Webinar PDF handout of New Opportunities & Standard Practices for UK Creative and Technology Companies Expanding into the United States presented by UK Trade & Investment with moderator Carlo Cavagna, Vice Consul (Creative & Media), UKTI - Los Angeles and presenters Philippa Burgess, Partner, Creative Convergence and Kristian Wiggert, Esq., Partner, Covington & Burling LLP.
New Opportunities & Standard Practices for UK Creative and Technology Companies Expanding into the United States
1. New Opportunities & Standard
Practices for UK Creative and
Technology Companies Expanding
Into the United States
Tuesday, June 4, 2013
3:30 PM to 5:00 PM (BST)
3. Webinar Schedule
Tuesday, June 4th, 3:30pm – 5:00pm (BST) – 90 Minutes
3:30pm Welcome & General Instructions
3:35pm Introduction by Carlo Cavagna
3:40pm Presentation by Philippa Burgess
& Kristian Wiggert, Esq.
4:20pm Upcoming UKTI Activities
4:25pm Q&A (use webinar chat function)
5:00pm End
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4. Presenters
Philippa Burgess
Partner & Co-Founder
Creative Convergence Inc.
www.creativecvg.com
Kristian Wiggert, Esq.
Partner
Covington & Burling LLP
www.cov.com
Moderator:
Carlo Cavagna
Vice Consul (Creative & Media)
UK Trade & Investment
http://www.ukti.gov.uk/home.html
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5. Philippa Burgess
A Los Angeles-based business
consultant specializing in business
development, content monetization,
and consumer engagement for technology
startups, advertising agencies, brands, and
content owners.
The company also has an office in Chicago where
they are imbedded within Y&R Midwest, part of
Y&R, a WPP company, as part of their Spark Plug
Innovation Network.
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6. Kristian Wiggert, Esq.
A U.S. lawyer based in London
specializing in complex cross-
border transactions and
international business, with particular
expertise in the media and technology and life
sciences sectors.
Member of California and New York Bars.
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7. Presentation Overview
• New opportunities for expanding your business
within the UK and beyond in 2013.
• Steps for setting yourself up to do business in the
US market.
• Common pitfalls you’ll encounter when doing
business in the US for the first time.
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8. Business Development: Phase 1
British Culture
• Attitudes & Work Styles
• British Advantages
• British Challenges
Entirely New Endeavor or US
Expansion?
• Tech Beta
• Use Case (Case Study)
• Marketing Materials
• Company Story
• Executive Story
• Marketing Beta
Milestones
• What is Mission Critical?
• What are Current Financial Resources?
• What are Financial Revenue Goals?
• What are Investment Needs?
US Market Opportunities
• Enhancing Marketing Efforts
• Securing Introductions
• Competitive Analysis
• Sales Cycle
• US Talent and/or Management
• Relationships Management
• Ongoing Visibility
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9. Business Development: Phase 2
Willingness to Explore
• Opportunities
• Relationships
• Team Building
• Clients
• Community
US Cultural Differences
• Workplace Culture
• Within Geographic Regions
US Connections
• Event Circuit
• Relationship Building
Opportunities
• Media Coverage
• Digital Media Presence
• Consultants & Advisors
US Pitfalls
• Startup Expense
• Focus and attention on
relationships
• Sensitivity to changing
mandates, timing, process and
executive fears.
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10. US Regions: Major Market Areas
East Coast
• New York (Financial Industries, Media & Publishing, Tech Scene, Talent, Investment, Ad Agencies, Brands,
Offices of Tech Giants, Offices of Film/Television Studios, Music Giants)
Mid-West
• Chicago (Ad Agencies, Brands, Tech Scene, Tech Talent, Investment)
West Coast
• San Francisco (Tech Scene, Tech Talent, Investment, Headquarters of Tech Giants)
• Silicon Valley (Tech Scene, Tech Talent, Investment, Headquarters of Tech Giants)
• Los Angeles (Creative Scene, Media, Creative Talent, Headquarters of Film/TV Studios, Offices of Tech Giants,
Tech Scene, Investment, Ad Agencies, Brands, Music Giants)
Northwest
• Seattle (Tech Scene, Investment, Headquarters of Tech Giants)
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11. US Regions: Smaller Active Markets
East Coast
• Boston (University Scene, Tech Scene, Tech Talent, Investment, Ad Agencies)
• Philadelphia (Tech Scene, Investment)
• Washington, DC (Tech Scene, Factual TV cluster, Investment)
South East
• Atlanta (Tech Scene, Creative Talent)
• Orlando, FL (Tech Scene)
• Miami , FL (Gateway to Latin America)
Mid-West
• Kansas City, MO (Ad Agencies, Brands)
• Columbus / Cleveland , OH (Ad Agencies, Brands)
• Detroit, MI (Ad Agencies, Brands)
• Milwaukee / Madison, WI (Ad Agencies, Brands)
• Minneapolis/St. Paul, MN (Ad Agencies, Brands)
Southwest / Mountain
• Austin, TX (Tech Scene, Tech Talent, Creative Talent, Music, Investment, Headquarters of Tech Giants)
• Dallas/Ft. Worth, TX (Investment)
• Houston (Investment, Headquarters of Corporate Giants)
• Denver / Boulder, CO (Tech Scene, Tech Talent, Investment)
West Coast
• Orange County (OC)/ San Diego (Tech Scene, Tech Talent, Ad Agencies, Investment)
• Portland, OR (Tech Scene, Tech Talent, Ad Agencies, Music & Arts)
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12. Setting Up in the US
Don’t forget there are 50 States
• Federal system means both national and local rules
• Rules can vary greatly among states
Branch or subsidiary?
• Consider how much business you expect to do, and where
• A branch can expose the whole “tree” to US rules, lawsuits and taxes
• Corporations are easy to set up and not costly
• Other forms (eg LLCs) probably too complex for start-ups
Who will run the US business?
• Key people should be prepared to spend a lot of time in the US
• Get the right assistance on the ground, be careful about local control
• Look into any immigration/visa needs early in the process
Financial—Banking Arrangements; Funding
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13. Managing the Legal Basics (1)
Taxes
• Levels—federal, state and local
• Types—income, payroll (employer), sales
– Income of operations will be liable to federal and state tax (setting up a corporation can make this easier to manage)
– Payroll taxes are employer’s responsibility—failure to withhold can cause major problems with US tax authorities
– Sales taxes—these are state and local; look at nexus to each state; new laws may mean more states can collect
• Observe registration and filing requirements
Employees
• Agreements are generally “at will”, without extended notice periods
• Anti-discrimination rules and state laws extensive
• In many states non-competes unenforceable or limited
• US-style invention assignment and confidentiality agreements essential
• Be prepared to provide a standard set of benefits (in particular, health
insurance)
• Keep immigration rules in mind
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14. Managing Legal Basics (2)
IP
• Consider protection through patent, trademark, copyright
• Use US-style license and rights contracts
Sales and Marketing
• Each product type has its own regulatory regime
• Different distribution methods also have their own regulations, with
sometimes surprising applications (eg franchise rules)
• Consider consequences of distributorship arrangements—length,
exclusivity, termination rights
Property—Leasing arrangements
Insurance/Risk Management—make sure insurance covers the US
Disputes
• Plan against these through proper contracting (costs provisions;
arbitration/mediation)
• As in the UK, most disputes do not get into court
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15. 15
Upcoming US Market Activity
October 2013
Multi Platform App Developer Mission (San Francisco)
Tech talks, workshop, showcase, hack a thon
Contact: Frank William (frank.william@fco.gov.uk)
Digital Mission (New York)
Doing Business in the US master class, admission to Ignition, reception & more
Contact: Patricia Young (patricia.young@fco.gov.uk)
January 2014
RealScreen (Washington DC)
Discounted registration, broadcasters dinner, reception
Contact: Kara Shuman (kara.shuman@fco.gov.uk)
February 2014
KidScreen (New York)
Discounted registration, reception & more
Contact: Richard Powell (richard.powellNY@fco.gov.uk)
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Upcoming US Market Activity (cont.)
March 2014
South By Southwest (Austin, Texas)
Trade mission, bespoke networking events, demo day, showcases & more
Interactive Contact: Caitlin McGill (caitlin.mcgill@fco.gov.uk)
Music Contact: Phil Patterson (phil.patterson@uktispecialist.com)
GDC Showcase (San Francisco)
Open table demos. Additional activities tbc.
Contact: Frank William (frank.william@fco.gov.uk)
2014 – date to be confirmed
Sync Mission (Los Angeles)
Panels, presentations, site visits, reception & more
Contact: Carlo Cavagna (carlo.cavagna@fco.gov.uk)
17. Contact Information
Philippa Burgess
Partner & Co-Founder
Creative Convergence Inc.
www.creativecvg.com
www.twitter.com/creativecvg
www.linkedin.com/in/philippaburgess/
Email: pb@creativecvg.com
Kristian Wiggert, Esq.
Partner
Covington & Burling LLP
www.cov.com
uk.linkedin.com/pub/kristian-wiggert/11/84/37a
Email: kwiggert@cov.com
Carlo Cavagna
Vice Consul (Creative & Media)
UK Trade & Investment
www.twitter.com/UKTI_CreativeLA
www.linkedin.com/in/cavagna
Email: carlo.cavagna@fco.gov.uk
UK Trade & Investment
www.ukti.gov.uk
www.twitter.com/UKTI
www.blog.ukti.gov.uk
www.linkedin.com/ukti
www.youtube.com/uktiweb
www.twitter.com/UKTIUSA
www.youtube.com/UKTIUSA
http://uktiusa.tumblr.com
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