Austin TX Business Law Blog

What surprises might await you when you purchase property for your new business?

A news story that appeared recently thanks to an anonymous whistleblower in Lubbock, reminds us all that buying a local business can be trickier than it first appears. This is why, no matter how savvy you think you are, you should always hire a skilled, knowledgeable business attorney before purchasing a business.

Case of Uncommon Building Codes

In the case mentioned, a local business owner approached KLBK and EverythingLubbock.

Why is Austin attracting so many startups and entrepreneurs?

Austin continues to be a magnet for startups for  a variety of reasons. The region offers a favorable cost of doing business, a well educated labor force, a good lifestyle and good weather, all of which are attracting young people to the area. Combine these factors with no personal income taxes, and a low cost of living, and it makes for an environment well suited for entrepreneurs.

Growing Workforce

The educated workforce is due in part to the University of Texas at Austin and other area universities, that also attract foreign students. A educated, diverse population is beneficial to employers and a boon to business growth.

Is purchasing a franchise a good idea for you?

For people who want to start businesses but are worried about the risk involved, franchises may sound like the answer to their prayers. Theoretically, franchises follow well-established, successful models that have already proven to be effective. The franchisee is supposed to be supplied with the appropriate quantity of tried and true products and accessories necessary to create a successful business. He or she feels assured of customers because production, pricing, advertising, and marketing strategies are already in place.

Unfortunately, while starting a business from scratch is risky, purchasing a franchise can be risky too.

How can I ensure the continuity of my small business?

Launching a small business involves a number of critical decisions such as selecting the right business structure and putting in place agreements that clarify the relationship among the owners and/or partners such as partnership and shareholder agreements. If the business is structured as a partnership or a small LLC, it is also crucial to institute a buy sell agreement.

This legal document specifies how the ownership interest will be redistributed in the face of unexpected events such as the death, disability, bankruptcy, or divorce of one of the owners. In short, a buy sell agreement affords the surviving owners with a means of redeeming the stake of the departing owner.

Types of Buy Sell Agreements

There are three types of buy sell agreements: cross-purchase agreements, stock-redemption agreements and hybrids.

Should my business include non-compete provisions in its employment agreement?

Many businesses rely on non-compete provisions in employment agreements to prevent job changing employees from taking proprietary information to competitors. These provisions allow trade secrets and other sensitive information to be shared with insiders while minimizing the risk that the information will be misappropriated.  In light of a recent report by the White House, however, the use and effects of non-competes are being questioned.

Some employment law observers argue that these provisions unfairly restrict employees' mobility and their ability to advance in their field. Moreover, state and federal regulators are becoming increasingly concerned that these provisions are being used inappropriately for low wage workers who do not have access to sensitive information.

Why is intellectual property important to my career?

All aspects of intellectual property (IP), including patents, copyrights, trademarks, and trade secrets  have become central to moving ahead in nearly all professions. While in the past intellectual property was normally the purview of only research and development teams, inventors, and lawyers specializing in the field, today IP is often the focal point of business, and even science, the arts, and other professions. This is because in a world moving forward at exponentially increasing speed, new ideas and innovations, rather than labor, raw materials or capital investment, are the driving economic force.

Reasons IP Is Crucial

There are several reasons you should consider IP as central to your business.

What is the state of the medical marijuana industry in Texas?

For some time it has been known that marijuana has many medicinal uses. Over the past couple of years there has been huge support for legalizing marijuana for medical use. Legislators finally listened and many states have passed laws that make it legal to use certain forms of the drug in these instances. So what are the business implications of legalizing pot? We can get a good idea by examining the happenings in our Southern most state.

One state that has recently passed a

Can the government make you keep your invention a secret without paying you?

When presented with a matter related to patents,it is always advisable to consult with an experienced patent attorney to clarify issues and pursue options. The world of patents can be a strange one, especially if you trespass into the realm of military inventions. This became very clear to Jim Geer when he filed a patent application in 2000 for an innovative technique for tracking stealth aircraft.

Start-ups based in Austin, Texas have faced some headwinds in the past year, with reports showing a decline in new venture capital investment. In the first quarter of 2016, Austin start-ups suffered a 49% decline in investment. Experts say venture capitalists lost enthusiasm because of economic unease and high valuations on untested start-ups.

But there has been at least one bright spot: the food and beverage industry. Start-ups offering consumer packaged goods ranging from healthy snacks to gourmet cider have attracted new investment interest even as others have suffered setbacks.

What is the Defend Trade Secrets Act?

Now that Congress has passed the Defend Trade Secrets Act (DTSA), it will almost certainly be signed into law. This new legislation is innovative in that it will allow businesses to file claims under federal law against those who misappropriate their confidential information. This will be beneficial to U.S. companies in several ways.

What basic mistakes should entrepreneurs avoid when seeking investors?

A recent case decided in a Dallas, Texas courtroom shows that YouTube videos can be big business — and that traditional legal rules still apply to an area of the web that may seem like a free-for-all. The losing parties' response to the case also suggests that conduct that is commonplace online may not play well in court.

Avoid making unrealistic contractual commitments

The litigation centered on a partnership between two outside investors, David T. Moss and Brandon Keating, and YouTube channel owner/operators Brian Martin and Marko Princip, who were seeking funding for their videogaming channel. The outside investors signed a contract agreeing to put up $1500 in exchange for 30% ownership and 30% of the profits of the partnership for each of them.