Business Law: Texts and Exercises 7e
Chapter 6 Intellectual Property
and Internet Law
1
1
Learning Outcomes
LO1
LO2
LO3
Identify intellectual property.
Discuss the law’s protection for trademarks.
Define the protection the law provides for trademarks on the internet.
2
© 2014 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
Learning Outcomes
LO4
LO5
LO6
Describe the protection the law provides for patents.
State the law’s protection for copyrights.
Discuss how licensing can protect intellectual property on the internet.
3
© 2014 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
Intellectual Property
Intellectual Property: Property resulting from intellectual, creative processes.
LO1
4
© 2014 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
Trademarks and Related Property
LO2
A trademark is a distinctive identity that a manufacturer attaches to its product.
Consumers can be misled when a trademark appears on other products.
5
© 2014 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 and Related Property
LO2
The tort of trademark infringement occurs when one who does not own a trademark copies it to a substantial degree or uses it in its entirety.
6
© 2014 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 and Related Property
LO2
Trademark Protection.
Lanham Act XXXXXXXXXXprotects businesses from competitors that use confusingly similar trademarks.
Federal Trademark Dilution Act (1995): trademark is used in a way that diminishes its distinctiveness.
7
© 2014 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 and Related Property
LO2
Trademark Protection.
Distinctive (Strong) Trademarks are less likely to be infringed.
Fanciful: Xerox, Kodak.
A
itrary: English Leather.
Suggestive: Dairy Queen.
8
© 2014 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 and Related Property
LO2
Trademark Protection.
Secondary Meaning.
Descriptive terms are not inherently distinctive and do not receive protection under the law.
9
© 2014 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 and Related Property
LO2
Trademark Protection.
Secondary Meaning.
Geographical terms, personal names: Calvin Klein.
Secondary meaning may arise once customers associate the product with the name.
10
© 2014 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 and Related Property
LO2
Trademark Protection.
Secondary Meaning.
Once secondary meaning is obtained, the trademark is considered distinctive and is protected.
Generic Terms (no protection): bicycle, computer.
11
© 2014 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 and Related Property
LO2
Trademark Registration.
State and Federal governments provide for the registration of trademarks.
Registration is not required for protection, but the mark must be distinctive and in use.
12
© 2014 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
Trademarks and Related Property
LO2
Trademark Registration.
Trademark registration provides for proof of the date of inception.
Counterfeit Goods.
Crime to intentionally (or attempt to) traffic goods or trademarks.
Criminal penalties.
13
© 2014 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
Trademarks and Related Property
LO2
Service, Certification, and Collective Marks.
Service marks distinguish services rather than goods.
Certification marks can be used to independently vouch for a product or service. Example: “UL tested.”
14
© 2014 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
Trademarks and Related Property
LO2
Service, Certification, and Collective Marks.
Collective marks denote the participation of a group or organization in the production of a product. Example: Union marks.
15
© 2014 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
Trademarks and Related Property
LO2
Trade Names.
Trade names are not the same as trademarks.
Trade names indicate part or all of a business name that is directly related to it and its goodwill. Example: Safeway.
16
© 2014 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
Cyber Marks
Cyber marks are trademarks found on the internet.
No two business can have the same domain name on the internet.
LO3
17
© 2014 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
Cyber Marks
Cybersquatting occurs when a person registers a domain name the same as or similar to a business with intent to sell it to the business.
LO3
18
© 2014 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
Cyber Marks
ACPA (1999): Anticybersquatting Consumer Protection Act.
A mark’s owner can file a suit under ACPA against an alleged cybersquatter.
Meta Tags: unauthorized use of constitutes infringement.
LO3
19
© 2014 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
Patents
A patent is a grant from the government that conveys to, and secures for, an inventor the exclusive right to make, use, and sell an invention for a period of twenty years.
LO4
20
© 2014 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
Patents
Patent Infringement.
If a firm makes, uses, or sells another’s patented design, product, or process without the patent owner’s permission, the tort of patent infringement exists.
LO4
21
© 2014 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
Patents
Business Process Patents.
Protection for Foreign Firms.
Foreign firms can obtain U.S. patent protection for goods sold in the U.S., just as U.S. firms can obtain patent protection in foreign nations.
LO4
22
© 2014 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
Copyrights
Intangible right granted by statute to the author or originator of certain literary or artistic productions by federal law (U.S. Copyright Act).
® or © are not required for protection against infringement.
23
© 2014 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.
23
Copyrights
Protected Expression. A work must fit one of these categories:
Literary.
Musical.
Dramatic.
Pantomimes and choreographic.
Pictorial, graphic and sculptural.
Films and other audiovisual.
Sound recordings.
Computer software.
24
© 2014 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.
24
Copyrights
Protected Expression.
Work must be “fixed in a durable medium”.
Only expressions of ideas can be copyrighted.