Lydia Lovelace’s Intellectual Property Business Options
Denise J. Calapp
American Intercontinental University
Which Business Type?
Lydia Lovelace has an idea. She wants to bring her idea to the public, to increase safety and ease of use. Her spouse, Peter Lovelace is worried about the financial liability and the time away from the family. She will need help from partners with capital and business savvy. We will be exploring what type of business would best suit her situation.
Lydia Lovelace’s Intellectual Property Business Options Lydia Lovelace, inventor has an idea (intellectual property) that will change a consumer market, bringing greater safety and greater ease of use. Lydia does not have capital or expertise to invest. Peter Lovelace, spouse is concerned for time away from family and financial liability issues.
According to the textbook, Introduction to Business, Lydia learns of the different types of businesses available. Sole Proprietorship is the easiest to get started, gives her the most control and leaves the biggest liability. Partnerships are also fairly easy to get started. She would still have a large amount of control over the development and marketing of her idea, her liability would still be very large. Corporations are much more difficult to get started and have more involved regulations. A Corporation structure would give her the least control over the development and marketing of her idea, and the least amount of liability. (Board, pgs 44-45)
Lydia’s desire to make the world a safer place is admirable. She must weigh the costs and benefits of development, marketing and selling of her idea against the sacrifice of money, time and energy. In order for her to bring her idea to the market (which I am assuming is a free market), she will need partners as she does not possess the capital or the business skills to persue her goal on her own at this time. She could of course gain those items with a further investment of time. In the meantime the idea could be developed by others. So I believe that a sole proprietorship is off the table.
She could start a Limited Liability Company. She will need someone to collaborate with on legal issues, business issues, including capital procurement, marketing and financial planning. Peter – her spouse, is concerned with the time away from family and financial liability. The Limited Liability Company would limit her financial liability. This type of business would also lessen her time involved as she would rely on the expertise of her partners for the skills she does not possess. This type of business
