Intellectual Property Rights

Chapter 8: Intellectual Property Rights

What is Intellectual Property?

  • Definition: Intellectual property (IP) refers to property that results from intellectual creative processes.

  • Main Categories of Intellectual Property Protections:

    • Trademarks

    • Copyrights

    • Patents

Trademarks

  • Definition: A trademark is a word, phrase, symbol, or design affixed to goods or services for market identification.

  • Expanded Scope:

    • Can protect nicknames, color combinations, and overall product appearances.

    • Protection typically associated with specific product types (e.g., "Apple" for electronics, not furniture).

  • Types of Trademarks:

    • Arbitrary: Common words unrelated to the product.

    • Fanciful: Made-up words.

    • Suggestive: Names that suggest characteristics of the product.

  • Limited Protection:

    • Descriptive terms, geographic terms, and personal names generally do not get protection unless they acquire secondary meaning (where public associates the term with a specific product/service).

Trademark Protection

  • Legal Basis: Protection began under common law and migrated to statutory law, which addresses infringement and dilution.

  • Trademark Infringement:

    • The plaintiff must show the defendant used a trademark (exact or substantially similar) in a confusing manner regarding the origin of goods/services.

    • Registration is not required but creates a presumption of the mark's validity.

  • Trademark Dilution:

    • Requires the plaintiff to show:

    • Ownership of a famous mark.

    • Defendant's use of a similar mark dilutes the original mark's value or reputation.

    • Similarity must create an association that dilutes the mark, but does not need to be identical.

Licensing of Trademarks

  • Definition: Licenses are contracts that allow the licensee (user) permission from the licensor (trademark holder) to use the trademark for specified purposes.

Patents

  • Definition: A patent is a government grant that gives inventors exclusive rights to make, use, or sell their inventions for a designated period (typically 20 years).

  • Types of Patents:

    • Utility Patents: Cover new and useful products, processes, or any useful improvements.

    • Design Patents: Focus on the ornamental design of a product (protection lasts for 14 years).

    • Plant Patents: Cover new species of plants.

  • Inventor Requirements: Must show the invention is novel, useful, and non-obvious.

  • Patent Infringement: Any unauthorized making, using, or selling of a patented invention constitutes infringement.

Copyrights

  • Definition: Copyright is a property right granted to the author/creator of literary and artistic works, governed by the Copyright Act.

  • Eligible Works: Copyright protects original works fixed in a tangible medium, including:

    • Literary Works: Books, articles, ads, manuals, etc.

    • Musical Works: Music and lyrics (including jingles).

    • Dramatic Works: Plays and their music.

    • Choreographic Works: Dance forms.

    • Artworks: Cartoons, paintings, sculptures, etc.

    • Audiovisual Works: Movies, videos, etc.

    • Sound Recordings

    • Architectural Works

    • Computer Software

  • What Cannot Be Copyrighted: Underlying ideas or themes.

  • Duration of Copyright: Works created after January 1, 1978 are protected for the life of the author plus 70 years; for a publishing house, 95 years from publication or 120 years from creation, whichever comes first.

Copyright Protection

  • Rights Protected: Copyright covers reproduction, derivative works, distribution, and public display/performance of the work.

  • Infringement: Occurs when protected work is copied or reproduced.

  • Exceptions to Infringement:

    • Fair Use Doctrine: Allows limited use of copyrighted works without infringement for purposes like criticism, comment, news reporting, teaching, scholarship, or research. Factors include:

    • Purpose and Character: Commercial vs. nonprofit educational use.

    • Nature of Work: The type of copyrighted work.

    • Amount Used: Proportion of the work used.

    • Effect on Market: The impact on the market for the original work.

    • First Sale Doctrine: After the first sale of a copyrighted item, the owner can sell or dispose of it freely without violating copyright.

Relationship Between Different IP Rights

  • Hierarchy of Easiness to Obtain: Copyrights are easier to obtain, trademarks are moderate, and patents are the most difficult to secure.

  • Coexistence: A single product may be protected by copyrights, trademarks, and patents simultaneously; they are not mutually exclusive.

  • Consideration for Protection: The type of IP protection sought depends on the specific interests of the individual or business.

Trade Secrets

  • Definition: Trade secrets include ideas, processes, and information that cannot be legally protected under copyright, trademark, or patent but still hold commercial value.

  • Examples: Customer lists, research and development plans.

  • Liability for Disclosure: Unauthorized disclosure or use of trade secrets can lead to legal liability if:

    • Acquired by improper means.

    • Constitutes a breach of a duty (e.g., non-disclosure agreements).

Sample Questions

  • Question 1: A plaintiff must have registered their trademark in order to protect it against trademark infringement.

    • True / False

  • Question 2: Laura wrote a novel published in 1984 and died in 2003. Bob Barnes Productions, Inc. creates a TV show based on her novel in 2075. Laura's heirs sue for copyright infringement. Will they succeed?

    • No, because Laura's copyright only protects the novel, not derivative works.

    • Yes, because the copyright protects both the novel and derivative works.

    • No, because the copyright has expired and is public domain.

    • Yes, because Laura's copyright never expires.

  • Question 3: An employee from Company B steals Company A’s customer list and uses it to target their customers. On what basis can Company A sue?

    • Copyright infringement

    • Patent infringement

    • Disclosure of trade secrets

    • Disclosure of private information