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Ask Jane Applegate
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September 13, 1999: 2:11 p.m. ET
Tips on U.S. copyright laws, and obtaining capital with bad credit
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NEW YORK (CNNfn) - Here are answers to your questions for CNNfn.com small-business expert Jane Applegate.
Dear Jane: I want to offer a service to individuals who want to turn their favorite vinyl records into CDs. Is this legal?
Absolutely not! Music, like most creative work, is fully protected by strict copyright laws. Although you can copy a few songs for yourself from a CD to a cassette tape or vice versa, under the "fair use" provision of the copyright law, you can't profit by stealing someone else's intellectual property.
"You can't make CDs without permission of the owner of the song and the song publisher," said Stephen Fishman, a copyright attorney and author of The Copyright Handbook, published by Nolo Press ($29.95).
"If you are doing it for yourself, though, there is no way a publisher could catch you," said Fishman. "So that would probably be considered fair use."
Fishman said your concept for producing customized CDs might be a viable small business, but you'll have to pay for the right to use the songs on your customized CDs.
As a general rule, you should avoid using other people's work without their permission, except short excerpts in scholarly works or published reviews. If you do quote something, Fishman said, "it's a good idea to attribute it" to the original source.
Fishman's easy-to-read book spells out the basics of copyright law, including tips for dealing with copyrights in cyberspace.
Here are more tips from the book:
1. Copyright protects any original creative work that is fixed in a tangible medium. This includes books, films, scripts, paintings, sheet music, recorded music, software code, artwork, sculptures, photos and architectural designs.
2. The work is protected, not the idea. Ideas and facts can be used freely -- copyright only protects the expression of the idea, not the idea itself.
3. The work is protected from the moment it's written.
4. Authors have exclusive rights over their work.
5. If it's not protected, it's in the public domain. Any work that is not protected by copyright or over 75 years old, is considered in the public domain in the United States.
6. It's a good idea to include a copyright notice on all written works.
7. Copyright protects works online as long as they are your own.
Seeking influx of capital
Dear Jane: Our small printing business has been struggling for five years. Now we are about to go under. Our credit is bad. What can we do to obtain an influx of capital to make a comeback?
Unfortunately, no one will be very interested in lending money to a dying business, but there are a few things to try before you give up. You should make a serious effort to cut costs and boost your cash flow.
First, go through all your accounts receivable and contact everyone who owes you money. Offer them a discount of 5 percent to 10 percent if they pay their bill in full within a week. This kind of "debtor amnesty" often brings in much-needed cash.
Next, double-check every order to make sure the invoices have been sent out for payment. Often you get so busy doing the work, you forget to bill for it. Collecting the money people owe you may provide some of the cash you need to survive.
Look around your business to see where you can cut costs. You may have to lay off workers or reduce hours from full-time to part-time. While it's tough to let valuable people go, it may be the only way to save your business.
Remember though, never miss a payroll tax payment. This gets you in big trouble with the federal government.
Reducing overhead is just one part of the action plan. You have to do everything you can to bring in new business. If you can't afford to advertise, print up flyers (easy for you in the print shop!) and distribute them to neighboring businesses. Many organizations, including chambers of commerce, will stuff flyers into their monthly newsletters for a very small fee. Call all your former clients and ask if they need any work done. Be sure to do everything you can before shutting your doors.
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