For example, a new product manager told me that his team would often spend weeks and months working on a new product concept, but when they took it to court, the answer they got was basically, “No, you can`t do that.” Managers secretly began calling the legal department the “sales prevention department.” Then a new CEO came along and completely changed the culture of the company. He realized what was happening and told the lawyers bluntly, “Your role is not to make decisions. We will decide what we can and cannot do. You can discuss legal issues with us and consider some alternatives, but we will make the decisions. From that point on, the lawyers worked as part of the team, but with the managers who made the decisions, not with the lawyers. Therefore, I think that corporate culture is a very important aspect that makes this possible. Drawing on more than 25 years of experience from our founding partners, Legal Advantage LLC provides unparalleled intellectual property legal support to Am Law 500 and Fortune 500 companies in Washington, DC, New York, New Jersey, San Jose, Los Angeles, Cincinnati, Boston, Chicago and other major U.S. cities. Siedel: Absolutely. The traditional image of lawyers had a negative orientation – risk control, gatekeepers to determine new business methods and make decisions. The new image shows lawyers as part of a management team, as gateways to new opportunities, as facilitators and not as people who say no.
Understanding that legal resources are important to business success, savvy managers should welcome the opportunity to tap into this hidden source of competitive advantage. An even stronger example: even if companies have the ability to fire at will, the use of this right can destroy trust within the company and affect the ability to hire the best people. This can be countered by job guarantees. A classic example is Lincoln Electric, a successful manufacturer of welding equipment in Ohio. They began to guarantee jobs as early as the 1920s. It was a wonderful attraction for top talent. Instead of the cycle you see in other companies where employees are laid off during a downturn, then hired, hired, and trained as business picks up, and then repeats the process, Lincoln Electric is able to retain the best employees. Well, if there`s a reason for a layoff if you`re not gambling, you`re at Lincoln Electric. The job guarantee does not apply to lazy people. So the lesson is to take a holistic approach. Don`t get lost in the legal rules. What is the purpose of the company? If the goal is to hire and retain top talent, it may be wise to give up your ability to shoot at will.
We also use the latest CAD technologies and follow a thorough 72-point checklist to ensure high-quality product delivery. Finally, our commitment to our customers` privacy and the strictest security measures means that your ideas – and all the valuable information around them – remain protected. Siedel: Proactive law contrasts with the traditional approach, in which managers react to legal issues. The proactive approach has two elements. One is a preventative approach – trying to avoid future legal problems. The other is a more positive approach that requires considering legal issues as business opportunities. There is an analogy that relates to the medical field. Let`s say I have malaria. Going to a doctor for treatment would be a reactive approach. A preventative approach would involve my use of mosquito nets to prevent mosquito bites that cause malaria.
For a more positive approach, I could try eliminating mosquitoes by draining the fields. Addressing the underlying problem could, in turn, create opportunities other than malaria prevention, such as arable land development. Preventive and positive strategies are the two strands of the proactive approach that are largely absent from business. Another factor that comes into play – and it`s just not in the law, but in all aspects of business – is that studies have shown that people spend 87% of their time responding to problems, and only 13% of their time learning from their experiences. So, if a company is involved in litigation, it will spend most of its time focusing on the case. Once the litigation is over, they will rarely think about learning from the case to change their business operations. They want to forget about the litigation when it is over and move on to other issues. The last thing they want to do is keep talking about it. But this discipline distinguishes companies and is also the reason why the legal aspect of business strategy is difficult to imitate. Siedel: This is a difficult question for which there is no silver bullet.
Basically, if you`re in a country that doesn`t respect intellectual property rights, you have a problem. You probably can`t solve it completely without changing the law enforcement of the country, but what you can do as a manager is be aware of the different IP options. For example, using a patent option requires public disclosure, so you can use a trade secret option instead, which many companies have successfully exploited over the years. Coca-Cola is a good example. You keep your formula secret in the company. If I move to a country that does not respect intellectual property rights, the top priority is to find a reliable partner in the country, in addition to choosing a suitable legal option. I want to develop incentives so that the partner also has reasons to protect our mutual intellectual property. Assignment – in the field of intellectual property, an assignment is a legal transfer of ownership or use rights from one entity to another.
Transitioning to a proactive legal mindset can be a huge competitive advantage. Professor George Siedel explains. This includes licensing to more than one entity. This means that a licensee can exploit the invention, but with it, others who have obtained the license for the same patent may be eligible for the same exploitation. The Licensor is also free to exploit the same intellectual property. With our dedicated account managers, on-site customer support, 24-hour express delivery, and less than 1% rejection rate in U.S. Patent and Trademark Office design drawings, we are confident that we have the advantage of meeting your exact needs. I recently received an email from one of my students who was aware of this corporate culture issue. His marketing team had developed a new marketing plan and forwarded it to the legal department, which said, “No, you can`t do that” and presented no options. When his team realized that a change in corporate culture was needed, they hit back by saying, “We`re going to do it anyway and use the least risky legal option.” This is sometimes what it takes to change the culture of the company.
Siedel: That would be a good example of the proactive approach of not only understanding the law, but also understanding that this is a fundamental aspect of business strategy. A survey of CEOs found that the most important role of a corporate lawyer is to educate managers on legal issues. In terms of the level of understanding, the manager should be able to communicate with lawyers, should be able to understand what lawyers are advising, and should be able to implement legal advice. You should also be able to communicate with all stakeholders in the business, as it is usually the manager who must explain legal options and concerns to customers, suppliers, creditors, employees and shareholders.