intellectual property intellectual property. intellectual property intellectual effort, not by...
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Intellectual PropertyIntellectual effort, not by physical laborIntangible propertyLawsuits involve infringement in violation of the owners rightDamages include monetary and injunctionMajor forms include:TrademarksCopyrightsPatentsTrade secrets
TrademarkA commercial symboldesign, logo, phrase, distinctive mark, name or wordbrand name (i.e., Nike, Puma and others)Classificationsarbitrary and fanciful (most favored)suggestivedescriptivegeneric--not protected
RegistrationCan be done onlinePayment of $335 for each class of goods using a markSubmission of copy of mark (a specimen)Description of the goods that will use the markDeclaration that applicant has no knowledge that mark will conflict with other marksGood for 10 years, after which must be renewedInternational protection of trademarks is encouraged by International Bureau of the World Intellectual Property Organization (WIPO) via the Madrid Protocol
Trade NamesName of company or a businessSome products, such as Coca-Cola, have same trademark as the trade name of producerCannot be registered under the Lanham ActProtected by common lawProtection applies to areas in which name has meaningNational protection cannot be claimed unless there might be confusionEx: because Coca-Cola is known worldwide, no one may use trade name in any business. For instance, cannot open Coca-Cola Motel.
GoodwillReputation of a firm that gives value to trademarks and other forms of intellectual propertyPrized asset of many firmsGain trust of many customers = GoodwillBenefit of advantage of having an established business and secured customersUpon sale of business, goodwill can be evaluated.Often closely tied to trademark or brand name
Copyright Rights of literary property recognized by lawBooks, written works, etc.Easiest to getWorks must be originalWas life of author plus 50 years; now (since 1999) is life plus 70 years; 95 years for work for hire (by employees)Gives owner exclusive right to:reproducepublish or distributedisplay in publicperform in pubicprepare derivative works based on original
PatentsExclusive right to make, use, or sell a product for 20 yearsAnyone who invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patentStrong protection during life of patent
But expensive, technical and time-consuming processSince patent divulges all info to competitors, some prefer trade secretsIf Coca Cola had gotten a patent instead of trade secret it could be used by others after 1907
WIPO (World Intellectual Property Organization) encourages IP (Intellectual Property) worldwide.
Trade SecretsCoca-Cola has held secret the formula for Coke for over 100 years - a patent would not provide such long protectionMost trade secret lawsuits are common law actions of stealing & using secretsProsecutors can also press criminal chargesProtection in other countries is difficultInformation is a trade secret if:it is not known by the competitionbusiness would lose advantage if competition were to obtain itowner has taken reasonable steps to protect the secret from disclosureSee Issue Spotter: Protecting Valuable Information re: company representatives who leave to work for a competitor
Economic EspionageUsually trade secrets based on common law and enforced by litigation claiming misappropriation; violations of a secret; or violations of secrecy agreementEconomic Espionage Act of 1996 concerns theft of commercial trade secret:Whoever, with intent to convert a trade secret, that is related to or included in a product that is produced for or placed in interstate or foreign commerce to the economic benefit of anyone other than the owner thereof, and intending or knowing that the offense will injure any owner of that trade secret, is subject to prosecutionPunishment for a person can be up to 10 years in prisonFirms may face fine up to $5 million