You cannot protect yourself from copycats, and if somebody says he can, he is a fraud.
I worked in, and around OEM consumer electronics since 2007.
A much bigger problem why you need a lawyer to run just any physical business in USA, is because of militant litigation from pretty much everybody:
1. Consumers, some time legit, some times BS, and BS litigations hurt the most. You either hire a lawyer to write "Do not try to operate the gas stove with your genitals," or you simply cannot survive with nonsensical body of law covering product liability.
Not saying that genuine screwups on your side can not be equally painful. A recall is usually the end of any non-MNC company in the industry.
2. Suppliers, and not in the way you usually expect. IP supplier-trolls at large. The moment somebody sells a single widget of yours in US, US judges believe they can apply American IP laws wherever you are in the world, and entitle trolls to your international revenue. It does not fly much anywhere in the world, but they have unlimited amount of tricks to lure you into US courtrooms.
3. Government bodies, again, some times legit, some times not. Tons of codes, and some well known vague, and contradictory regulations especially covering radio certification, and electrical safety.
It's not like they are hard to follow, but it is the authorities in charge which themselves don't know what their rules mean, and don't want to tell even if compelled to.
However, the biggest regulatory hurdle in US is much more about simply running the company as such. Militant IRS, labour related litigation, securities (just don't run a corporation in the US under any circumstance.)
4. Your own distributors. In what country a buyers of yours can not only owe you money, be overdue on the payment, and sue you for demanding them back? Yes, you know the answer. From my experience, it is extremely hard to exact payments from debtors in USA, and big co clients routinely exploit it every day.
> You cannot protect yourself from copycats, and if somebody says he can, he is a fraud.
That may be practically true in some cases (e.g., where the copier is unreachable) but it is not true in general. In fact, protecting a business investment from copycats is the entire purpose for intellectual property and actions for infringement of trademarks, copyright, and patents or for misappropriation of trade secrets.
Interesting, and while I sense that you have legitimate experience and insight, I cannot help but feel this contradicts the reality that I see:
Many startups originate in the U.S. and while many fail, some either become profitable or are acquired. Why would another entity acquire if the future burden/liability you describe truly exists?
To understand you correctly, are you saying bankers&lawyers get drawn into acquiring startups? ...More about strategic interests than direct return on investment?
Much of lemming tendencies than anything meaningful. Everybody seem to be doing this, guided by the crowd instincts, but those with the most money, and connections (which bankers, and lawyers are) seem to score them most at that.
I worked in, and around OEM consumer electronics since 2007.
A much bigger problem why you need a lawyer to run just any physical business in USA, is because of militant litigation from pretty much everybody:
1. Consumers, some time legit, some times BS, and BS litigations hurt the most. You either hire a lawyer to write "Do not try to operate the gas stove with your genitals," or you simply cannot survive with nonsensical body of law covering product liability.
Not saying that genuine screwups on your side can not be equally painful. A recall is usually the end of any non-MNC company in the industry.
2. Suppliers, and not in the way you usually expect. IP supplier-trolls at large. The moment somebody sells a single widget of yours in US, US judges believe they can apply American IP laws wherever you are in the world, and entitle trolls to your international revenue. It does not fly much anywhere in the world, but they have unlimited amount of tricks to lure you into US courtrooms.
3. Government bodies, again, some times legit, some times not. Tons of codes, and some well known vague, and contradictory regulations especially covering radio certification, and electrical safety.
It's not like they are hard to follow, but it is the authorities in charge which themselves don't know what their rules mean, and don't want to tell even if compelled to.
However, the biggest regulatory hurdle in US is much more about simply running the company as such. Militant IRS, labour related litigation, securities (just don't run a corporation in the US under any circumstance.)
4. Your own distributors. In what country a buyers of yours can not only owe you money, be overdue on the payment, and sue you for demanding them back? Yes, you know the answer. From my experience, it is extremely hard to exact payments from debtors in USA, and big co clients routinely exploit it every day.