Class Rreflection 2
ACC 150
THE LEGAL ENVIRONMENT OF BUSINESS
With Doreen Smith, Esquire
Chapter 9
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INTELLECTUAL PROPERTY
- Intellectual property rights
- Trademark, copyright and patents rights protected by law.
TRADEMARKS AND SERVICE MARKS
- Trademark
- A trademark is a distinctive motto, name or symbol on a product (Ex. Nike Swoosh).
- Service Mark
- A service mark identifies a service (such as a drycleaner or airline).
- Lanham Act
- The Lanham act is a federal law that grants the producer of a mark the exclusive right to register and use the trademark or service mark.
TRADEMARKS AND SERVICE MARKS
- Remedies for Improper Use of Marks.
- Trademark holder has the right to an injunction to prohibit unauthorized use of mark.
- The trademark holder also can seek lost profits for unauthorized use of the mark.
- With willful violations, courts may impose treble damages (three times the damages actually sustained).
TRADEMARKS AND SERVICE MARKS
Trade Dress Protection.
- Trade dress involves product’s total image, including packaging that is clearly recognizable by consumers.
- Protected under the Lanham Act
- When competitor adopts confusingly similar trade dress, it dilutes the mark and deceives consumers.
TRADEMARKS AND SERVICE MARKS
Prevention of Dilution of Famous Marks.
Internet domain names belong to owners of businesses: Amazon.com, Priceline.com, Cengage.com.
Cybersquatters: setup domain names that are identical or confusingly similar.
Federal Anticybersquatting Consumer Protection Act provides remedies: injunctive relief, forfeiture of domain name, attorneys fees and costs, damages and lost profits.
COPYRIGHTS
A copyright is the exclusive right given by federal statute to the creator of a literary or artistic work to use, reproduce, or display the work in any medium, including the internet. Protects expression of the idea.
Protects items like books, music, paintings, motion pictures and computer programs.
Automatically protected under Berne Convention among all signatory nations.
COPYRIGHTS
Duration of Copyright.
- Copyrights run for the life of the creator plus 70 years after the creator’s death.
- If the copyrighted material is a “work made for hire,” then business registers work. Copyright extends for 120 years of creation (95 from publication) then becomes public domain.
COPYRIGHTS
Copyright Notice.
- Although not legally necessary, it is recommended that authors use the word “copyright” or “©” so that infringers cannot claim innocent infringement.
- Copyright infringement suit requires owner to have submitted a copy of the work to the U.S. Copyright office.
COPYRIGHTS
Limitation on Copyrights
- “Fair Use” is an exception to the exclusive rights of copyright holders, depending on four factors: purpose and character; nature of the work; amount used; and the effect on the use.
- Typically Fair Use is for teaching, news reporting or research
PATENTS
Types, Duration, and Notice.
- A patent gives the inventor an exclusive right from the date of application for a limited time to make, use, and sell an invention that is new and useful and unique (not obvious).
PATENTS
Patentability.
- Four categories: processes, machines, manufactures, and compositions of matter.
- Owner of patent is required to mark patented item by listing the word patent with the patent number on the device.
- To receive a patent, the invention must be new and not obvious. Once approved, presumed valid.
PATENTS
Infringement.
- Patent owner has exclusive right to make or sell the invention.
- Owner may bring an infringement suit for unauthorized use of the patent.
- Patent owner can also receive monetary damages.
SECRET BUSINESS INFORMATION
Trade Secrets.
- Any formula, device, or compilation of information that is used in one’s business and is of such a nature that it provides an advantage over competitors.
Loss of Protection.
- Trade secrets are protected under state law for an unlimited period so long as they are not made public.
COMPUTER SOFTWARE
- Computer Software Copyright Act
- Provides a written software program protection of other copyrighted material.
- Patents
- Computer programs have some patent protection. However under patent law, the program must be put in public records (which may then be copied).
- Trade Secrets
- There is some protection for software under trade secret laws (such as when a trade secret is misappropriated by a former employee)
SEMICONDUCTOR CHIP PROTECTION
- Semiconductor Chip Protection Act
- Protects mask works and the semiconductor chip products in which they are embodied against chip piracy.
- Chips operate microwave ovens, televisions, computers and other devices.
- The act provides 10 years protection.