Week 5 Learning Team Summary
Automotive Industry Tangible and Intellectual Property Rights
Learning team # has selected the automotive industry to research tangible as well as
intellectual property rights. The information is limited in scope due to time constraints as
well as the vast amount of data relating to this industry.
TANGIBLE PROPERTY
The tangible property in the automobile market is not only limited by vehicles. Vehicles
are tangible property supplied for sale to the general public. Each maker has created
one’s own brand of small, midsize, big, as well as possible sport utility automobiles.
With the designs as well as styles secured by Patent laws by each maker, it is very
important defend the property and privileges to each company in the business. With the
growing quantity of concepts as well as modifications to product line, it is more essential
to offer a product sought after by the end user which will be sellable. By enhancing the
rivalry in the market makes wish to shift the tangible item from the assembly line, to the
dealership, and eventually to the end user. The more time tangible items remain on the
account books, the more liability to the dealership as well as the maker. Different types
of tangible property:
Installation Plants
Office Buildings
Land
Machines
Equipment, together with Robots
Office Materials
Components (nuts as well as bolts)
Completed Cars as well as Trucks
Dealerships
Fencing
Computer systems
Raw Materials
INTELLECTUAL PROPERTY
Assembly Line Operations
Computer Applications
Accounting Procedures
Automatic robot Technology
Promoting
UTILITY AND DESIGN PATENTS IN THE
AUTOMOTIVE INDUSTRY
Federal government law protection for patents can be found in Article 1, Section 8,
Clause 8, of the U.S. Constitution (the intellectual property clause) that is about patents
as well as copyrights, “The Congress shall have the power to promote the progress of
science and useful arts by securing for limited times to authors and inventors the
exclusive right to their respective writings and discoveries.”
There are two kinds of essential patents on the subject of the automobile business:
utility patents as well as design patents. Utility patents defends, "any new and useful
process, machine, article of manufacture, or composition of matter, or any new and
useful improvement thereof." Utility patents are government secured for twenty years.
A design patent defends a "new, original, and ornamental design for an article of
manufacture." In a nutshell, utility patents defend the way in which something is created
as well as utilized; Design patents “protect ornamental designs that are new and that
would be non-obvious to a designer of ordinary skill.” Design patents are government
protected for 14 years.
Design patents are normal in the automobile business because it is the exceptional
characteristics of cars which make up the car’s “design DNA.” For every automobile
which is produced, millions of dollars are invested in their exceptional models. To be
able to maximize a return on investment, the automobile business goes to great lengths
to patent each and every exceptional model possible to be able to avoid cheaper,
’copycat’ items of lesser quality which may tarnish the name as well as standing of the
organization from growing into the industry.
Instances of utility patents in the automotive business:
-
A kind of engine
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A manufactured engine component
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An upgraded method of creation an engine component
Instances of design patents in the automobile business:
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Mirrors
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Front and back grills
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Hoods
-
Fenders
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Car door handles
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Wheels
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Locking systems
With no intellectual property clause, rivals would be permitted to copy products without
requiring to get back the dollars invested in research and development, although the
end user will be capable to get the item for a lot cheaper, eventually, organizations
would lose the will to press for revolutionary patterns, creativity would suffer, and end
users would not have the range of selections they enjoy these days which sprung from
competition coming out from copyrighted models.
Patents perform a crucial role in creative growth since organizations are continuously
competing to create a more revolutionary and demanded item. During 1871, the U.S.
Supreme Court accepted this in Gorham Co. v. White, 81 U.S. 511, 525 (1871):
The acts of Congress which authorize the grant of patents for designs were plainly
intended to give encouragement to the decorative arts.… The law manifestly
contemplates that giving certain protection to certain new and original appearances to a
manufactured article may enhance its salable value, may enlarge the demand for it, and
may be a meritorious service to the public.
One of the key problems the automobile business faces these days is that “design DNA”
frequently passes across intellectual property limits irrespective of producer. For
instance, the appearance of BMW’s pillar shaped rear end roof showed up in a modified
shape in Volkswagen’s Passat that was modified once again in the Buick Lucerne.
Significant pressure is placed on the creative designers of vehicles to create impressive
latest ideas which will ‘wow’ the general public. In this competitive world, there is really
a lot of secrecy, and being a former automobile correspondent, I heard tales of
competing producers rushing to obtain “spy shot” pictures, secret video clips of
comments sessions, and the strange disappearance of model drawings.
TRADE DRESS AS A TRADEMARK ISSUE IN THE
AUTOMOTIVE INDUSTRY
Trademark regulation falls under the Lanham Act of 1976 as a, "word, name, symbol,
device, or other designation, or a combination of such designations, that is distinctive of
a person's goods or services and that is used in a manner that identifies and
distinguishes them from the goods and services of others" [(15 U.S.C., Sec. 1127
(2000)].
The appearance as well as feel of an automobile maker's web site, for example
Ford.com, that is basically blue, white, and splashes of red, can be identified as trade
costume. The general public connects with the color scheme and overall model with the
Ford logo, and Ford dealerships. Trade dresses like these can be government protected
by enrolling them like trademarks. As a result, they are defended by intellectual property
laws and regulations.
COPYRIGHT ISSUES IN THE AUTOMOTIVE
INDUSTRY
A big part of the automobile market is committed to the advertising and marketing of
their items. Pamphlets, adverts, internet sites, press kits, PR write-ups are typical
instances of items which can be copyrighted and defended by intellectual property laws
and regulations. The regulation which defends copyrights is the Copyright Act [17
U.S.C. Sec. 410 (d)]. Legal cases against copyrighted material can't be taken to court
until the work is recorded at the U.S. Copyright Office. Article, Section 8, clause 8 of the
U.S. constitution gives our elected representatives the power "to promote the progress
of science and useful arts by securing for limited times to authors and inventors the
exclusive right to their respective writings and discoveries."
INTELLECTUAL PROPERTY ISSUES
OFADVERTISING
Advertising and marketing has turned into a competition for developing an exceptional,
cutting edge, and appealing method of passing on related information to clients in order
to help and favorably impact their purchasing decisions. As it is, it is not easy to
maintain the material of an advertisement true to realities, provided the natural human
trend to exaggerate the advantages of an item or service beyond just puffery. Just like
the parts of a fantastic service or product, the parts of a superb advertisement are
possibly to be imitated or copied by other people. For that reason, it is rarely shocking
that one or more kinds of intellectual property rights come into play in producing
material for an advertisement. Intellectual property rights relevant to advertising and
marketing might include:
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Creative material - for example written content, pictures, the design of an
advertisement
-
Advertising slogans and sounds might be defended under situations by
copyright and or trademark laws and regulations
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Business names as well as logos might be protected under trade names
-
Computer system-generated visual icons, screen displays, and web pages
might be protected by industrial design regulation
-
Computer software to produce digital advertisements, for example
computer system generated images, may be protected copyrights or
patents
WHAT MANAGERS IN THE AUTOMOTIVE
INDUSTRY CAN DO TO PROTECT THE
PROPERTY RIGHTS OF THEIR ORGANIZATION
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Make use of suitable security measure to defend tangible property for
example security camera systems, guards, precautionary fencing, and
even locks on doors
-
Understand how to get a patent and actively patent models in a timely
manner
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Understand how to implement a patent and be on the lookout for products
which may be infringing on the patent
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Always be conscious of the legislation regarding intellectual property
-
Study patents and be aware of lifespan to make sure there isn't any
violation
-
Keep up with changes to the rules
-
Always be conscious of the “grey areas”-when “design DNA” can and can't
get across limits
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Take legal measures for patent violation
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Enrolling the trade dress like a trademark with the U.S. Patent and
Trademark Office (USPTO)
-
Learn what can be categorized as a trademark and what cannot (ex.
common trademarks cannot be registered since they are extremely
general however suggestive, arbitrary and fantastic trademarks are all
exceptional and can be registered)
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Enrolling the copyrighted content at the U.S. Copyright Office
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Learn the laws regarding copyrights
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Making certain that their own content isn't infringing on other people's
copyrighted content and are original works
-
Keeping an eye out for some individuals that may be utilizing the
company's copyrighted content
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Enrolling your advertisement and any other copyright protected content
(as well as your website)
-
Notify people that your advertising content is legally protected by copyright
law
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Utilize your trademark persistently and suitably in all promotional content
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Patent modern advertising technologies and online business techniques
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Take safety measures to avoid accidental disclosure of trade secrets
WHAT MANAGERS IN THE AUTOMOTIVE
INDUSTRY CAN DO TO PROTECT THE
PROPERTY RIGHTS OF OTHERS
-
Always be conscious of the rules regarding intellectual property
-
Study patents and understand the lifespan to make sure there isn't any
violation
-
Keep up with changes to the rules
-
Always be conscious of the “grey areas”-when “design DNA” can and can't
get across limits
-
Know precisely “Fair Use” to ensure that managers understand when it is
permitted to make use of the intellectual property of other auto producers
-
Set up rigid company policies and rules preventing the action of pirating
intellectual property
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Being informed about their competitor's trademarks so as to stay away
from infringing on their rights
-
Controlling workers in order that they are informed on the consequences
of breaking trademark rules
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Being conscious of trademark rules
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Always be conscious of potential infringers of copyrights
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Learn the rules regarding copyrights
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Inform employees on the laws of copyright and the consequences of
breaking the laws of copyright
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Be very careful regarding 'linking' other people's content on sites and
blogs: hire a review team to keep a watch on this and remove any
potential infringements
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Placing disclaimers on their materials for example web sites and bulletin
boards