Prince Sultan University in Saudi Arabia Business Discussion

please watch the video and answer and answer the following questions:

What intellectual property should Elsie’s protect? Discuss all of the IP topics that we have reviewed.

What steps would Elsie’s have to take to protect their IP?

What steps would Elsie’s have to take if there was infringement on their IP?

The Legal Environment of Business
A Critical Thinking Approach
8th Edition
Nancy K. Kubasek
Bartley A. Brennan
M. Neil Browne
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The Legal Environment of Business
A Critical Thinking Approach
8th Edition
Chapter 14
Intellectual Property
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Chapter Outline
• Introduction to intellectual property
• Trademarks
• Patents
• Trade secrets
• Copyrights
• Global dimensions of intellectual property law
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Intellectual Property
• Laws protect property that is primarily the result of
mental creativity rather than physical effort
• Categorized as:
– Trademarks
– Patents
– Trade secrets
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Trademark
• Distinctive mark, word, design, picture, or
arrangement used by the producer
– Enables consumers to identify the product with the
producer
• Must be registered with the U.S. Patent Office
– Enables owner recover damages from an infringer
using the trademark to sell its own goods
– Owner of an unregistered trademark may only prohibit
the infringer from using the mark
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Trademark
• To register a trademark, one must:
– Submit a drawing of the mark
– Indicate when it was first used in interstate commerce
and how it is used
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Table 14.1 – Types of Marks Protected
Under The Lanham Act
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Service Mark or Trade Mark?
Item
TM or SM?
Why?
McDonald’s
Service Mark
The name is a Service Mark
when referencing the business of
serving food
Golden Arches Logo
Trademark
Logos are registered as
Trademarks
McNugget
Trademark
McNugget is a product, not a
service – so it’s a Trademark
McCafe
Service Mark
A Service Mark when referencing
the business of serving coffee
and other drinks
McCafe
Trademark
The stylized text logo for McCafe
is a Trademark
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Case 14.1 – Toys “R” Us, Inc., v.
Canarsie Kiddie Shop, Inc.
• Toys “R” Us, Inc., sued Canarsie Kiddie Shop,
whose stores were called Kids “r” Us
– Allegations of trademark infringement
• Court concluded that a likelihood of confusion did
exist by considering the following factors
– Strength of the senior user’s mark
– Degree of similarity between the marks
– Proximity of the products
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Case 14.1 – Toys “R” Us, Inc., v.
Canarsie Kiddie Shop, Inc.
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Likelihood that plaintiff will bridge the gap
Evidence of actual confusion
Junior user’s good faith
Quality of the junior user’s product
Sophistication of the purchasers
Junior user’s goodwill
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Trade Dress
• Overall appearance and image of a product that
has acquired secondary meaning
• Entitled to the same protection as a trademark
• To succeed on a claim of infringement, one must
prove that the:
– Trade dress is primarily nonfunctional
– Trade dress is inherently distinctive or has acquired a
secondary meaning
– Alleged infringement creates a likelihood of confusion
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Federal Trademark Dilution Act of 1995
(FTDA)
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• Provided trademark protection at the federal level
• Trademark dilution occurs through:
– Blurring – Reducing the distinctive features of a famous
trademark by associating it with a similar mark
– Tarnishment – Use of a famous mark with inferior
products or an unwanted category of products
• Extended protection not just to identical marks but
also to similar marks
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Patent
• Grants the holder the exclusive right to produce,
sell, and use a product, process, invention,
machine, or asexually reproduced plant for 20
years
• Criteria – The object must be:
– Novel
– Useful
– Nonobvious
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Patent
• Licensed in exchange for the payment of royalties
– Royalties – Sum of money paid for each use of the
patented process
• Restriction placed on entities holding patents
– Patent holders may not use the patent for an illegal
purpose
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Common Illegal Patent-Related
Activities
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Obtaining a Patent
• Applicant contacts an attorney licensed to practice
in the Patent office
• The attorney does a patent search to ensure no
other similar patent exists
• Patent application is filed with the Patent Office
• Patent is issued if all criteria are met
• If an infringer proves that the Patent Office should
not have issued the patent in the first place, the
holder loses the patent
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Trade Secret
• A process, product, method of operation, or
compilation of information used in a business,
unknown to the public
• Gives the business a competitive advantage
• Protected by common law from unlawful
appropriation
– Condition – It must be kept secret and must comprise
elements not generally known in the trade
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Trade Secret
• Plaintiff in a trade secret infringement case must
prove that:
– A trade secret actually existed
– The defendant acquired the trade secret through
unlawful means
– The defendant used the trade secret without the
plaintiff’s permission
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Economic Espionage Act: Section 1832
• An individual who misappropriates a trade secret
is subject to a prison term up to 10 years
– Individual must possess knowledge or intent to cause
misappropriation to harm the owner of the trade secret
– Individual may be fined up to $5 million
– If proved that the secret would benefit a foreign power,
the guilty can be imprisoned for up to 10 years
▪ Can be fined up to $10 million
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Copyright
• Exclusive legal right to reproduce, publish, and
sell the fixed form of an expression of an original
creative idea
• A copyrighted idea reproduced with the
appropriate notice affixed is protected for:
– The life of its creator plus 70 years
– 95 years after the date of publication or 120 years after
creation, in the case of a publisher
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Criteria for a Copyright
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Registration of Copyright
• Requires:
– Filing a form with the Register of Copyright
– Providing two copies of the copyrighted materials to the
Library of Congress
• Whenever a registered work is reproduced, it
should be accompanied by the appropriate notice
of copyright
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Fair Use Doctrine
• Provides that a portion of a copyrighted work may
be reproduced for purposes of criticism, comment,
news reporting, teaching, scholarships, and
research
• Courts decide on violations by considering the:
– Purpose of the use
– Amount of the work that was used
– Impact on the commercial value of the copyrighted work
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Copyrights in the Digital Age
• Definition of copying with relation to copyrights
– Downloading material into a computer’s memory or
RAM
• Computer Software Copyright Act 1980
– Declared that computer software could be protected
with a copyright
– Components of computer software that can be
copyrighted
▪ Language that humans can read
▪ Coded language
▪ General framework of computer software and programs
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Copyrights in the Digital Age
• The No Electronic Theft (NET) Act of 1997
– Imposes criminal penalties on people who intentionally
distribute copyrighted materials over the Internet
without the copyright holder’s authorization
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Copyrights in the Digital Age
• The Digital Millennium Copyright Act (DMCA)
– States that evading anti-piracy technologies included in
software, DVDs, and CDs, is a crime
▪ Permitted efforts involved are on behalf of a nonprofit library,
educational institution, archive, or other such entity
– Forbids creation or sale of a device that can crack
codes to allow one to copy any kind of software
– Requires the Register of Copyrights to assist Congress
in determining how long-distance education can be
conducted to avoid copyright infringement
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Case 14.5 – RealNetworks, Inc. v. DVD
Control Copy Association, Inc, et al.
• Real Networks sued the DVD Control Copy
Association of America and seven movie studios
over a legal declaration pertaining to its software
application—RealDVD
– RealNetworks wanted a statement stating that
RealDVD did not breach the DCMA
– RealNetworks claimed that the software was intended
to make backup copies for DVDs already purchased
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Case 14.5 – RealNetworks, Inc. v. DVD
Control Copy Association, Inc, et al.
– DCMA and the movie studios had initially agreed to
provide access to RealNetworks
▪ They did not support RealNetowrk’s granting access to
material to additional members without prior consent
– DCMA stated that the RealDVD enables transfer of
copyrighted material to a hard drive
▪ Deactivates any protection offered in the DVD
• Judgement was made in favour of the defendant
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File-Sharing Networks and Technologies
• Peer-to-Peer Networking – Personal computers
are connected to a network hosted online
– Files are shared between them without having to be
hosted on the website
• Enabled the transfer of copyrighted material
without any permission from the copyright holder
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Global Dimensions of Intellectual
Property Law
• International protection for intellectual property is
offered through multilateral conventions and
treaties
• Trade Related Aspects of International Property
Rights (TRIPS)
– Administered through the World Trade Center
– Ensures equal protection through its:
▪ National treatment policy
▪ Most-favored-nation policy
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Global Dimensions of Intellectual
Property Law
– Expands copyright protection to include computer
programs and rental rights
– Defines trademark and protects trademarks for both
goods and services
– Protects industrial designs for at least 10 years
– Protects patents for at least 20 years
– Allows governments to curb anticompetitive licensing
contracts under certain circumstances
– Provides standards for intellectual property laws and
punishments
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Objectives Covered
• Introduction to intellectual property
• Trademarks
• Patents
• Trade secrets
• Copyrights
• Global dimensions of intellectual property law
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All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2017 Pearson Education, Inc.
Copyright © 2017 Pearson Education, Inc.
Case Analysis
● What intellectual property should Elsie’s protect? Discuss all of the IP topics
that we have reviewed.
Elsie should protect trade secrets to keep on processing the business and to maintain
the business from people who might steal the idea of its business. The restaurant
specializes with secret recipes which makes it more unique.
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2.
3.
4.
5.
What steps would Elsie’s have to take to protect their IP?
Maintain Business Ideas and Trade Secrets a Secret.
Authenticate Your Concepts and Original Content Accurately.
Apply for a Trademark.
Register All Your IP, Trade Secrets, and Creative Works.
Do the Investment.
● What steps would Elsie’s have to take if there was infringement on their IP?
1. Make their rights known. It is significant to create the rights clear to
competitors to discourage infringement in the first place.
2. Make the intellectual property traceable.
3. Make it difficult for others to infringe.
4. Observing competitor activities.
5. Fight for their rights.
1. What intellectual property should Elsie’s protect?
Intellectual Property Protection is:
protection for inventions, literary and artistic works, symbols, names, and images created by the
mind.
So first Elsie’s should protect their Patents there’s three types of patents:
•
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Utility
Design
Plant
But for Elie’s part are to protect their design and plant patent.
•
Discuss all of the IP topics that we have reviewed.
Intellectual Property (IP):
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•
•
•
•
Laws protect property that is primarily the result of mental creativity rather than physical
effort
Categorized as:
– Trademarks:
A trademark is unlike a patent in that it protects words, phrases, symbols,
sounds, smells and color schemes. Trademarks are often considered assets
that describe or otherwise identify the source of underlying products or services
that a company provides, such as the MGM lion roar, the Home Depot orange
color scheme, the Intel Inside logo, and so on.
– Patents:
Used to protect inventive ideas or processes – things that are new, useful and
nonobvious – patents are what most often come to mind when thinking of IP
protection. Patents are also used to protect newly engineered plant species or
strains, as well.
– Trade secrets:
Trade secrets are proprietary procedures, systems, devices, formulas,
strategies or other information that is confidential and exclusive to the
company using them. They act as competitive advantages for the business.
2. What steps would Elsie’s have to take to protect their IP?
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5 Steps to Elsie’s should take to Protecting their Intellectual Property
Keep Business Ideas and Trade Secrets a Secret.
Document Your Concepts and Original Content in Detail.
Apply for a Trademark.
Register All Your IP, Trade Secrets, and Creative Works.
Make the Investment.
3. What steps would Elsie’s have to take if there was infringement on their IP?
1. Make their rights known. It is important to make their rights clear to competitors to
discourage infringement in the first place.
2. Make their intellectual property traceable.
3. Make it difficult for others to infringe.
4. Monitor competitor activities.
5. Fight for their rights.