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Ready, Set, Launch: Addressing Legal Issues in New Product Launches
Practical Law Legal Update 5-602-6845 (Approx. 3 pages)
Ready, Set, Launch: Addressing Legal Issues in New Product Launches
by Practical Law
| Published on 05 Mar 2015 • USA (National/Federal) |
There are a variety of legal and business issues to address when launching a new product. Practical Law has resources to assist counsel from initial product development to commercialization.
Developing and launching a new product is a big undertaking, one that can be daunting for counsel that are new to the process. Business executives and product development teams are busy with financial analyses, market tests, branding and production, and there are many legal and business issues throughout this process on which in-house counsel must advise.
Practical Law has a variety of resources to assist in-house counsel in identifying and addressing many of the legal and business issues that arise during a new product launch. Launching a New Product Checklist outlines key matters to consider during the development of a new product, including:
- Company structure. Determine whether an existing business unit should develop the new product, or if organizational changes must be made to allocate risk and internal stress (for example, by creating a new business unit or division or by forming a subsidiary).
- Third-party collaborations. Consider whether a joint venture or joint development arrangement is appropriate to create the new product.
- Employment needs. Address the variety of employment law issues that can arise if the business must hire or contract additional employees to assist in the development and commercialization of the new product.
- Intellectual property (IP) issues. Launching a new product requires that companies:
- ensure that they own the IP created by employees and independent contractors;
- avoid infringing on third-party IP rights (for example, by searching and clearing copyrights and trademarks);
- protect the company's IP rights in the new product; and
- police infringing conduct by others when the new product is launched.
- Product labelling and packaging. Consider whether aspects of the product's label or packaging may be protectable and address compliance with product labelling laws (for example, for consumer products, food and medical devices).
- Supply chain relationships. Form relationships with third-party sellers and service providers (for example, manufacturers, sales representatives and logistics providers) to bring the new product from its design and manufacture to delivery and sale to consumers.
- Advertising and marketing. Creating an advertising and marketing campaign may involve contracting with a third party (if the company is using an agency or consultant) and complying with federal, state and local laws that regulate various media (for example, print or online) and contests and sweepstakes.
- Consumer protection and product liability. Ensure compliance with federal consumer protection statutes and regulations (for example, the Federal Trade Commission Act) and minimize the company's exposure to product liability risk posed by the new product.
For a collection of Checklists that focus on the steps to take and issues to consider when handling many types of projects and matters commonly encountered by in-house attorneys, see Practical Law's In-house Generalist Resource Center.