1. 1 Business Torts  Wrongful Interference  Appropriation  Defamation (in a business context)  Disparagement of Property

2. 2 Wrongful Interference Tort that interferes with a contractual relationship. Occurs when: –A Valid contract exists between A and B; –Defendant knows about contract between A and B; –Intentionally induces either A or B to breach the contract; and –Defendant benefits from breach. Case : Mathis v. Liu (2002).

3. 3 Wrongful Interference With a Business Relationship occurs when: –Established business relationship; –Tortfeasor, using predatory methods, causes relationship to end; and –Plaintiff suffers damages. Bona fide competitive behavior is a defense to this tort. Plaintiff must show Defendant targeted only Plaintiff’s customers and product.

4. 4 Appropriation Use of another’s name, likeness or other identifying characteristic for commercial purposes without the owner’s consent (for the benefit of the user).

5. 5 Disparagement of Property –Disparagement of Quality: The publication, whether written (trade libel) or oral (slander of quality), of false information about the quality of another’s product or services. –Disparagement of Title: The publication, whether written or oral, of a statement that denies or casts doubt upon another’s legal ownership of any property, causing financial loss to the disparaged party.

6. 6 Introduction Intellectual property (or “I.P.”) is becoming more important because the value of many corporations (e.g., Microsoft) is based primarily on I.P. I.P. is any property that is the product of and individual’s mind, (e.g. books, software, movies music). Article I § 8 authorizes Congress to “promote the Progress of Science and useful Arts, by securing for limited times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.”

7. 7 Types of Intellectual Property Trademarks. –Service Marks. –Trade Dress. Patents. Copyrights. Cyberspace I.P. Trade Secrets.

8. 8 §4: Copyrights Introduction to Copyright.Introduction to Copyright Intangible property right to author for her life plus 70 years. Automatic protection after 1978. Works can be protected by registration at U.S. Copyright Office. U.S. Copyright Office.

9. 9 Copyrights Can only copyright the expression of an idea, not the idea itself. Work must be original and fixed in a durable medium: literary, musical, choreographical and dramatic works, pictoral, graphic and sculptures, films/ audiovisual/ TV/ sounds, computer software and archtectural plans.

10. 10 Copyrights Compilations of facts are copyrightable but the compilation must be “original.” –Bellsouth v. Donnelley (1993). “Work Made For Hire” for Employees.Work Made For Hire Copyright Infringement: whenever unauthorized copying occurs. –Damages: actual to criminal prosecution.

11. 11 ‘Fair Use’ Exception Section 107 of the Copyright Act provides for exception to liability from reproduction of copyright under the the “fair use” doctrine when material is used for criticism, comment, news, parody, teaching, research.Section 107 of the Copyright Act

12. 12 Software Copyrights Computer Software Copyright Act (1980).Computer Software Copyright Act –Classifies computer software as a “literary work.” –Does not apply to “look and feel.” Lotus v. Borland (1996).Lotus v. Borland

13. 13 §1: Trademarks Distinctive mark, motto or device or emblem that a manufacturer stamps, prints or othewise affixes to the goods it produces. Distinguish product/service from goods of other manufacturers and merchants. Avoids consumer confusion. Case : Coca Cola v. Koke Co. (1920).Coca Cola v. Koke Co.

14. 14 Trademarks-Statutory Protection Lanham Trademark Act (1946) creates incentives for companies to invest; prevents unjust enrichment of companies who infringe.Lanham Trademark Act (1946) Federal Trademark Dilution Act (1995) Cause of action regardless of competition or confusion based on a “similar” mark.Federal Trademark Dilution Act (1995)

15. 15 Trademarks - Registration Register with U.S. Patent Trademark Office if:U.S. Patent Trademark Office –Mark is currently in commerce; or –Applicant intends to put it into commerce within 6 months. –Registration allows use of “®” symbol.

16. 16 Trademark - Distinctiveness Trademark must be sufficiently distinct. ‘Strong’ Marks: –Fanciful. –Arbitrary. –Suggestive marks. Secondary Meaning. Generic Terms: escalator, aspirin. Term of Protection--indefinite

17. 17 § 2: Cyber Marks Online trademarks. Domain Names: www.westlaw.comwww.westlaw.com –Conflicts: ICANN, WIPO. Anti-Cybersquatting Consumer Protection Act (1999) amended the Lanham Act. Meta Tags. Case : Playboy Enterprises v. Welles (2002). Cyber Mark Dilution.

18. 18 §3: Patents Exclusive federal grant from U.S. Patent and Trademark Office to make, use and sell an invention for 20 years.U.S. Patent and Trademark Office Patents for: --Invention --Design --Process (software patent)

19. 19 §6: Trade Secrets Business process or information that cannot or should not be patented, copyrighted or trademarked. Protection from competitors. Uniform Trade Secrets Act.Uniform Trade Secrets Act Case : Nowogroski v. Rucker (1999).

20. 20 Trade Secrets Can include: customer lists, plans, research, formulae, pricing information, marketing techniques. Hacking into a competitor’s computer may be criminal. Economic Espionage Act (1996).Economic Espionage Act Trade Secrets in Cyberspace. Expiration—never.

21. 21 §8: International Protection Berne Convention (WIPO).Berne Convention Trade-Related Aspects of Intellectual Property (TRIPS) of 1994 (WTO).Trade-Related Aspects of Intellectual Property (TRIPS) of 1994 World Intellectual Property Organization (WIPO) Copyright Treaty 1996.World Intellectual Property Organization (WIPO) Copyright Treaty 1996

22. 22 Law on the Web U.S. Patent and Trademark Office.U.S. Patent and Trademark Office Patent Searches.Patent Searches Copyright Info at the U.S. Copyright Office. Law.com I.P. Site Legal Research Exercises on the Web.