1 00:00:00,125 --> 00:00:01,085 Hello, ladies. 2 00:00:01,145 --> 00:00:04,058 Welcome to this solo episode 3 00:00:04,058 --> 00:00:05,888 of the Hourly to Exit Podcast, 4 00:00:06,191 --> 00:00:08,458 where I ask and answer, 5 00:00:08,792 --> 00:00:10,652 does your expertise based 6 00:00:10,652 --> 00:00:12,632 business have inventory? 7 00:00:13,277 --> 00:00:16,037 Per Investopedia inventory 8 00:00:16,037 --> 00:00:17,657 refers to a company's 9 00:00:17,657 --> 00:00:19,637 goods or products that are 10 00:00:19,637 --> 00:00:21,527 ready to sell, along with 11 00:00:21,527 --> 00:00:23,261 the raw materials that 12 00:00:23,261 --> 00:00:24,641 are used to produce them. 13 00:00:25,043 --> 00:00:27,023 Inventory can be categorized 14 00:00:27,023 --> 00:00:28,493 in three different ways. 15 00:00:29,125 --> 00:00:31,073 Raw materials work in 16 00:00:31,073 --> 00:00:33,473 progress and finished goods. 17 00:00:34,145 --> 00:00:35,276 So now let's look at 18 00:00:35,276 --> 00:00:36,296 the typical stages 19 00:00:36,296 --> 00:00:37,886 of development for an 20 00:00:37,886 --> 00:00:39,146 expertise-based business. 21 00:00:39,741 --> 00:00:42,141 Most of us start by providing 22 00:00:42,141 --> 00:00:44,121 one-on-one services in 23 00:00:44,121 --> 00:00:45,561 our chosen field, which 24 00:00:45,561 --> 00:00:47,331 is usually the area of 25 00:00:47,331 --> 00:00:48,681 our prior employment. 26 00:00:48,686 --> 00:00:51,203 Many of us are ex-corporate, 27 00:00:51,480 --> 00:00:53,640 so maybe you're marketing 28 00:00:53,640 --> 00:00:55,920 or finance it or legal. 29 00:00:56,298 --> 00:00:58,665 during this initial stage, we 30 00:00:58,725 --> 00:01:01,245 develop our expertise through. 31 00:01:01,497 --> 00:01:02,636 Obviously our firsthand 32 00:01:02,636 --> 00:01:03,896 experience that we brought 33 00:01:03,896 --> 00:01:05,156 from us from employment. 34 00:01:05,662 --> 00:01:07,282 From that, we may have some 35 00:01:07,282 --> 00:01:09,292 original ideas about the way 36 00:01:09,297 --> 00:01:10,642 things could be done better. 37 00:01:10,702 --> 00:01:12,322 Maybe that was the impetus 38 00:01:12,322 --> 00:01:14,092 behind going out on our own. 39 00:01:14,587 --> 00:01:17,107 As we get clients, the type 40 00:01:17,107 --> 00:01:18,817 of work that they request from 41 00:01:18,817 --> 00:01:20,767 us will learn something new 42 00:01:20,767 --> 00:01:22,687 with every client engagement 43 00:01:22,687 --> 00:01:23,947 that will add their expertise. 44 00:01:24,450 --> 00:01:25,410 Many of us will get 45 00:01:25,410 --> 00:01:27,720 certifications or additional 46 00:01:27,725 --> 00:01:29,760 training, and depending on 47 00:01:29,760 --> 00:01:31,470 your field, you also may need 48 00:01:31,470 --> 00:01:32,790 to do continuing education. 49 00:01:33,682 --> 00:01:35,608 We may do research, either 50 00:01:35,712 --> 00:01:38,147 primary or secondary when we 51 00:01:38,147 --> 00:01:40,307 find holes in our knowledge 52 00:01:40,367 --> 00:01:41,627 or we need something to 53 00:01:41,627 --> 00:01:43,745 support, one of our theories. 54 00:01:44,120 --> 00:01:45,788 And occasionally we will 55 00:01:45,788 --> 00:01:48,038 need to use a subcontractor 56 00:01:48,043 --> 00:01:49,448 who has an area of expertise 57 00:01:49,448 --> 00:01:50,528 that we don't have. 58 00:01:50,818 --> 00:01:52,318 And so those subcontractor 59 00:01:52,318 --> 00:01:53,097 deliverables will 60 00:01:53,157 --> 00:01:54,837 also be something that 61 00:01:54,837 --> 00:01:56,367 feeds our expertise. 62 00:01:56,827 --> 00:01:58,447 Now, what I would call these, 63 00:01:59,013 --> 00:02:00,633 Elements during the initial 64 00:02:00,633 --> 00:02:02,073 stage of developing our 65 00:02:02,073 --> 00:02:03,303 expertise based business. 66 00:02:03,613 --> 00:02:06,193 I call them raw materials. 67 00:02:06,431 --> 00:02:08,210 They're all the pieces, the 68 00:02:08,210 --> 00:02:09,620 nuts and the bolts and the 69 00:02:09,620 --> 00:02:11,210 screws and the things that 70 00:02:11,210 --> 00:02:13,207 we bring together, that 71 00:02:13,207 --> 00:02:15,187 will form our expertise. 72 00:02:15,664 --> 00:02:18,244 Now as our expertise matures, 73 00:02:18,537 --> 00:02:20,213 we will develop internal 74 00:02:20,213 --> 00:02:22,193 resources so that we can 75 00:02:22,193 --> 00:02:24,323 predictably and efficiently 76 00:02:24,328 --> 00:02:25,943 deliver the results 77 00:02:25,948 --> 00:02:27,293 that our clients value. 78 00:02:27,820 --> 00:02:29,403 At this point, we've been 79 00:02:29,403 --> 00:02:31,023 servicing our clients 80 00:02:31,234 --> 00:02:32,494 we figured out what they 81 00:02:32,494 --> 00:02:34,054 want and how the best way 82 00:02:34,054 --> 00:02:35,314 to deliver it to them. 83 00:02:35,585 --> 00:02:37,414 And so at this point we start 84 00:02:37,654 --> 00:02:39,274 creating some infrastructure. 85 00:02:39,839 --> 00:02:41,455 To deliver those one-on-one 86 00:02:41,455 --> 00:02:43,465 services more predictively 87 00:02:43,465 --> 00:02:44,785 and efficiently, and therefore 88 00:02:44,785 --> 00:02:46,255 more profitably, of course. 89 00:02:46,589 --> 00:02:47,909 So those include systems 90 00:02:47,909 --> 00:02:49,969 and processes and SOPs, 91 00:02:50,900 --> 00:02:52,533 templates, frameworks, 92 00:02:52,538 --> 00:02:53,613 and methodologies. 93 00:02:53,901 --> 00:02:54,800 And I'm even gonna put 94 00:02:54,800 --> 00:02:56,780 employees and contractors in 95 00:02:56,785 --> 00:02:58,040 this category, even though 96 00:02:58,040 --> 00:02:59,480 it's a little bit kind of to 97 00:02:59,480 --> 00:03:02,524 the left, but basically, call 98 00:03:02,524 --> 00:03:03,944 these the work in progress 99 00:03:04,004 --> 00:03:06,874 stage where we have taken 100 00:03:06,874 --> 00:03:08,554 all the raw materials from 101 00:03:08,554 --> 00:03:10,354 that initial kind of building 102 00:03:10,354 --> 00:03:12,094 our expertise stage, we've 103 00:03:12,214 --> 00:03:14,531 figured out, the best way to 104 00:03:14,531 --> 00:03:16,984 serve our clients, and now 105 00:03:16,989 --> 00:03:18,384 we're starting to put the. 106 00:03:18,416 --> 00:03:20,066 Scaffolding in place 107 00:03:20,323 --> 00:03:21,553 for to serve them. 108 00:03:21,959 --> 00:03:23,669 and then I add the, employees 109 00:03:23,669 --> 00:03:24,689 and contractors in there 110 00:03:24,689 --> 00:03:26,969 because they are the extension 111 00:03:26,969 --> 00:03:29,309 of building these structures 112 00:03:29,309 --> 00:03:31,282 that helps you, serve your 113 00:03:31,282 --> 00:03:33,302 one-on-one clients, when you 114 00:03:33,302 --> 00:03:34,772 have these kinds of systems in 115 00:03:34,772 --> 00:03:36,032 place and frameworks in place 116 00:03:36,032 --> 00:03:37,802 and templates so that they can 117 00:03:37,960 --> 00:03:39,871 also serve your clients, and 118 00:03:39,871 --> 00:03:40,831 provide those same results. 119 00:03:41,624 --> 00:03:42,404 So that's the work 120 00:03:42,404 --> 00:03:43,484 in progress stage. 121 00:03:43,814 --> 00:03:46,247 Now, eventually we hit a 122 00:03:46,247 --> 00:03:48,497 revenue ceiling or an impact 123 00:03:48,497 --> 00:03:49,877 ceiling because there's 124 00:03:49,997 --> 00:03:52,266 only so many, clients we can 125 00:03:52,266 --> 00:03:53,616 serve on a one-on-one basis. 126 00:03:54,051 --> 00:03:55,941 so we start looking for ways 127 00:03:55,941 --> 00:03:57,711 to increase our revenue or 128 00:03:57,711 --> 00:03:59,646 increase our without just 129 00:03:59,646 --> 00:04:00,966 putting in more hours. 130 00:04:01,218 --> 00:04:02,766 So we know what that means. 131 00:04:02,766 --> 00:04:04,520 We need to, figure out a 132 00:04:04,520 --> 00:04:06,546 way to decouple our income 133 00:04:06,546 --> 00:04:07,836 or to decouple our in. 134 00:04:07,836 --> 00:04:09,903 Packed from ours. 135 00:04:10,286 --> 00:04:11,876 And so we start looking 136 00:04:11,876 --> 00:04:13,646 for resources that tell us 137 00:04:13,895 --> 00:04:15,305 how to scale, how to add 138 00:04:15,310 --> 00:04:16,445 leverage to our business. 139 00:04:16,958 --> 00:04:19,035 And probably we are 140 00:04:19,095 --> 00:04:20,235 either hiring a business 141 00:04:20,235 --> 00:04:22,242 coach or we are following 142 00:04:22,242 --> 00:04:23,052 a business coach. 143 00:04:23,057 --> 00:04:23,502 You know, we're listening 144 00:04:23,507 --> 00:04:24,462 to their podcast, we're 145 00:04:24,462 --> 00:04:25,512 reading their books. 146 00:04:25,816 --> 00:04:27,703 but in any case, however 147 00:04:27,793 --> 00:04:29,943 you engage the same. 148 00:04:30,088 --> 00:04:32,461 advice is that you need 149 00:04:32,461 --> 00:04:33,931 to turn your expertise 150 00:04:34,021 --> 00:04:36,261 into intellectual property 151 00:04:36,261 --> 00:04:37,701 so you can create new 152 00:04:37,701 --> 00:04:39,441 scalable revenue streams. 153 00:04:39,908 --> 00:04:41,334 So these are things like 154 00:04:41,364 --> 00:04:42,754 programs and courses and 155 00:04:42,754 --> 00:04:44,344 books, maybe even software. 156 00:04:44,674 --> 00:04:45,694 I do put productized 157 00:04:45,699 --> 00:04:47,134 services in this one. 158 00:04:47,784 --> 00:04:49,084 Templates that are now 159 00:04:49,084 --> 00:04:50,314 being sold as opposed 160 00:04:50,314 --> 00:04:51,304 to use internally. 161 00:04:51,579 --> 00:04:53,409 And, licensing when you 162 00:04:53,414 --> 00:04:55,269 have any of these things 163 00:04:55,269 --> 00:04:57,099 above that third parties 164 00:04:57,099 --> 00:04:58,059 wanna use as well. 165 00:04:58,409 --> 00:05:00,869 So these I call finished 166 00:05:00,869 --> 00:05:02,189 products cuz they are the 167 00:05:02,189 --> 00:05:03,419 things that you are literally 168 00:05:03,424 --> 00:05:05,459 selling that is not your 169 00:05:05,459 --> 00:05:07,229 time, but they are things 170 00:05:07,229 --> 00:05:08,489 that are separate from you 171 00:05:08,489 --> 00:05:09,719 that you'll be selling. 172 00:05:10,020 --> 00:05:10,499 So those are your 173 00:05:10,499 --> 00:05:11,369 finished products. 174 00:05:11,757 --> 00:05:13,423 we have raw materials. 175 00:05:13,782 --> 00:05:15,618 We have work in progress 176 00:05:15,858 --> 00:05:17,718 and we have finished goods, 177 00:05:17,980 --> 00:05:19,788 and these occur throughout 178 00:05:19,788 --> 00:05:20,928 the development of our 179 00:05:20,928 --> 00:05:22,278 expertise-based business. 180 00:05:22,647 --> 00:05:24,648 And what is each and 181 00:05:24,648 --> 00:05:25,638 every one of them? 182 00:05:26,090 --> 00:05:27,290 Intellectual property. 183 00:05:27,680 --> 00:05:29,300 So just because you don't 184 00:05:29,300 --> 00:05:31,250 have a stockroom filled 185 00:05:31,250 --> 00:05:32,660 with shelves of physical 186 00:05:32,660 --> 00:05:34,250 materials, that doesn't mean 187 00:05:34,255 --> 00:05:35,420 that you don't have inventory. 188 00:05:35,570 --> 00:05:36,950 You do have inventory. 189 00:05:37,190 --> 00:05:38,540 Now, of course, this 190 00:05:38,540 --> 00:05:40,316 is not the, accounting 191 00:05:40,321 --> 00:05:41,756 definition of inventory. 192 00:05:41,947 --> 00:05:42,337 this is not the 193 00:05:42,337 --> 00:05:43,357 cost of good solds. 194 00:05:43,357 --> 00:05:44,587 It's gonna go onto your 195 00:05:44,725 --> 00:05:45,973 financial statements. 196 00:05:46,344 --> 00:05:48,313 But the common sense, 197 00:05:48,678 --> 00:05:50,588 notion of inventory, 198 00:05:50,864 --> 00:05:52,383 where you have the. 199 00:05:52,558 --> 00:05:54,778 Inputs, the raw materials, 200 00:05:55,158 --> 00:05:56,508 the structures that you put 201 00:05:56,508 --> 00:05:59,327 in place to help, yourself to 202 00:05:59,327 --> 00:06:01,157 create those finished goods. 203 00:06:01,965 --> 00:06:03,248 And so you need to take 204 00:06:03,248 --> 00:06:04,868 the same care with your 205 00:06:04,868 --> 00:06:06,878 inventory that a car 206 00:06:06,883 --> 00:06:08,288 manufacturer does with its 207 00:06:08,288 --> 00:06:10,958 parts or that a retail store 208 00:06:10,963 --> 00:06:12,878 takes with its merchandise. 209 00:06:13,268 --> 00:06:14,628 So with your intellectual 210 00:06:14,628 --> 00:06:16,518 property inventory, you need 211 00:06:16,518 --> 00:06:17,870 to be thinking about the 212 00:06:17,870 --> 00:06:19,850 creation, the development. 213 00:06:19,866 --> 00:06:21,546 Protection and of 214 00:06:21,546 --> 00:06:23,196 course the monetization 215 00:06:23,426 --> 00:06:25,706 of your IP inventory. 216 00:06:26,089 --> 00:06:27,889 And so now we're gonna just 217 00:06:27,889 --> 00:06:29,689 go back over those stages 218 00:06:29,689 --> 00:06:31,514 of inventory and talk about 219 00:06:31,604 --> 00:06:34,364 the best way to manage it. 220 00:06:34,528 --> 00:06:36,112 In the context of intellectual 221 00:06:36,112 --> 00:06:38,799 property and these stages 222 00:06:38,799 --> 00:06:41,199 apply whether that IP is owned 223 00:06:41,199 --> 00:06:44,246 by you or licensed to you. 224 00:06:44,694 --> 00:06:46,739 So first, raw materials. 225 00:06:47,087 --> 00:06:48,874 at this stage of development, 226 00:06:49,164 --> 00:06:52,074 it is most mostly about making 227 00:06:52,079 --> 00:06:54,204 sure that you are using and 228 00:06:54,324 --> 00:06:56,604 understanding contracts cuz 229 00:06:56,604 --> 00:06:58,374 it's contracts that govern 230 00:06:58,554 --> 00:07:00,701 the creation ownership. 231 00:07:00,899 --> 00:07:02,282 Assignment and 232 00:07:02,282 --> 00:07:03,572 licensing of rights. 233 00:07:03,975 --> 00:07:05,415 With respect to copyrights. 234 00:07:05,655 --> 00:07:07,035 So at the raw material 235 00:07:07,035 --> 00:07:08,595 stage, it's all about the 236 00:07:08,595 --> 00:07:10,470 contracts, with the exception 237 00:07:10,470 --> 00:07:12,360 of your original ideas. 238 00:07:12,720 --> 00:07:14,070 So when you have original 239 00:07:14,070 --> 00:07:15,780 idea, first we're making 240 00:07:15,780 --> 00:07:17,550 sure that we are creating 241 00:07:17,555 --> 00:07:19,273 copyrightable materials by 242 00:07:19,366 --> 00:07:20,961 putting them in tangible form. 243 00:07:20,961 --> 00:07:21,801 Of course, they have to 244 00:07:21,801 --> 00:07:24,021 be original and have some 245 00:07:24,021 --> 00:07:25,491 element of creativity, 246 00:07:25,491 --> 00:07:26,091 although that's a. 247 00:07:26,146 --> 00:07:27,256 Fairly low bar. 248 00:07:27,573 --> 00:07:29,280 when you are putting your 249 00:07:29,280 --> 00:07:31,080 ideas, expressing them in 250 00:07:31,080 --> 00:07:32,490 tangible form, their original 251 00:07:32,490 --> 00:07:34,520 ideas, you are immediately 252 00:07:34,520 --> 00:07:36,017 creating, copyright 253 00:07:36,017 --> 00:07:38,131 ownership in that, element 254 00:07:38,131 --> 00:07:38,881 that you create in that 255 00:07:38,881 --> 00:07:39,811 material that you create. 256 00:07:40,144 --> 00:07:41,314 And it does not 257 00:07:41,314 --> 00:07:42,304 require registration. 258 00:07:42,304 --> 00:07:43,504 We'll talk about registration 259 00:07:43,504 --> 00:07:44,824 later, but at the raw 260 00:07:44,824 --> 00:07:46,622 material stage, it is just 261 00:07:46,622 --> 00:07:47,942 important to make sure that 262 00:07:47,942 --> 00:07:49,142 you are putting your original 263 00:07:49,142 --> 00:07:51,993 ideas into tangible form. 264 00:07:52,459 --> 00:07:53,861 Then the client work. 265 00:07:54,101 --> 00:07:55,516 So here, I'm sure your 266 00:07:55,516 --> 00:07:56,566 clients are gonna request 267 00:07:56,626 --> 00:07:58,306 agreements, so now it's 268 00:07:58,306 --> 00:07:59,236 important for you to make 269 00:07:59,236 --> 00:08:00,586 sure you understand those 270 00:08:00,586 --> 00:08:01,666 agreements that you're reading 271 00:08:01,666 --> 00:08:04,156 them and that you understand. 272 00:08:04,468 --> 00:08:06,865 Who owns the deliverables. 273 00:08:07,165 --> 00:08:08,425 Now, sometimes you're 274 00:08:08,425 --> 00:08:09,595 creating something completely 275 00:08:09,595 --> 00:08:10,825 original for a client. 276 00:08:11,185 --> 00:08:12,415 maybe you're doing something 277 00:08:12,415 --> 00:08:13,742 very creative, like, 278 00:08:13,752 --> 00:08:15,222 creating a new logo for them. 279 00:08:15,501 --> 00:08:16,482 But if you're doing something 280 00:08:16,482 --> 00:08:17,922 that is based on your original 281 00:08:17,922 --> 00:08:18,912 ideas, they're coming to 282 00:08:18,912 --> 00:08:21,132 you because you know how 283 00:08:21,132 --> 00:08:23,678 to, train, workplaces to 284 00:08:23,678 --> 00:08:24,518 have a better culture. 285 00:08:24,518 --> 00:08:25,754 So you have your own 286 00:08:25,880 --> 00:08:27,066 ideas around that. 287 00:08:27,306 --> 00:08:28,506 You wanna make sure that those 288 00:08:28,506 --> 00:08:29,916 client agreements reflect 289 00:08:29,916 --> 00:08:31,626 the fact that some of those 290 00:08:31,626 --> 00:08:33,066 deliverables are your original 291 00:08:33,071 --> 00:08:34,446 materials and that you will 292 00:08:34,451 --> 00:08:35,946 retain ownership in them. 293 00:08:36,520 --> 00:08:37,810 when we are going out and 294 00:08:37,810 --> 00:08:39,310 getting certifications 295 00:08:39,315 --> 00:08:40,030 or trainings or 296 00:08:40,030 --> 00:08:42,099 continuing, education. 297 00:08:42,456 --> 00:08:45,066 That is a circumstance of you 298 00:08:45,446 --> 00:08:47,756 borrowing or being licensed 299 00:08:47,761 --> 00:08:49,286 the right to use someone 300 00:08:49,286 --> 00:08:50,966 else's intellectual property. 301 00:08:51,326 --> 00:08:52,676 Here it's important. 302 00:08:52,676 --> 00:08:53,846 Again, it's a contract. 303 00:08:53,846 --> 00:08:55,226 A license is a contract. 304 00:08:55,616 --> 00:08:57,116 We need to understand 305 00:08:57,146 --> 00:08:58,736 the limits of your rights 306 00:08:58,741 --> 00:09:00,296 to use those materials. 307 00:09:00,660 --> 00:09:02,517 typically you will have the 308 00:09:02,517 --> 00:09:03,650 right to use, know, anything 309 00:09:03,650 --> 00:09:04,580 you get in a certification 310 00:09:04,580 --> 00:09:05,810 program or training 311 00:09:05,810 --> 00:09:07,593 program, you can use them 312 00:09:07,593 --> 00:09:08,805 And providing one-on-one 313 00:09:08,805 --> 00:09:09,885 services to your clients. 314 00:09:10,458 --> 00:09:11,865 But what you can't do 315 00:09:12,015 --> 00:09:14,448 typically is sublicense those 316 00:09:14,448 --> 00:09:15,798 materials to somebody else. 317 00:09:15,798 --> 00:09:16,938 You can't create a training 318 00:09:16,943 --> 00:09:17,928 program that you're selling 319 00:09:17,928 --> 00:09:19,278 to somebody else using 320 00:09:19,278 --> 00:09:20,178 the materials that you got 321 00:09:20,183 --> 00:09:21,618 from a training program or 322 00:09:21,618 --> 00:09:22,968 certification program, right? 323 00:09:23,321 --> 00:09:24,851 So we need to make sure 324 00:09:24,851 --> 00:09:26,411 that we understand the 325 00:09:26,411 --> 00:09:27,821 limits of our licenses, 326 00:09:27,821 --> 00:09:28,781 and that is about 327 00:09:28,841 --> 00:09:30,641 understanding the contract. 328 00:09:31,032 --> 00:09:32,497 When we're doing research, 329 00:09:32,648 --> 00:09:35,272 whether you're using AI or 330 00:09:35,362 --> 00:09:37,636 other sources, make sure that 331 00:09:37,636 --> 00:09:39,136 you are tracking the third 332 00:09:39,191 --> 00:09:40,276 party materials that you are 333 00:09:40,281 --> 00:09:42,106 incorporating into your work. 334 00:09:42,519 --> 00:09:44,098 Now here, if you are using 335 00:09:44,098 --> 00:09:45,928 AI or if you are using 336 00:09:45,928 --> 00:09:47,788 other sources, you need to 337 00:09:47,793 --> 00:09:51,104 make sure that, you are. 338 00:09:51,290 --> 00:09:52,970 not infringing 339 00:09:53,000 --> 00:09:54,350 anyone's rights. 340 00:09:54,700 --> 00:09:55,930 AI in particular. 341 00:09:55,930 --> 00:09:56,532 I mean, I'll 342 00:09:56,532 --> 00:09:57,462 confess that chat. 343 00:09:57,462 --> 00:09:58,422 G B T is the one that 344 00:09:58,427 --> 00:09:59,322 I'm familiar with. 345 00:09:59,573 --> 00:10:01,272 They don't provide attribution 346 00:10:01,272 --> 00:10:02,832 for what they provide to 347 00:10:02,832 --> 00:10:04,722 you, so you will need to use 348 00:10:04,722 --> 00:10:06,072 other sources like Grammarly 349 00:10:06,072 --> 00:10:06,972 to make sure that you aren't 350 00:10:06,977 --> 00:10:08,232 infringing anyone's rights 351 00:10:08,599 --> 00:10:10,605 if you are, using research, 352 00:10:10,605 --> 00:10:12,195 depending on how you're using 353 00:10:12,195 --> 00:10:13,708 it, if you're not transforming 354 00:10:13,708 --> 00:10:14,638 it anyway, if you're just, 355 00:10:14,668 --> 00:10:15,988 maybe you're taking someone's. 356 00:10:16,284 --> 00:10:17,767 pie charts or someone's, 357 00:10:17,767 --> 00:10:18,907 you survey results and 358 00:10:18,907 --> 00:10:19,906 you're incorporating 359 00:10:19,911 --> 00:10:20,926 them into your work. 360 00:10:21,266 --> 00:10:22,076 if this is something 361 00:10:22,076 --> 00:10:23,699 that are going to be, 362 00:10:23,759 --> 00:10:25,824 selling, you should have 363 00:10:25,829 --> 00:10:27,084 permission to do that. 364 00:10:27,545 --> 00:10:28,572 so that's important 365 00:10:28,572 --> 00:10:29,112 to know there. 366 00:10:29,536 --> 00:10:31,034 then your subcontractor. 367 00:10:31,034 --> 00:10:32,934 Deliverables always, 368 00:10:33,084 --> 00:10:34,870 always did I say, always 369 00:10:35,308 --> 00:10:36,340 use a written agreement 370 00:10:36,340 --> 00:10:37,570 with subcontractors. 371 00:10:37,810 --> 00:10:40,150 That is the only way to ensure 372 00:10:40,150 --> 00:10:41,860 that you own the deliverables. 373 00:10:42,390 --> 00:10:43,770 In the absence of a written 374 00:10:43,770 --> 00:10:45,900 contract, the subcontractor, 375 00:10:46,096 --> 00:10:47,430 the human being who created 376 00:10:47,430 --> 00:10:49,050 the deliverables, owns 377 00:10:49,050 --> 00:10:49,920 the copyrights in it. 378 00:10:50,130 --> 00:10:50,970 So you need to have that 379 00:10:50,970 --> 00:10:51,960 written agreement so that 380 00:10:51,960 --> 00:10:53,220 you own those deliverables. 381 00:10:53,583 --> 00:10:54,567 And the other thing that 382 00:10:54,572 --> 00:10:55,887 you get with your written 383 00:10:55,887 --> 00:10:57,177 agreement is that you 384 00:10:57,177 --> 00:10:58,819 can make sure you put in 385 00:10:58,824 --> 00:11:00,699 there a requirement or 386 00:11:00,699 --> 00:11:02,616 a warranty, that those 387 00:11:02,616 --> 00:11:04,116 deliverables are original. 388 00:11:04,116 --> 00:11:04,986 You don't want 389 00:11:04,986 --> 00:11:05,946 your subcontractor 390 00:11:05,946 --> 00:11:07,699 delivering, some ai. 391 00:11:07,952 --> 00:11:08,942 Crapola, right? 392 00:11:09,269 --> 00:11:10,289 So you wanna make sure 393 00:11:10,289 --> 00:11:12,059 that you have clarification 394 00:11:12,059 --> 00:11:13,049 about the nature of 395 00:11:13,049 --> 00:11:14,399 those deliverables so 396 00:11:14,399 --> 00:11:16,139 you can depend upon them. 397 00:11:16,449 --> 00:11:18,789 And if your subcontractor is 398 00:11:18,789 --> 00:11:20,391 using their own preexisting 399 00:11:20,391 --> 00:11:22,131 materials, again, like 400 00:11:22,131 --> 00:11:23,031 they have some area of 401 00:11:23,036 --> 00:11:23,931 expertise that you don't 402 00:11:23,931 --> 00:11:25,431 have, and so they're using, 403 00:11:25,715 --> 00:11:27,125 their own foundational 404 00:11:27,125 --> 00:11:29,855 materials to help you then. 405 00:11:29,957 --> 00:11:31,487 They, of course, are going to 406 00:11:31,487 --> 00:11:33,137 want to reserve rights in that 407 00:11:33,137 --> 00:11:34,907 preexisting material, but you 408 00:11:34,907 --> 00:11:36,197 need to make sure that the 409 00:11:36,197 --> 00:11:37,577 rights that you do get the 410 00:11:37,577 --> 00:11:39,107 license that you get to use 411 00:11:39,107 --> 00:11:41,141 your preexisting material is 412 00:11:41,141 --> 00:11:43,331 sufficient for your purposes. 413 00:11:43,601 --> 00:11:44,891 Let's say you do need 414 00:11:44,891 --> 00:11:45,431 to use it with your 415 00:11:45,431 --> 00:11:46,781 clients, then you will 416 00:11:46,781 --> 00:11:48,551 need a right to sublicense 417 00:11:48,551 --> 00:11:50,069 it, to your clients. 418 00:11:50,069 --> 00:11:50,969 Or maybe you need to 419 00:11:50,969 --> 00:11:51,959 use it more than once, 420 00:11:51,959 --> 00:11:53,159 whatever it may be. 421 00:11:53,397 --> 00:11:55,259 You need to make sure that you 422 00:11:55,259 --> 00:11:56,699 have the rights that you need. 423 00:11:57,144 --> 00:11:58,914 In the deliverables from your 424 00:11:58,914 --> 00:12:00,234 subcontractors if you're not 425 00:12:00,234 --> 00:12:01,464 going to own them outright. 426 00:12:01,989 --> 00:12:02,829 All right, so that was 427 00:12:02,829 --> 00:12:04,679 the, raw material stage. 428 00:12:05,039 --> 00:12:06,479 Now, the work in progress 429 00:12:06,479 --> 00:12:08,759 stage that is really pretty 430 00:12:08,759 --> 00:12:10,782 much about positioning. 431 00:12:11,112 --> 00:12:12,372 So it's less about, 432 00:12:12,647 --> 00:12:14,667 contracts, but more about 433 00:12:14,895 --> 00:12:17,452 how you are becoming the 434 00:12:17,452 --> 00:12:19,222 go-to person in your space. 435 00:12:19,582 --> 00:12:20,049 So you've. 436 00:12:20,339 --> 00:12:21,695 Figured out the way that 437 00:12:21,695 --> 00:12:22,895 your clients like to be 438 00:12:22,895 --> 00:12:23,975 served, what the best 439 00:12:23,975 --> 00:12:25,265 results are, the best way 440 00:12:25,265 --> 00:12:26,405 to create those results. 441 00:12:26,735 --> 00:12:27,635 And you're building that 442 00:12:27,635 --> 00:12:29,105 infrastructure, the systems, 443 00:12:29,333 --> 00:12:30,935 the SOPs, the templates, the 444 00:12:30,935 --> 00:12:32,315 frameworks, methodologies. 445 00:12:32,627 --> 00:12:35,506 And so at this point you 446 00:12:35,506 --> 00:12:37,816 are focusing on getting 447 00:12:37,936 --> 00:12:39,796 those nailed, right? 448 00:12:40,149 --> 00:12:40,806 So. 449 00:12:41,021 --> 00:12:41,891 there are some 450 00:12:41,891 --> 00:12:43,938 circumstances where you 451 00:12:44,062 --> 00:12:46,347 can copyright a system, 452 00:12:46,347 --> 00:12:47,637 a process, or a method. 453 00:12:47,937 --> 00:12:49,137 Generally you cannot, 454 00:12:49,137 --> 00:12:50,577 because the system itself 455 00:12:50,577 --> 00:12:51,807 is kind of an idea. 456 00:12:52,058 --> 00:12:53,468 remember, it's the expression 457 00:12:53,468 --> 00:12:55,951 in tangible form that, can 458 00:12:55,951 --> 00:12:57,571 be, protected with copyright. 459 00:12:57,961 --> 00:12:59,132 but, My opinion is not 460 00:12:59,132 --> 00:12:59,792 the most important thing 461 00:12:59,792 --> 00:13:00,482 that's happening here. 462 00:13:00,482 --> 00:13:01,322 The most important thing 463 00:13:01,322 --> 00:13:02,282 that's happening here 464 00:13:02,551 --> 00:13:04,052 is making sure that 465 00:13:04,057 --> 00:13:06,269 you are known as the 466 00:13:06,269 --> 00:13:08,542 authority, in the space. 467 00:13:09,082 --> 00:13:11,962 So I like to use the analogy 468 00:13:11,962 --> 00:13:13,192 of the cook and the chef, 469 00:13:13,642 --> 00:13:15,526 the work in progress Stage 470 00:13:15,526 --> 00:13:16,066 when you're working on 471 00:13:16,066 --> 00:13:17,506 your positioning, think 472 00:13:17,511 --> 00:13:18,626 of your systems or your 473 00:13:19,016 --> 00:13:19,996 SOPs or your templates 474 00:13:19,996 --> 00:13:22,096 and things as the recipe. 475 00:13:22,363 --> 00:13:23,086 And we're not worried 476 00:13:23,086 --> 00:13:24,406 about being the cook. 477 00:13:24,730 --> 00:13:25,360 I can't, couldn't do 478 00:13:25,365 --> 00:13:26,380 a thing with any of 479 00:13:26,624 --> 00:13:28,754 anyone's recipes, frankly. 480 00:13:29,034 --> 00:13:30,162 But you need to worry about 481 00:13:30,162 --> 00:13:31,932 being the chef and given them 482 00:13:31,932 --> 00:13:34,242 Michelin star service and 483 00:13:34,247 --> 00:13:35,832 that is that work in progress. 484 00:13:35,992 --> 00:13:36,332 state is. 485 00:13:36,992 --> 00:13:38,312 Building those systems. 486 00:13:38,610 --> 00:13:39,480 even if they can't be 487 00:13:39,480 --> 00:13:41,520 copyright, they're very 488 00:13:41,550 --> 00:13:43,440 valuable In enhancing your 489 00:13:43,440 --> 00:13:45,090 brand and your positioning, 490 00:13:45,374 --> 00:13:46,860 you become the authority 491 00:13:46,860 --> 00:13:48,750 with respect to the outcome 492 00:13:48,755 --> 00:13:50,130 that your framework provides, 493 00:13:50,547 --> 00:13:52,227 and there is potential to, 494 00:13:52,257 --> 00:13:53,885 protect it with trademarks. 495 00:13:54,153 --> 00:13:55,323 if you heard me talk about 496 00:13:55,323 --> 00:13:56,493 copyright versus trademarks 497 00:13:56,493 --> 00:13:57,723 before, you know my. 498 00:13:57,900 --> 00:13:59,610 gross bias is toward 499 00:13:59,610 --> 00:14:01,237 copyrights that when you 500 00:14:01,237 --> 00:14:02,317 have corporate clients, 501 00:14:02,414 --> 00:14:03,194 your corporate clients, 502 00:14:03,270 --> 00:14:04,110 don't care what your 503 00:14:04,110 --> 00:14:05,250 trademark is, frankly. 504 00:14:05,488 --> 00:14:06,413 so as long as they get the 505 00:14:06,413 --> 00:14:07,793 outcome that they receive, you 506 00:14:07,793 --> 00:14:09,023 can call it anything you want. 507 00:14:09,296 --> 00:14:10,785 if you fall in love with the 508 00:14:10,790 --> 00:14:11,865 name, then you fall in love 509 00:14:11,865 --> 00:14:13,585 with the name and, trademark 510 00:14:13,585 --> 00:14:14,665 lawyers will certainly tell 511 00:14:14,665 --> 00:14:15,685 you if you have a name that 512 00:14:15,769 --> 00:14:17,179 it would kill you to lose 513 00:14:17,449 --> 00:14:18,889 then, go for your trademarks. 514 00:14:19,212 --> 00:14:20,892 But when we're talking about 515 00:14:20,892 --> 00:14:22,395 like where to put our focus, 516 00:14:22,748 --> 00:14:24,728 it is in making sure we become 517 00:14:24,728 --> 00:14:27,202 the authority in, the outcome 518 00:14:27,202 --> 00:14:28,612 that your framework provides. 519 00:14:28,955 --> 00:14:30,352 So that is the work in 520 00:14:30,357 --> 00:14:31,732 progress stage where we're, 521 00:14:31,972 --> 00:14:33,172 it's all about positioning. 522 00:14:33,615 --> 00:14:35,143 Finally the finished 523 00:14:35,263 --> 00:14:36,313 product stage. 524 00:14:36,613 --> 00:14:38,443 Here we are squarely 525 00:14:38,503 --> 00:14:39,553 in copyright 526 00:14:39,553 --> 00:14:41,413 registration territory. 527 00:14:41,784 --> 00:14:43,374 when you have an asset that 528 00:14:43,374 --> 00:14:44,814 is going to be a direct 529 00:14:44,904 --> 00:14:46,164 revenue driver, meaning 530 00:14:46,164 --> 00:14:47,694 something that you are selling 531 00:14:47,694 --> 00:14:49,734 directly to the end user, 532 00:14:50,201 --> 00:14:52,181 it makes sense to register 533 00:14:52,181 --> 00:14:53,651 it in the copyright office. 534 00:14:53,879 --> 00:14:55,901 So just a reminder that 535 00:14:55,901 --> 00:14:57,581 your copyrights attached. 536 00:14:57,581 --> 00:14:58,961 As soon as you created them, 537 00:14:58,961 --> 00:15:00,401 you put them in tangible form. 538 00:15:00,808 --> 00:15:03,028 But registration is required 539 00:15:03,058 --> 00:15:05,008 if you want to enforce 540 00:15:05,008 --> 00:15:06,628 your copyrights against 541 00:15:06,628 --> 00:15:08,908 an infringer in court. 542 00:15:09,118 --> 00:15:10,965 So to use courts, for 543 00:15:10,970 --> 00:15:12,899 compensation and to, 544 00:15:13,059 --> 00:15:13,719 enforce your rights 545 00:15:13,719 --> 00:15:14,619 against infringers. 546 00:15:14,629 --> 00:15:16,159 it does need to be registered. 547 00:15:16,565 --> 00:15:17,795 And if it is registered in 548 00:15:17,795 --> 00:15:19,835 a timely basis, then there 549 00:15:19,835 --> 00:15:21,665 are also statutory damages 550 00:15:21,665 --> 00:15:22,685 that are available to you. 551 00:15:22,685 --> 00:15:24,959 So there are, a number of 552 00:15:25,079 --> 00:15:26,729 business reasons in order. 553 00:15:26,784 --> 00:15:28,880 to encourage registration 554 00:15:29,030 --> 00:15:30,050 for those things that 555 00:15:30,050 --> 00:15:31,130 are revenue drivers. 556 00:15:31,551 --> 00:15:32,660 So again, the finished 557 00:15:32,660 --> 00:15:33,590 products, you know, your 558 00:15:33,590 --> 00:15:35,150 group trainings and programs, 559 00:15:35,150 --> 00:15:37,190 courses, books, et cetera, 560 00:15:37,300 --> 00:15:38,497 and productized services, 561 00:15:38,547 --> 00:15:39,987 probably cannot be registered. 562 00:15:40,315 --> 00:15:41,332 but maybe some of the 563 00:15:41,332 --> 00:15:42,292 underlying materials 564 00:15:42,292 --> 00:15:44,453 can, templates and then 565 00:15:44,453 --> 00:15:45,749 licensing, you You've put 566 00:15:45,749 --> 00:15:47,399 together a whole program, 567 00:15:47,639 --> 00:15:48,869 around your framework that 568 00:15:48,899 --> 00:15:50,884 includes, workshop materials, 569 00:15:50,884 --> 00:15:52,444 scripts and worksheets 570 00:15:52,444 --> 00:15:53,864 and things like that, and 571 00:15:53,864 --> 00:15:55,630 those things that are being 572 00:15:55,630 --> 00:15:57,770 licensed to your licensees. 573 00:15:57,770 --> 00:15:58,880 You would certainly want 574 00:15:58,880 --> 00:16:00,020 to have those registered. 575 00:16:00,403 --> 00:16:02,463 So in some you have 576 00:16:02,463 --> 00:16:04,353 inventory and the form that 577 00:16:04,353 --> 00:16:05,733 it takes is intellectual 578 00:16:05,733 --> 00:16:07,253 property, and you have that. 579 00:16:07,969 --> 00:16:09,589 At every stage of your 580 00:16:09,589 --> 00:16:11,533 expertise-based business, it's 581 00:16:11,533 --> 00:16:13,243 not all about registration, 582 00:16:13,243 --> 00:16:14,233 as I just mentioned. 583 00:16:14,233 --> 00:16:16,153 It starts at the beginning 584 00:16:16,419 --> 00:16:17,173 when you're starting to 585 00:16:17,173 --> 00:16:19,153 develop your expertise that 586 00:16:19,153 --> 00:16:20,313 you're, making sure that 587 00:16:20,313 --> 00:16:21,573 you're putting your original 588 00:16:21,578 --> 00:16:23,043 ideas, intangible thought. 589 00:16:23,118 --> 00:16:24,438 Form so the 590 00:16:24,588 --> 00:16:25,518 copyright attaches. 591 00:16:25,518 --> 00:16:27,168 At that time, you are 592 00:16:27,168 --> 00:16:28,548 making sure that you 593 00:16:28,548 --> 00:16:30,108 are using contracts with 594 00:16:30,108 --> 00:16:31,248 your subcontractors. 595 00:16:31,248 --> 00:16:34,278 Always you are reading any 596 00:16:34,278 --> 00:16:35,388 agreement that the client 597 00:16:35,388 --> 00:16:36,378 puts in front of you to 598 00:16:36,378 --> 00:16:38,118 make sure that there are no 599 00:16:38,118 --> 00:16:39,928 restrictions yeah, you're not 600 00:16:39,928 --> 00:16:41,211 giving them your expertise. 601 00:16:41,647 --> 00:16:42,739 and I forgot, you know, 602 00:16:42,739 --> 00:16:43,699 I'm just gonna throw this 603 00:16:43,699 --> 00:16:44,689 in, uh, and you've heard 604 00:16:44,689 --> 00:16:45,829 me talk about it before, 605 00:16:46,050 --> 00:16:47,179 is making sure that there's 606 00:16:47,179 --> 00:16:48,949 not non-compete provisions 607 00:16:48,949 --> 00:16:50,749 in there or anything that 608 00:16:50,749 --> 00:16:52,099 restricts your ability 609 00:16:52,099 --> 00:16:53,779 to develop your expertise 610 00:16:54,067 --> 00:16:54,877 by working with other 611 00:16:54,882 --> 00:16:56,287 clients on similar matters. 612 00:16:56,292 --> 00:16:57,417 You, really wanna make 613 00:16:57,417 --> 00:16:58,437 sure that you are reading 614 00:16:58,437 --> 00:16:59,485 those cuz those are niche 615 00:16:59,485 --> 00:17:00,625 killers and frankly, 616 00:17:00,625 --> 00:17:01,705 they're expertise killers. 617 00:17:02,234 --> 00:17:03,810 and then, the same as 618 00:17:03,810 --> 00:17:04,920 with any company that 619 00:17:04,920 --> 00:17:06,810 has inventory retailers 620 00:17:06,810 --> 00:17:08,280 or car manufacturers. 621 00:17:08,664 --> 00:17:09,507 You need to make sure you're 622 00:17:09,507 --> 00:17:10,484 tracking it and then you 623 00:17:10,489 --> 00:17:11,984 know what you own and what 624 00:17:11,989 --> 00:17:13,784 you control, whether it is 625 00:17:13,784 --> 00:17:15,044 something that is original 626 00:17:15,044 --> 00:17:17,234 to you, something that is. 627 00:17:17,458 --> 00:17:18,971 Created by a subcontractor 628 00:17:18,971 --> 00:17:19,961 and assigned to you through 629 00:17:19,961 --> 00:17:22,508 contract or something that 630 00:17:22,508 --> 00:17:23,918 you are licensing from a third 631 00:17:23,918 --> 00:17:25,178 party through a certification 632 00:17:25,178 --> 00:17:27,481 program or, through research 633 00:17:27,791 --> 00:17:29,981 and that you are tracking your 634 00:17:29,981 --> 00:17:32,111 rights in your intellectual 635 00:17:32,116 --> 00:17:33,821 property inventory, cuz 636 00:17:33,826 --> 00:17:35,381 that is the only way 637 00:17:35,741 --> 00:17:36,911 that you can protect it. 638 00:17:37,456 --> 00:17:40,276 So I have created a visual 639 00:17:40,276 --> 00:17:42,406 summary of today's episode. 640 00:17:42,689 --> 00:17:43,737 you can find a link to 641 00:17:43,737 --> 00:17:45,057 that in the show notes just 642 00:17:45,062 --> 00:17:46,797 to help you kind of wrap 643 00:17:46,797 --> 00:17:48,375 your head around it, I've 644 00:17:48,375 --> 00:17:49,275 talked about a lot here. 645 00:17:50,055 --> 00:17:52,764 So of course, as always, you 646 00:17:52,764 --> 00:17:55,014 can find me@thinkbeyondip.com 647 00:17:55,044 --> 00:17:56,184 if you have any questions. 648 00:17:56,544 --> 00:17:56,784 Thanks.