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ESSENTIALS OF THE LEGAL
ENVIRONMENT TODAY, 5E
ROGER LEROY MILLER
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
CHAPTER 8
INTELLECTUAL PROPERTY
RIGHTS
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
LEARNING OBJECTIVES
• What is intellectual property?
• Why is the protection of trademarks
important?
• How does the law protect patents?
• What laws protect authors’ rights in the
works they create?
• What are trade secrets, and what laws offer
protection for this form of intellectual
property?
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
INTRODUCTION
• Intellectual property is any property
resulting from intellectual, creative
processes—the products of an
individual’s mind.
• Includes: information contained in books,
computer files, apps for your smartphone,
movies you watch, music you listen to
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
LO-1
TRADEMARKS
• A trademark is a distinctive word,
symbol, sound, or design that identifies
the manufacturer as the source and
distinguishes its products from others.
• Protection of trademarks is important
to protect manufacturers from losing
business to rival companies.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
LO-2
TRADEMARKS
• Statutory Protection of Trademarks
• Lanham Act of 1946 provides federal
protection of manufacturers from losing
business to rivals that used confusingly similar
trademarks.
• Trademark dilution
• Federal Trademark Dilution Act (1995) allows trademark
owners to sue in federal court for trademark dilution.
• 2006 Trademark Dilution Revision Act (TDRA
• Use of a similar mark may constitute
trademark dilution
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
TRADEMARKS
• Trademark Registration
• U.S. Patent and Trademark Office
• A mark can be registered if in use or mark
will be used within 6 months.
• Trademark Infringement
• Unintentional or intentional substantial
copying of mark.
• Injunctions are the most common remedy.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
TRADEMARKS
• Distinctiveness of the Mark
• Strong marks
• Fanciful, arbitrary, or suggestive trademarks are
considered to be most distinctive trademarks, normally
not related to product
• Suggestive trademarks
• Bring to mind something about a product without
describing the product
• Secondary meaning
• Arises when customers associate a specific term of
phrase with specific trademarked items
• Generic terms = no protection
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
TRADEMARKS
• Service, Certification, and Collective
Marks
• Service mark: used to distinguish services
• Certification mark: used by one or more
persons, other than the owner, to certify the
region, materials, or other characteristics of
specific goods or services
• Collective mark: used by members of a coop,
association, union, or other organization
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
TRADEMARKS
• Trade Dress
• Broad concept that can include all or part
of the total image or impression created
by a product of its packaging
• Counterfeit Goods
• Stop Counterfeiting in Manufactured
Goods Act (SCMGA)
• Criminalizes intentional trafficking in counterfeit goods
• Penalties for counterfeiting
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
TRADEMARKS
• Trade Names
• Indicates part or all of a business’s name
• Licensing
• Way to avoid litigation and still make use of
another’s trademark or other form of
intellectual property
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
PATENTS
• A government grant that gives
inventor the exclusive right to make,
use, and sell an invention for 20 years.
• America Invents Act (2011), first person
to file receives protection.
• Searchable Patent Databases
• www.uspto.gov
• www.epo.org
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
LO-3
PATENTS
• What Is Patentable?
• Item must be novel and not “obvious.”
• Almost anything is patentable (excluding
laws of nature, natural phenomena,
abstract ideas).
• Patent Infringement
• If a firm makes, uses, or sells another’s
patented design, product, or process
without permission
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
PATENTS
• Remedies for Patent Infringement
• Sue for relief in federal court
• Injunction
• Request damages for royalties and lost
profits
• Reimbursement for attorneys’ fees
(sometimes)
• Treble damages
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
COPYRIGHTS
• Copyright is an intangible property
right granted by federal statute to the
author or originator of certain literary
or artistic productions.
• Registered with U.S. Copyright Office
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
LO-4
COPYRIGHTS
• What Is Protected Expression?
• Work must be original and “fixed in a
durable medium.”
• Section 102 Exclusions
• Excludes copyright protection for any “idea, procedure,
process, system, method of operation, concept,
principle, or discovery, regardless of the form in which it is
described, explained, illustrated, or embodied.”
• Compilations of facts are copyrightable.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
COPYRIGHTS
• Copyright Infringement
• Form or expression of an idea is copied
(does not have to be in its entirety).
• Penalties, damages and criminal actions
are possible.
• Remedies for copyright infringement
• The “fair use” exception
• Certain persons or organization can copy materials
without penalty (e.g., education, news, research).
• The first sale doctrine
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
COPYRIGHTS
• Copyright Protection for Software
• 1980 Computer Software Copyright Act
• Includes computer programs in the list of creative works
protected by federal copyright law
• Courts have not extended protection to
the “look and feel” of programs.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
TRADE SECRETS
• Trade Secrets
• Information of commercial value
• State and Federal Law on Trade Secrets
• Section 757 of the Restatement of Torts
• Uniform Trade Secrets Act
• 1996 Economic Espionage Act
• Trade Secrets in Cyberspace
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
LO-5
EXHIBIT 8.1
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
INTERNATIONAL PROTECTIONS
• The Berne Convention
• 1886 international copyright agreement
• 2011 EU extended period of royalty
protection for musicians from 50 to 70
years
• The TRIPS Agreement
• Established standards for international
protection of intellectual property rights
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.
INTERNATIONAL PROTECTIONS
• The Madrid Protocol
• Designed to reduce the costs of
international trademark protection
• The Anti-Counterfeiting Trade
Agreement (ACTA)
• Increase international cooperation to
combat counterfeiting
• Provisions and goals
• Border searches
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-
protected website for classroom use.

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Elet5e ch08

  • 1. ESSENTIALS OF THE LEGAL ENVIRONMENT TODAY, 5E ROGER LEROY MILLER © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 2. CHAPTER 8 INTELLECTUAL PROPERTY RIGHTS © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 3. LEARNING OBJECTIVES • What is intellectual property? • Why is the protection of trademarks important? • How does the law protect patents? • What laws protect authors’ rights in the works they create? • What are trade secrets, and what laws offer protection for this form of intellectual property? © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 4. INTRODUCTION • Intellectual property is any property resulting from intellectual, creative processes—the products of an individual’s mind. • Includes: information contained in books, computer files, apps for your smartphone, movies you watch, music you listen to © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use. LO-1
  • 5. TRADEMARKS • A trademark is a distinctive word, symbol, sound, or design that identifies the manufacturer as the source and distinguishes its products from others. • Protection of trademarks is important to protect manufacturers from losing business to rival companies. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use. LO-2
  • 6. TRADEMARKS • Statutory Protection of Trademarks • Lanham Act of 1946 provides federal protection of manufacturers from losing business to rivals that used confusingly similar trademarks. • Trademark dilution • Federal Trademark Dilution Act (1995) allows trademark owners to sue in federal court for trademark dilution. • 2006 Trademark Dilution Revision Act (TDRA • Use of a similar mark may constitute trademark dilution © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 7. TRADEMARKS • Trademark Registration • U.S. Patent and Trademark Office • A mark can be registered if in use or mark will be used within 6 months. • Trademark Infringement • Unintentional or intentional substantial copying of mark. • Injunctions are the most common remedy. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 8. TRADEMARKS • Distinctiveness of the Mark • Strong marks • Fanciful, arbitrary, or suggestive trademarks are considered to be most distinctive trademarks, normally not related to product • Suggestive trademarks • Bring to mind something about a product without describing the product • Secondary meaning • Arises when customers associate a specific term of phrase with specific trademarked items • Generic terms = no protection © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 9. TRADEMARKS • Service, Certification, and Collective Marks • Service mark: used to distinguish services • Certification mark: used by one or more persons, other than the owner, to certify the region, materials, or other characteristics of specific goods or services • Collective mark: used by members of a coop, association, union, or other organization © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 10. TRADEMARKS • Trade Dress • Broad concept that can include all or part of the total image or impression created by a product of its packaging • Counterfeit Goods • Stop Counterfeiting in Manufactured Goods Act (SCMGA) • Criminalizes intentional trafficking in counterfeit goods • Penalties for counterfeiting © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 11. TRADEMARKS • Trade Names • Indicates part or all of a business’s name • Licensing • Way to avoid litigation and still make use of another’s trademark or other form of intellectual property © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 12. PATENTS • A government grant that gives inventor the exclusive right to make, use, and sell an invention for 20 years. • America Invents Act (2011), first person to file receives protection. • Searchable Patent Databases • www.uspto.gov • www.epo.org © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use. LO-3
  • 13. PATENTS • What Is Patentable? • Item must be novel and not “obvious.” • Almost anything is patentable (excluding laws of nature, natural phenomena, abstract ideas). • Patent Infringement • If a firm makes, uses, or sells another’s patented design, product, or process without permission © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 14. PATENTS • Remedies for Patent Infringement • Sue for relief in federal court • Injunction • Request damages for royalties and lost profits • Reimbursement for attorneys’ fees (sometimes) • Treble damages © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 15. COPYRIGHTS • Copyright is an intangible property right granted by federal statute to the author or originator of certain literary or artistic productions. • Registered with U.S. Copyright Office © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use. LO-4
  • 16. COPYRIGHTS • What Is Protected Expression? • Work must be original and “fixed in a durable medium.” • Section 102 Exclusions • Excludes copyright protection for any “idea, procedure, process, system, method of operation, concept, principle, or discovery, regardless of the form in which it is described, explained, illustrated, or embodied.” • Compilations of facts are copyrightable. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 17. COPYRIGHTS • Copyright Infringement • Form or expression of an idea is copied (does not have to be in its entirety). • Penalties, damages and criminal actions are possible. • Remedies for copyright infringement • The “fair use” exception • Certain persons or organization can copy materials without penalty (e.g., education, news, research). • The first sale doctrine © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 18. COPYRIGHTS • Copyright Protection for Software • 1980 Computer Software Copyright Act • Includes computer programs in the list of creative works protected by federal copyright law • Courts have not extended protection to the “look and feel” of programs. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 19. TRADE SECRETS • Trade Secrets • Information of commercial value • State and Federal Law on Trade Secrets • Section 757 of the Restatement of Torts • Uniform Trade Secrets Act • 1996 Economic Espionage Act • Trade Secrets in Cyberspace © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use. LO-5
  • 20. EXHIBIT 8.1 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 21. INTERNATIONAL PROTECTIONS • The Berne Convention • 1886 international copyright agreement • 2011 EU extended period of royalty protection for musicians from 50 to 70 years • The TRIPS Agreement • Established standards for international protection of intellectual property rights © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.
  • 22. INTERNATIONAL PROTECTIONS • The Madrid Protocol • Designed to reduce the costs of international trademark protection • The Anti-Counterfeiting Trade Agreement (ACTA) • Increase international cooperation to combat counterfeiting • Provisions and goals • Border searches © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password- protected website for classroom use.