Chapter 15: Business Law

Intangible Property

Property that does not have a physical existence, such as patents and copyrights, but carries the full protection of ownership

Patents

A legal monopoly over inventions, products, and processes for a statutory time period

America Invents Act (AIA)

An act that changed the U.S.A.’s patent rights to a “first to file” system. Under this system, the first inventor to file a patent receives priority

Copyrights

An exclusive right to sell, control, or license words, thoughts, ideas, and music

Computer Software Copyright Act

An act under which all software can be copyrighted, whether it is written in ordinary language (source code) or machine language (object code)

Trademarks

It includes words, names, symbols, designs, or devices that businesses use to identify their products or services

Lanham Act of 1946

A federal law passed to afford businesses, protection for their trademarks

Trade Name

An official name under which a company functions; it also includes unique product labels and names

Federal Trademark Dilution Act

Statute that permits recovery and injunctions for “dilution” of distinctive trademarks; it protects the trademark owner and prevents others from capitalizing on the popularity of the trademark

Trade Dress

The colors, designs, and shapes associated with a product

Trade Secrets

The knowledge a business develops that provide it a competitive edge; it is not known generally or by competitors

Opposition Proceedings

A process that includes publishing the description of a patent and inviting the public to study the description and possibly oppose the granting of the patent

Knock-Off Goods

Goods that carry the trademark or trade name of a firm’s product but are not actually produced by that firm

Gray Market

A parallel market in which the cost and the quality of goods is less, when compared to the trademark owner’s market

Disparagement

An untrue statement made about a business product or service; it is divided into two types: trade libel (written) or slander of title (oral)

Trade Libel

An untrue statement made about a business product or service in written form such as in images, printed words, and in other media

Slander of Title

An untrue statement (spoken defamation) made about a business product or service

Palming Off

An unfair method of competition that involves causing deception about the maker or source of a product

Misappropriation

The use of another’s ideas or trade secrets, for self-benefit or the benefit of a new employer