Page 61 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes will have access to business information that you may want to keep private, you should consider
having them sign these agreements. If you are ordering a thousand gizmos for your grand
opening, you don’t want the supplier to call your competitor to see if they want a thousand
gizmos so that they can offer them on the same day. The more confidential information your
business plan contains, the more important these agreements are.

Zoning

When you are selecting the location for your business, you will need to make sure it is properly
zoned for the type of business you plan to operate. It is not okay to just assume that, if your
business is of the same type as the one that is currently there, the zoning is appropriate. Zoning
may have changed while the other business was operating, and that business might have been
provided an exemption that won’t be provided to yours.

Task Conduct a survey of your local area and study the legal issues of the business
while they are initiated.

Self Assessment

Fill in the blanks:
11. One may need a variety of licenses or permits depending on what type of business he
plans to engage in, he may need a variety of …………….. or……………..
12. When one is selecting the ……………for the business he will need to make sure it is
properly zoned for the type of business you plan to operate.

13. Non-disclosure agreements are more important if the business contains more
……………….. information.
14. A business could be structured as a sole-proprietorship, partnership, limited partnership,
corporation, S-corporation, or …………. liability company.
15. Entrepreneur will need to make sure that the business …………. he plans to use is not
already being used by another business.

Case Study Pfizer’s IPR Battles in China for Viagra

In November 2006, the Bangbu Intermediate People’s Court in the Anhui Province of the
People’s Republic of China (China) sentenced a Chinese man, Xi Yongli (Yongli), to eight
years in prison for producing and selling counterfeits of Viagra, a drug for erectile
dysfunction4 (ED), developed by the world’s largest pharmaceutical company, Pfizer Inc.
(Pfizer).
In December 2006, a Beijing court upheld Pfizer’s Chinese patent for Viagra and ordered two
Chinese companies to stop making generic versions of the drug and to pay compensation of
600,000 yuan (US$ 76,726) for infringing on the registered trademark of Pfizer.

Contd...

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