INTELLECTUAL PROPERTY
AND
UNFAIR COMPETITION
Stephen Ong, BSc(Hons) Econs (LSE),
MBA International Business(Bradford)
Visi...
• Discussion: CEO Pay1
• Intellectual Property &
Unfair Competition2
• Case Discussion : Patent
Games - Plavix3
Today’s Ov...
1. Open Discussion
• Gabaix, Xavier, Landier, Augustin and
Sauvagnat, Julien (2013) CEO pay and firm
size: an update after...
2.1 INTELLECTUAL
PROPERTY
Overview
• Introduction to Intellectual
property
• Intellectual property protection
• Trade secret
• Patent
• Copyright
• ...
The Importance of Intellectual Property
• Intellectual Property
– Is any product of human intellect that is intangible but...
SPOT the DIFFERENCE
8
Patent Litigation
Source: bbc.co.uk 30th August 2005
Creative wins MP3 player patent
One of Apple's main rivals, Creativ...
9
Automatic hierarchical categorization of music by
metadata
Patent number: 6928433
Filing date: Jan 5, 2001
Issue date: A...
SPOT the DIFFERENCE
NASDAQ AAPL
Market Cap :
US$308.8 B
PINK CREAF
Market Cap :
US$0.150 B
CREATIVE vs APPLE
The Four Key Forms of Intellectual Property
12-12
Patents
Copyrights
Trademarks
Trade Secrets
FIGURE 2.4 Patent Applications and Patents Issued
2 - 14FIGURE 2.6 Trademark Applications and Trademarks and Renewals Issued
Protecting Your Ideas
• Patent – a grant from the Patent
and Trademark Office to the
inventor of product, giving the
exclu...
Patents
• Patents
– A patent is a grant from the federal government
conferring the rights to exclude others from making,
s...
Proper Understanding for What
a Patent Means (1)
• A patent does not give its owner the right to
make, use, or sell an inv...
Proper Understanding for What
a Patent Means (2)
• To do so, the inventor would need to obtain
permission from Intel. Inte...
Growth in Patent Applications in
the United States
Three Basic Requirements for
Obtaining a Patent
12-20
Types of Patents
Type Type of Invention Covered Duration
Utility
Design
Plant
20 years from
the date of the
original
appli...
Business Method Patents
(Special Utility Patent)
• Business Method Patent
–A business method patent is a patent that prote...
Patent Infringement
• Patent Infringement
–Takes place when one party engages in the
unauthorized use of another party’s p...
Protecting Your Ideas
• Trademark – any distinctive word, symbol,
design, name, logo, slogan, or trade dress a
company use...
Trademarks
• Trademark
–A trademark is any word, name, symbol, or
device used to identify the source or origin of
products...
Types of Trademarks
1 of 2
12-26
Type Types of Marks Covered
Trademark
Duration
Renewable
every 10 years,
as long as the
m...
Types of Trademarks
2 of 2
12-27
Type Types of Marks Covered
Collective
mark
Duration
Renewable
every 10 years,
as long as...
What is Protected Under Trademark Law
1 of 2
12-28
Item Example(s)
Words
Numbers
and letters
Designs
and logos
Sounds
YouT...
What is Protected Under Trademark Law
2 of 2
12-29
Item Example
Fragrances
Shapes
Colours
Trade
dress
Stationery treated w...
Exclusions From Trademark
Protection
Item Example
Immoral or
scandalous matter
Deceptive
matter
Descriptive
marks
Surnames...
Protecting Your Ideas
• Copyright – an exclusive right that
protects the creators of original
works of authorship such as ...
Copyrights
• Copyrights
–A copyright is a form of intellectual property
protection that grants to the owner of a work of
a...
What is Protected By a Copyright?
Literary works Musical compositions
Computer software Dramatic works
Pantomimes
and
chor...
Exclusions From Copyright
Protection
• The Idea-Expression Dichotomy
– The main exclusion is that copyright laws cannot
pr...
• How to Obtain a Copyright
– Copyright law protects any work of authorship the
moment it assumes a tangible form.
– Techn...
Copyright Infringement
1 of 2
• Copyright Infringement
–Copyright infringement occurs when one
work derives from another o...
Copyright Infringement
2 of 2
12-37
The illegal downloading
of music is an example of
copyright infringement.
Copyright in...
Trade Secrets
• Trade Secrets
– A trade secret is any formula, pattern, physical
device, idea, process, or other informati...
What Qualifies for Trade Secret
Protection? 1 of 2
• Trade Secret Protection
–Not all information qualifies for trade
secr...
What Qualifies for Trade Secret
Protection? 2 of 2
The strongest case for trade secret protection is
information that is c...
Protecting Your Ideas
Type of
Protection
What It
Covers
Time
Required Cost
Copyright Works of
original
authorship
About 2 ...
2.2 INTELLECTUAL
PROPERTY
PROTECTION
Intellectual Property Protection
• The basic trade-off in the protection of
intellectual property is between:
– Benefits t...
Information and Incentives
Intellectual Property
• The appropriability of the returns
from a discovery depends on two
principal factors:
–How easy it...
Appropriability of Returns
Example : Appropriability of Returns
and Peer-to-Peer Systems
Intellectual Property Protection
• Patents
• Copyright
• Trademarks and trade secrets
2.3
INTELLECTUAL
PROPERTY LAWS
Introduction to Intellectual Property
• U.S. Federal law provides
protections for intellectual property
rights by means of...
Trade Secret
• Trade secrets
–Product formula
–Pattern
–Design
–Compilation of data
–Customer list or other business secre...
Trade Secret
• Lawsuits for misappropriation – brought
against anyone who steals a trade secret
–Defendant must have obtai...
Trade Secret
• Civil Trade Secret Law:
Misappropriation of a trade secret
–A successful civil plaintiff can:
• Recover pro...
Trade Secret
• Economic Espionage Act
–Makes it a federal crime for any person:
• To convert a trade secret to his or her ...
Patent
• A grant by the federal government upon
the inventor of an invention for the
exclusive right to use, sell, or lice...
Patent
• Federal Patent Statute: Establishes the
requirements for obtaining a patent and
protects patented inventions from...
Patent
• U.S. Court of Appeals for the
Federal Circuit: A special federal
appeals court that hears appeals
from the Board ...
Patent
• Subject matter that can be patented
– Machines
– Processes
– Compositions of matter
– Improvements to existing ma...
Patent
• Requirements for obtaining a patent
–An invention must be:
•Novel
•Useful
•Nonobvious
–Abstractions and scientifi...
Case 1: U.S. Supreme Court Patent
• Case
– Bilski v. Kappos, Director, Patent and Trademark
Office
– 130 S.Ct. 3218, 177 L...
Patent
• Patent period
–Utility patents – 20 years
–Design patents – 14 years
–Patent term begins to run from the date
the...
Patent
• One-year “on sale” doctrine
–Public use doctrine
–Patents will not be granted if an
invention was in the public
d...
Patent
• Provisional patent application
–Filed by the inventor to obtain
three months to prepare a final
patent applicatio...
Patent
• Patent infringement
–Occurs when someone makes
unauthorized use of a patent
–Plaintiff may recover:
• Money damag...
Copyright
• Copyright Revision Act of 1976
–Establishes the requirements for obtaining a
copyright
–Protects copyrighted w...
Copyright
• Registration of copyrights
–Must be an original work
–Registered with U.S. Copyright Office
–Registration
• Pe...
Copyright
• Copyright period
–Sonny Bono Copyright Term
Extension Act
• Individuals are granted copyright protection for
t...
Copyright
• Copyright infringement
–Occurs when a party copies a substantial
and material part of the plaintiff’s
copyrigh...
Copyright
• Fair use doctrine
–Permits certain limited unauthorized
use of copyrighted materials
• No electronic theft act...
Copyright
• Fair Use Doctrine: Permits certain
limited use of a copyright by someone
other than the copyright holder witho...
Copyright
• No electronic theft act: A federal statute that
makes it a crime for a person to willfully infringe
on a copyr...
• Used to identify and distinguish goods
of a manufacturer or seller or services
of a provider from others
–Trade name
–Sy...
Trademark
• Lanham (Trademark) Act
–Protects the owner’s investment
and goodwill in a mark
–Prevents consumers from being
...
Meaning of Symbols Used in
Association With Marks
Trademark
• Registration of a mark
• Mark may be registered if it has been
used in commerce
– Can be registered six months...
Trademark
• Types of marks
–Trademark
–Service Mark
–Certification mark
–Collective membership mark
7-23
Trademark
• Marks that cannot be registered
–Flag or coat of arms of the United States,
any state, municipality, or foreig...
Trademark
• Distinctiveness or secondary
meaning
–A mark must be distinctive
• A unique word or design
–Have acquired a se...
Trademark
• Trademark infringement: Unauthorized
use of a trademark
• Owner must prove that:
–Defendant infringed the plai...
Case 2: Trademark Infringement
• Case
– Intel Corporation v.
Intelsys Software, LLC
– Web 2009 U.S. Dist.
Lexis 14761 (200...
Trademark
• Generic names
–Term for a mark that has become a
common term for a product line or
type of service and therefo...
Trademark
• Diluting, blurring, or tarnishing
trademarks
–Federal Dilution Act of 1995
• Protects famous marks from diluti...
Trademark
• Trademark Dilution Revision
Act
–A dilution plaintiff does not need
to show that it has suffered actual
harm
–...
Case 3 : Dilution of a Trademark
• Case
–V Secret Catalogue, Inc. and Victoria’s
Secret Stores, Inc. v. Moseley
–605 F.3d ...
Case 3: Dilution of a Trademark
• Issue
–Is there tarnishment of the
Victoria’s Secret senior mark
by the Moseleys’ use of...
CASE DISCUSSION :
PATENT GAMES -
PLAVIX
Case - Patent Games: Plavix
• In 2002 Sanofi-Aventis filed a patent infringement
lawsuit in federal court, claiming that t...
Core Readings
• Baron, David P.(2013) Business and its environment,
7th Edition, Pearson, Ch.14
• Cheeseman, Henry R.(2013...
Next Week’s Ideas for Discussion
• Rocco R. Vanasco, (1996),"Auditor
independence: an international
perspective", Manageri...
QUESTIONS?
Upcoming SlideShare
Loading in...5
×

Mba1034 cg law ethics week 10 intellectual property 2013

582

Published on

Intellectual property protection, Patent, Trademark, Copyright, Trade secret

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
582
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
43
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • The characteristics of intellectual assets and the difficulty in excluding others from their use implies that those assets can be undersupplied in markets.
  • The longer the duration of the monopoly the lower are the benefits to society, since the holder of the patent restricts use so as to appropriate the monopoly returns.
  • The high cost of enforcement means that protection is loose rather than tight, and technological change reduces the cost of replication.
  • PatentsA patent establishes a property right that allows the holder to exclude others from using the invention; that is, a patent grants a monopoly to the inventor.CopyrightWorks of original expression may receive a copyright allowing the recipient to restrict use, reproduction, and distribution of the work. A copyright can be claimed even without a filing with the government.Trademarks and trade secretsA trademark provides social and private value.A trade secret is almost anything that is unique and of value or potential value to a company. Includes process information, operating methods, programs, and business plans.
  • Mba1034 cg law ethics week 10 intellectual property 2013

    1. 1. INTELLECTUAL PROPERTY AND UNFAIR COMPETITION Stephen Ong, BSc(Hons) Econs (LSE), MBA International Business(Bradford) Visiting Fellow, Birmingham City University Visiting Professor, Shenzhen University MBA1034 GOVERNANCE, LAW & ETHICS
    2. 2. • Discussion: CEO Pay1 • Intellectual Property & Unfair Competition2 • Case Discussion : Patent Games - Plavix3 Today’s Overview
    3. 3. 1. Open Discussion • Gabaix, Xavier, Landier, Augustin and Sauvagnat, Julien (2013) CEO pay and firm size: an update after the crisis,NBER working paper 19078, May 2013
    4. 4. 2.1 INTELLECTUAL PROPERTY
    5. 5. Overview • Introduction to Intellectual property • Intellectual property protection • Trade secret • Patent • Copyright • Trademarks
    6. 6. The Importance of Intellectual Property • Intellectual Property – Is any product of human intellect that is intangible but has value in the marketplace. – It is called “intellectual” property because it is the product of human imagination, creativity, and inventiveness. • Importance – Traditionally, businesses have thought of their physical assets, such as land, buildings, and equipment as the most important. – Increasingly, however, a company’s intellectual assets are the most important.
    7. 7. SPOT the DIFFERENCE
    8. 8. 8 Patent Litigation Source: bbc.co.uk 30th August 2005 Creative wins MP3 player patent One of Apple's main rivals, Creative Technology, has been awarded a patent in the US for the interface used on many digital music players. "The first portable media player based upon the user interface covered in our Zen Patent was our Nomad Jukebox MP3 player," said Creative CEO Sim Wong Hoo. "The Apple iPod was only announced in October 2001, 13 months after we had been shipping the Nomad Jukebox based upon the user interface covered by our Zen Patent." In its press release, Creative said Apple had filed for a patent for a user interface in a multimedia player in late 2002, but its application had been recently rejected. On 24 August 2006, Apple and Creative announced a broad settlement to end their legal disputes. Apple will pay Creative US$100 million for a paid-up license, to use Creative's awarded patent in all Apple products. As part of the agreement, Apple will recoup part of its payment, if Creative is successful in licensing the patent.
    9. 9. 9 Automatic hierarchical categorization of music by metadata Patent number: 6928433 Filing date: Jan 5, 2001 Issue date: Aug 9, 2005 Application number: 9/755,723 A method, performed by software executing on the processor of a portable music playback device, that automatically files tracks according to hierarchical structure of categories to organize tracks in a logical order. A user interface is utilized to change the hierarchy, view track names, and... Inventors: Ron Goodman, Howard N. Egan Assignee: Creative Technology LTD Apple pays US$100m for use of Patent Source: bbc.co.uk 30th August 2005
    10. 10. SPOT the DIFFERENCE NASDAQ AAPL Market Cap : US$308.8 B PINK CREAF Market Cap : US$0.150 B
    11. 11. CREATIVE vs APPLE
    12. 12. The Four Key Forms of Intellectual Property 12-12 Patents Copyrights Trademarks Trade Secrets
    13. 13. FIGURE 2.4 Patent Applications and Patents Issued
    14. 14. 2 - 14FIGURE 2.6 Trademark Applications and Trademarks and Renewals Issued
    15. 15. Protecting Your Ideas • Patent – a grant from the Patent and Trademark Office to the inventor of product, giving the exclusive right to make, use, or sell the invention for 20 years from the date of filing the patent application.
    16. 16. Patents • Patents – A patent is a grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for the term of the patent. (See the next slide for a full explanation.) • Increasing Interest in Patents – There is increasing interest in patents. • Since Patent #1 was granted in 1790, the U.S. Patent & Trademark Office has granted over six million patents. • The patent office is strained. It now takes an average of 35.3 months from the date of first filing to receive a U.S. patent.
    17. 17. Proper Understanding for What a Patent Means (1) • A patent does not give its owner the right to make, use, or sell an invention; rather, the right granted is only to exclude others from doing so. • As a result, if an inventor obtains a patent for a new kind of computer chip, and the chip would infringe on a prior patent owned by Intel, the inventor has no right to make, use, or sell the chip. 12-17
    18. 18. Proper Understanding for What a Patent Means (2) • To do so, the inventor would need to obtain permission from Intel. Intel may refuse permission, or ask that a licensing fee be paid for the rights to infringe on its patent. • While this system may seem odd, it is really the only way the system could work. Many inventions are improvements on existing inventions, and the system allows the improvements to be (patented) and sold, but only with the permission of the original inventors, who usually benefit by obtaining licensing income in exchange for their consent. 12-18
    19. 19. Growth in Patent Applications in the United States
    20. 20. Three Basic Requirements for Obtaining a Patent 12-20
    21. 21. Types of Patents Type Type of Invention Covered Duration Utility Design Plant 20 years from the date of the original application. 20 years from the date of the original application. 14 years from the date of the original application. New or useful process, machine, manufacturer, or composition of material or any new and useful improvement thereof. Invention of new, original, and ornamental design for manufactured products. Any new varieties of plants that can be reproduced asexually.
    22. 22. Business Method Patents (Special Utility Patent) • Business Method Patent –A business method patent is a patent that protects an invention that is or facilitates a method of doing business. –The most notable business method patents that have been awarded: • Amazon.com’s one-click ordering system. • Priceline.com’s “name-your-price” business model. • Netflix’s method for allowing customers to set up a rental list of movies to be mailed to them.12-22
    23. 23. Patent Infringement • Patent Infringement –Takes place when one party engages in the unauthorized use of another party’s patent. –The tough part (particularly from a small entrepreneurial firm’s point of view) is that patent infringement cases are costly to litigate. • A typical patent infringement case costs each side at least $500,000 to litigate.
    24. 24. Protecting Your Ideas • Trademark – any distinctive word, symbol, design, name, logo, slogan, or trade dress a company uses to identify the origin of a product or to distinguish it from other goods on the market. • Servicemark – the same as a trademark except that it identifies the source of a service rather than a product.
    25. 25. Trademarks • Trademark –A trademark is any word, name, symbol, or device used to identify the source or origin of products or services and to distinguish those product or services from others. –Trademarks also provide consumers with useful information. • For example, consumers know what to expect when they see a Macy’s store. • Think how confusing it would be if any retail store could use the name Macy’s.
    26. 26. Types of Trademarks 1 of 2 12-26 Type Types of Marks Covered Trademark Duration Renewable every 10 years, as long as the mark remains in use. Service mark Renewable every 10 years, as long as the mark remains in use. Any word, name, symbol, or device used to identify and distinguish one company’s goods from another. Eg. Apple, d.light, Dry Soda, ModCloth, and Zeo. Similar to trademarks; are used to identify the services or intangible activities of a business, rather than a business’s physical products. Eg. 1-800-FLOWERS, Amazon.com, Mint.com, and Zipcar.
    27. 27. Types of Trademarks 2 of 2 12-27 Type Types of Marks Covered Collective mark Duration Renewable every 10 years, as long as the mark remains in use. Certifica tion mark Renewable every 10 years, as long as the mark remains in use. Trademarks or service marks used by the members of a cooperative, association, or other collective group. Eg. Rotary International and International Franchise Association Marks, words, names, symbols, or devices used by a person other than the owner to certify a particular quality about a good or service. Eg. 100% Napa Valley and Underwriters Laboratories
    28. 28. What is Protected Under Trademark Law 1 of 2 12-28 Item Example(s) Words Numbers and letters Designs and logos Sounds YouTern, PledgeMusic, GiftZip 3M, MSNBA, 1-800-FLOWERS Nike swoosh logo MGM’s lion’s roar
    29. 29. What is Protected Under Trademark Law 2 of 2 12-29 Item Example Fragrances Shapes Colours Trade dress Stationery treated with a special fragrance Unique shape of the Apple iPhone Nexium—the “purple pill” The layout and décor of a restaurant
    30. 30. Exclusions From Trademark Protection Item Example Immoral or scandalous matter Deceptive matter Descriptive marks Surnames Profane words Labeling oranges “Fresh Florida Oranges” that aren’t grown in Florida Phrases like “golf ball” and “fried chicken” are descriptive and can’t be trademarked Common surnames like “Anderson” or “Smith” can’t be trademarked
    31. 31. Protecting Your Ideas • Copyright – an exclusive right that protects the creators of original works of authorship such as literary, dramatic, musical, and artistic works. • Copyrighted material is denoted by the symbol ©.
    32. 32. Copyrights • Copyrights –A copyright is a form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work. –A work does not have to have artistic merit to be eligible for copyright protection. • As a result, things such as operating manuals and sales brochures are eligible for copyright protection.
    33. 33. What is Protected By a Copyright? Literary works Musical compositions Computer software Dramatic works Pantomimes and choreographic works Pictorial, graphic, and sculptural works
    34. 34. Exclusions From Copyright Protection • The Idea-Expression Dichotomy – The main exclusion is that copyright laws cannot protect ideas. • For example, an entrepreneur may have the idea to open a soccer-themed restaurant. The idea itself is not eligible for copyright protection. However, if the entrepreneur writes down specifically what his or her soccer-themed restaurant will look like and how it will operate, that description is copyrightable. • The legal principle describing this concept is called the idea-expression dichotomy. • An idea is not copyrightable, but the specific expression of an idea is.
    35. 35. • How to Obtain a Copyright – Copyright law protects any work of authorship the moment it assumes a tangible form. – Technically, it is not necessary to provide a copyright notice or register work with the U.S. Copyright Office. – The following steps can be taken, however, to enhance copyright protection. • Copyright protection can be enhanced by attaching the copyright notice, or “copyright bug” to something. • Further protection can be obtained by registering the work with the U.S. Copyright Office. Obtaining a Copyright
    36. 36. Copyright Infringement 1 of 2 • Copyright Infringement –Copyright infringement occurs when one work derives from another or is an exact copy or shows substantial similarity to the original work. –To prove infringement, a copyright owner is required to show that the alleged infringer had prior access to the copyrighted work and that the work is substantially similar to the owner’s.
    37. 37. Copyright Infringement 2 of 2 12-37 The illegal downloading of music is an example of copyright infringement. Copyright infringement costs the owners of copyrighted material an estimated $20 billion per year in the U.S. alone.
    38. 38. Trade Secrets • Trade Secrets – A trade secret is any formula, pattern, physical device, idea, process, or other information that provides the owner of the information with a competitive advantage in the marketplace. – Trade secrets include marketing plans, product formulas, financial forecasts, employee rosters, logs of sales calls, and similar types of proprietary information. – The Federal Economic Espionage Act, passed in 1996, criminalizes the theft of trade secrets.
    39. 39. What Qualifies for Trade Secret Protection? 1 of 2 • Trade Secret Protection –Not all information qualifies for trade secret protection. –In general, information that is know to the public or that competitors can discover through legal means doesn’t qualify for trade secret protection. –Companies protect trade secrets through physical measures and written documents.
    40. 40. What Qualifies for Trade Secret Protection? 2 of 2 The strongest case for trade secret protection is information that is characterized by the following. • Is not known outside the company. • Is known only inside the company on a “need-to-know” basis. • Is safeguarded by stringent efforts to keep the information confidential. • Is valuable and provides the company a competitive advantage • Was developed at great cost, time, and effort. • Cannot be easily duplicated, reverse engineered, or discovered.
    41. 41. Protecting Your Ideas Type of Protection What It Covers Time Required Cost Copyright Works of original authorship About 2 weeks About $35 Trademark Logos, names, phrases 6 – 12 months $900 - $1,500 Design patent Look of an original product Up to 2 years $5,000 - $20,000 Utility patent How an original product works 2 – 5 years $5,000 - $20,000 Business method patent A business process 2 – 5 years $5,000 - $20,000 2 - 41Source: Anne Field, “How to Knock Out Knock Offs,” Business Week, March 14, 2005.
    42. 42. 2.2 INTELLECTUAL PROPERTY PROTECTION
    43. 43. Intellectual Property Protection • The basic trade-off in the protection of intellectual property is between: – Benefits to society from the use of ideas and inventions and the incentives for their creation
    44. 44. Information and Incentives
    45. 45. Intellectual Property • The appropriability of the returns from a discovery depends on two principal factors: –How easy it is for others to replicate the discovery –Strength of the public protection for the discovery
    46. 46. Appropriability of Returns
    47. 47. Example : Appropriability of Returns and Peer-to-Peer Systems
    48. 48. Intellectual Property Protection • Patents • Copyright • Trademarks and trade secrets
    49. 49. 2.3 INTELLECTUAL PROPERTY LAWS
    50. 50. Introduction to Intellectual Property • U.S. Federal law provides protections for intellectual property rights by means of: – Patents – Copyrights –Trademarks 7-2
    51. 51. Trade Secret • Trade secrets –Product formula –Pattern –Design –Compilation of data –Customer list or other business secret • Uniform Trade Secrets Act: Gives statutory protection to trade secrets 7-3
    52. 52. Trade Secret • Lawsuits for misappropriation – brought against anyone who steals a trade secret –Defendant must have obtained the trade secret through unlawful means –Discovery of trade secret by reverse engineering is lawful –A trade secret unprotected by the owner is not subject to legal protection 7-4
    53. 53. Trade Secret • Civil Trade Secret Law: Misappropriation of a trade secret –A successful civil plaintiff can: • Recover profits made by offender • Recover damages • Obtain injunction prohibiting offender from divulging trade secret
    54. 54. Trade Secret • Economic Espionage Act –Makes it a federal crime for any person: • To convert a trade secret to his or her benefit or for the benefit of others • Performing the above knowing or intending that the act would cause injury to the owner of the trade secret –Includes computer espionage –Severe criminal penalties 7-6
    55. 55. Patent • A grant by the federal government upon the inventor of an invention for the exclusive right to use, sell, or license the invention for a limited amount of time –Intended to provide incentive for inventors to make their inventions public –Protects patented inventions from infringement –Federal patent law is exclusive; no state patent laws 7-7
    56. 56. Patent • Federal Patent Statute: Establishes the requirements for obtaining a patent and protects patented inventions from infringement • Patent: A grant by the federal government upon the inventor of an invention for the exclusive right to use, sell, or license the invention for a limited amount of time
    57. 57. Patent • U.S. Court of Appeals for the Federal Circuit: A special federal appeals court that hears appeals from the Board of Patent Appeals and Interferences and federal court concerning patent issues • Utility patent: Protects the functionality of an invention
    58. 58. Patent • Subject matter that can be patented – Machines – Processes – Compositions of matter – Improvements to existing machines, processes, or compositions of matter – Designs for an article of manufacture – Asexually reproduced plants – Living material invented by a person 7-8
    59. 59. Patent • Requirements for obtaining a patent –An invention must be: •Novel •Useful •Nonobvious –Abstractions and scientific principles cannot be patented unless they are part of the tangible environment 7-9
    60. 60. Case 1: U.S. Supreme Court Patent • Case – Bilski v. Kappos, Director, Patent and Trademark Office – 130 S.Ct. 3218, 177 L.Ed.2d 792, Web 2010 U.S. Lexis 5521 (2010) – Supreme Court of the United States • Issue – Is the petitioners’ claimed invention patentable? 7-10
    61. 61. Patent • Patent period –Utility patents – 20 years –Design patents – 14 years –Patent term begins to run from the date the patent application is filed –The U.S. follows “first-to-invent” rule –The invention or design enters the public domain after patent period expires 7-11
    62. 62. Patent • One-year “on sale” doctrine –Public use doctrine –Patents will not be granted if an invention was in the public domain for one year prior to application filing 7-12
    63. 63. Patent • Provisional patent application –Filed by the inventor to obtain three months to prepare a final patent application –American Inventors Protection Act provides provisional patent application 7-13
    64. 64. Patent • Patent infringement –Occurs when someone makes unauthorized use of a patent –Plaintiff may recover: • Money damages equal to royalty rate • Other damages caused by the infringement • Order for destruction of infringing items • Injunction against infringer • Treble damages for intentional infringement 7-14
    65. 65. Copyright • Copyright Revision Act of 1976 –Establishes the requirements for obtaining a copyright –Protects copyrighted works from infringement • Only tangible writings are subject to copyright registration and protection • Federal copyright law is exclusive • Copyright can be sold or licensed to others 7-15
    66. 66. Copyright • Registration of copyrights –Must be an original work –Registered with U.S. Copyright Office –Registration • Permissive • Voluntary • Done at any time during term of copyright –Registration permits a holder to obtain statutory damages for copyright infringement –Not required to use © or word “copyright” 7-16
    67. 67. Copyright • Copyright period –Sonny Bono Copyright Term Extension Act • Individuals are granted copyright protection for their lifetime plus seventy years • Copyrights owned by businesses are protected for the shorter of either: –120 years from the year of creation –95 years from the year of first publication7-17
    68. 68. Copyright • Copyright infringement –Occurs when a party copies a substantial and material part of the plaintiff’s copyrighted work without permission –Successful plaintiff may recover: • Profit made by the defendant from the infringement • Damages suffered by the plaintiff • Order requiring impoundment and destruction • Injunction preventing future infringement 7-18
    69. 69. Copyright • Fair use doctrine –Permits certain limited unauthorized use of copyrighted materials • No electronic theft act –Makes it a crime for a person to willfully infringe on a copyright • Digital Millennium Copyright Act –Makes it a crime to circumvent encryption technology 7-19
    70. 70. Copyright • Fair Use Doctrine: Permits certain limited use of a copyright by someone other than the copyright holder without the permission of the copyright holder • Examples of fair use include: –Quote for review –Parody or satire –Academic –Brief quote in news report
    71. 71. Copyright • No electronic theft act: A federal statute that makes it a crime for a person to willfully infringe on a copyright • Digital Millennium Copyright Act: A federal statute that prohibits unauthorized access to copyrighted digital works by circumventing encryption technology or the manufacture and distribution of technologies designed for the purpose of circumventing encryption protection of digital works
    72. 72. • Used to identify and distinguish goods of a manufacturer or seller or services of a provider from others –Trade name –Symbol –Word –Logo –Design –Device Trademark 7-20
    73. 73. Trademark • Lanham (Trademark) Act –Protects the owner’s investment and goodwill in a mark –Prevents consumers from being confused as to the origin of goods and services
    74. 74. Meaning of Symbols Used in Association With Marks
    75. 75. Trademark • Registration of a mark • Mark may be registered if it has been used in commerce – Can be registered six months prior to use • Mark is lost if not used within six months • Mark may be opposed by third parties • The use of the symbol ® is not mandatory 7-22
    76. 76. Trademark • Types of marks –Trademark –Service Mark –Certification mark –Collective membership mark 7-23
    77. 77. Trademark • Marks that cannot be registered –Flag or coat of arms of the United States, any state, municipality, or foreign nation –Marks that are immoral or scandalous –Geographical names standing alone –Surnames standing alone –Any mark that resembles a mark already registered with the U.S. PTO 7-24
    78. 78. Trademark • Distinctiveness or secondary meaning –A mark must be distinctive • A unique word or design –Have acquired a secondary meaning • An ordinary term becomes a brand name 7-25
    79. 79. Trademark • Trademark infringement: Unauthorized use of a trademark • Owner must prove that: –Defendant infringed the plaintiff’s mark by using it in an unauthorized manner –Use is likely to cause confusion, mistake, or deception 7-26
    80. 80. Case 2: Trademark Infringement • Case – Intel Corporation v. Intelsys Software, LLC – Web 2009 U.S. Dist. Lexis 14761 (2009) – United States District Court for the Northern District of California • Issue – Is there trademark infringement that warrants the issuance of a permanent injunction against Intelsys? 7-27
    81. 81. Trademark • Generic names –Term for a mark that has become a common term for a product line or type of service and therefore has lost its trademark protection –Name becomes descriptive rather than distinctive 7-28
    82. 82. Trademark • Diluting, blurring, or tarnishing trademarks –Federal Dilution Act of 1995 • Protects famous marks from dilution • Use by other party is actionable if: –It is commercial –It causes dilution of distinctive quality of mark –Types of dilution –Blurring –Tarnishment 7-29
    83. 83. Trademark • Trademark Dilution Revision Act –A dilution plaintiff does not need to show that it has suffered actual harm –It only needs to show that there would be the likelihood of dilution 7-30
    84. 84. Case 3 : Dilution of a Trademark • Case –V Secret Catalogue, Inc. and Victoria’s Secret Stores, Inc. v. Moseley –605 F.3d 382, Web 2010 U.S. App. Lexis 10150 (2010) –United States Court of Appeals for the Sixth Circuit 7-31
    85. 85. Case 3: Dilution of a Trademark • Issue –Is there tarnishment of the Victoria’s Secret senior mark by the Moseleys’ use of the junior marks Victor’s Secret and Victor’s Little Secret? 7-32
    86. 86. CASE DISCUSSION : PATENT GAMES - PLAVIX
    87. 87. Case - Patent Games: Plavix • In 2002 Sanofi-Aventis filed a patent infringement lawsuit in federal court, claiming that the patent provided it with exclusive rights to produce and market Plavix • The approval by FDA allowed Apotex to market the Plavix at its own risk • Surprised by Apotex’s flooding the market, Sanofi- Aventis responded by filing a lawsuit in federal court seeking an injunction to halt the sales • At the hearing on the lawsuit seeking an injunction, attorneys for Bristol-Myers Squibb claimed that failure to issue an injunction would “kill future clinical efforts.”
    88. 88. Core Readings • Baron, David P.(2013) Business and its environment, 7th Edition, Pearson, Ch.14 • Cheeseman, Henry R.(2013) Business law, 8th Edition, Prentice Hall. Ch.8. • Barringer, Bruce R. & Ireland, R. Duane, 2011 Entrepreneurship – Successfully launching new ventures 4th edition, Pearson.
    89. 89. Next Week’s Ideas for Discussion • Rocco R. Vanasco, (1996),"Auditor independence: an international perspective", Managerial Auditing Journal, Vol. 11 No.: 9 pp. 4 • - 48
    90. 90. QUESTIONS?
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×