by Alec Shields
Does cryptocurrency have the potential to transform today’s reality and how the world does business? Many believe so! More than 2,300 US businesses accept Bitcoin as a form of payment, according to a late 2020 estimate. Some say that Bitcoin and other cryptocurrencies will positively affect businesses in both the present and the future by providing a decentralized digital form of payment that is fast, secure, and global. Here, I will explore some ways a business can prosper using cryptocurrencies for business transactions.
Understanding Blockchain Technology
To fully wrap one’s head around cryptocurrency, one must understand that cryptocurrencies are decentralized digital currencies that use blockchain technology to ensure the security and integrity of transactions. So, what does that mean exactly?
In essence, blockchain technology works by maintaining a continuously growing list of records, called blocks, that are linked and secured using secret writing, aka cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. This purposeful design is integral to the system. The open distributed ledger that records the transactions between two parties is verifiable, permanent, and cannot be altered or modified in any way. This process creates a network controlled not by a single entity but by a group of nodes, also called miners or validators. Any alteration to the blockchain would require more than 50% of the validators to agree with the alteration, thus making it almost impossible to alter data on the blockchain.
Advantages of accepting Cryptocurrency
Lower Transaction Costs
How can a business use this technology to gain the upper hand? One of the main benefits of accepting cryptocurrency is the potential to reduce transaction costs from credit card payment providers. On average, these payment providers charge 3-4% for every purchase a customer makes. Due to these charges, some merchants, like Kroger and Starbucks, have chosen to accept or intend to accept blockchain-based payments. This decision allows the merchant to accept the cryptocurrency and convert their revenue to fiat currency for less than 1%. Saving 2-3% on all transactions would ensure a higher profitability for any business.
No Chargebacks
When allowing debit or credit card purchases, businesses often deal with bank chargebacks. Ultimately, businesses suffer the consequences of these chargebacks. Specifically, businesses may pay additional fees, receive fines, and spend valuable time fighting chargebacks from fraudulent activity.
Unlike credit or debit cards, cryptocurrencies have no bank chargebacks. Once the transaction on the blockchain is complete, the transaction is immutable and irreversible. Therefore, it would be impossible for a customer to reverse the transaction. Customers cannot pull the money from your account and put it back into theirs without question.
Although the immutable nature of cryptocurrency has potential drawbacks, such as a merchant selling an unsatisfactory product and refusing to return the cryptocurrency received, online reviews of the company and product would likely solve this issue quickly. If a business decided to operate that way, individuals would shop elsewhere, forcing any business operating in a shady fashion to close down. Therefore, the risk of the drawbacks is so low that cryptocurrency is still the best payment option for a business.
More Data Security
From a security and privacy standpoint, paying with a credit card is inherently more dangerous. When a customer pays with a credit card, they reveal their data to the merchant, the acquiring bank, the card service, and the issuer. When paying with cryptocurrency, a customer does not disclose any private information, making it harder to steal.
Attracting New Customers
Businesses using blockchain technology and accepting cryptocurrencies also position themselves well for reaping the rewards of an emerging space that potentially includes a Central Bank Digital Currency (CBDC). Accepting cryptocurrency provides access to a new demographic of customers who value transparency in their transactions. A recent study from leading research and advisory firm Forrester Consulting revealed that businesses that integrated BitPay, a cryptocurrency payment provider, saw an average return on investment of 327%. This return was no surprise to BitPay’s CEO, stating, “accepting bitcoin and other cryptocurrencies through BitPay saves merchants considerably on fees and unlocks a whole new customer base.” The study also revealed that 40% of customers paying with cryptocurrency were new customers, and their purchase amounts were twice that of credit card purchases. The study clearly shows that many individuals are looking to spend their money via cryptocurrency.
Conclusion
Cryptocurrency, sometimes called magic internet money, is here to stay. Businesses in every field stand to prosper from the use and acceptance of it. Accepting cryptocurrency payments will raise the bottom line of any business by excluding high rates charged by credit card companies, avoiding chargebacks from banks, attracting new customer bases, and boosting a business’s average return on investment. Therefore, it would behoove all businesses to understand how the world of “magic internet money” really works while working to allow cryptocurrency payment methods. If you want to learn more, here is a quick video breaking down how to accept Bitcoin in your business: Bitcoin 101 for Small Business
This post has been reproduced and updated with the author’s permission. It was originally authored on January 29, 2023 and can be found here.
Alec Shields, at the time of this post, is a third-year student at Penn State Dickinson Law. He works as a research assistant at Penn State Dickinson Law for Professor Katherine Pearson. Alec is interested in tax, crypto, and helping start-up companies navigate this new economy. He looks forward to starting his own firm one day.
Sources:
Study Shows Merchants That Accept Bitcoin Attract New Customers and Sales
The Use of Cryptocurrency in Business
Benefits Of Accepting Bitcoin And Other Crypto For Your Business
American work culture is an international standout—and not always for a good reason. For many, working within Corporate America comes with an all-or-nothing approach of bending over backward for minimal thanks and bragging about who has taken the least time off. Across the pond, this mentality is not the norm. Instead, Europeans emphasize and adhere to a healthy work-life balance, take maternity and paternity leave, and refrain from checking work emails after hours. Recently, a new wave has taken over and carried its ripples over to American shores: the four-day work week. Studies have shown that employees who work four days per week without a cut in a pay report increased job satisfaction, higher productivity, and overall greater happiness. But what are the legal implications for such a drastic shift in the traditional work format? Can smaller companies and start-ups keep up with the trend?
Another possible model — and perhaps one that fits more seamlessly into American hustle culture — is a four-day work week in which employees work the same amount of hours spread over longer days. For a traditional forty-hour week, employees need to work ten hours on each of the four days while pay and benefits stay the same. Ten-hour days also pose legal challenges for companies. Will some employees need additional breaks throughout the day, especially minors or those with disabilities? Are all of the employees physically capable of working longer days? A business must consider these factors before implementing change to avoid alienating workers who may have challenges working longer shifts.
If a company does elect to shift to a shortened week, the employee handbook must reflect that change. Any compensation or policy alterations based on this change should be elaborated upon in the employee handbook to ensure employees understand the updates.
Benjamin Franklin is remembered for his political career, most notably for being one of the Founding Fathers of America, but did you know that he was also one of the most successful entrepreneurs of his time? His entrepreneurship spans across multiple industries, most prominent of which are printing and newspapers.
Franklin also ventured into the newspaper business. Franklin purchased the Pennsylvania Gazette in 1729. The newspaper was so popular that it has been dubbed the colonial equivalent of The New York Times. Franklin often contributed to the newspaper. He continued his witty, conversational writing style from his “Mrs. Silence Dogood” days, and devoted ample space to gossip and sensational crimes, all of which contributed to the newspaper’s popularity. It is of note that Franklin engaged in some less than exemplary business practices to purchase the Pennsylvania Gazette. Before purchasing it, he published some scathing reviews of the paper, which led to decreased circulation, and consequently, a lower purchase price.
By age 42, Franklin had made enough money to retire. Upon retirement, he devoted himself to scientific research, most famous of which is on electricity. His findings on electricity were of great value to future scientists. Among his various experiments, he flew a kite into a lightning storm to prove that it is a form of electricity.
The rate of Americans with multiple jobs has risen since 2010. Today, 16 million Americans – around 10% of the U.S. workforce – work more than one job. Many healthcare, food service, retail, and administrative employees work more than one job and still make less than $20,000. Inflation, weak wages, and lack of pay transparency all contribute to the need for people to work multiple jobs. Many people in the U.S. workforce do not have the luxury to “shop around” for a better-paying position because the hiring process puts a financial strain on their already dwindling savings. However, lack of pay transparency means that even those who can research new positions can be caught off guard when their new pay range finally gets disclosed.
State or local pay transparency laws are currently in effect in ten states: California, Connecticut, Maryland, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Washington. Pay range disclosure requirements vary, but each law prohibits complete pay secrecy.
Pay transparency does not (and should not) end after the hiring process. Regardless of whether or not an employee is aware of their pay range before joining the company, Section 7 of the National Labor Relations Act gives employees the right to communicate with their fellow employees about their wages. The National Labor Relations Board recently confirmed that an agreement between an employer and an employee “is unlawful if its terms have a reasonable tendency to interfere with, restrain, or coerce employees in the exercise of their Section 7 rights.” Section 7 rights are important because employees can discover inequities and pay gaps by communicating with each other about their wages. Companies can avoid employee dissatisfaction and resentment by consistently providing pay transparency throughout both hiring and employment.
Most start-up pharmaceutical, biotechnology, and medical device companies are formed with the intent to eventually be bought out by larger, well-established companies such as Abbott, Sigma Aldrich, or Bayer. However, the option of being bought out only comes to fruition once a start-up has established scientific proof that leads to medical or pharmaceutical advancement. In the course of novel scientific innovation, start-ups and inventors are often quick to get a patent. But, when being bought out, one might find themselves confused about the status of their application or the ownership of the patent. This blog post aims to explain (1) the ownership and assignment of a patent when it is first filed, and (2) how assignment rights can be transferred when a company is bought out.
Utility applications and patents are the most common type of filings and are what people often think of when hearing “patent.” Scientific developments will always be utility applications that end in utility patents. However, these filings come in many types including provisional, nonprovisional, divisional, substitute, continuation, and continuation-in-part applications. While the precise differences between these applications and their functions are irrelevant to this post, it is important to note that a nonprovisional application is always a parent application. The remaining types of applications, except provisional applications, stem from the originally filed parent application and are therefore known as child applications. Provisional applications themselves are not a type of application that leads to a patent, but rather, they act to “hold your place in line” at the United States Patent and Trademark Office (“USPTO”).
While not required, it is always best to record an assignment at the USPTO. Recording the assignment provides public notice of the assignment and prevents your company from losing rights if a later transfer occurs to a third party as they will be aware of the original assignment. While that may sound complicated, it simply means that recording the assignment prevents any later transfers to a third party because the first party to record and publicly claim ownership in good faith is given priority in ownership.
If the start-up only holds partial ownership in an application or patent, the transfer does not provide the assignee with complete ownership but is rather defined as an “assignment of patent rights.” In other words, you can only assign the percentage of rights held by your start-up. This situation is often seen in joint ventures between two companies or where multiple inventors exist and fail to unanimously agree to assign the application or patent. To illustrate this, if four inventors each own a 25% interest in the application or patent, with two refusing to assign to the start-up, the start-up can only obtain 50% ownership, and may only further assign that 50% right to another. The main issue in this scenario is that all owners must act together if the application undergoes prosecution before the USPTO. This can create difficult scenarios where application owners have differing opinions on how to proceed with prosecution, thus slowing down the entire process and ultimately leading to more issues.
What image comes to your mind when you think of a Board of Directors? Let me guess—old, white men. Unfortunately, most boards looked that way not too long ago. But thanks to legal progress and social awareness, companies are taking strides to diversify the composition of their boards.
Although the above requirements apply to most Nasdaq-listed companies, exemptions exist based on the type of entity or size. Notably, companies with five or less directors are only mandated to have one diverse director. Nasdaq published a helpful 
Implementing a diverse board has countless social and economic benefits. Below are a few advantages to consider when assessing whether your business should diversify the composition of its board.
Research shows that companies with diverse boards experience greater financial performance and pay higher dividends than homogenous boards. Remarkably, companies with diverse boards are 43% more likely to have above-average profits.
“Why did ChatGPT go to the therapist? Because it had too many layers and couldn’t figure out which one was the true self!” I prompted ChatGPT to tell me a joke about itself, and it responded with the “joke” above. A bit too eerily self-aware for my liking!
Dr. Thaler developed an AI system called Device for the Autonomous Bootstrapping of Unified Science (“DABUS”). DABUS, without any human involvement, invented a flame device used in search-and-rescue missions and a food/beverage container. Dr. Thaler sought to patent both of these inventions. Interestingly, Dr. Thaler filed both patent applications with DABUS listed as the inventor. The United States Patent and Trademark Office (“PTO”) rejected the applications, reasoning that AI could not be the inventor on a patent. Dr. Thaler unsuccessfully challenged the PTO’s rejection in the U.S. District Court for the Eastern District of Virginia and appealed its decision to the Federal Circuit.
There are four legal requirements for patentability: the invention must be (1) useful, (2) patentable subject matter, (3) novel, and (4) nonobvious. Patentable subject matter includes machines, processes, methods of manufacture, or compositions of matter. This definition excludes laws of nature, natural phenomena, abstract ideas, and business strategies.
Subject Matter: Trade secrets may protect things that are not patentable subject matter. This allows things such as customer lists and pricing information to be protected as a trade secret in some instances.
Coryn Hubbert, at the time of this post, is a recent graduate of Penn State Dickinson Law. She has a B.A. in Political Science with a Pre-Law minor from Arcadia University. Since attending law school, Coryn has interned with the Honorable Judge Royce Morris at the Dauphin County Court of Common Pleas and with Pennsylvania’s Office of General Counsel, Department of Conservation and Natural Resources. Coryn currently works at Marshall Dennehey Warner Coleman & Goggin in Camp Hill.
Today, many consumers, especially young ones, care about the environment and sustainability. Consumers strongly consider ingredients when deciding whether to purchase products. NielsenIQ, a global information services company, recognized consumers’ concerns about the ingredients in their food and personal care products and whether the products comply with sustainability practices. Specifically, the company found 60 percent of consumers have been making more “environmentally friendly, sustainable, or ethical purchases” since the beginning of the pandemic. Customers engaged in this “mindful consumption” are demanding transparency from companies. NielsenIQ reported 81 percent of shoppers surveyed said transparency is “important or extremely important” when shopping in-store and online. NielsenIQ also explained that products focusing on health and wellness will be assets for the growth of companies. Thus, these consumer preferences are essential when preparing to open or continue operating your small business.
With the power of social media, as well as apps, consumers are able to expand their knowledge of the ingredients that are in the products they purchase. Yuka, a French app developed in 2017, has become increasingly popular thanks to social media. The app simplifies the long and confusing list of ingredients on product labels. Consumers simply scan the barcode of the food or personal care product, and the app will then develop a score out of 100 to reflect whether the product is healthful for consumers or harmful to the environment. Once a score is developed, Yuka provides explanations and risks of the ingredients found in the product. The app further provides alternative, “healthier” recommendations. Even if Yuka does not recognize the barcode of a product, the app allows users to take a picture of the ingredients, then Yuka will develop a score in approximately two hours and email the users the results. Currently, the app has approximately 36 million users in 12 countries, including the United States.
Yuka may result in consumers taking businesses to court. As Yuka provides transparency and knowledge to consumers, businesses should be cognizant of how they advertise their products. Specifically, entrepreneurs should be cautious when labeling their products as “all-natural” or “organic” when the ingredients say otherwise. Companies in the cosmetic industry have faced settlements because they marketed their products as “all-natural” or “100% natural” when their products really contained synthetic ingredients. It is also important that businesses understand state law on false advertising. For example, California prohibits spreading information about products or services that is “untrue and misleading,” with civil and criminal enforcement.
Sarah Donley, at the time of this post, is a recent graduate of Penn State Dickinson Law. She has a BBA in Economics & Finance with minors in Entrepreneurship and Psychology from Shenandoah University. Sarah served as an Articles Editor for the Dickinson Law Review. Sarah has also earned her LL.M. in European Business Law from Radboud University.
I want to pay more taxes . . . said no entrepreneur ever! Paying taxes is an unavoidable part of entrepreneurship. After all, the Internal Revenue Service (”IRS”) is essentially a partner in your business. Unlike your actual partners, you would like to pay the IRS as little as possible. Fortunately, an easy 
Let’s focus on homes for a bit. Generally, a taxpayer must use part of their home (which includes separate structures) exclusively and regularly as their principal place of their trade or business. Alternatively, a taxpayer must use part of their home exclusively and regularly as a place to meet and deal with clients in the normal course of their trade or business. Meeting either of these requirements can convert a part of your home to business use.
First, you must identify whether the property is a capital asset. Remember, capital assets are property for which the useful life is longer than one year. Second, you must use your capital property in your trade or business. This step should be easy because if you are following this blog, you have already begun exclusively using your property for your business. Finally, your property must wear and tear. Broadly speaking, anything you physically use as an entrepreneur wears and tears, including buildings.
Entrepreneurs that take advantage of property conversion and depreciation deductions should keep careful records. First, you should document the FMV of the property at the time you converted it. Furthermore, you should always record the time when you abandoned the personal use of your property. Along this same vein, entrepreneurs should never use their converted property for personal use. If you are audited, your failure to comply with depreciation requirements or maintain records could result in the IRS demanding back tax payments, interest, and penalties on the income you deducted.