Accounting Business Law Exam 2:

Civil Law vs Criminal Law:

I enforce civil law

Government enforces criminal law

Intentional Tort:

A wrongful act that was knowingly committed

Unintentional Tort:

A wrongful act that was NOT knowingly committed

Tortfeasor:

One who commits a tort

Negligence (Unintentional):

Tort of negligence occurs when the plaintiff is injured because of defendants breach of a duty of care.

4 Questions:

1. Did the defendant own the plaintiff a duty of care?

2. Did the defendant breach that duty?

3. Did the plaintiff suffer a recognizable injury?

4. Was the defendant’s breach the factual and proximate cause of the plaintiffs injury?

Prove all. Plaintiff has to prove defendant all 4 questions.

Negligence:

Simplified

Carelessness that causes someone to get hurt.

Is when someone is careless, and that carelessness causes someone else to get hurt.

Duty of Care:

The person had a responsibility to be careful.

As a general rule, a person owes a duty of care towards those around them or who own land around them.

• Do you have to come to someone’s aid?

What about landowners?

• Do landowners owe a duty of care towards trespasser? Don’t owe duty of care to trespasser.

• What is an attractive nuisance? Something that attracts a small child.

• Do storeowners owe customers a duty of care? Yes

• What about landowners? Yes

• Do those who throw a party owe a duty of care? Yes

Reasonable Care:

Duty to act with reasonable care towards others based upon a reasonable person standard.

• Example: must drive with care so pedestrians and other motorists are not injured

• Question becomes “how would the reasonable person believe they should act” not “how would the reasonable person act?”

Duty of Professionals:

Duty of care for a professional focuses on the skill set of the reasonable professional in that field and not merely the reasonable person found in society.

• Accountants cannot say I did not know that principle of accounting existed.

• Malpractice is often the resulting claim

Malpractice: (Mistake)

Negligence by a professional is called malpractice.

Injury Requirement and Damages:

Injury must result for damages to be awarded

• Damages may be compensatory (pay back) or punitive (punish).

Plaintiff must prove causation

• Causation in Fact: act or omission caused the damage (factual causation)

• “But for” test

• Proximate Cause: strong enough connection to justify holding the defendant responsible

• Foreseeable?

Causation in Fact:

Proximate Cause:

Causation in Fact= Did they cause it?

“But for” test: But for the defendants actions, would the injury have happened?

If NO→ They caused it.

If YES→ They did not cause it.

Proximate Cause= Was it predictable?

The law asks: Was this kind of injury something that could normally be expected from a persons actions?

If yes→ It is foreseeable

If no→ It is not foreseeable

Proximate Cause:

Foreseeable= Something that makes sense as a likely result.

If its normal, expected outcome → foreseeable

If it’s weird, random, or extremely unlikely → not foreseeable

Palsgraf vs Long Island Railroad Co:

• Plaintiff was waiting for a train standing on the Railroad’s platform

• Package of fireworks falls to the ground and injures plaintiff

• Plaintiff was unable to recover damages because the harm was not foreseeable (proximate causation)

Special Negligence Standards Which Help Prove Breach Occurred

Res Ipsa Loquitur:

• “The facts speak for themselves”

• Helps plaintiff create a presumption of negligence on the part of the defendant who must then defend against such presumption

• Example: plaintiff can’t move knee after a knee surgery

Special Negligence Standards Which Prove Breach Occurred

Negligence Per Se:

Plaintiff must prove 3 things

• Plaintiff was owed a duty of care under a statute

• The defendant committed the conduct prohibited by the statute in question

• Statute was designed to prevent this type of injury

Defenses to Negligence:

Assumption of Risk:

Plaintiff entered the situation knowing the risks

• Need to show 1) Plaintiff knew of the risk 2) Plaintiff assumed the risk

Intervening Cause: something that breaks the chain of causation.

Contributory Negligence:

• Under common law any contributory negligence provided by the plaintiff would prevent recovery by plaintiff. Complete bar= No damages No money for the plaintiff

• Bill is driving down University Avenue. He runs a red light and hits Jennifer. Jennifer had obeyed all traffic lights but was texting. Jennifer wants to sue Bill. What result if her state has a pure contributory negligence standard? No recovery

Comparative Negligence:

• Many states now allow for comparative negligence.

• In these cases, the court looks at the fault of the defendant and compares it to the fault of the plaintiff. Recovery on the part of the plaintiff is then reduced by their contribution to the incident.

Comparative Fault:

• May apply to all torts (even intentional) in a given state and not just negligence

• Example:

• Todd hits Melanie after she calls him a jerk and takes his cell phone throwing in on the ground. A court in a state that recognizes comparative fault will consider Melanie’s contribution to the incident.

Other Special Standards:

Negligence Defenses

“Danger Invites Rescue”: just because a third party was negligent does not relieve the defendant of liability if he created the danger that invited rescue by a third party

Good Samaritan Protection Laws: protect Good Samaritans against negligence lawsuits

Dram Shop Acts: allows a plaintiff injured by an intoxicated tortfeasor to sue the establishment that negligently served too much alcohol to the tortfeasor

• Social hosts may be included

Nuisance:

Nuisance: an unreasonable interference with another property owner’s use of their property

Private nuisance: defendant’s use of their property interferes with the plaintiff’s use of their property

Public nuisance: defendant’s use of their property substantially interferes with a right commonly held by the public

Example: Hannah keeps 4 goats in her backyard and their manure starts to create an odor which affects her neighbor’s enjoyment of his backyard.

More Special Standards:

Strict Liability: courts may impose strict liability when defendants engage in severely dangerous activities

• Example: pit bull escapes from a secure cage after an earthquake

Strict Product Liability: manufacturers and distributors are held to strict liability for product defects.

Assault:

Assault: actions intended to make another person fearful of immediate physical harm

• Requirements:

• The defendant, by word or gesture, intentionally puts the plaintiff in fear of imminent physical harm.

• A reasonable person in the same situation would be fearful of imminent physical harm.

• The defendant had no permission or privilege to act.

• Need a reasonably believable threat

• Often need more than just words

Battery:

Battery: the un-consented to and intentional touching of another person which results in harmful contact or offensive contact.

Requirements:

• The defendant intentionally touched the plaintiff with an object or the defendant’s body.

• The touching was unwelcomed or offensive.

• A reasonable person in the same situation would find the touching harmful or offensive.

• The defendant had no permission or privilege to act.

Assault and Battery:

Battery: no need to show evil motive just that it was an intentional touching

Assault: objective threat standard- why not subjective?

Defenses:

• Consent

• Self defense

• Defense of others

• Defense of property

• These come with a reasonableness standard

Tort Elements:

Fear of imminent physical harm + Reasonable person + No permission or privilege = Assault

Touched plaintiff + Touching was unwelcomed + Reasonable person + No permission or Privilege = Battery

Made a false statement + Statement published to third party + Reputation was harmed = Defamation

False Imprisonment:

• The intentional confinement or restraint of another person’s activities without justification

• Cannot have a safe escape

• May be detained by threat of physical harm but the threat must be in the present

• Ex: “I will beat you up the next time I see you if you leave” is not false imprisonment

False Imprisonment: Store Owners

Store owners often want to detain shoplifters

• May be false imprisonment

• Some states have passed laws allowing shop keepers to detain people they suspect of shoplifting if the shop keeper has reasonable cause and does not keep the person for an unreasonable amount of time.

Defamation:

Wrongfully hurting a person’s good reputation by stating an untruth

• Slander- oral defamation (all by itself)

• Libel- written statement of defamation

Requirements:

• Defendant made a false statement about the plaintiff

• The statement was published to a third party

• The plaintiffs reputation was harmed as a result.

Defamation Per Se: (can be written)

(Slander Per Se)

Common law has 4 false statements which require no proof of damages in order for the plaintiff to recover:

1. Plaintiff is incompetent and/or immoral in the plaintiff’s business affairs;

2. Plaintiff has a loathsome disease such as a venereal disease or leprosy;

3. Plaintiff is sexually promiscuous; or

4. Plaintiff has committed a criminal act.

Easier for plaintiff to recover

Defamation: (defenses)

Truth:

• Still cannot be used maliciously (called defamation by implication)

Privileged statements- absolute or conditional

Absolute: (never defamation)

• Made in trial proceeding

• Made on the floor of a legislature while debating a bill

Conditional: (sometimes defamation)

• Public figures must prove malicious intent on the part of the person making an untrue statement

More defamation: (can be written)

Slander of Property- defendant makes untrue statements which decrease the value of plaintiffs property

Slander of Title (ownership)- Defendant makes untrue statements which cause a 3rd party to doubt the plaintiffs ownership of the property

Invasion of the Right of Privacy:

4 different major acts constitute a violation:

1. Publishes information that places the plaintiff in a false light.

2. Publicly discloses facts about the plaintiff that a reasonable person would find objectionable or embarrassing.

3. Uses the name or likeness of the plaintiff without permission for a commercial purpose.

4. Invades a person’s home or private papers.

Appropriation: (right to publicity)

The use of another person’s name or likeness without their consent for the defendant’s benefit

Also known as the “right of publicity”

• Does not exclude public figures from being a plaintiff

Allows public figure to recover

Intentional Infliction of Emotional Distress:

Requirements:

1) Behavior has to be outrageous and intentional

2) In most jurisdictions you have to prove some type of physical pain or suffering

Example: Jimmy calls his neighbor Mrs. Williams and tells her both of her sons were killed in a car accident. Jimmy impersonates a police officer when telling this untruth. Mrs. Williams suffers a heart attack.

Intentional Torts Against Property:

Trespass (to real property): occurs when a person without permission enters above or below the surface or causes something to enter above or below the surface of another’s real property

• Normally a landowner is not liable for the injuries of trespassers. Exceptions exist.

• Attractive nuisance: sand pile that attracts children.

Defenses to Trespass:

Invitee (business guest): must warn of hidden risks and make hazardous situations safe.

Licensee (party guest): must warn of potentially dangerous situations

Danger invites rescue: dangerous situation required action

Trespass to Personal Property/Conversion:

Trespass to Personal Property (computer): interfering with the use of another’s personal property

vs Exceptions provided by statue (artisans lien)

Conversion: the unlawful taking of another’s property

Defenses:

• Necessity

• Superior right to property

Fraud:

Requirements: Need ALL of them

1. The defendant made a misrepresentation;

2. The defendant know of the deception;

3. The defendant intended to influence the plaintiff to act or refrain from acting;

4. The plaintiff justifiably relied on the defendant’s misrepresentation; and

5. The plaintiff was damaged as a result

Wrongful Interference with a Contractual Relationship:

4 elements that must exist:

1. A valid enforceable contract must exist between the 2 parties

2. Defendant knew the contract exist

3. Defendant intentionally caused either of the 2 parties of the contract to breach the contract

4. Plaintiff was injured

Wrongful Interference with a Prospective Business Advantage:

Cannot engage in malicious behavior but only competitive behavior

• Can engage in competitive behavior but not behavior that is predatory or malicious

• Critical question is defendant soliciting customers or trying to get customers that are interested in only a competitor?

Types of Damages:

Compensatory damages: compensate plaintiff for loss suffered

• Special damages: costs incurred out of pocket. Example: rental car fee because of accident

• General damages: not calculated by a precise model but not meant to compensate plaintiff. Example: “pain and suffering”

More damages:

Nominal Damages ($1): small amount of damages meant to establish liability

Punitive Damages (punish): meant to punish defendant not necessarily compensate plaintiff

Liquidated Damages (set in advance): damages required by state statute and awarded in torts case.

Civil Law:

Defines the relationships between citizens or between citizens and their government

• Preponderance of the evidence standard (50/50)

• Goal of making injured party “whole” through financial restitution and/or injunction

Criminal Law:

Defines what a crime is.

• Usually state vs defendant

• Beyond a reasonable doubt evidence standard.

Goals:

• Deterrence (doesn’t want to go to jail.) (specific and general)

• Retribution (like to see bad person get punished)

• Rehabilitation (bad guys become good)

• Incapacitation (don’t think someone can be reformed keep in prison.

Criminal Liability:

To be guilty of a crime, you generally need both:

• Actus Reus: A criminal or guilty act

• Mens Rea: A criminal or guilty (premediated) mind(set)

• Unless its strict (doesn’t matter why) liability

Model Penal Code:

• Purpose

• Knowledge

• Recklessness

• Negligence

Authority:

Actual Authority: Acting with direct knowledge and permission of the corporation

Apparent Authority: A reasonable person would have believed that the employee was authorized by the company to act in a certain manner because of representations made by the corporation to a third party.

Types of Crimes:

Violent Crimes

• Homicide, Rape, Assault

Property Crimes:

• Burglary, Larceny, Arson, Forgery

Public-order Crimes:

• Intoxication, prostitution

Cybercrimes:

• Hacking, Phishing

Classification of Crimes:

Felony:

• Serious crime that is punishable by death or by imprisonment for more than one year.

Misdemeanor:

• A lesser crime than a felony, punishable by a fine or incarceration in jail for up to one year

Petty Offense: (Fine parting)

• In criminal law, the least serious kind o criminal offense, such as a traffic or building code violation

Lesser Included Offenses:

Some crimes may have different levels of seriousness.

• An accused may be acquitted of a more serious charged offense but still be found guilty of a lesser included offense

• An accused cannot be punished for a more serious offense and also for the lesser under the merger doctrine

Larceny merges into robbery

Burglary doesn’t merge into robbery

Embezzlement:

A type of theft that occurs when a fiduciary is lawfully entrusted with personal property of another and then fraudulently takes or uses that property for his or her own gain.

Fraud:

The knowingly misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment

Types of Fraud:

• Mail Fraud (Using postal services)

• Wire Fraud (Using phone or other electronic means of communication)

• Bankruptcy Fraud (concealing assets from bankruptcy proceedings)

• Perjury (telling an untruth while under oath to tell the truth)

Insider Trading:

The purchase or sale of securities on the basis of inside information.

Inside information= nonpublic

This is what Martha Stewart was originally charged for (later found guilty of perjury)

Tipper/Tippee

• Tipper is the person who gives the tip

• Tippee is the person who gets the tip. Tippee only liable if they knew the information was not public

Bribery:

Bribing a public official

• Need intent

• Anything of value can be offered

• Crime occurs at the time the bribe is offered

Don’t need acceptance by public official.

Organized Crime:

Money Laundering: transferring illegally obtained money through legitimate people or accounts so that its original source cannot be traced.

Racketeer Influenced and Corrupt Organizations Act (RICO):

Enables prosecution of criminal organization “bosses” for the crimes of their subordinates. The criminal acts are imputed as part of larger “criminal enterprise.”

Property Crimes: Theft

Theft crimes involve a defendant either 1) taking the property of another or 2) interfering with their use of it

• Larceny: stealing tangible property with the intent to deprive the owner of the property

• Robbery: taking of property by force, intimidation or threat of violence with the intent to deprive the owner of property

Theft is often involved in burglary but not necessarily required

• Burglary: breaking and entering into the dwelling house of another at nighttime with the intent to commit a felony. Don’t need theft for burglary we just need intent to commit a felony.

Property Crimes:

Arson: malicious burning of the dwelling of another person

Forgery: making or altering a writing with the intent to defraud

Obtaining goods by false pretense: intentionally misrepresenting a material fact to a person in order to persuade another to transfer property

Extortion: wrongfully using a public office to obtain assets from a victim

Blackmail: wrongfully obtaining assets by threat

Property Crimes: 3 terms

Criminal trespass: defendant knowingly interferes with another’s property rights

Criminal mischief: intentionally causing damage to another’s property

Receiving stolen goods: act of receiving property that the defendant knew or should have known was stolen with the intent to deprive the real owner of such property.

Modern Day Crimes:

Hacking (hacks into database of corporation): unauthorized access of another’s computer with intent to change the settings or access information.

Phishing (email): accessing another’s computer or personal information through electronic deception with the intent to use that information to commit a fraud.

Credit Card Fraud: using credit card information to obtain an unauthorized benefit

Identity Theft: to knowingly transfer or use another person’s identity without authorization with the intent to commit a crime.

Defenses to Criminal Liability:

Negate either Actus Reus or Men’s Rea:

• It wasn’t me Actus Reus

• I didn’t intend to Men’s Rea

If both act and intent present

• Justification: society generally condones or approves of the act under the circumstance

• Excuse: society does not condone but determines punishment is less appropriate because of mitigating circumstances.

Intoxication:

Is an excuse

Self Defense:

A person may be justified in using force against another person; however, there are limits to this rule. While a person can use force to protect himself or others from a real or threatened attack, the force used must be reasonable and not excessive under the circumstances.

Castle doctrine: can use lethal force without retreating if attacked in your own home. (perpritrate)

Stand your ground laws: can use lethal force without retreat if acting in self-defense

Mistakes:

Mistake of Fact:

• For specific-intent crimes an honest mistake may negate one of the elements of the offense.

• You walk off with someone’s bag because you thought it was yours

• Can you use this if a crime is strict liability

Mistake of law: generally not a defense

• Citizens are assumed to know the law in the United States

Entrapment:

It’s not a good defense, and police have to convince or say

• A public official gets the defendant to commit a crime that he or she would not have committed had it not been for overbearing actions of the public official

• Like the insanity defense, this is difficult to prove.

Intoxication:

Involuntary intoxication (bad guy spikes drink): intoxication on the part of the defendant was not intentional

• Example: the drink of the defendant was spiked with the hallucinogen drug

• Works to negate the mental intent required by a crime

Voluntary Intoxication (I did volunteer drink): intoxication was brought about by the defendant’s intentional acts

• Works to negate only specific intent crimes as the act of getting drunk can be viewed as negligent

Fifth Amendment Protection:

• Protection from double jeopardy (individual): Can be tried for a crime a second time if found “not guilty” the first time

• Right against self-incrimination: Miranda vs Arizona case held that police must advise you of your constitutional rights before subjecting you to custodial interrogation. (in custody of being questioned)

• Right of due process: At a minimum you must be given notice and a hearing before you can be deprived of life, liberty or property.

Miranda Rights:

Defendant has to be in custody and questioned

6th Amendment Protection:

• Right to a speedy/public trial

• Right to an impartial jury (facing > 6 months of prison)

• Right to be informed of the charges against you (no secret trials)

• Right to confront all witnesses

• Right to have production of favorable witnesses

• Right to an attorney

4th Amendment Protections:

Search Warrant (judge issues it): An order granted by a public authority, such as a judge, that authorizes law enforcement personnel to search particular premises or property.

• Probable Cause: Reasonable grounds to believe that evidence of a crime is currently located in the place or on the person to be searched.

• There are many exceptions to the warrant requirement:

• Exigent circumstances, emergency, and “plain view” (was in plain view) searches are just a few.

Fourth Amendment: (lower expectations of privacy than individuals.)

In a business setting police still need a warrant but businesses have a lower expectation of privacy so it is easier for a government official to get a warrant.

In highly regulated industries no warrant is needed to do regular administrative searches because the public interest in regulation outweighs the privacy interest.

4th Amendment:

Simple

Protection against unreasonable search and seizure

Requires probable cause warrants

Fifth Amendment:

Protection from double jeopardy

Right against self-incrimination

Right of due process

Sixth Amendment:

Right to a speedy/public trial

Right to an impartial jury

Right to be informed of the charges against you

Right to confront all witnesses

Right to have production of favorable witnesses

Right to an attorney

Eighth Amendment:

Protection against excessive bail

Protection against excessive fines

Protection against cruel and unusual punishments

14th Amendment:

Extended due process and most other constitutional protections/rights to the state level.

Evidentiary Rules:

Exclusionary Rule: Any evidence that is obtained in violation of the accused constitutional rights is automatically excluded at trial.

Example: Police obtain a confession from Rita, but they did not read her the Miranda Rights and were legally required to do so. Rita’s confession would be excluded at trial.

Criminal Process:

Arrest: need a warrant unless there is no time to get one.

Initial Appearance: Defendant appears before judge.

• Required within 48 hours in Iowa

Indictment or Information (we need a case to proceed)

• Grand jury issues an indictment

• Grand jury determines whether or not there is probable cause for a trial

• Magistrate issues a criminal information for lesser crimes, and this means no grand jury

Criminal Process Continued:

Arraignment: court proceeding in which defendant hears charges in court and enters plea

Pleas:

• Guilty “I did it”

• Not guilty “I did not do it”

• Nolo contendere “I am not saying I did it but I will accept the consequences

Statute of Limitations & Immunity:

Statute of Limitations (for murder): depends on crime as well as other factors such as the “triggering” event

Immunity: State often wants information from criminals, so the prosecution offers them immunity (meaning no liability for criminal acts disclosed to state)

Plea Bargaining: the defendant and prosecution enter into a deal and the defendant gets a more lenient sentence

Trial Issues:

Burden is on the plaintiff

• Burden will shift if the defendant wants a claim a defense like insanity

Any reasonable doubt and the defendant must be found “not guilty”

Sentencing Guidelines: help the judge determine the sentence which is imposed

What is Intellectual Property (IP)?:

Intellectual Property: products of a person’s creative spirit. Intangible in nature.

• Patents

• Copyrights

• Trademarks

• Trade secrets

Public Policy:

In the U.S, we want to encourage inventiveness and creativity.

• Want to reward investments in writings, songs, plays, books, inventions, and product/service promotion

In the US we don’t want to create monopolies of ideas or inventions

• Limit the scope and duration of protections for certain forms of IP

Law Protecting IP:

International Law:

The Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)

• Administrated by the World Trade Organization

• Cannot treat domestic owners more favorably

Federal Law:

• Lanham Act (Trademarks)

• U.S Code Title 35 (Patents)

• U.S Code Title 17 (Copyright)

State Law:

• Both common and statutory law (Trademarks, Copyright, and Trade Secrets.)

Patents:

The legal right to exclude all others from making, using, selling, or importing the invention during the term of the patent.

• Invention may be an apparatus or method as defined by the patent claims

• Negative Rights: the right to legally exclude others from performing certain acts

Federal law most important source:

• International law is relevant

• State law generally not relevant

USPTO:

The United States Patent & Trademark Office examines and issues patents (under Dept. of Commerce)

• Does not mean patent will be found valid in court

• Does not mean USPTO will monitor who uses the patent

Patents: (3 Types)

Utility (a product/ how it’s built or assembled): covers the way something works, how the pieces/parts interact (20 years from filling date)

Plant (tree): covers strains of asexually reproducing plants (20 years from filling)

Design (outward/appearance/aesthetic): covers ornamental features of a product (14 years from issue date)

Patents Requirements:

Requirements to receive a patent (the invention as defined by the claims must be)

• Novel

• Useful

• Non-obvious

• Directed to statutory subject matter

Patents: (Explained)

Novelty:

• No single teaching from the prior art can disclose each and every element of the invention

• Prior art: existing information or concepts which prove the invention is not novel or new

Useful: (would someone buy it?)

• Very low bar; nearly any commercial utility

Non-obvious:

• No communication of prior art teachings that would be obvious to combine to disclose each and every element of the invention

Patents:

(Statutory Subject Matter Doesn’t Include)

Statutory Subject Matter Does Not Include:

Natural phenomena

Laws of nature

Abstract ideas

Patents: (International Protection)

International Protection:

• No such thing as an “International Patent”

• PCT application is an international application (except for a several countries)

• PCT application is just a place holder and requires entering the national phase in individual countries

• PCT application administrated World Intellectual Property Organization (WIPO)

American Invents Act:

Switched the US from a “first to invent” patent system to “first to file” The problem with the “first to invent” system is it allowed other inventors to invalidate a patent by proving they created the patented subject matter first.

Provisional Patent Application:

(Allows to make sales test without creating prior art, ex: waters)

A type of utility patent application which allows protection for one year. Allows inventor to sell their patented idea. Inventor must file a non-provisional patent application before the provisional patent expires to receive an issued patent.

Patent Infringement:

Infringement requires unauthorized making, using, selling, or importing of invention

• Remedies include an injunction and a money award

Direct infringement (come out and do it): patented technology is made, used, sold, or offered for sale without permission of the patent holder

• No requirement of knowledge of patent

Indirect Infringement occurs when knowledge exists of the patent and can arise in two ways.

• Induced infringement

• Contributory patent infringement

Example: Eli makes it but I told him to.

Patent Infringement Defenses:

Common Defenses:

• Patent is invalid

• Accused device does not meet each and every element of at least one patent claim

Laches (statute of limitations is 6 years)

• Theory of Laches is the owner waited too long to bring the case.

• First Sale Doctrine: once sold, the buyer can use the patented product in any manner they choose.

Copyright: (can for statute)

Copyright: exclusive right to exploit certain creative works

• Federal law is most important

• Creative works include literary works, musical works, dramatic works, pictorials, sculptures, sound records, movies, architecture, software

• Exclusive rights are a bundle (copy, publicly display or perform, create derivative works.)

Copyright: (Registration of Copyright)

Registration of Copyright:

• Administrative process performed by US Copyright Office

• Must register the copyright before bringing an infringement suit under federal law

• Registration before or within 3 months of publication entitles owners to statutory damages.

Copyright:

Must be original work fixed to a tangible medium of expression

• Original bar is low:

• A sketch on a napkin would be enough

• Often authors affix the C to denote they are the original authors

• Term can vary:

• General rule: the life of author plus 70 years

• Work for hire: 120 years after creation or 95 years after publication, whichever is shorter

Limitations on Copyrights:

Copyright protection does not extend:

• To subject matter of patents

• To facts (example: subject matter of news story)

• To ideas, concepts, or principles:

• Examples: the idea of world peace cannot be copyrighted. Neither can (2+2=4)

Parody:

Can be copyrighted but a copyright holder cannot sue the creator of a parody of their work.

License= contrapuntal right