Bài giảng Business Law (13th edition) - Chapter 8: Intellectual Property & Unfair Competition

Crimes & TortsCrimesIntentional TortsNegligence & Strict LiabilityIntellectual Property & Unfair Competition2McGraw-Hill/Irwin Business Law, 13/e© 2007 The McGraw-Hill Companies, Inc. All rights reserved.Intellectual Property & Unfair CompetitionPAETRHC8“I dream for a living.” Steven Spielberg, quoted in Time magazine, July 1985Learning ObjectivesInfringement of intellectual property rightsMisappropriation of trade secretsUnfair competition - intentional tortsUnfair competition – the Lanham Act8 - *PATENT:Engine design, business methodsTRADEMARKLogo, trade nameCOPYRIGHTSales materials, artworkTypes of Intellectual Property Marketing materials for Case Construction Equipment8 - *Intangible right granted by statute to the author or creator of certain tangible literary or artistic productionsCan’t copyright an “idea”Registration not required, but recommendedApplicable law: Copyright Protection Act and the Copyright Term Extension Act Copyright8 - *Grant from federal government to an inventor in which inventor obtains exclusive right to make, use, and sell his invention for a period of 20 years (14 years for designs)U.S. Patent Act requires registration Patent8 - *Protection for: Process, a machine, a manufacture or product, a composition of matter (such as a new chemical compound), an improvement of any of the above, an ornamental design for a product, a plant produced by asexual reproduction, certain business methods Invention may not be patentable if it lacks novelty, is obvious, or has no utilityPatent8 - *Distinctive mark, motto, device, or emblem that a manufacturer or service provider stamps, prints, or affixes to products it produces or services it performs to distinguish from those of competitorsApplicable law: Lanham ActRegistration with state or federal government recommended, but not requiredTrademark8 - *Trademark“Trademark” applicable to trade name, image, logo, and dressTrademark dilution is the diminishment of the capacity of plaintiff's marks to identify and distinguish plaintiff's goods or services8 - *Trade secret: any secret formula, pattern, process, program, device, method, technique, or database used in the owner’s business that gives the owner competitive advantageMisappropriation of a trade secret occurs when a person discloses or uses after acquiring the secretTrade Secrets8 - * InfringementViolation of intellectual property right: when someone uses, makes, or sells another’s trademarked, patented, or copyrighted intellectual property without owner’s permission, license, franchise Penalties -- actual or statutory damages in civil proceedings or criminal penalties for willful violations8 - *The “Fair Use” DefenseFor copyright and trademark infringement, a “fair use” defense or exception exists when the copyrighted work or trademark is used without the property holder’s permission “For purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research” Section 107 of the Copyright Act8 - *International intellectual property law is governed by multilateral agreementsParis ConventionMadrid Agreement Concerning the International Registration of TrademarksMadrid ProtocolWorld Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights See World Intellectual Property OrganizationInternational Law8 - *Intentional torts involving business include:Injurious falsehood (product disparagement): publication of false statements disparaging another’s business, property, or title to property, that harms economic interestsIntentional interference with contractual relations: one party to a contract claims the defendant’s interference with other party’s performance wrongly caused plaintiff to lose the benefit of the performanceCommercial Torts 8 - *Intentional interference with prospective advantage parallels the elements for interference with contractual relations, except prospective relations are the focus rather than existing contractsSection 43(a) of the Lanham Act creates civil liability for unfair competition, including misleading, confusing, or deceptive representations made in connection with goods or servicesCommercial Torts 8 - *Test Your KnowledgeTrue=A, False = BYou may copyright an idea Copyright protection requires registration with the U.S. Copyright OfficeThe U.S. Patent Act requires registration of a patent to obtain protection for the intellectual propertyThe Lanham Act protects trademarks8 - *Test Your KnowledgeTrue=A, False = BTrademark dilution refers to the overuse of a trademark on products or servicesAn employee who creates a new software program has made a work-for-hire The “fair use” defense is an absolute defense to an infringement claim8 - *Test Your KnowledgeMultiple ChoiceA trademark refers to: (a) trade name(b) trade image(c) trade logo(d) trade dress(e) all of the aboveTrademark dilution on the internet is prohibited by: (a) Anticybersquatting Consumer Protection Act (b) Patent & Trademark Act(c) Berne Convention8 - *Thought QuestionMusic is intellectual property. What do you think about people who download music illegally? Have they committed theft? 8 - *