Common tax scams that taxpayers need to be aware of all year

While scammers work hard during tax season to try to steal money, personal information and data, they also stay busy the rest of the year. Taxpayers and tax professionals should remain alert and aware of these common scams, schemes and cons to avoid losing money, personal information or client data.

Social media: Fraudulent form filing and bad advice
Social media can circulate inaccurate or misleading tax information, and the IRS has recently seen schemes that encourage people to submit false, inaccurate information in hopes of getting a refund or taking advantage of a credit, such as the Employee Retention Credit. Taxpayers should always remember that if something sounds too good to be true, it probably is.

Online Account help from third-party scammers
Swindlers pose as a “helpful” third party and offer to help create a taxpayer’s IRS Online Account at IRS.gov. The scammers making these offers are trying to steal a taxpayer’s personal information. Taxpayers should access their account directly through IRS.gov.

Phishing and spearphishing
Taxpayers and tax professionals should be alert to fake communications posing as legitimate organizations in the tax and financial community, including the IRS and the states. These messages arrive in the form of an unsolicited text or email to lure victims into providing valuable personal and financial information that can lead to identity theft.

Spearphishing is a tailored phishing attempt targeting a specific organization or business. Tax professionals need to be very careful about spearphishing because of the risk of a data breach. A successful spearphishing attack can ultimately steal client data and the tax preparer’s identity, allowing the thief to file fraudulent returns.

Unscrupulous tax return preparers
Most tax preparers provide outstanding and professional service. However, people should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund. A major red flag or bad sign is when the tax preparer is unwilling to sign the dotted line. Avoid these “ghost” preparers, who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number as required by law. Taxpayers should never sign a blank or incomplete return.

Offer in compromise mills
Offers in compromise are an important program to help people who can’t pay to settle their federal tax debts. But “offer in compromise mills” can aggressively promote offers in compromise in misleading ways to people who clearly don’t meet the qualifications, often costing taxpayers thousands of dollars. A taxpayer can check their eligibility for free using the IRS Offer in Compromise Pre-Qualifier tool.

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At Cascade Law Group, we focus on business formation and development services. We also specialize in helping our clients protect and defend their brands via trademarks, copyrights, patents, and trade secrets. We can help form your company, grow, and protect your brand, strategize your plans, and monitor and enforce your intellectual property protection.

We have over 20 years of experience helping clients protect their trademarks. Let us know if you’d like to chat about building, protecting, and growing your business. Your initial 30-minute consultation is free. Just click here to get started.

DISCLAIMER: This is intended for information only and should not be considered legal advice.

eBay VeRO Program

ICYMI: we’ve recently published blogs regarding the Amazon Brand Registry and the Walmart Brand Portal. Now to make this trifecta complete, we’re ending this series with the eBay Verified Rights Owner (VeRO) Program.

Like Amazon and Walmart, eBay’s program offers sellers the ability to report other sellers who are infringing on their intellectual property. This could be in the form of:

trademark infringement,
brand name misuse,
logos,
warranty,
copyright infringement,
design rights,
patent rights, and
parallel imports

eBay created the VeRO Program so that IP owners, along with their authorized representatives, can report products and/or listings that infringe on their IP rights. eBay’s believes it is in their best “interest to ensure that infringing items are removed from the site, as they are illegal, and erode the trust of our buyers and sellers.”

eBay removes reported listings as soon as it receives an infringement notice!

When an owner of an item suspects a listing is infringing, they can report the infringement by submitting a Notice of Claimed Infringement (NOCI) to eBay’s VeRO program, or they can email to vero@ebay.com, or send by fax to (801) 757-9521. Lastly, a user can also report copyright infringements by submitting a Digital Millennium Copyright Act (DMCA) notification to eBay.

But before you can report an infringement, eBay requires proof of your trademark registration. This can include a copy of your trademark certificate or your trademark registration number. If you aren’t the original owner of the trademark, you can supply proof that you have the right to use the trademark, like having a license agreement or a statement from the trademark owner.

Not only is it important to report infringing listings, it’s also important to ensure your listings are complaint with eBay’s requirements. You also don’t want to make your listings subject to disapprovals and removals. eBay requires that sellers be responsible for making sure what they list for sale is the real deal and that the listing description doesn’t infringe on other’s rights. For example, using photos that don’t belong to you could be grounds for infringement. However, eBay states that “if you’re creating a listing that has been added to the eBay product catalog, you can take advantage of images and product details that are already available.”

eBay offers VeRO participant profiles. If you are a Verified Rights Owner, you can make a profile page where you can share your IP information with the rest of the eBay community. As a seller, eBay allows you to compile:

A list of your intellectual property, including brands, trademarks, and copyrights.
The conditions under which products bearing your IP may be sold.
How to contact you with questions or concerns.

While the VeRO program is a great way to take and receive immediate action on IP infringements, the VeRO program may not be able to entirely resolve the issue. An infringer can go to Walmart or Amazon and post the same product on those retail platforms.

Don’t have a trademark yet? Need a cease-and-desist letter? Cascade Law Group can help with getting a trademark registered. We can also help enroll you in the ebay VERO Program or any other the others that we have talked about over the past month or two. We can also help determine if your product is already registered with the USPTO.

At Cascade Law Group, we specialize in helping our clients protect and defend their brands via trademarks, copyrights, patents, and trade secrets. We also focus on business formation and development services. We can help form your company, grow, and protect your brand, strategize your plans, and monitor and enforce your intellectual property protection. We have over 20 years of experience helping clients protect their trademarks. Let us know if you’d like to chat about building, protecting, and growing your business. Your initial 30-minute consultation is free. Just click here to get started.

DISCLAIMER: This is intended for information only and should not be considered legal advice.

FTC Non-Compete Ban: What You Need to Know

By now you’ve probably heard that the Federal Trade Commission (FTC) issued a Final Non-Compete Clause Rule (“Final Rule”) on April 23, 22024 banning post-employment non-compete clauses between employers and their workers. The rule will become effective 120 days after it is published (“Effective Date”). So far, it has not been published so late August is the soonest it could go into effect.

The stated reason for the Final Rule is that the FTC concluded that non-competes unlawfully stifle competition and depress wages for U.S. workers, and that banning them would encourage competition, innovation, and increased wages.

If you are a business that has used non-competes in the past, here are the key takeaways to know.

The Final Rule prohibits an employer from entering into, or attempting to enter into, a non-compete clause with a worker. This does not have anything to do with Independent Contractors.
The Final Rule allows employers to maintain existing non-compete agreements with “senior executives” (those with over $151,164 annual compensation and in a policy-making position) but bars an employer from entering into, or attempting to enter into, a non-compete clause with a senior executive after the Effective Date of the Final Rule.
The Final Rule does not apply to non-competes entered into by a person pursuant to a bona fide sale of a business.
The Final Rule supersedes all state laws that conflict.
Employers must notify:
1. An employer to provide clear and conspicuous notice to works subject to a non-compete in an individualized communication, that the non-compete will not be legally enforced
1. This communication must be by hand-delivery, by mail, by email, or by text message.

Remember that this Final Rule does not ban non-disclosure agreements or non-solicitation agreements unless they have the same functional effects as a non-compete.

This rule will be challenged. It is likely that it won’t withstand constitutional scrutiny. It may also be challenged on the basis that it is an impermissible delegation of authority. It will likely not fall within the “Chevron deference” that allows federal courts to defer to an agency’s interpretation.

Even if successfully challenged, the appeals process may take 12- 18 months before a final ruling. So, what does that mean now?

Below are answers to some FAQs to help guide you.

Are non-compete agreements void right now?

No. Even if it withstands scrutiny and challenge, it does not go into effect for 120 days.

What does the ban cover?

It covers all non-competes in the US with limited carve-outs. Since the FTC has no authority over nonprofits, it does not cover them. There are exceptions for existing agreements with “senior executives” (discussed below) and for non-competes entered into as part of the bona fide sale of a business.

Is the rule retroactive?

Yes, in most instances. The rule blocks new non-competes and invalidates existing non-competes with few exceptions.

Does it only apply to non-competes?

The rule only applies to non-competes and does not ban other restrictions like confidentiality or non-solicitation provisions. However, the rule makes clear that it bans these other forms of restrictive covenants when they have the same functional effects as non-compete clauses.

How is non-compete defined?

The Final Rule defines “non-compete clause” as “a term or condition of employment that prohibits a worker from, penalizes a worker for, or functions to prevent a worker from (1) seeking or accepting work in the United States with a different person where such work would begin after the conclusion of the employment that includes the term or condition; or (2) operating a business in the United States after the conclusion of the employment that includes the term or condition.”

What are the exceptions?

There are industry-specific exceptions based on certain industries excepted.

Specifically, the Final Rule does not apply to banks, savings and loan institutions, federal credit unions, common carriers, air carriers and foreign air carriers. Outside of those industries, the major exceptions include (1) existing agreements for “senior executives” (defined below), (2) non-competes entered into in connection with the bona fide sale of a business, and (3) non-compete enforcement where the cause of action accrued prior to the rule’s effective date.

Who are qualified senior executives under the exception?

A “senior executive” includes someone with over $151,164 annual compensation and in a policy making position. Again, this exception only allows for existing non-competes prior to the effective date. It does not allow for new non-competes with senior executives that are entered into after the effective date.

Does this rule replace state laws regarding non-competes?

The rule preempts state laws where they conflict with the Final Rule.

Are non-profits covered by the ban?

No. Nonprofits are not governed by the FTC, so they are not included in this rule.

Will the rule be challenged?

Yes. There are already two pending lawsuits against the FTC, and we expect a request for a nationwide injunction along with potentially more lawsuits.

What is the outlook for a challenge to the rule?

The challenges are largely focused on the lack of statutory authority for the FTC to enact these kinds of substantive rules, and particularly for a sweeping rule that affects millions of agreements nationwide. See discussion above. While there are no guarantees, based on recent Supreme Court decisions regarding the major questions and non-delegation doctrines, there is a significant chance of the rule being enjoined before it goes into effect.

What type of notice do employers need to provide to employees under the rule?

Prior to the effective date of the Final Rule, employers will need to provide notice to each worker who is subject to a non-compete in violation of the Rule so long as the employer has either a mailing address, email address, or cell phone number for the affected worker. The notice must: (i) identify the person who entered into the non-compete clause with the worker; (ii) be provided via mail, email, or text message to the worker.

What About Non-Solicit, Non-Disclosure, and Training Repayment Provisions?

Covered by the ban only if they are “so broad or onerous that it has the same functional effect as a term or condition prohibiting or penalizing a worker from seeking or accepting other work or starting a business after their employment ends, such a term is a non-compete clause under the final rule.”

What Should Employers Do in the Meantime?

Carefully follow whether the Final Rule is enjoined and the deadline for compliance should the Final Rule go into effect.

Here’s a list of steps you can take now:

Prepare to send notices should the rule become effective by compiling a list of impacted current and former employees, with relevant contact information.
Determine whether any of the impacted employees qualify for the “senior executive” exception described above. Evaluate whether there are “senior executives” who should sign non-competes prior to the rule’s effective date.
Model notice language is included in the rule and can be delivered by email or text message, or by delivering a paper notice by hand or mail.
The notices must be sent before the effective date of the rule.
DO NOT send notices right away; monitor the progress of the legal challenges.

We will continue to update you as new developments arise.

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DISCLAIMER: This is intended for information only and should not be considered legal advice.

World Intellectual Property Day 2024

Officially celebrated every year on April 26, World IP Day is an opportunity to recognize the role that Intellectual Property plays in inspiring innovation, encouraging creativity, and driving progress.

The theme of this year’s World IP Day 2024 is “IP and SDGs: Building Our Common Future With Innovation and Creativity.”

This day will shine a light on the central importance of innovation, creativity, and IP to achieving the Sustainable Development Goals (SDGs). The IP system provides an incentive for innovation and creativity and stimulates investment in the innovation and creativity needed to achieve the SDGs.

What are the SDGs?

The Sustainable Development Goals (SDGs) are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity.

In the year 2015, leaders from 193 countries of the world came together to face the future. And what they saw was daunting: Famines. Drought. Wars. Plagues. Poverty. Not just in some faraway place, but in their own cities and towns and villages.

They knew things didn’t have to be this way. They knew we had enough food to feed the world, but that it wasn’t getting shared. They knew there were medicines for HIV and other diseases, but they cost a lot. They knew that earthquakes and floods were inevitable, but that the high death tolls were not. They also knew that billions of people worldwide shared their hope for a better future.

For World IP Day 2024, we are participating as the keynote speaker in the World IP Day Symposium presented by the University of Arkansas Intellectual Property Student Law Association. Our founder, Dr. Debby Winters will be talking about Barbie® and IP.

Schedule of Events:
10:00am – Networking with Panelists
10:30am – Opening & Faculty Advisor Remarks
10:45am – Keynote Speaker [Founder & Managing Partner at Cascade Law Group, Dr. Debby Winters (J.D. ’03)]
11:10am – Lunch
11:25am – Industry Panel
12:45pm – Q&A
12:55pm – Closing Remarks & Dismissal

Want to join us? Register at this link or come to the law school or watch the livestream!

Just as a refresher, the five major types of intellectual property are:

Copyrights.

Trademarks.

Patents.

Trade Dress.

Trade Secrets.

Happy World IP Day!

If you have any ideas for subjects you’d like to read about, post them in the comments.

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DISCLAIMER: This is intended for information only and should not be considered legal advice.

Walmart Brand Portal: Protect your Intellectual Property

We recently posted about Amazon’s Brand Registry program. Did you know Walmart has a similar program of their own? Both programs claim to help protect your Intellectual Property (IP).

Like Amazon, Walmart says it “takes allegations of intellectual property infringement seriously” and desires to enable owners “to better manage and protect their intellectual property rights on Walmart.com.” Walmart claims the benefits of its Brand Portal are:

streamlined IP claim submission process,
comprehensive claim tracking dashboard, and
centralized user management services.

But before you can get started with Walmart, you must first have an active trademark registration number with the USPTO. Right now, Walmart does not allow for WIPO or EUIPO trademarks. It also does not allow for registration with just a USPTO application serial number. In contrast, Amazon does now allow for this. In the past they did not. We think it is prudent to require actual registration, because many applied-for marks are never registered.

Within the Walmart Portal you can report intellectual property claims, including infringement for items listed on the Walmart website. This includes claims for:

infringement of patents,
trademark,
copyright, and
counterfeit goods.

Currently, this portal is only available in the United States.

It is interesting though that because Walmart says that “violations of exclusive distribution agreements are not the subject of IP infringement,” they will not address them. Walmart is clear that they “will not take action to enforce such agreements.”

Additionally, Walmart does not support unauthorized reseller claims. Their webform has a notice that states, “Walmart runs a unified catalog that allows resellers to make offers on a single listing. For unauthorized reseller claims, you may contact the seller directly to resolve the matter.”

While both Amazon and Walmart have created systems to protect IP and brands, they differ in the level of protection provided.

Walmart’s Brand Portal makes it simple to submit and track claims, while Amazon’s Brand Registry says they add additional protections to just submitting and tracking. Through the Amazon Brand Registry, you can ensure other brands do not alter or change your product description or title. Plus, Amazon uses QR codes for authenticity.

Here is a link to Walmart’s form for submitting reports of IP infringement. Once you have submitted a claim you can use the dashboard to track the status. It is nice to have all the claims that you have submitted in one place in the portal. If you want to get more information and see the process of your claim, you can click on each one and track it.

The good news is that if you are an existing seller with Walmart who has a brand portal account, you can use the Seller Center login to link your accounts. If you link your accounts, you will only be able to use your Seller Center login information to then access your brand portal account. If you are a registered supplier, you can use your Supplier Center login for the Brand Portal. Once you’re logged in you can use the “Continue with Brand Portal Log In” option and enter your Supplier login information to begin the onboarding process.

Walmart also allows for third-party representatives, like attorneys, to submit claims on your behalf. Lucky for you, we can take care of this entire process for you!

Don’t have a trademark yet? Cascade Law Group can help with getting your trademark registered. We can also help enroll you in the Walmart Brand Portal or determine if your product is already registered.

Contact us to talk about the next steps in getting your trademark and registering with the Walmart Brand Portal or Amazon Brand Registry. We can help you protect your brand and your products.

DISCLAIMER: This is intended for information only and should not be considered legal advice.

Hayley Paige – Person or Brand?

When an owner sells a business, the name, brand, and rights to use the brand typically go with the sale. But what about social media? Hayley Paige, wedding dress designer, found herself in this predicament when she licensed the rights to her name to JLM Couture, that was were selling her wedding gowns.

Hayley Paige used her Instagram and TikTok under her own name. But, since she licensed her name to JLM, did it then have rights to those social media handles that were her name, “@MissHayleyPaige?”

According to the court, the answer is YES, they did.

On December 15, 2020, JLM filed a lawsuit against Hayley Paige over her use of the @MissHayleyPaige social media accounts. Remember these were originally her personal social media accounts using her own name.

After this, Hayley Paige tried to terminate her contract with JLM, but was unable to do so unilaterally. JLM requested the court allow them to have control over those social media accounts and the court granted their request. As a result, Hayley Paige was unable to post on her own personal accounts in her name. The court did this because “the license for use of the ‘Hayley Paige’ name unambiguously included accounts used under the name, and continued to provide JLM access to the @MissHayleyPaige Instagram account.”

Ultimately, the court found that those accounts were not personal, but were business accounts and thus JLM owned them because of the license agreement. Since these accounts “were created using the Hayley Paige brand name, [they] are the product of JLM’s marketing efforts and investments which built the popularity and success of the Hayley Paige brand.”

Of course, Hayley would argue otherwise since she built up the accounts. The court held “[Hayley], used JLM’s money, resources, and strategies to help the company build the Accounts’ image around and for the JLM-owned Hayley Paige brand, and thus, ‘cannot now claim company property as her own.’”

In her contract with JLM, Hayley agreed to license the rights to her name. These variations included “Hayley Gutman,” “Hayley Paige Gutman,” and “Hayley Paige.”

This is another example of why branding is so critical. Designers, business owners, and creators like to use their names for their business because it not only gets brand recognition, but helps them build up their personal brand along with their business.

But this practice can lead to major loss, like we see here. If you sell the rights to your business, and it’s using your name, the rights to using your own name can now go with the sale according to this court precedent.

This opens the door for major issues that can arise as individuals often use their own names when branding social media accounts. As this practice of personal branding in conjunction with businesses rises, these disputes will rise as well. What might seem like a good business branding practice might not be so good after all.

Creators and influencers strongly need to consider before they contract the rights to license the use of their name – they may lose everything they have worked so hard to build.

Protect your brand and protect your social media accounts that go with your name and your brand.

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DISCLAIMER: This is intended for information only and should not be considered legal advice.

You’ve been HACKED! Regain Control Of Your Social Media Brand

It happens every day…someone you know sends out a message to alert friends that their social media account has been hacked. In fact, it happened to us just yesterday. A message from a trusted colleague came in that her Facebook had been hacked and they had changed her recovery email so she was having trouble getting it back.

This is a scenario that many social media users face as the number of hacked social media accounts continues to rise. A recent survey revealed that 22% of internet users said that their online accounts have been hacked at least once, while 14% reported they were hacked more than once.

The National Association of Attorneys General recently cited in a letter to the Chief Legal Office of Meta (Facebook) these staggering statistics. In 2019, a total of 73 account takeovers on Facebook were reported, just in New York alone. That number rose tenfold to 783 by the end of 2023. In 2024, the NY Attorney General received 128 during the month of January. The letter also noted increases from 2022 to 2023 in other states: 730% increase in Vermont; 330% increase in North Carolina; 256% increase in Illinois; and 270% increase in Pennsylvania. Such statistics are extremely troubling. Meta was urged to take action. The letter was signed by more than 40 State Attorney Generals.

It is a growing problem that can have an impact on your professional and personal brand!

Damages to people’s reputation and even their psyche can be considerable. In a world where social media is engrained as a daily part of our lives, losing control of your social media identity can cause stress or even worse. A colleague recently lost all her personal and business social media accounts after two years. Despite her numerous attempts to regain control, she just couldn’t make it happen. Feeling completely isolated by the world, she took her own life.

It isn’t just personal accounts anymore either. Today doing business on social media is a norm we’ve all come to expect. Imagine if your business gets hacked and hate speech, inappropriate images, or threats are posted and tweeted in your name? It can be a fiasco.

AND it isn’t just Facebook where hacks are occurring. We recently experienced a potential hack on LinkedIn when we received a notice that someone in Moscow Russia tried to sign into our account. We were notified to change our password if it wasn’t us. We immediately changed it.

A hacking can have an impact on your professional and personal brand.

You may wonder what you can do it about it. Here are some suggested steps you can take to prevent having your account taken over and what to do should hacking occur.

Preventing Hacks

Use a unique and strong password for your social media accounts. We are always told to do this, but it really does help.
Enable two-factor authentication. This might create more hassle for you, but it has been shown that people who do this are hacked less often.
Limit the number of external applications you allow to access your accounts. This step is what gets a lot of folks in trouble that leads to a hack.
Confirm the email address and phone number associated with your social media accounts are accurate and accessible.
Respond immediately to any emails from social media sites regarding suspicious activity on your account.

Signs you’ve Suffered A Hack

You can’t log into your account.

You get a notification about a change to your username or password – but you didn’t make that change.

Your friends or family report getting emails or messages you didn’t send, sometimes with random links or fake pleas for help or money.

You get a notification that someone logging into your account from a device you don’t recognize or a location you’re not at.

What to do should A Hack Occur

When you receive notice of a potential hacking, go to your account immediately and follow the steps provided by each platform to try and regain control.
If your attempts to follow the recovery steps are unsuccessful, contact the platform directly. Sometimes hackers, who are aware of the recovery steps provided by social media sites, will have already acted in a way that keeps you from regaining access to your account – such as removing your phone number or changing your recovery email address.
Make sure your computer security software is up to date, then run a scan for suspicious software. If you find it, delete it.
Contact family and friends or use your account on other social media platforms to inform your followers that your account was hacked.
Don’t give up. Losing control over your online identity can damage your personal and professional brand and can allow the hackers to solicit money from unsuspecting followers of the account or undertake other nefarious activity.

Social media can be a great way to network, promote your business, and connect with friends and family. And although it is daunting and violating when someone hacks into your accounts, if you take proactive safety steps, it can help to prevent bad actors from accessing your social media accounts next time around.

Protect your social media accounts and protect your brand.

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DISCLAIMER: This is intended for information only and should not be considered legal advice.

Ready to dive into the cultural phenomenon known as Shark Tank?

Shark Tank with its blend of entrepreneurship, drama, and deal-making can propel a small startup to fame.

Not familiar with what Shark Tank is? It is a television show where entrepreneurs pitch their business ideas to a panel of seasoned investors (the Sharks), hoping to secure funding and expertise to propel their startup ventures to success.

You have a chance at coming home with an awesome deal if the Sharks like your idea. And if you garner the attention of one of the Sharks, the feedback and advice you receive alone is worth a lot as it can propel you to make better choices regarding your business model as you embark on your business journey.

Of course, everyone hopes to make a deal with one of the Sharks – few do – but it can still be a win even if you don’t swim home with a deal!

Regardless of receiving the requested funding, these startups are getting major airtime exposure, reaching a much larger audience (8 million people to be exact!) than they could on their own. Not only are these millions of viewers potential customers, but they’re also potential investors who may want to support a business that is still fishing for an investor.

The role intellectual property (IP) plays in Shark Tank is huge. In the competitive landscape of entrepreneurship, having a unique idea or product is only the first step. Without adequate protections, these innovations are vulnerable to being copied or exploited by competitors, especially since these ideas are seen by millions in TV-land.

This is where IP comes on the scene. Whether it is a patent or a trademark, IP protection can provide legal rights and exclusivity over creations since investors are not just looking for promising businesses to invest in. They are also assessing the strength of their IP portfolio, as a robust IP strategy signals to investors that the entrepreneur is serious about protecting their innovation and creating barriers to entry for competitors. This can significantly enhance the perceived value of the business and increase its attractiveness to potential investors.

Wondering if it might be right for your new startup?

Let’s take a look. Have you protected your idea with trademarks and/or patents?

Do you need a trademark to appear on the show? The simple answer is no, but the successful answer is yes.

While it isn’t required, we wouldn’t be doing our job without stressing the importance of having one! If you haven’t filed for one, someone else could potentially file for your trademark after seeing you and your product on the show. Remember millions could see the name or logo of your product and reel it in it right from under you.

Talk about a sinking feeling! We would hate for this to happen to you after all the hard work you put into your product. That would not be a shark move at all (see what we did there?).

We also highly recommend filing for a patent if your product itself is novel. Again, not an absolute necessity, but to be successful on the show, you definitely should! Not only will you impress the sharks by having one, but it’s also a very common question and you’re almost guaranteed the Sharks and any other investor will ask you about it.

You don’t want to make it all the way to national television with an amazing product, only for it to be knocked off, or have potential lawsuits filed against you regarding patents or trademarks.

Having a patent will protect you in the event someone else tries to copy your idea and will relieve concerns the Sharks might have. Plus, you can assure the Sharks that your idea is original, and not someone else’s work. The Sharks will likely see your idea as way more marketable, and thus more profitable, if you already have a patent. Need help filing for a patent? We can help!

You may be wondering – do I need a patent application or an approved patent? There is a big difference. Simply having filed for a patent is not enough to legally protect your idea but could be enough to signal to the Sharks that you aren’t a naïve pup. An issued patent, on the other hand, provides the legal protection you need to stave off those shark bites.

Many successful Shark Tank alumni attribute their achievements, in part, to their effective use of intellectual property protection. The journey of some has ended in a shipwreck just based on the lack of proper IP protection.

“COOLBOX” is an example of a company not walking away with a deal because they didn’t have a patent. They were asking for $500,000 investment for 10% equity, but the sharks weren’t buying it because COOLBOX hadn’t protected its IP. No doubt you’ve never heard of this company since the product did not end up with a deal, but the COOLBOX consisted of a toolbox with built-in speakers, USB ports, clock, and a bottle opener. As expected, the sharks inquired about a patent for the COOLBOX, and unfortunately, they did not have one. The sharks told them that without one, there was nothing preventing Black & Decker, DeWalt, or a similar company from stealing their idea and selling another cheaper version of it. While COOLBOX may have had a great product, their idea didn’t float the Sharks’ boat all because they had zero protection for their invention.

If you want to get picked to be on the show, you need to show the Sharks that you are on the starboard side of the boat (the right side) by protecting your IP like Scrub Daddy did.

Scrub Daddy is a company that produces smiley-faced scrubbing sponges. They secured a deal with Shark Lori Greiner and went on to become one of the show’s most successful products. Central to Scrub Daddy’s success was its patented design, which prevented competitors from replicating its innovative features.

Similarly, Bombas, a company specializing in premium socks, leveraged its patented innovations and strong brand identity to secure a deal with Shark Daymond John. By protecting its unique product features and establishing a recognizable brand, Bombas has grown into a multimillion-dollar business thanks to its appearance on Shark Tank.

It really is sink or swim in the sea of sharks. Don’t let your great idea sink – make it swim with trademark and patent protection. IP is often the difference between success and obscurity at Shark Tank. Cascade Law Group can help you protect your ideas and inventions and be your lifesaver through the process.

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DISCLAIMER: This is intended for information only and should not be considered legal advice.

Dupes And Counterfeits Collide

Our last blog post was a guest post by our Law Clerk, Erin Wadley. It was about dupes, and it got us thinking more about dupes and counterfeits. We thought we’d explain the differences and how it is becoming a collision of the two in the world of fashion.

If you recall, dupes, short for “duplicates” are a cheaper alternative to the premium or luxury goods that inspires the look-alike to be. They don’t pretend to be the luxury goods, quite the opposite, they are proud that they aren’t the luxury goods. Instead, they are there to give you (or so they claim) the same quality product at a fraction of the price. Some dupe buyers say it is a way to determine if the real product is worth purchase. A way to partake in the product experience without having to spend the money.

But there is a difference between counterfeit products and dupes. Counterfeits pretend to be the real thing. They often carry an unauthorized trademark or logo of a patented brand, while dupes simply mimic certain features of a more expensive product. Even though Counterfeits may also define themselves as an alternative to the pricier brand, they are clearly illegal as they infringe on IP protected products.

It is easy to see why these products sell, everyone wants to have the luxury experience for less. The dupes have the advantanges of being produced by well-known everyday brands, while counterfeits are usually cheaply made knockoffs.

Recently, companies have been springing up that carry knockoff items for an unbelievable low price. This isn’t new but more offshore companies are now doing it and doing it for way less.

Forever 21 was an early adopter of this strategy to make money. It has been sued numerous times for copycat items. Adidas sued Forever 21 for the 4 striped athletic suite it made imitating Adidas’ trademarked 3 stripes.

And who hasn’t seen the advertisements that Shein has on social media? They sell almost identical items to what someone else sells but for way less. Shein isn’t the only company to do that.

Surely you have of Temu. Right? Recently, Temu aired a commercial during the Super Bowl with the allure of the chance to “shop like a billionaire.”

Temu is a company like Amazon in that customers can browse millions of products, but it is unlike Amazon in that the shipping can take longer since the items are shipping from China, not from somewhere in the US. Items on Temu are way lower than on Amazon.

Recently, Uniqlo, which is considered a reputable company that has a business model that allows them to sell at affordable price, has filed a lawsuit in Japan against Shein over its sale of “imitation products,” namely, handbag styles that replicate Uniqlo’s hot-selling mini shoulder bag.

Uniqlo claims that the three entities owned and operated by Shein, have co-opted the design of its Round Mini Shoulder bag, and as a result, Uniqlo is seeking to immediately stop the advertising and sale of the imitation products by Shein and for “compensation for damages” because of sales to date.

In addition to copying its product by way of confusingly similar bags of its own, Uniqlo also maintains that the sale of the imitation products by Shein “significantly undermines the high level of customer confidence in the quality of the Uniqlo brand and its products.”

Interestingly enough, Uniqlo’s crescent-shaped shoulder bag has garnered significant bag status over the past year alongside the likes of luxury items despite its price tag of just 1,500 yen ($10.27) in Japan and less than $20 in the U.S. Fashion discovery platform Lyst named Uniqlo’s Round Mini Shoulder bag as the top bag in its 2023 Year in Fashion review, noting that it was Uniqlo’s “best-selling bag of all time” after “going viral through old-fashioned word-of-mouth, generating over 119 million views on TikTok and selling out multiple times across multiple color ways.”

This seems to be a clear indication that ultra-fast fashion titans like Shein are not merely focusing on replicating counterfeit luxury-level goods but that their artificial intelligence-powered algorithms are similarly identifying and suggesting the sale of “dupes” of the hottest-selling mass-market products, as well. Is the next trend a mix of counterfeit goods and dupes?

So, what’s the problem with buying these goods? Because of the extended advertising of these unauthentic goods, it appears to be okay to buy both dupes and counterfeits. While it may not be illegal to sell dupes, like it is counterfeit goods, it is certainly not ethical to buy products that rip off another brand’s research, production, advertising, and most importantly reputation.

Contributing even more to the problem is a wave of social media influencers earning money by promoting illegal knockoffs imported from China on Facebook, TikTok, Discord, and Reddit. These influencers peddle everything from fake Chanel badminton sets and Skims dresses to counterfeit Stanley cups, sharing links to listings that let the ecommerce sites track orders and pay them commission. Some of the social media platforms have rules and guidelines that prohibit promoting counterfeits. The platforms say they will suspend the accounts of influencers doing this. But even if suspended, these accounts just pop back up.

A new term has surfaced for this type of copying, instead of calling these dupes, these carefully crafted clones are also termed “replicas.” No matter what you call them, they trade on other companies’ registered trademarks and intellectual property.

Since almost any items can be quickly copied, smaller companies are increasingly seeing their designs get ripped off. Having an unauthorized copy of a product for a small company outselling the authentic version can be devistating for small businesses.

How can you protect your brand from counterfeits and dupes (and “replicas”)?

Awareness: this is your first line of defense. Know what’s out there that could be building off your goodwill.

Social media monitoring: Influencers play a big part in promoting dupes. In our last blog on dupes we reported that approximately 70% of dupe shoppers have a TikTok account and advertising this way had made these hugely successful.

While we will have to wait and see what happens with the mini shoulder bag, you can act now to protect your goods from dupes and counterfeits. If you are wondering how to protect your brand from counterfeit products and from dupes, contact us to talk about the next steps in protecting your brand and your products from infringers.

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At Cascade Law Group, we specialize in helping our clients protect and defend their brands via trademarks, copyrights, patents, and trade secrets. We also focus on business formation and development services. We can help form your company, grow and protect your brand, strategize your plans, and monitor and enforce your intellectual property protection. We have over 20 years of experience helping clients protect their trademarks. Let us know if you’d like to chat about building, protecting, and growing your business. Your initial 30-minute consultation is free. Just click here to get started.

DISCLAIMER: This is intended for information only and should not be considered legal advice.

Can Pi Be Trademarked?

Happy Pi Day! Today is Pi Day. You may be wondering what the significance of Pi is, and why it is celebrated today.

If you think back to your math class, you’ll remember that pi (π) is used to represent the ratio of a circle’s circumference to its diameter and is roughly defined as 3.14159 no matter how large or small the circle is. It is one of those numbers that has fascinated mathematicians all over the world for centuries. One of its most well-known quirks is that the number goes on indefinitely after the decimal point without ever repeating any pattern of numbers.

Because it is the number 3.14, it is celebrated on March 14 every year. In the year 2015, it was felt to be extra special since that year was 3.14.15 (extending the number out two more places). Yeah, we know it’s kind of nerdy!

You may be wondering how long we’ve celebrated Pi Day. The idea originated in 1988 and the US House of Representatives passed a resolution proclaiming March 14 to be National Pi Day. But the earliest known use of Pi is documented even before that, dating back to the Egyptian or Babylonian times.

The symbol π (pi) itself is not typically trademarked because it is a mathematical symbol used widely in various contexts beyond just trademarks. However, it is possible for a specific stylized representation of the pi symbol to be trademarked if it’s used in a distinctive manner to represent a particular brand or product. In such cases, the trademark would protect the stylized representation within the context of its usage for the specified goods or services.

One clever way to trademark this symbol was by the Brooklyn artist Paul Ingrisand (initials PI), who in 2014 registered the symbol followed by a period (π.).

Other companies have registered the symbol in relation to their goods too, but there is always a stylized version rather than the symbol itself. So, if a company uses a unique stylized version of the pi symbol as part of their logo or branding for a product or service, they may choose to trademark that specific design to protect it from unauthorized use by others in the marketplace.

Last month the Pi Network, a blockchain project that reportedly aims to make mining accessible to users and that launched on Pi Day in 2019, announced a PiFest. This is a commerce-focused event showcasing Pi payments. The Pi Network registered its mark described as follows: consists of a stylized yellow pi symbol with two yellow dots above it that resembles two yellow conjoined stick figures all within a yellow circular border.

The bottom line is that the symbol (π) by itself is not capable of trademark protection, just like other mathematical symbols are not, but if you add a period (.) or some other stylized element to the symbol, you may be able to register for trademark protections.

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DISCLAIMER: This is intended for information only and should not be considered legal advice.

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