"Protecting creativity and reclaiming originality: ‘The stress, hassle, and anger were all worth it,’ says Beth Goldman."

Beth Goldman is the visionary founder of BAM Bags, a fashion-forward brand renowned for its innovative designs and functional yet stylish bags. Her creative ideas quickly gained traction, but success came with its challenges, particularly in protecting her intellectual property from competitors.

Problem

As BAM Bags grew in popularity, Beth encountered a significant challenge: blatant plagiarism. Competitors began re

plicating her unique designs and distributing knockoff products, striking lucrative deals with major retailers like Walmart and Office Depot. These actions jeopardized BAM Bags’ reputation and financial standing.

At the time, Beth’s utility patent was still pending, leaving her with limited legal recourse. “They didn’t believe the patent would ever be approved, and frankly, neither did I,” Beth recalls. “Without the utility patent, there were no real legal consequences for them to stop.” Utility patents take much longer to be granted compared to design patents, and in Beth’s case, it took over five years.

Beth had two design patents in place, which provided some protection. The design patents allowed her to restrict certain features of the knockoff bags. For example, BAM Bags are puffy, almost like a bubble. Competitors were required to make their bags flat and avoid using any hardware, like chains, hooks, or other decorative elements. However, these restrictions only limited how the competitors could make their bags; they couldn’t stop production entirely.

That’s where Joel, an experienced intellectual property attorney from SRIP, came in. With only the design patents at his disposal initially, Joel enforced these restrictions on the competitors. While helpful, these measures were not a complete solution. The situation dragged on for years as Beth waited for her utility patent to be approved.

The turning point came when Beth’s utility patent finally came through, providing her with the leverage she needed to take stronger legal action. This happened at the perfect time—right when the competitors had struck major deals with retailers involving likely hundreds of thousands of units. With the utility patent in place, they were no longer allowed to use Beth’s design without facing significant legal consequences.

Solution

The turning point for BAM Bags came when Beth’s utility patent was finally approved, giving her the leverage she needed to take stronger action against competitors. At the time, Beth was showcasing her bags at a trade booth in Boulder, Colorado, during a festival.

“The utility patent had just been finalized,” Beth recalls, “and the competitors knew they had no choice but to approach me.” They flew to Colorado and came directly to her booth, introducing themselves with the question, “You know who I am?” When Beth replied, “No,” they said, “We need to talk.”

The competitors wanted to negotiate a licensing deal because, without it, they risked losing their retail partnerships. Major stores, like Walmart and Office Depot, refused to work with suppliers involved in patent disputes, as doing so could put them at legal risk. This pressure ultimately forced the competitors into a licensing agreement with Beth.

Beth turned to SRIP for legal support, specifically working with Joel, an experienced intellectual property attorney. Initially, Joel utilized BAM Bags’ design patents to enforce restrictions on the knockoffs. These restrictions prohibited competitors from using hardware, decorative elements, or BAM Bags’ signature puffy designs, forcing them to make flat, simplified versions of their products. While this provided some relief, it wasn’t enough to stop the infringement entirely.

With the utility patent approved, Joel took charge of negotiating the licensing agreement. He secured a deal requiring competitors to pay royalties on every unit sold. Beyond managing the legal filings, Joel also handled numerous disputes that arose over the years, including challenges to the patent language and the royalty amounts.

“Joel was incredible,” Beth says. “He explained everything clearly and consistently won every case we brought to court.”

Even after the licensing agreement was in place, disputes with the competitors persisted. As their revenue grew, they claimed they couldn’t afford to pay the increased royalties required by the agreement. This led to further legal battles, which Joel handled with expertise.

At one point, the competitors even tried to take Beth to court, but she always prevailed. Many of the disputes centered on technical issues with the patent language. For example, the competitors argued that certain terms in the patent were not accurate or applicable to their products. Each time, Joel defended Beth’s rights, expertly explaining the case to the judge and winning in her favor.

“Joel really managed everything from start to finish,” Beth notes. “He handled ongoing problems with the same competitors and even addressed issues with other copycats. Whether it was sending letters, negotiating, or going back to court, Joel ensured my rights were protected every step of the way.”

The legal process stretched on for seven years, but Joel’s persistence paid off. Despite the challenges, Beth successfully maintained her licensing agreement, which ultimately became a highly profitable arrangement for BAM Bags.

Results

The outcome of Beth’s legal battle and licensing negotiations was ultimately a significant win for BAM Bags, both financially and personally.

• Financial Success: Despite the frustration and initial anger, the licensing deal turned out to be a financial blessing. “I ended up making a lot of money from them. Financially, I did really well because of the licensing deal,” Beth explains. The royalties Beth earned from the agreement surpassed what she made through direct sales, allowing her to focus on innovation and future ventures.
• Shift in Perspective: Through the ordeal, Beth learned valuable lessons about intellectual property protection and the importance of keeping her new creations under wraps until patents were filed. For her new invention, Picture, Beth applied for the patent before showcasing the product to ensure legal protection.
• Emotional Growth: Beth’s experience also taught her the futility of harboring anger toward her competitors. “The stress, hassle, and anger—it was all worth it in the end. Being angry doesn’t help. It’s better to see the bigger picture and realize everything happens for a reason,” Beth says.
• Improved Strategy: The experience refined Beth’s approach to protecting her intellectual property, enabling her to better safeguard her designs in future endeavors.
• Recognition of Mutual Benefit: Although the relationship with her competitors was contentious, Beth acknowledges that everyone involved benefited financially. “Who won in the end? I did. We all did, really. They made plenty of money, I made plenty of money, and it worked out for everyone,” she reflects.

While she wishes the relationship with her competitors had been more amicable, Beth remains proud of how she handled the situation and emerged stronger, with her creativity and business thriving. “At the end of the day, we all benefited,” she reflects. Her experience underscores the importance of persistence, strategic thinking, and leaning on trusted expertise when navigating complex challenges.

Reflecting on her journey, Beth offers a powerful lesson in resilience and adaptability. “Don’t let anger consume you. Focus on solutions and see the bigger picture. Everything happens for a reason,” she advises. Her ability to turn a challenging situation into an opportunity not only safeguarded her brand but also strengthened her business acumen and perspective.

Beth’s story is a reminder that creativity and innovation, when combined with effective legal protection and a clear vision, can triumph over adversity. Today, BAM Bags thrives as a beacon of originality and a testament to the rewards of standing firm in the face of challenges. Her journey serves as an inspiration to entrepreneurs everywhere, proving that setbacks can be transformed into opportunities for growth and success.