it will say somewhere (even in very small print) that it’s a solicitation, not an official invoice. You will probably note bad grammar and misspelled words in the solicitation as well.
• Know the normal maintenance filing deadlines and requirements associated with a U.S. Trademark — which typically occur between the 5^th and 6^th year after registration and again between the 9^th and 10^th year.
• Trust your instinct. Maybe the due date seems too soon? Maybe the due date has already passed? Maybe the details in the “notice” are limited and include no contact phone number?
• Work with your lawyer or other provider to help verify the authenticity and accuracy of any invoice or before paying it.

IP scams have become so rampant that that government entities have begun issuing warnings to advise intellectual property holders to be aware. Click here for the USPTO official warning. The World Intellectual Property Office also maintains a database containing samples of scam letters and invoices. Click here for samples of these “scam” invoices. You may also file an online consumer complaint with the Federal Trade Commission www.FTC.gov and/or email the USPTO @ TMFeedback@uspto.gov.

Readers, be on your guard for this new surge in patent, trademark and domain registration scams deigned to trick inventors and businesses into paying hundreds or even thousands of dollars for bogus services.  Feel free to email or comment on this post if you’d been the target of one of these scammers.

As an attorney and executive adviser, I have been regularly called upon by management (or their boards) to manage  crisis.  Whether it is an employee or director matter, a falling out between partners, a threatened litigation, or breach of confidentiality; all companies face crisis from time to time. While external issues are not always in the control of management, internal issues typically are. Whether internal/external, how these threats are handled are indicative of the type of leadership skills management possesses.

In a recent workshop at the Thiel Foundation’s 20-Under-20 Retreat, I asked 30 new entrepreneurs and mentors what they thought was one of the most important qualities in a Leader.  The responses I received ranged from:  a hard worker to a multi-tasker to having a vision.  While these are all important traits, in my opinion, one of the most important ones is compassion and here’s why:

• Employees know whether or not you really care about them – if you listen to their ideas, communicate openly, understand their key strengths, and compensate them fairly.
• Clients will  know if you truly care about them — if you are responsive to their needs, provide proactive customer service and offer solutions that help them work better/smarter/faster.

Sure, management is under a great deal of pressure to meet sales objectives and satisfy their Board of Directors.  At the same time, startups are generally cash strapped and may try to do things on a shoe-string but what are some of the real underlying problems that generally lead to crisis mode?

1. Shutting out those who know the problem best.

Employees are generally aware of the issues at hand and some may have good suggestions on how to turn things around; after all, they are the ones in the trenches who have a vested interest – a continuing paycheck and a potential payout on their stock options. Keeping them in the dark creates an environment of distrust and insecurity.

In one case, the CEO held a weekly conference call with the team. The majority of the time when someone voiced an issue the response would typically be: “This isn’t relevant to the rest of the group; let’s take this out of band.” Needless to say, that offline conversation rarely happened.  After awhile, the weekly conference calls were nothing more than a cheerleading session where most people were on mute (e.g., doing other things) while the CEO congratulated himself and the team or staying in business for yet another week.

2. Promising what you can’t deliver.

Employees and consultants share the same ongoing objective – getting paid for their work and having access to necessary resources. Unfortunately, management doesn’t always get the memo.

In one startup, consultants were rarely paid on time and employees’ expenses were not readily reimbursed.  They’d hear the “check is the mail” and then two weeks later, nothing. “ One employee who reportedly emailed the CEO on a daily basis to let him know there was still nothing in his mailbox finally received his check with an added bonus: a termination notice inside.

In another instance, the product specs were oversold; customer deadlines were not being met and the CEO’s phone went straight to voice mail. Employees had no idea what to communicate to their accounts and so eventually, their business began migrating elsewhere.

3. Gossiping about others.

To me this is probably the worse offense I’ve witnessed in a company — the CEO who gossips about his employees, his board members and even his customers.   Sure it’s hard to be the CEO when you’re at the top of the food chain and no one to gripe to but hey, haven’t you heard…. it’s lonely at the top.

A recent Randstad survey of more than 1,500 U.S. employees found that three out of five workers listed gossip as their top workplace pet peeve. If the CEO is gossiping to me about someone else…what is he saying about me to others?  In that environment of distrust, everyone’s watching his back and not the bottom line.

Compassionate leaders can avoid or manage crisis best when they listen to the concerns/feedback from the team, communicate expectations clearly and honestly and doesn’t disrespect others by gossiping.  A leader that chooses to cultivate compassion will have a significant advantage over those that do not. Business owners may consider this “Dalai Lama approach” to be too touchy-feely, but in truth, cultivating positive relationships is at the core of any successful business or relationship.

What are you thoughts on compassionate leadership? I’d love to hear from you!