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Essentials of the legal environment today, 5e

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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 INTELLECTUAL PROPERTY RIGHTS
Chapter 8 © 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 LO-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.

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. LO-2 © 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.

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 Trademark Infringement
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 Counterfeit Goods
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 Licensing
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 LO-3 © 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.

13 Patents What Is Patentable? Patent Infringement
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 LO-4 © 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.

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 State and Federal Law on 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 LO-5 © 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.

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.


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