You do not have to be knowledgeable about the law to succeed in a
claim, but it will pay to have some knowledge of trading legislation such
as the Fair Trading Act and the Consumer Guarantees Act.
Further Information
Frequently
asked questions about the Disputes Tribunal on the Ministry of Justice
website
Information
about the Disputes Tribunal on the Ministry of Consumer Affairs website
Consumer
Guarantees Act 1993 (on biz.org.nz)
Fair
Trading Act 1986 (on biz.org.nz)
EIGHT THINGS TO THINK ABOUT WHEN
YOU'RE DEVELOPING A NEW PRODUCT
New products go through many stages on their way from
bright idea to commercial winner. At each stage, it pays to
reassess the project. What needs to change? Can it work? What
are the risks and how can you deal with them? What new
expertise needs to be brought in?
The earlier you ask yourself these questions, the less
costly it will be if the product doesn’t turn out to be
commercially viable.
Here are eight steps that can take place when a new product
is being developed:
1. Bright idea. You’ve thought of a great new product. Is
it new? You might need to check patent records, both here and
overseas.
2. Plan. The bright idea is scrutinised. What exactly is
the product? How could it be made? How much would it cost? Who
would buy it and why? Can it work? How long should you spend
on finding out? What steps can you take to
3. Preliminary design. This stage turns the idea into
working drawings. As part of this process, consider the
conditions the product will work under, how long it will be
expected to last, who will use it and what their needs are,
how it will be manufactured (for example, from standard
components or specially-made ones). From the start, the design
should aim to make the product as simple as possible, both to
make and to use. You want the smallest number of moving parts
and the smallest number of steps in the manufacturing process
as possible. You also want the product to be robust, and to be
able to stand up to users who either don’t know what
they’re doing or push the product beyond its limits.
At this stage, you may be able to register a provisional
patent, meaning no-one else will be able to register it.
You’ll need advice from an intellectual property or patent lawyer.
4. Prototype. If it’s not too expensive, a rough
prototype can be used to test the basic principles of your
idea. If things don’t work out, consider the results
carefully. Should the product change? Is it worth proceeding
with? Don’t let your enthusiasm for your bright idea cloud
your judgment.
5. Product design. This is the final detailed working
drawings, and involves final decisions on how and where the
product will be made, what resources will be used, what
specifications and standards it will be expected to meet, and
so on. Once you’ve got the final design, things get very
expensive, so this is another time to stop and think carefully
about what you are doing.
6. Tooling up. This is the process of getting your
machinery or production equipment together. This is when
things really get expensive. Even machinery for simple
production processes can cost thousands of dollars. It’s
worth investing in good-quality equipment to save you
production headaches and high maintenance costs later.
7. Samples and testing. Make samples and adjust the
equipment to make improvements; and submit your product to
more rigorous tests so you can find out about any problems
before your customers tell you.
8. Start production.
HOW TO PROTECT YOUR RIGHTS BY
REGISTERING A NEW INVENTION OR DESIGN
You can protect your intellectual property by registering it with the
Intellectual Property Office of New Zealand. You can register:
The law also protects copyright on original
literary, dramatic, artistic and musical works.
For more information, contact the Intellectual
Property Office of New Zealand or read the Ministry of Economic
Development information sheets at http://www.med.govt.nz/buslt/int_prop/info-sheets/index.html.
You can also download PDF guides to intellectual property law and
protecting innovation from the website of James and Wells, patent and
trademark attorneys: http://www.jaws.co.nz/page.cfm?id=5
Patents
New inventions, or new industrial processes, can be protected with a
patent.
To be eligible for patenting, an invention must be industrially
applicable, contain an inventive step that is not already known, and be
new or novel.
A patent gives you monopoly rights for 20 years over the invention,
meaning no-one else can use it without your permission. Patents can be
licensed, bought, sold or transferred.
Patenting involves disclosing the nature of the invention – what it
is and how it’s made – meaning that after 20 years other companies
will be able to start using it. Some companies don’t patent their
inventions for that reason.
Before investing too heavily in developing a new invention, it’s
worth checking patent records both in New Zealand and overseas to make
sure your invention is genuinely new. If you don’t check, you might
invest heavily in a project without being able to profit from it later.
To apply for a patent, you’ll need to provide a detailed description
of the invention. If possible, it helps to provide drawings or diagrams,
photos of prototypes, or the product itself. You’ll also need to be able
to explain how your invention differs from existing technology.
For more information, contact the Intellectual
Property Office of New Zealand or read the Ministry of Economic
Development information sheet on patents at: http://www.med.govt.nz/buslt/int_prop/info-sheets/index.html.
Designs
Design registration gives the design owner the exclusive right to use
the design in New Zealand. This means the exclusive right to make, import,
sell or hire the article to which the design has been applied, or to allow
others to use the design. The protection lasts for up to 15 years.
Design registration doesn’t protect a particular article, but rather
its shape or pattern. To be eligible, designs must be new or original and
capable of being mass-produced. Designs need to be applied to the article
through an industrial or manufacturing process, not merely produced once
or twice.
To register a design, you’ll need to be able to explain its unique
features – things that make it different from anything else on the
market. It will also help to provide a sample or accurate drawings of your
design.
For more information, contact the Intellectual
Property Office of New Zealand or read the Ministry of Economic
Development information sheet on design at: http://www.med.govt.nz/buslt/int_prop/info-sheets/index.html.
Copyright
Copyright applies to books, sound recordings, films, TV programmes,
computer programs and other original literary, dramatic, musical and
artistic work. With some limits, the copyright owner has the right to
control the use of their work. They can license others to use it, usually
for a fee or royalty, and they can also sell the copyright.
You don’t need to apply for copyright. It is conferred automatically.
Generally, the author or maker of an original work is the owner of the
copyright, unless the work was made in the course of employment. In that
case, the employer usually owns the copyright, though that can be up for
negotiation.
Copyright applies for differing lengths of time depending on the
medium. For books, it applies until 50 years after the author’s death.
For more information, contact the Intellectual
Property Office of New Zealand or read the Ministry of Economic
Development information sheet on copyright at: http://www.med.govt.nz/buslt/int_prop/info-sheets/index.html.
Trademarks
Trademarks can take many different forms – a distinctive company
name, a signature, an invented word or words, a symbol or graphics. They
must be distinctive and not similar to existing registered trademarks. You
can’t register a geographical location or generic term as a trademark.
Trademarks don’t have to be registered, but registration gives proof
of ownership and the exclusive right to use it in New Zealand. Once you
register a trademark you can use it, sell it or license others to use it.
If you want to use a trademark overseas, you have to make separate
applications in each country you want to use it in.
For more information, contact the Intellectual
Property Office of New Zealand or read the Ministry of Economic
Development information sheet on trademarks at: http://www.med.govt.nz/buslt/int_prop/info-sheets/index.html.
PARTNERSHIP AGREEMENTS
People starting up in partnership often ask whether it is really necessary
to have a formal partnership agreement. It is generally a good idea to have
one , especially if the partnershiop is not within your immediate family..
Basically, the agreement should set out the rules governing how the
partnership operates, and should cover the main ´What happens if ...´
situations. If there is no agreement, there will be a large element of
uncertainty, and applying the underlying law, such as the Partnership Act
1890, may well lead to unwanted results.
It is usually best to have a partnership agreement drawn up by a solicitor,
but before you reach that stage you should think about exactly what you want
the agreement to cover. In particular, you should consider:
Running the Business
