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Protecting  Intangible Business Assets © <ul><li>Teresa Cheung  </li></ul><ul><li>LL.B. LL.M. (Intellectual Property) </li...
Overview <ul><li>What are intangible business assets? </li></ul><ul><ul><ul><li>Characteristics  </li></ul></ul></ul><ul><...
Intangible Business Assets <ul><li>Characteristics: </li></ul><ul><li>intangible (information that can not be possessed) <...
Intangible Business Assets <ul><li>Characteristics: </li></ul><ul><li>can be valued in most cases: </li></ul><ul><ul><li>a...
Intangible Business Assets <ul><li>Intellectual Property:  </li></ul><ul><li>patents </li></ul><ul><li>copyrights </li></u...
INTELLECTUAL PROPERTY LAW OVERVIEW
Intangible Business Assets Case study: www.amazon.com
 
TRADE-MARKS ACT   R.S. 1985 <ul><li>“ trade-mark&quot; means </li></ul><ul><li>( a ) a mark that is used by a person for t...
How To Choose a Trade-mark <ul><li>Choose an inherently strong mark – these marks are given the highest level of protectio...
Choose a Distinctive Trade-mark <ul><li>Trade-marks will not be  registered  if:  </li></ul><ul><ul><li>Name or surname of...
Choose a Distinctive Trade-mark <ul><li>A non-registrable trade-mark can be registered if it has become distinctive at the...
Choose a Distinctive Trade-mark <ul><li>How To Choose a Trade-mark: </li></ul><ul><li>Conduct a NUANS search </li></ul><ul...
Examples of Famous Marks <ul><li>WARES:   (1) Stationery, school and office supplies namely, binders, student planners, no...
Colour as a Claim <ul><li>COLOUR CLAIM:  Colour is claimed as a feature of the trade mark. The border of the label is blac...
Certification Marks
How Many Trade-marks  Can Be Registered  To Protect This Product?
DISTINGUISHING GUISE:                                           REGISTRATION:   TMA355239  REGISTRATION:  TMDA051412  TRAD...
Why License Intellectual Property? <ul><li>Expand existing market share (eg. franchising) </li></ul><ul><li>Expanding into...
Licensing Intellectual Property Grant of License.   Licensor hereby grants to Licensee, for the  internal use of the Licen...
Licensing Intellectual Property <ul><li>License Restrictions.   The grant of License is subject to the following restricti...
Other Intangible Business Assets <ul><li>Confidential information </li></ul><ul><li>Trade secret </li></ul><ul><li>Custome...
Protecting trade secrets <ul><li>Non-solicitation clause for clients, partners </li></ul><ul><li>The Partner agrees that  ...
Protecting Trade Secrets <ul><li>Non-solicitation clause for employees </li></ul><ul><li>6.1 Clients and Customers:  The E...
Protecting Trade Secrets <ul><li>Non-compete clause </li></ul><ul><li>Covenant Not To Compete.  (a) Employee agrees not to...
Protecting trade secrets <ul><li>Non-disclosure clause for employee or contractor: </li></ul><ul><li>Employee acknowledges...
Protecting Confidential Information <ul><li>H.L. Staebler Company Limited v. Allan  [2008] ONCA 576 (August 2008) </li></u...
Protecting Trade Secrets <ul><li>There are numerous cases involving enforcement of non-solicitation and non-compete clause...
Summary <ul><li>So how do we protect intangible assets? </li></ul><ul><li>Patent Act </li></ul><ul><li>Trademarks Act </li...
Teresa Cheung  LL.M. (Intellectual Property) LL.B.   [email_address]
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Protecting Intellectual Property And Trade Secrets (Oct29.08)

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What are intangilbe assets and the main types of intellectual property. How to protect intangible assets such as trade-secrets.

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Protecting Intellectual Property And Trade Secrets (Oct29.08)

  1. 1. Protecting Intangible Business Assets © <ul><li>Teresa Cheung </li></ul><ul><li>LL.B. LL.M. (Intellectual Property) </li></ul><ul><li>[email_address] </li></ul>
  2. 2. Overview <ul><li>What are intangible business assets? </li></ul><ul><ul><ul><li>Characteristics </li></ul></ul></ul><ul><ul><ul><li>Examples </li></ul></ul></ul><ul><li>Licensing intellectual property </li></ul><ul><ul><ul><li>Protecting and exploiting </li></ul></ul></ul><ul><li>Protecting trade secrets from competitors and potential competitors (employees) in contract </li></ul>
  3. 3. Intangible Business Assets <ul><li>Characteristics: </li></ul><ul><li>intangible (information that can not be possessed) </li></ul><ul><li>can be easily reproducible </li></ul><ul><li>recognized by law to be property </li></ul><ul><li>owner can exercise rights: </li></ul><ul><ul><li>right to use </li></ul></ul><ul><ul><li>right to exclude others from use </li></ul></ul><ul><ul><li>right to transfer (to sell, license) </li></ul></ul>
  4. 4. Intangible Business Assets <ul><li>Characteristics: </li></ul><ul><li>can be valued in most cases: </li></ul><ul><ul><li>accounting of profits </li></ul></ul><ul><ul><li>assessment of damages </li></ul></ul>
  5. 5. Intangible Business Assets <ul><li>Intellectual Property: </li></ul><ul><li>patents </li></ul><ul><li>copyrights </li></ul><ul><li>trade-marks </li></ul><ul><li>Intangible Business Asset: </li></ul><ul><li>confidential information </li></ul><ul><li>trade secrets </li></ul>
  6. 6. INTELLECTUAL PROPERTY LAW OVERVIEW
  7. 7. Intangible Business Assets Case study: www.amazon.com
  8. 9. TRADE-MARKS ACT R.S. 1985 <ul><li>“ trade-mark&quot; means </li></ul><ul><li>( a ) a mark that is used by a person for the purpose of distinguishing or so as to distinguish wares or services manufactured, sold, leased, hired or performed by him from those manufactured, sold, leased, hired or performed by others , </li></ul><ul><li>( b ) a certification mark, </li></ul><ul><li>( c ) a distinguishing guise, or </li></ul><ul><li>( d ) a proposed trade-mark </li></ul>
  9. 10. How To Choose a Trade-mark <ul><li>Choose an inherently strong mark – these marks are given the highest level of protection </li></ul><ul><ul><li>mark is creative; do not describe the quality or features of the goods and service </li></ul></ul><ul><ul><li>Eg. Google, Apple, Amazon, Indigo </li></ul></ul>
  10. 11. Choose a Distinctive Trade-mark <ul><li>Trade-marks will not be registered if: </li></ul><ul><ul><li>Name or surname of person who is living or deceased within past 30 years (eg. Cheung) </li></ul></ul><ul><ul><li>Descriptive or misdescriptive (eg. “Fast” for car, “Apple” for juice) </li></ul></ul><ul><ul><li>Name in any language of the goods and services </li></ul></ul><ul><ul><li>Confusingly similar to another trade-mark or trade name </li></ul></ul>
  11. 12. Choose a Distinctive Trade-mark <ul><li>A non-registrable trade-mark can be registered if it has become distinctive at the date of filing an application for its registration. </li></ul><ul><li>See section 12 of the Trade-marks Act </li></ul>
  12. 13. Choose a Distinctive Trade-mark <ul><li>How To Choose a Trade-mark: </li></ul><ul><li>Conduct a NUANS search </li></ul><ul><li>Internet and Google search </li></ul><ul><li>For international and North American coverage: retain a specialized search firm </li></ul>
  13. 14. Examples of Famous Marks <ul><li>WARES: (1) Stationery, school and office supplies namely, binders, student planners, notebooks, portfolio covers, bookbags, pouches for carrying school materials, book covers, briefcases, pen and pencil holders, school bags, knapsacks, gym bags, calendars and pocket calendars; computer software in the field of health and fitness used to manage digital music, store and organize digital music, create custom CD's, download digital music from the internet, build, manage and transfer play lists, categorize music by tempo , log fitness data, namely times, paces, heart rate and injuries, create workout schedules and goals, download data from a watch to a computer; electrical, electronic communications and digital audio equipment and accessories, namely portable digital music players , calorimeters, and carrying cases for these items; radio link watches which contain a radio frequency transmitter, receiver and/or transceiver used to monitor heart rate, speed and distance, communicate with wheel sensors on bicycles and control digital audio equipment; watches which include altimeters, compasses, pedometers, chronographs, speed distance monitors with speed sensor, heart rate monitors. </li></ul>
  14. 15. Colour as a Claim <ul><li>COLOUR CLAIM: Colour is claimed as a feature of the trade mark. The border of the label is black. The background is pale gold. The three elliptical rings are a darker shade of the same gold. The words TIM HORTONS are red. The words ALWAYS FRESH are dark brown. </li></ul><ul><li>WARES: (1) Donuts, donut holes, bagels, muffins, cakes, biscuits, cookies, pies, coffee beans and ground coffee, sandwiches, soups, chili, soft drinks, juice, and prepared non-alcoholic beverages namely, coffee, specialty coffees including cappuccino, hot chocolate, and tea. </li></ul><ul><li>SERVICES: (1) Sit-down and take-out restaurant services </li></ul>
  15. 16. Certification Marks
  16. 17. How Many Trade-marks Can Be Registered To Protect This Product?
  17. 18. DISTINGUISHING GUISE:                                        REGISTRATION: TMA355239 REGISTRATION: TMDA051412 TRADE-MARK:                                        REGISTRATION: TMA562648 (Color is claimed) TRADE-MARK:                                        REGISTRATION: TMA290252 (shape of the box) REGISTRATION: TMA164635 (tread design) TRADE-MARK:                                        TOBLERONE TRADE- MARK:
  18. 19. Why License Intellectual Property? <ul><li>Expand existing market share (eg. franchising) </li></ul><ul><li>Expanding into new territories (eg. setting up international affiliates) </li></ul><ul><li>Co-branding arrangements (eg. “Intel Inside”, MBNA credit cards with universities) </li></ul>
  19. 20. Licensing Intellectual Property Grant of License. Licensor hereby grants to Licensee, for the internal use of the Licensee only, a non-exclusive, non-transferable, revocable and royalty-free license (the “License”) to use the Intellectual Property for the purpose of providing software development to clients exclusively located in the United States of America, with a focus on the provision of micro payment services in connection with corporate clients in retail. Unless prior written approval is obtained from the Licensor, the Licensee shall not use the Intellectual Property for any other purpose.
  20. 21. Licensing Intellectual Property <ul><li>License Restrictions. The grant of License is subject to the following restrictions: </li></ul><ul><ul><li>Licensee shall use the Intellectual Property only in the United States of America. </li></ul></ul><ul><ul><li>Licensee shall not use or distribute the Intellectual Property for any purpose outside of the joint venture. </li></ul></ul><ul><ul><li>Licensee shall not market, distribute, export, translate, transmit, merge, modify, transfer, adapt, loan, rent, lease, assign, share, sublicense or make available to another person or individual the Intellectual Property in any way, in whole or in part. </li></ul></ul><ul><ul><li>Licensee agrees to take all precautions to prevent third parties from using the Intellectual Property in any way that would constitute a breach of this Agreement, including without limitation, such precautions as Licensee would otherwise take to protect its own intellectual property and confidential information. </li></ul></ul>
  21. 22. Other Intangible Business Assets <ul><li>Confidential information </li></ul><ul><li>Trade secret </li></ul><ul><li>Customer lists or book of business </li></ul><ul><li>Knowledge revealed to your employees, customers, joint venture partners, service providers, that is not in the public domain </li></ul>
  22. 23. Protecting trade secrets <ul><li>Non-solicitation clause for clients, partners </li></ul><ul><li>The Partner agrees that during the term of this Agreement and for one year following the termination of the Agreement, whether the termination was by the Partner or by the Service Provider, and regardless of the reason for termination, the Partner shall not , either directly or indirectly, or through any other person, firm or corporation, solicit any employee of or individual working under contract for the Service Provider to leave the employment of the Service Provider to become employed by the Partner or employed by any person, firm or corporation engaged in competition with the Service Provider. </li></ul>
  23. 24. Protecting Trade Secrets <ul><li>Non-solicitation clause for employees </li></ul><ul><li>6.1 Clients and Customers: The Employee agrees that during the continuance of this Agreement and following the termination of employment, whether by the Employee or the Corporation, with or without cause, the Employee shall not, for a period of eighteen months following the termination or voluntary withdrawal, either directly or indirectly solicit or approach any client or customer of the Corporation for his or her own benefit or for the benefit of any third person or organization. </li></ul><ul><li>6.2 Employees: The Employee agrees that during the continuance of this Agreement and following the termination of employment, whether by the Employee or the Corporation, with or without cause, the Employee shall not, for a period of eighteen months following the termination or voluntary withdrawal, either directly or indirectly through an agent or third party solicit, approach any employee of the Corporation for the purpose of leading such employee to leave his or her employment. </li></ul>
  24. 25. Protecting Trade Secrets <ul><li>Non-compete clause </li></ul><ul><li>Covenant Not To Compete. (a) Employee agrees not to compete with Company in the restaurant equipment supply business while working for Company and for a period of 18 months after termination of employment within a radius of 50 kilometers of Toronto. </li></ul><ul><li>(b) For purposes of this covenant not to compete, competition is defined as soliciting or accepting employment by, or rendering professional services to, any person or organization that is or was a client of Company during the term of Employee's work with Company. </li></ul>
  25. 26. Protecting trade secrets <ul><li>Non-disclosure clause for employee or contractor: </li></ul><ul><li>Employee acknowledges and agrees that any Confidential Information that it receives from EMPLOYER is secret, privileged and confidential. Employee agrees that disclosure of Employer's Confidential Information, in its original form or by way of summary or analysis, could cause EMPLOYER irreparable harm and damage. Accordingly, Employee agrees to hold Employer's Confidential Information secret and in strict confidence at all times and not disclose such Confidential Information in its original form, or by way of summary or analysis, to any person, except as provided in this Agreement. Employee agrees not to use Employer's Confidential Information for personal benefit or for the benefit of third parties. </li></ul><ul><li>Upon completion of this Agreement: (a) Employee shall cease all use of Employer's Confidential Information; (b) Employee shall promptly return to EMPLOYER all tangible Confidential Information of EMPLOYER, including all copies, reproductions, summaries, memos, correspondence or compilations, so that it no longer has any of such information in it possession or under its control in any format whatsoever, including without limitation electronic and paper formats; (c) Employee shall cease any and all work in connection with and any further use of Employer's Confidential Information; (d) Employee’s duty of confidentiality under this Agreement and law survives the termination or completion of this Agreement. </li></ul><ul><li>The limitations regarding use and disclosure referred to in this Confidentiality Agreement shall not apply to any part of the Confidential Information that is (a) already known to Employee prior to disclosure by EMPLOYER; (b) in the public domain, or subsequently disclosed to the public other than by breach of this Agreement; (c) independently developed by Employee without reference to the Confidential Information; (d) disclosed by Employee with the prior written approval of EMPLOYER; (e) lawfully disclosed to Employee by a third party without breach of this Agreement; or (f) required by law to be disclosed. </li></ul>
  26. 27. Protecting Confidential Information <ul><li>H.L. Staebler Company Limited v. Allan [2008] ONCA 576 (August 2008) </li></ul><ul><ul><li>Staebler is a large insurance broker selling commercial, personal and group benefits insurance in Waterloo, Ontario </li></ul></ul><ul><ul><li>Operating for over 100 years; 2003 had over 50 employees, at least 12,000 clients and $5.5 million in annual sales; </li></ul></ul><ul><ul><li>2 employees worked for Staebler with written employment contracts – one had 75-100 clients, the other had 100 clients </li></ul></ul><ul><ul><li>Employees were not to conduct business with any clients for 12 months after termination, or to solicit customers for 18 months after termination </li></ul></ul><ul><ul><li>At trial, Staebler was awarded $978,208 and $892,008 against the 2 employees and their new employer </li></ul></ul><ul><ul><li>Overturned at Ontario Court of Appeal - the non-compete and non-solicitation were too broad and therefore unenforceable. </li></ul></ul>
  27. 28. Protecting Trade Secrets <ul><li>There are numerous cases involving enforcement of non-solicitation and non-compete clauses: </li></ul><ul><ul><li>RBC Dominion Securities Inc. v. Merrill Lynch Canada Inc. et al [2008] SCC 54 Supreme Court of Canada (local RBC office defecting in Merrill Lynch office virtually leaving the entire office empty of staff and clients) </li></ul></ul><ul><ul><li>Ash Temple Limited v. Croney, Gootveld and Healthco (Canada) Ltd . [2000] Ont. C.A. (dentist with influential contacts at dental equipment supplier taking clients to competitor) </li></ul></ul>
  28. 29. Summary <ul><li>So how do we protect intangible assets? </li></ul><ul><li>Patent Act </li></ul><ul><li>Trademarks Act </li></ul><ul><li>Copyright Act </li></ul><ul><li>Confidential Information through contract </li></ul>
  29. 30. Teresa Cheung LL.M. (Intellectual Property) LL.B. [email_address]

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