bus202 final chapter 1

Intellectual Property

Protects creative and innovative endeavors.
Major driver of the U.S. economy and business value.

Categories of property

• Real property – land, buildings.

• Personal property – movable objects.

• Intellectual property – creations of the mind.

Organizations Overseeing IP

• U.S. Patent & Trademark Office (USPTO) — patents + trademarks.

• U.S. Copyright Office / Library of Congress — copyrights.

• International treaties & organizations facilitate global protection, but trademarks generally do NOT extend overseas unless filed in each country or via treaties (e.g., Madrid Protocol).

TRADE SECRETS

Valuable business information that:

• Is not known or easily discoverable by others.
  The company takes steps to keep confidential.

Standard for Protection for trade secrets

1. Keep it secret (use NDAs, limited access, security).
   

2. Prove it is a trade secret.
   

3. Show misappropriation occurred (theft or wrongful use).

Protection Duration of trade secrets

Indefinite (as long as it stays secret).

Enforcement & Remedies of trade secrets

• Civil: Injunctions (court orders to stop use/disclosure).
  

• Criminal:

  • Economic Espionage Act (EEA) – theft of trade secrets is a federal crime.

  • Includes theft for foreign governments, entities, personal gain.

COPYRIGHTS

Legal rights granted to creators of:

Books, music, art, films, photographs, software, etc.

Standard for Protection of copyrights

A work must be:

1. Original.
   
   

2. A creative expression (NOT ideas or facts).
   
   

3. Fixed in a tangible medium (written, recorded, saved).

First Sale Doctrine

Owners can resell or rent a purchased physical copy.

But cannot reproduce or distribute additional copies.

copyright Duration of Protection

• Individual author: Life + 70 years
  

• Works for hire/corporate:
  

  • 95 years from publication OR
    120 years from creation (whichever expires first).

Fair Use Exceptions Allows limited use without permission for:

Teaching
Research
Criticism/commentary
New reporting
Parody

TRADEMARKS & SERVICE MARKS

Words, phrases, logos, designs, symbols that identify and distinguish a business in commerce.

Trade Dress

Protects the look and feel of a product/service (color, shape, packaging, store layout).

trademarks Standard for Protection

• Actual use in commerce (must be used in business).

• Cannot:

  • Be confusingly similar to existing marks.

  • Contain prohibited or immoral elements.

  • Be generic (“coffee,” “bicycle”).
    Merely describe the product ("creamy yogurt").

trademarks Duration of Protection

• Unlimited, as long as it remains in use.

• Requirements:

  • After 6 years: file statement of continued use.
    Every 10 years: renew registration.

Trademark infringement:

Use of a confusingly similar mark that could mislead consumers.
Focus: likelihood of consumer confusion.

Trademark dilution

• Applies to famous marks only.

• Uses that weaken or tarnish the brand (even without confusion).

• Example: Using “Nike” to sell unrelated products

PATENTS

 Government grant giving the inventor exclusive rights to make, use, sell the invention

Three Types of Patents

1. Utility Patents — processes, machines, improvements.

2. Design Patents — ornamental designs.

3. Plant Patents — new plant varieties.

patent Standard for Protection

Invention must:

• Be useful.

• Be novel.

• Be non-obvious.

• Be fully explained:

  • How to make/use it.

  • Why it is different from existing inventions.

  • Detailed description.

patent Duration

Utility & plant: 20 years.

Design: 15 years.

Patent trolls

Entities that buy patents solely to sue for infringement and profit — not for innovation.

RIGHT OF PUBLICITY

 Right to control the commercial use of your:

• Name

• Image

• Likeness

• Voice

• Signature