Business

Startups move fast. Founders focus on product, pitch decks, and growth, but not always the legal infrastructure that quietly protects their brand. Skipping early trademark protections can land even the most promising companies in court, facing costly disputes that threaten your momentum and your name.

Take it from Feras Mousilli, Managing Partner at Lloyd & Mousilli and a longtime advisor to startups and VC-backed tech companies:

“We’ve seen innovative founders unintentionally lose rights to their brand, or worse, spend six figures defending against infringement claims that could’ve been avoided with a $750 clearance search.”

What the Bumble Case Teaches Us

A high-profile example is Bumble, the Austin-based dating app unicorn. Bumble’s brand is now globally recognized, but only after navigating a series of legal challenges involving competitor disputes, brand confusion, and international enforcement issues.

‍Bumble invested early and aggressively in trademark strategy. When competitors tried to encroach on their look and feel, they had the IP rights to push back. If your startup doesn't take similar steps, you may not get the same outcome and worse, you may not get your day in court at all if you lack standing due to a missed registration window.

Three Ways Startups "Bumble" Their Trademarks

1. Skipping Clearance Searches: Just because a name is available as a domain or Instagram handle doesn’t mean it’s legally available. Without a proper clearance search, you risk infringing on someone else’s rights, even unknowingly.
2. Filing too Late (or Not at All): Startups often wait until they’re profitable or fundraising to file. But by then, you may have already created risk. Someone else can file first, or send a cease and desist that derails your raise.
3. Using a Name That Can't be Protected: Generic, descriptive, or confusingly similar names may not be eligible for registration at all, or may draw unwanted attention from companies with deeper pockets and more aggressive enforcement teams.

How to Protect Your Startup From the Start

Whether you're still choosing a brand name or you’ve already gone to market, a trademark attorney can help you:

• Conduct a legal clearance search
• Advise on name strength and registrability
• File with the USPTO and defend against office actions
• Enforce your rights or respond to infringement threats

At Lloyd & Mousilli, we represent some of the fastest-growing startups in tech, SaaS, and e-commerce. Led by Feras Mousilli, our team brings decades of experience in intellectual property strategy tailored to founders and creative entrepreneurs.

Don't Wait Until You're in Court

Your brand is your moat. Don’t let someone else build on your name while you’re busy building your business. Contact Lloyd & Mousilli for a flat-fee trademark consultation, and let’s make sure you don’t bumble it.

Interested in learning more? Schedule an intake call or email us at info@lloydmousilli.com.

What Is Meta Pixel and Why Does Privacy Matter?

Meta Pixel is a small piece of code you add to your website to track things like page visits, purchases, or clicks. It helps you create better ads and understand your audience. But here’s the catch: it collects personal info like IP addresses and browsing habits, which privacy laws consider sensitive.

Laws like CCPA (in California) and GDPR (in Europe) require you to be upfront about what data you collect and give users control over it. If you don’t follow these rules, you could face big fines—think thousands per violation in California or millions under GDPR—and lose customer trust. Let’s make sure you’re covered with simple, practical steps.

Write a Clear Privacy Policy

Your privacy policy is like a promise to your customers about how you manage their data. When using Meta Pixel, make sure it explains:

• What Data You Collect: Mention things like IP addresses, pages visited, or purchase details tracked by MetaPixel.
• Why You Collect It: Be clear that it’s for ads, analytics, or improving customer experience.
• Who Gets the Data: Say that Meta (and sometimes its partners) receives this info and note if data is sent outside your country (like to the U.S.).
• Customer Rights: Let users know they can ask to see, delete, or opt out of their data being shared. For example, California customers can say “don’t sell my info,” and European customers can request their data be removed.
• How to Reach You: Include an email or contact form for privacy questions.

Use plain language. Instead of saying, “We process data for analytical purposes,” try, “We use Meta Pixel to see how you use our site so we can make better ads.”

Create a User-Friendly Cookie Policy

Meta Pixel uses cookies (small data files stored on a user’s device) to track activity, so you need a cookie policy that’s easy to understand. It should:

• List Cookie Types: Explain the difference between essential cookies (needed for your site to work),performance cookies (for analytics), and advertising cookies (like Meta Pixel for targeted ads).
• Mention Meta Pixel: Clearly state that Meta Pixel uses cookies to track actions like purchases to help with ads.
• Give Users Control: Use a cookie consent pop-up that lets users choose to accept or reject non-essential cookies. Make sure it’s easy to find and use.
• Link to Settings: Add a “manage cookies” link in your site’s footer so users can change their choice slater.

Check your site regularly to make sure your cookie policy matches the trackers you’re actually using.

Get Clear Consent from Users

Privacy laws, especially in Europe, require you to get clear permission before setting non-essential cookies like Meta Pixel. To do this right, make users choose their cookie preferences before they can interact with your website. Here’s how:

• Show a pop-up as soon as users arrive, asking them to accept, reject, or customize cookie settings. Don't let them use the site until they pick an option. This ensures no cookies (except essential ones) are set without their okay.
• Explain what they're agreeing to in simple terms, like, "We use cookies to show you better ads."
• Avoid sneaky tactics, like pre-checked boxes or hiding the "reject" button.
• For California users, add a "Do Not Sell My Personal Info" link to let them opt out of data sharing with Meta.

This approach builds trust and meets strict privacy rules by putting users in control from the start.

Practice Tips for Using Meta Pixel Safely

Here are six simple steps to stay compliant while using MetaPixel:

1. Require User Consent First: Set up your website so users must choose their cookie preferences (accept, reject, or customize) before any non-essential cookies, like Meta Pixel, are activated or they can fully use the site.
2. Check Your Risks: If you’re sending data across borders (like to Meta’s U.S. servers), do a quick risk assessment to spot any privacy concerns, as required by GDPR.
3. Collect Only What You Need: Setup Meta Pixel to track specific actions (like “Add to Cart”) instead of everything, reducing the data you collect.
4. Secure Data Transfers: If you’re global, follow rules like the EU-U.S. Data Privacy Framework to safely send data to Meta.
5. Update Policies Yearly: Review your privacy and cookie policies every year—or sooner if you change how you use Meta Pixel or if new laws pop up.
6. Train Your Team: Make sure your marketing and tech teams know the rules to avoid mistakes, like turning on Meta Pixel without a consent pop-up.

Why Compliance Matters

Following privacy laws when using Meta Pixel keeps your business safe and builds trust with customers. Here’s why it’s a big deal:

• Avoid Big Fines: Breaking GDPR can cost you up to €20 million or 4% of your yearly revenue. In 2022, France fined Meta €60 million for cookie issues. CCPA fines can hit $7,500 per violation.
• Reduce Lawsuit Risks: Lawsuits are on the rise under laws like California’s CIPA or the Video PrivacyProtection Act. For example, in 2025, Eisenhower Medical Center settled a class-action lawsuit for $875,000, accused of sharing patient health data, like appointment details, with Meta via Pixel without consent. Another ongoing case, In re Meta Pixel Healthcare Litigation (filed 2022, updated 2025), claims Meta collected sensitive health data from 664 hospitals, violating privacy laws. A clear cookie policy and upfront consent help protect you.
• Build Customer Trust: A2023 Pew Research study showed 81% of Americans think companies collect too much data. Being open about Meta Pixel and giving users control builds trust and keeps customers coming back.
• Stay Ahead of Regulators: Regulators are cracking down. California’s 2024 checks targeted Meta Pixel misuse, and EU authorities often audit cookie practices. Staying compliant keeps you safe.
• Prepare for New Rules: New privacy laws in places like Texas and Europe's updated ePrivacy rules mean stricter standards. Acting now saves you from costly changes later.

Wrap-Up: Make Compliance a Win for Your Business

Using Meta Pixel the right way doesn’t have to be complicated. By requiring users to choose cookie settings upfront, writing clear policies, and following smart practices, you can stay legal and show customers you care about their privacy. This builds trust, protects your business, and lets you keep using powerful tools like Meta Pixel without worry.

Not sure where to start? Talk to one of our privacy attorneys to make sure your policies are solid, and your business is ready for today’s privacy-first world.

Your company’s website often serves as the first point of contact between your brand and prospective customers. Significant resources are typically invested into building this digital presence, from web development to strategic advertising and marketing efforts that drive traffic to your domain. Now imagine receiving notice that this critical asset is at risk of takeover attempt by a competitor or opportunistic third party. The potential loss of your domain could have catastrophic consequences for your business. This threat commonly arises through a legal mechanism known as the Uniform Domain Name Dispute Resolution Policy (UDRP), a process designed to address the bad-faith registration or misuse of domain names. While intended to protect trademark holders, the UDRP is a complex and highly technical proceeding—one that carries significant risks if not navigated with precision and legal expertise.

This was the crisis Lesto Labs faced when a significantly larger and better-funded competitor, ParrotAI, initiated a UDRP proceeding, resulting in an order to transfer the domain www.tryparrot.ai. With the deadline for transfer rapidly approaching, Lesto Labs was on the brink of losing a critical digital asset. Through strategic legal action and timely intervention, the company was able to reverse course and retain ownership of its domain.

Understanding UDRP Claims

The Uniform Domain Name Dispute Resolution Policy (UDRP) is a process created by the Internet Corporation for Assigned Names and Numbers (ICANN), a nonprofit organization that oversees the global domain name system (DNS). ICANN plays a central role in maintaining the stability of the internet by overseeing domain name assignments and addressing associated legal and policy matters. One of the major challenges ICANN seeks to address is cybersquatting, and the UDRP proceeding was created in an effort to mitigate this issue.

Cybersquatting occurs when individuals or entities register domain names similar to trademarks they do not own. These bad actors often aim to profit by reselling the domain to the rightful trademark owner at a high price, misdirecting online traffic, or harming the brand’s reputation. This practice can confuse customers, dilute brand value, and exploit the goodwill of businesses. The UDRP was designed to provide trademark owners with a fast and affordable way to resolve such disputes.

Initiating UDRP Claims

To begin a UDRP proceeding, a trademark owner must first prepare and file a formal complaint with an approved dispute resolution provider accredited by ICANN, such as the World Intellectual Property Organization (WIPO) or the Forum (formerly known as the National Arbitration Forum).

Once filed, the provider notifies the domain name registrar, who temporarily locks the domain to prevent any changes. The domain registrant (the respondent) is then given an opportunity to respond, usually within 20 days.

A panel of one or more neutral arbitrators is appointed to review the submissions and issue a decision, typically within a few weeks. Remedies are limited to either the cancellation of the domain or its transfer to the complainant. Monetary damages are not awarded under UDRP.

It is critical to ensure the complaint is thorough, well-supported, and compliant with the applicable procedural rules. Missteps can result in dismissal, delay, or an unfavorable ruling. For this reason, many trademark owners rely on experienced legal counsel to draft and prosecute UDRP claims.

Establishing and Meeting the Burden of Proof in UDRP Disputes

To meet the burden of proof for a UDRP claim, a trademark owner must demonstrate (1) that the domain name is identical or confusingly similar to the trademark, (2) that the registrant has no legitimate rights to the domain, and (3) that it was registered and used in bad faith. If these criteria are met, the arbitrator can order the domain to be transferred or canceled. This streamlined process often concludes within a few months, making it significantly faster and less costly than traditional litigation.

The Legal and Practical Impact of UDRP Decisions

UDRP decisions are an effective initial step for addressing domain disputes. If the outcome is unfavorable, either party can escalate the matter to federal court under the Anti-cybersquatting Consumer Protection Act (ACPA). Courts review the case independently, without being influenced by the UDRP decision. However, for many trademark owners, the UDRP offers an efficient way to take action against cybersquatters and protect their brand.

By addressing the misuse of domain names and protecting trademarks, ICANN’s UDRP process ensures that domain names are used fairly and helps businesses maintain control over their online presence. It is a valuable tool for combating cybersquatting and safeguarding brand reputation in the digital space.

Why Retaining Counsel in UDRP Disputes is Critical

While the UDRP process allows trademark owners to challenge bad-faith domain registrations without an attorney, going at it alone is often a costly mistake. Successfully reclaiming a domain requires more than just proving trademark ownership; it demands a strategic legal approach, well-supported arguments, and a clear demonstration of bad faith registration and use. Without experienced legal counsel, claimants risk missing critical arguments, failing to meet the burden of proof, or overlooking key evidentiary requirements.

If you ever find yourself involved in a UDRP claim, whether defending your domain name or pursuing action against a bad actor, you should strongly consider hiring an experienced attorney. Navigating the UDRP process can be complex, and a misstep could result in losing your domain name. Similarly, if you suspect someone is using a domain name in bad faith to exploit your brand or trademark, an attorney can help you effectively initiate a UDRP claim. Having a strong brand and a registered trademark is a critical advantage in these cases, as it bolsters your intellectual property rights and strengthens your position during the proceedings. Proactively protecting and enhancing your IP portfolio can make all the difference in achieving a favorable outcome.

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Case Study: Learn How L&M Transformed a UDRP Setback Into a Legal Victory

From Innovation to Litigation: The Lesto Labs Journey

Dominic Malzone, founder of Lesto Labs, launched an AI-powered video application under the name ParrotAI (the “Lesto Labs App”). As an established player in the tech industry, Lesto Labs released the app on both the Google Play Store and Apple App Store, making it instantly accessible to millions of users worldwide. To amplify visibility and user acquisition, the company registered the domain <tryparrotai.com.> At the time of registration, no other entity was using the name “ParrotAI,” and the domain quickly attracted millions of monthly visits and became a key driver of the app’s early success.

ClownAI: Company Overview and Key Insights

Later that year, an unrelated company operating under the name PARROTAI filed a service mark application with the United States Patent and Trademark Office (USPTO). In contrast to the Lesto Labs App, which catered to a broad consumer base for AI-driven video tools, PARROTAI focused on serving business professionals with its AI-powered note-taking solution. Despite the clear differences in target markets and functionality, PARROTAI initiated a UDRP proceeding against Lesto Labs, asserting that the <tryparrotai.com> domain infringed upon its brand rights.

The Dangers of Self Representation

Confident in the strength of his position, Mr. Malzone opted to respond to the UDRP claim without legal counsel. This ultimately resulted in an unfavorable ruling and Lesto Labs lost the case. In the wake of the panel’s decision, PARROTAI escalated the dispute by issuing cease and desist letters to both Apple and Google, demanding the removal of the Lesto Labs App from their respective platforms.

Beyond UDRP proceedings, major app distribution platforms like the Apple App Store and Google Play have their own internal protocols for handling intellectual property complaints. These procedures can directly impact whether an app remains listed or is taken down entirely. Engaging experienced legal counsel is essential not only to navigate these complex systems but also to protect your rights, preserve access to your user base, and minimize operational disruptions.

Utilization of the Appeal Process

When Lesto Labs engaged Lloyd & Mousilli (L&M), the firm swiftly uncovered a critical misstep: the opposing party had prematurely issued cease-and-desist letters to Apple and Google before the UDRP appeal period had expired—an aggressive tactic seemingly aimed at disrupting Lesto Labs’ operations. In response, L&M promptly filed an appeal in the U.S. District Court for the District of Arizona, challenging the panel’s decision. This federal appeal process allows for independent judicial review and is vital when a UDRP ruling fails to consider key facts or legal standards. Acting quickly, L&M sought to reverse the decision and safeguard Lesto Labs’ domain and business stability

Strategic Assertion of Counterclaims

L&M further strengthened Lesto Labs’ position by asserting a claim of reverse domain name hijacking (RDNH) against PARROTAI. This claim alleged that PARROTAI had acted in bad faith by attempting to exploit the UDRP process to improperly take control of a domain to which it had no legitimate claim. RDNH is designed to address exactly this kind of abuse—where the process is used to intimidate or pressure rightful domain owners. By bringing this claim, L&M not only challenged the validity of PARROTAI’s actions but also highlighted the legitimacy of Lesto Labs’ domain ownership.

Effective Prosecution of Counterclaims

As a result of the counterclaims and pending appeal, PARROTAI approached L&M to discuss a potential settlement ahead of its response deadline. During negotiations, PARROTAI maintained that its service mark entitled it to the domain. However, L&M’s trademark team identified a critical weakness: the term “ParrotAI” was at risk of genericide—where a trademark loses legal protection due to widespread, generic use.

L&M’s investigation revealed that at least nine other trademarks incorporating “parrot” were active in similar markets, undermining the distinctiveness of PARROTAI’s mark. This finding significantly weakened PARROTAI’s claim and bolstered Lesto Labs’ position at the negotiating table.

Strength Through Strategy: Securing a Favorable Outcome for Lesto Labs

The appeal, counterclaims, and genericide findings significantly shifted the balance in Lesto Labs’ favor, enabling L&M to negotiate from a position of strength. Though the settlement terms remain confidential, the matter concluded with a coexistence agreement—allowing both parties to operate without further conflict.

Such agreements are common in trademark disputes and serve to define how similar marks can coexist without infringement. L&M’s experienced trademark and litigation teams are well-versed in crafting these agreements to protect clients’ rights and support long-term business stability.

Experienced Counsel is Critical

Whether you are initiating a UDRP claim or defending against one, Lloyd & Mousilli offers the experience and strategic insight needed to navigate the process with confidence. Our attorneys bring deep expertise from roles at leading companies and agencies such as Apple, Dell, and the USPTO, uniquely positioning us to handle complex domain disputes. What distinguishes our firm is a steadfast commitment to delivering effective, business-aligned solutions with cost-efficiency in mind. To explore how our team can support your UDRP matter, schedule a free consultation.

The Importance of Trademark Monitoring

With the increasing complexity of global markets and the rapid pace of digital commerce, it is essential for businesses to monitor their trademarks proactively. Trademark monitoring not only helps businesses protect their brand from infringement, but it also enables them to maintain control over how their intellectual property is used. In this article, we’ll explore the significance of trademark monitoring, what it entails, and the potential consequences of neglecting it.

What is Trademark Monitoring?

Trademark monitoring is the practice of systematically tracking applications to register trademarks at the U.S. Patent and Trademark Office (USPTO) that may resemble your own. It involves regularly reviewing the U.S. trademark register and other databases to check for unauthorized use of your mark. Monitoring services provide regular reports and alerts about newly filed trademark applications that potentially could infringe on your own rights.

While registering a trademark with the USPTO grants the owner exclusive rights to use the mark with the stated goods and services in the United States, it does not on its own prevent unauthorized usage in the marketplace. It is the brand owner’s responsibility to monitor and enforce that registration against others’ infringing uses and registration attempts. Trademark monitoring helps businesses identify possible conflicts, even when the infringement occurs far from the owner’s home markets.

Why is Trademark Monitoring Important?

1. Protecting Your Brand's Identity

A trademark represents the unique identity of your business. Whether it’s a logo, name, tagline, or design, your trademark sets you apart from competitors and ensures consumers can recognize your products or services. If your trademark is used without permission, it could lead to confusion among consumers, causing them to mistakenly associate an infringing product or service with your brand. Monitoring allows you to detect potential infringements early and protect the integrity of your brand.

2. Enhancing Legal Protection

Being able to show that you have actively monitored your trademark also shows that you have taken reasonable steps to protect your intellectual property. This evidence can strengthen your case in court if you need to enforce your trademark rights. It can also act as a deterrent to potential infringers, who may be less likely to infringe if they know that you are actively monitoring your trademark.

3. Detecting Counterfeiting and Fraud

Counterfeiting has become a serious issue for many businesses, particularly in the digital age where online marketplaces and global trade make it easier for counterfeiters to operate. A monitoring service can help detect the sale of counterfeit goods or services that use your trademark without permission. By identifying these fraudulent activities early, businesses can take action to remove counterfeit listings, prevent further sales, and protect consumers from being misled.

4. Expanding and Growing Your Brand

Trademark monitoring can also help identify geographical areas or industries where your trademark may be at risk. It can help you stay ahead of any potential conflicts or challenges to your brand’s presence in new markets. This allows you to act swiftly to protect your trademark rights as your business extends into new regions, products, or services.

What Can Happen if You Don't Actively Monitor Your Trademarks?

1. Dilution of Your Brand

Trademark dilution occurs when the strength of your brand is weakened by unauthorized use of a similar mark. If your trademark becomes associated with a wide range of goods or services, it could lose its unique association with your brand. This might result in a loss of customer loyalty, as well as decreased brand value. Monitoring your trademark helps prevent dilution and ensures that your mark remains strong and distinctive in the eyes of consumers.

2. Legal Consequences

Failure to monitor your trademark and take action against infringements can result in significant legal consequences. If you fail to protect your trademark, a court may determine that you abandoned your rights to it. Additionally, if you neglect to oppose similar trademarks in time, you may lose the ability to challenge these marks in the future. Regular monitoring ensures you stay ahead of potential threats and avoid inadvertently giving up your legal rights.

3. Loss of Revenue

Counterfeit goods or services can divert revenue from your business. Without monitoring, you might not even be aware that your products are being counterfeited, leading to lost profits.

4. Damage to Customer Trust

One of the most valuable assets for any brand is customer trust. If consumers are misled by similar marks or counterfeit goods, they may lose faith in your products or services. It could take years to rebuild that trust, and in some cases, irreparable damage could occur.

Conclusion

Trademark monitoring helps safeguard your brand, prevent confusion, and protect consumers from counterfeiting. Given the growing complexities of a globalized marketplace, there has never been a more critical time for businesses to prioritize trademark monitoring and protect what they’ve worked so hard to build.

To learn more about how Lloyd & Mousilli can help protect your brand, schedule a consultation us here.

FinCEN has kindly extended some filing deadlines for BOI reports, as detailed on their website. Reporting companies created or registered prior to January 1, 2024, have until January 13, 2025, to file their initial beneficial ownership information reports with FinCEN. These companies would have otherwise been required to report by January 1, 2025.

Reporting companies created or registered in the United States on or after September 4, 2024, with a filing deadline between December 3, 2024, and December 23, 2024, also have until January 13, 2025, to file their initial beneficial ownership information reports with FinCEN.

Additionally, reporting companies created or registered in the United States on or after December 3, 2024, and on or before December 23, 2024, have been granted an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.

Reporting companies that qualify for disaster relief may have extended deadlines beyond January 13, 2025. In such cases, they should adhere to the later deadline.

Reporting companies established or registered in the United States on or after January 1, 2025, have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice of their effective creation or registration.

We had previously advised that, unless you have specific circumstances, you should proceed with the filings despite the temporary injunction. Please allow at least four business days to review and prepare the necessary information for the filing.

Remember that Lloyd & Mousilli has successfully handled hundreds of these filings on behalf of our clients and is available to assist you with your corporate governance compliance requirements.

The ongoing legal battle surrounding the potential ban of the popular app TikTok highlights critical issues that could reshape the digital marketplace and create new challenges for businesses. With the Supreme Court now set to hear the case, the stakes are high—not just for TikTok, but for companies that rely on the platform for marketing, engagement, and revenue generation. This article explores the potential implications of a TikTok ban and the mitigating steps businesses can take to shield themselves from the potential fallout. Whether your business is currently using TikTok or is interested in growing its digital presence, this decision is likely to have an impact on how consumer engagement looks in the future. Is your business and brand prepared to engage with consumers in the ever-changing digital space?

The TikTok Case and Its Potential Implications

The central issue in this case is determining the balance between national security concerns and free speech rights. Back in March of 2024 the U.S. government enacted legislation banning TikTok, citing national security concerns relating to potential data security risks posed by TikTok's Chinese ownership. TikTok ownership has challenged this ban as unconstitutional, suing the federal government on behalf of its users, arguing a ban would infringe on First Amendment rights and harm American businesses.

The Supreme Court's decision to hear the case indicates the high stakes involved and the potential far-reaching constitutional implications of the ruling. This case could set a precedent for government regulations on foreign-owned technology companies and how to balance national security interests with individual rights in the coming future. Businesses will also be affected by this ruling as it disrupts their access to consumers and limits their ability to market.

The Far Reaching Implications on Businesses if the Ban is Upheld

The impending Supreme Court decision on the constitutionality of a congressional ban on TikTok carries significant implications for businesses across various industries. This decision very well has the potential to reshape the digital marketplace in a number of unexpected ways. Businesses would be wise to consider the implications of a ban and mitigate any potential fallout following the decision. 

In today's technological age, many businesses rely on TikTok as a major platform for revenue generation, client engagement, and marketing to a younger demographic. TikTok's algorithm is designed to amplify content, making it a powerful tool for brand awareness. Companies spread brand awareness through the app’s various advertising options on TikTok—such as influencers, content creators, sponsors, and advertisers. Businesses also leverage the app for revenue generation, as the app has emerged as a significant e-commerce platform, especially for small businesses. 

 If the court rules in favor of the government and the ban goes into effect businesses would likely experience a significant reduction in a brand's visibility and engagement. This would likely result in an immediate disruption of current marketing efforts, void content creation agreements, and result in the loss of revenue due to the lack of marketing exposure.

Companies using TikTok for marketing and advertising campaigns may need to consider diversifying their marketing efforts across multiple platforms to reduce reliance on any single platform. The sudden loss of such a popular platform could harm brand reputation and weaken customer engagement. With TikTok's future hanging in the balance it creates an environment of uncertainty for businesses as they begin to plan for the coming fiscal year and how to market to consumers. Businesses should refocus their efforts to build a strong brand identity and foster consumer loyalty to ensure a strong structure is in place to better weather similar disruptions. One such way of ensuring a strong brand is established and protected is to file for a trademark registration. While the outcome of the case cannot be predetermined, any decision from the Supreme Court is poised to have profound and far-reaching implications on the digital marketplace and those businesses that depend upon it. 

Additional Impacts Businesses May Need to Consider Based on this Supreme Court Case

The TikTok case serves as a wake-up call for businesses navigating today’s complex regulatory and geopolitical landscape. Increased scrutiny around data privacy and security means companies managing large amounts of user data may face stricter regulations, necessitating significant investments in cyber security and compliance. Additionally, the case raises questions about international data transfers, particularly with countries that maintain differing privacy standards, potentially requiring businesses to adjust their data management practices.

Social media platforms are also under the microscope. Enhanced platform regulation and content moderation could lead to greater oversight of algorithms and policies, exposing businesses to increased liability for user-generated content. For some companies, bans or restrictions on key platforms could disrupt marketing strategies and customer outreach.

Beyond regulatory concerns, the case highlights geopolitical risks tied to US-China relations, which could result in supply chain disruptions and trade restrictions. Businesses may need to diversify supply chains and reduce reliance on specific regions to remain resilient. Lastly, consumer behavior and market dynamics could shift dramatically. If TikTok is restricted, users may migrate to alternative platforms, creating both challenges and opportunities for businesses to adapt their advertising and engagement strategies to stay ahead of the curve.

Preparing for the Future

The implications of the TikTok case demonstrate how rapidly evolving legal and regulatory landscapes can impact businesses across a variety of industries. Whether it’s ensuring compliance with data privacy laws, mitigating liability risks, or adapting to shifts in consumer behavior and marketing dynamics, these challenges require a proactive and informed approach.

At Lloyd & Mousilli, we have the experience and expertise to guide businesses through complex legal issues. Our team understands the unique challenges companies face in today’s environment and we are dedicated to providing tailored legal solutions to help you stay ahead. If your business is looking for strategic advice or legal support in these areas, we’re here to help. Reach out to us today to schedule a consultation and learn how we can assist you in protecting and growing your business.

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The CCPA’s Annual Update Requirement

The California Consumer Privacy Act (CCPA), effective since January 1, 2020, has set a new standard for data privacy in the United States. Among its many provisions, one key requirement is the obligation to update privacy policies at least once every 12 months. This mandate is more than a mere formality—it’s a crucial step in ensuring transparency and responsible data management.

The rationale behind this annual update is simple yet significant. The ways in which personal data is collected, used, and shared are constantly changing due to technological advancements and shifts in consumer behavior. By requiring businesses to update their privacy policies annually, the CCPA ensures that consumers are kept informed about the latest practices and technologies that impact their personal information. This not only helps protect consumer rights but also fosters trust between businesses and their customers.

Key Elements to Include in Your Privacy Policy

When updating your privacy policy, it’s essential to reflect any changes in your business operations that could affect data privacy. Here are some critical elements to include to ensure compliance with the CCPA and other emerging privacy regulations:

• Categories of Personal Information Collected: Clearly outline the types of personal information your business collects. This may include identifiers such as names and addresses, commercial information, biometric data, and internet activity. If your business has begun collecting new types of data, ensure these are incorporated into your policy.
• Purpose of Data Collection: Explain the reasons behind your data collection practices and how the information will be used. This transparency is vital in building consumer trust. If new products or services have been introduced, ensure that these purposes are updated in your policy.
• Consumer Rights: Detail the rights consumers have under the CCPA, including the right to know, the right to delete, and the right to opt-out of the sale of their personal information. Any changes in how these rights are facilitated should be clearly communicated.
• Data Sharing Practices: Disclose whether personal information is shared with third parties and, if so, identify the categories of those third parties. Updates should reflect any new partnerships or changes in data-sharing practices.
• Contact Information: Provide clear instructions on how consumers can contact your business to exercise their rights or ask questions about your privacy practices. Ensure that any changes in contact details or procedures are reflected in the policy.
• Jurisdiction and Country Expansions: If your business has expanded into new jurisdictions or countries, or if your user base has become more international, your privacy policy must reflect compliance with all relevant regulations. This is particularly important as different regions have varying privacy laws.

By addressing these elements, your business can mitigate the risks associated with non-compliance and ensure that your privacy policy accurately reflects your current data practices. Taking a proactive approach not only helps in maintaining compliance but also strengthens consumer trust in your brand.

Staying Ahead of Emerging Privacy Laws

While the CCPA is a cornerstone of U.S. data privacy regulation, it is not the only law that businesses must consider. Other states, such as Virginia with its Consumer Data Protection Act (CDPA) and Colorado with its Privacy Act (CPA), have enacted their own privacy laws. Additionally, the European Union’s General Data Protection Regulation (GDPR) continues to influence global privacy standards.

Looking ahead, several new privacy laws are set to come into effect in 2024 and 2025, including the EU’s Digital Services Act (DSA), which imposes new obligations on online platforms and intermediaries. To ensure your privacy policy remains compliant with these evolving regulations, consider the following steps:

• Regular Legal Reviews: Conduct regular reviews of your privacy policy with the assistance of legal experts. This will help you stay informed about new laws and amendments to existing ones, such as the upcoming EU DSA and other state-specific regulations.
• Cross-Jurisdictional Compliance: If your business operates in multiple states or countries, ensure your privacy policy addresses the requirements of all relevant jurisdictions. This may involve creating separate sections for different regions or a comprehensive policy that covers all applicable laws.
• Technological Advancements: Stay informed about technological advancements that may impact data privacy, such as the increasing use of artificial intelligence and machine learning in data processing.

Conclusion

Updating your privacy policy annually is not just a legal obligation under the CCPA—it is a critical practice that demonstrates your commitment to protecting consumer privacy. With new privacy laws emerging, staying informed, and regularly reviewing your privacy practices is more important than ever. Failure to comply can result in severe penalties and damage to your reputation.

As privacy laws continue to develop, businesses must remain proactive in their approach to data protection. An up-to-date privacy policy is essential to safeguarding consumer rights and maintaining the integrity of your business operations. Don’t wait until it’s too late—ensure your privacy policy is compliant and reflects the latest legal requirements.

Contact us today to review your legal documents and stay ahead of the regulatory curve. Let us help you navigate the complexities of data privacy and protect your business from potential risks. Your commitment to privacy starts with a comprehensive and current privacy policy. Reach out now to secure your compliance and build trust with your consumers.

What steps should you take next?

Your initial priority should be promptly retaining experienced legal counsel. Although there are procedural avenues available to challenge the default judgment, demonstrating to the court that you took swift action upon learning of the lawsuit is imperative. Moreover, the intricate legal procedures necessitate the expertise of a qualified attorney to navigate effectively. Notably, in court, corporate defendants are required to be represented by licensed attorneys and cannot proceed without one.

Once legal representation is secured, your attorney should provide tailored guidance specific to your case. Typically, they will enter an appearance on behalf of your company in the lawsuit and promptly file a motion seeking to set aside the default judgment, as permitted under the Federal Rules of Civil Procedure.

District courts have discretion to set aside final default judgments on various grounds:

• A common basis is demonstrating “mistake, inadvertence, surprise, or excusable neglect.” Often, companies default not out of willful disregard but due to administrative errors, such as misplacing summonses or oversight by responsible employees. Providing evidence to the district court explaining the circumstances and requesting the default judgment be vacated is essential. Establishing that the default resulted from a genuine oversight, prompt action was taken upon discovery, and the plaintiff would not suffer undue harm from reversing the judgment is crucial.

• Another common basis is failure to receive proper service. If your company never received proper service of the summons, it is imperative to raise this issue as it violates fundamental due process rights.

• Other grounds for setting aside default judgments include the discovery of new evidence, as well as demonstrating fraud, misrepresentation, or misconduct by the opposing party. However, these grounds are more challenging to establish. 

• In cases where the plaintiff's complaint lacks sufficient factual allegations to support the default judgment, this deficiency can also be raised. Although a default may occur due to failure to respond, the district court cannot issue a judgment unless the plaintiff's pleadings adequately support it.

• This is not an exhaustive list. It is important to note that, upon motion of the defaulting party, Courts can set aside a default judgment for “any other reason that justifies relief.”

Ultimately, if the district court declines to set aside the default judgment, you may consider challenging this decision through an appeal. However, the feasibility of this recourse depends on the potential liability at stake and whether the district court erred in its decision-making.

Escaping a default judgment post-issuance is challenging, emphasizing the importance of responding to lawsuits before the deadline. Nevertheless, if your company discovers the lawsuit after a default judgment has been entered, acting promptly by engaging competent legal representation and presenting your case for setting aside the default judgment remains the most viable option.

Intellectual property rights showcase a startup’s value, ability to dominate the market, and stand strong in times of adversity. Specifically, with trademarks and patents, startups are 10 times more likely to secure funding from investors and about 3 times more likely to have favorable odds when exiting as evidenced by a study from the European Union Intellectual Property Office (EUIPO). Accordingly, the acquisition of IP rights, for startups are fiscally essential in providing a durable foundation and may be correlated with the increase in filing in Trademarks from 28% to 72 and Patents from 10% to 44% from the initial seed stage to later funding stages. There are two key reasons why these IP protections incentivize investors to engage with startups.

Branding in Market Domination and Innovation   

First, IP protections are perceived as unique signatures connecting startups with a strong brand identity. This is significant to investors for three key reasons. First, IP protections demonstrate a sense of identity to investors for a startup’s potential recognition in the marketplace. Second, investors view IP protections as vital pieces to the construction of a valuable portfolio because they can provide tangible capital in future business dealings. Third, IP protections demonstrate to investors the startup is protected against infringement. 

A Mark of Innovation Signaling Potential Leadership in the Marketplace, Longevity, and Liquidity During Times of Change

Second, IP protections, demonstrate a startup’s innovative nature. This is significant for investors for three key reasons. First, IP protections, especially patents, showcase a startup’s innovative qualities signal and demonstrate to investors the startup is unique and has strong technical capabilities. Second, IP protections, demonstrate to investors startups can establish dominance in the market because IP protections reduce competition by preventing the use of the startup’s mark. Third, IP protections signal to investors they are safe to invest because the startup could liquidate its assets for sale in unpredictable times of change.

Conclusion 

With IP protections, investors are incentivized to fund your startup, leading it to have the ability to achieve fiscal success and dominance in the global marketplace. If you are interested in the potential to achieve fiscal success, recognition, and financial support from investors, please reach out to Lloyd & Mousill, a team of visionaries, who will protect your vision and future goals. 

Why Conduct Trademark Searches?

The journey of getting a trademark registration for your brand seems straightforward—think of a name, design a unique logo or phrase, file a trademark application, and voila, your brand is protected. However, this simplified timeline overlooks the potential minefield of intellectual property rights that could send your business into costly legal battles and damage your brand's integrity. Conducting thorough trademark searches before filing can help you avoid these risks by ensuring your proposed trademark isn't infringing on existing rights. This due diligence is not just a precaution; it's an essential step in building a resilient brand identity.

The Pitfalls of Neglecting Trademark Searches

One of the primary reasons trademark applications are rejected by the US Patent and Trademark Office is because they are too similar to an already registered trademark. Identifying any similar trademarks before submitting your application can save your business time and money by ensuring your trademark does not infringe on the rights of another business.

Now imagine a worst-case-scenario where you launch a brand, invest in marketing, and establish a customer base only to receive a cease-and-desist letter for unintentional trademark infringement. The consequences can range from rebranding to compensation for damages—a scenario that could be financially and reputationally catastrophic. Thorough trademark searches act as a shield, protecting your venture from such threats.

Utilizing the Right Resources for Trademark Searches

If you can’t hire an experienced trademark attorney, you need to protect yourself by searching for similar trademarks yourself.  The effectiveness of your trademark search hinges on the resources you utilize. While many free tools offer basic search capabilities, they may not provide the comprehensive coverage necessary to uncover all potential conflicts. In your search, narrow your focus to trademarks that are confusingly similar to yours when used with goods and services that are the same as or related to yours. Here are some resources recommended for a thorough investigation:

1. United States Patent and Trademark Office (USPTO) Database: The USPTO's online database is a starting point for any trademark search. It allows you to search registered trademarks and pending applications, offering a glimpse into potential conflicts within the U.S.

2. Trademark Official Gazette (TMOG): The TMOG is a weekly publication by the USPTO that features all trademarks that received approval for registration in the USPTO database.

3. International Trademark Databases: If your business plans to expand globally, searching international databases like WIPO's Global Brand Database, the European Union Intellectual Property Office (EUIPO) database, TMview, and Madrid Monitor is crucial.

4. The Internet: Common law rights are established once a business begins utilizing a trademark in intrastate commerce associated with specific goods or services. These rights are confined to the state  in which the trademark is used but can affect the rights provided by your trademark registration if another party’s common-law use predates the use supporting your application. Searching the internet for potential uses of your trademark or a similar trademark can prevent infringement of common law rights. 

5. Specialized Search Services: For a more thorough investigation, consider using specialized search services. These services can provide detailed reports on potential conflicts, including similarities in sound, appearance, and commercial impression, which might not be apparent through a basic search.  Be aware though, these commercial search services provide broad results, and many of the trademarks listed may actually not be a bar to your mark.  An experienced trademark attorney can help you parse the results.

Crafting a Legally Sound Trademark Strategy

A well-conducted trademark search is the foundation upon which a legally sound trademark strategy is built. This strategy should consider the distinctiveness of your trademark, potential market expansions, and the evolving landscape of intellectual property rights. Engaging with legal professionals who specialize in trademark law can provide valuable insights and guidance through this complex process. Lloyd & Mousilli and our unparalleled team of legal professionals with years of experience and deep expertise in trademark law stand ready to ensure your trademark is protected and legally complaint.

What is the USPTO's expedited review process?

The process of obtaining a trademark from the United States Patent and Trademark Office (USPTO) can be complex and time-consuming. For applicants looking for a faster review process, the USPTO offers an expedited review option for trademark applications. It typically takes about 2 to 3 months from the time of filing (as opposed to the standard 8-12 months) to the issuance of a trademark registration, assuming there are no significant issues or objections.

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Eligibility requirements for expedited review

To take advantage of the expedited review process offered by the USPTO for trademark applications, you'll need to meet certain eligibility requirements. Generally, the expedited review option is available for applicants who can demonstrate a genuine need for expedited consideration. This may include situations where there is an imminent risk of trademark infringement or a need to enforce rights in court.

Additionally, applicants must meet other general requirements for registration, such as providing a complete and accurate application, meeting all statutory requirements, and paying the appropriate fees.

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How to apply for expedited review

In order to request an expedited examination for your application, you need to submit a Petition to Make Special to the USPTO after filing your application but before the commencement of the initial examination process. Your petition should include:

1. A comprehensive statement outlining the reasons why your application warrants special consideration.
2. Supporting facts indicating potential trademark infringement, legal disputes, or the necessity of U.S. registration to secure a foreign trademark.
3. Evidence demonstrating potential losses the applicant may incur if the application is not expedited.

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Things to consider before filing a petition to expedite your trademark

Deciding whether to file a Petition to Make Special should involve careful consideration and informed judgment. Points you should first consider include, but are not limited to:

• Financial resources necessary to cover the cost of the Petition
• Whether or not your evidence and circumstances justify expedited processing
• Whether or not there is ongoing litigation related to your trademark
• How long your trademark has been in use

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If you are unsure of your eligibility or need assistance with filing, Lloyd & Mousilli can advise you on the best course of action.

The Future is Uncertain

Equity, or ownership, is a company’s most expensive and most valuable asset. When splitting ownership, it is important to keep in mind that no one knows what the future may hold. You might expect that if you and your partner have equal ownership, that your work, time, or financial contributions will be equal. The reality, however, could be very different. You may end up bearing more of the workload than your co-founder and still have the same equity split. As the startup grows, each of your commitments and life priorities may change and your share of the equity split or your partners’ may no longer be representative of each of your contributions to the company. 

Founders also have different ideas about the types of contributions they will be making, and this vision changes over time as the company grows. Some may envision taking an active role in daily operations and management, while others want to handle marketing, and some may prefer a more passive style of investment. It is important that the split in ownership be reflective of these styles. It takes time to understand these differences and how to work with them, and most startup founders do not have that degree of familiarity with each other, thus making a 50/50 ownership split a risk. Startup founders that negotiate longer are more likely to decide on an unequal split, as they have been able to discover and address important differences in their expected contribution levels.

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Higher Chance of Splitting Faster

Another risk with a hasty 50/50 ownership split is that it can lead to your startup falling apart fast. Compared to founders who took the time to establish a well thought and calculated equity split, those who neglected to have this discussion and chose to split equally shut down their companies significantly faster due to a fallout amongst the founders. This also applies to startup founders who are related to each other- they are more likely to spend less time negotiating equity, and in turn are also more likely to share equally and end up splitting faster. The consequences and tension of an ill established ownership split can be devastating for a startup. 

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More Difficulty Bringing in Investors

A major consequence of implementing an equal ownership split is that it makes bringing in investors a lot more difficult- equal splits are sometimes seen as a sign of bigger issues within the startup. Investors tend to pay attention to the way co-founders divide ownership because it tells a lot about their experience level and engagement within the company. They may find an equal split to be impractical, and see it as an inability to negotiate seriously within and outside the company. Teams who quickly establish an equal ownership structure may face significant difficulty in raising their first round of financing, either in reduced ability to raise or in lower average valuations.

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Stalemates on Key Issues

An equal ownership split between startup founders means that both partners have equal control and voting power. This inevitably leads to deadlocks and an inability to move forward on key issues, which at best could end up stalling the business. These stalemates can easily be avoided by having one founder maintain majority control, even through an almost-even split. This ensures one founder has majority voting power when it comes to important business decisions. Startup founders need to be able to compromise and negotiate for the good of the company.

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Conclusion

Making these decisions can be overwhelming. Lloyd & Mousilli can help you implement the right ownership split for your startup. Our firm has the experience necessary to set your company up for success.

Scope and Applicability

The Texas Privacy Law aims to protect the privacy rights of individuals residing in Texas. It applies to businesses that collect, process, store, or disclose personal information of Texas residents, regardless of the business's physical location. This broad applicability underscores the commitment of the state to safeguarding personal data and ensures that both local and global organizations must comply with the law.

Consumer Rights and Control

One of the notable aspects of the Texas Privacy Law is the emphasis on consumer rights and control over personal information. The law grants Texas residents the right to know what personal information businesses collect and how it is used, as well as the right to access and delete their personal data. This increased transparency empowers individuals to make informed decisions about their privacy and exercise greater control over their personal information.

Consent and Opt-Out Mechanisms

The law introduces stricter consent requirements for businesses, mandating that they obtain affirmative consent from consumers before collecting or processing their personal data. It also strengthens opt-out mechanisms, enabling individuals to easily withdraw their consent for data processing at any time. These provisions reinforce the principle of consent as a cornerstone of privacy and give individuals more agency in determining how their personal information is managed.

Data Breach Notification

To ensure timely and effective responses to data breaches, the Texas Privacy Law establishes stringent requirements for data breach notification. Businesses are now required to promptly notify affected individuals in the event of a breach that poses a significant risk of harm, allowing them to act appropriately to protect themselves from potential harm resulting from the breach. The law also imposes reporting obligations on businesses, mandating them to inform the Texas Attorney General of certain breaches.

Compliance and Penalties

To enforce compliance, the Texas Privacy Law provides the state Attorney General with authority to investigate and enforce violations. Non-compliant businesses may face substantial penalties, including fines and injunctive relief. Compliance with the law necessitates the implementation of robust privacy practices, including privacy policies, data protection measures, and mechanisms for addressing consumer inquiries and requests.

Conclusion‍

The introduction of the new Texas Privacy Law marks a significant step forward in enhancing privacy rights and data protection for residents of the Lone Star State. By granting individuals greater control over their personal information and imposing obligations on businesses to ensure transparency and accountability, the law aligns Texas with the global privacy movement. Companies operating or having customers in Texas  must now prioritize privacy compliance to maintain consumer trust, avoid penalties, and demonstrate their commitment to protecting personal data.

While the implementation of the Texas Privacy Law may require businesses to adjust their data handling processes, it serves as a reminder that privacy is not just a legal obligation but a fundamental right that deserves respect and protection in the digital age. By embracing these privacy-enhancing measures, organizations can foster a culture of trust, establish a competitive advantage, and contribute to a more privacy-conscious society. If you need a review of your existing privacy compliance, please reach out to Lloyd & Mousilli to help.