CHAPTER 7 Intellectual Property © 2007 by West Legal Studies in Business / A Division of Thomson Learning Trademarks and Related Property • Distinctive mark or emblem affixed to a product that easily identifies, or distinguishes, the product in the marketplace. • Case 7.1 Coca-Cola Co. v. Koke Co. of America (1920). THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Trademarks and Related Property • Statutory Protection of Trademarks. – Lanham Trade Mark Act (1946). – Federal Trademark Dilution Act (1995): federal cause of action for “dilution” (confusion of similar marks on goods or services). THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Trademarks and Related Property • Trademark Registration. – Federal protection requires registration with U.S. Patent Trademark Office (www.uspto.gov) – Mark can be registered if: • In current use, or • Applicant intends to put the mark into commerce within 6 months. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Trademark Infringement • Strong Marks (e.g., Xerox). – Fanciful, arbitrary or suggestive. – Normally outside the context of the product. • Secondary Meaning. – Descriptive, geographic terms and personal names. – Case 7.2 Menashe v. Secret Catalogue, Inc. (2006). • Generic Terms. – Bicycle, computer. What about Escalator? THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Service, Certification, and Collective Marks • Service Mark. – Similar to trademark but for services. • Certification Mark. – Used by other than the owner. • Collective Mark. – Certification used by members of cooperative or association. – “Good Housekeeping” Seal of Approval. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Trade Names / Trade Dress • Trade Names applies to all or part of business’s name; directly related to goodwill. • Trade Dress refers to the image and appearance of the product. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Cyber Marks • Cyber Marks are Trademarks on the internet. • What rights does a trademark owner have? • Domain Names. • ICANN. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Cyber Marks • Anticybersquatting Legislation. • Meta Tags. – Case 7.3 Playboy Enterprises, Inc. v. Welles (2002). • Dilution in the Online World. – Hasbro v. Internet Entertainment Group. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Patents • Patent is a grant from government gives inventor exclusive right to make, use and sell invention for 20 years from filing the application. • Software patents are now available. • Patent Infringement. • Business Process Patents (State Street Bank v. Signature Financial Group). THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Copyrights • Copyright: – Intangible property right to author for her life plus 70 years. – Automatic protection after 1978. – Works can be protected by registration at U.S. Copyright Office. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› What is Protected Expression? • Can only copyright the expression of an idea, not the idea itself. • Work must be original and fixed in a durable medium. • Compilation of facts must be original. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Copyright Infringement • Whenever form or expression of idea is copied. • “Fair Use”: exception to infringement if educational, news reporting, scholarship or research. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Software Copyright • 1980 Congress passed Computer Software Copyright Act. • Computer language is a “literary work.” • Courts disagree over the ‘look and feel’ of computer. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Copyrights in Digital Information • Copyright Act of 1976. • When is a copy made? • What about collective works (newspaper and electronic databases)? THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Copyrights in Digital Information • The Digital Millennium Copyright Act of 1998. – Provides ‘safe harbors’ from immunity for ISP’s. – Provides for flexible ‘fair use’ online. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Copyrights in Digital Information • MP3 and File-Sharing Technology. – Software allows P2P sharing of files over a distributed network. – Is the software maker liable? – Napster was found vicariously liable for copyright infringement. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Trade Secrets • Trade Secrets: business process or information that cannot or should not be patented, copyrighted or trademarked. • Protected from competitors. • Uniform Trade Secrets Act. • Economic Espionage Act of 1996. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Trade Secrets • Can include: customer lists, plans, research, formulae, pricing information, marketing techniques. • Hacking into a competitor’s computer may be criminal. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› Trade Secrets in Cyberspace • Internet facilitates illegal copying and distribution of confidential information. • Sometimes mistakes can transfer information. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#› International Protection • Berne Convention (WIPO). • Trade-Related Aspects of Intellectual Property (TRIPS) of 1994 (WTO). • World Intellectual Property Organization (WIPO) Copyright Treaty 1996. THE LEGAL ENVIRONMENT TODAY Miller • Cross 5th Ed. © 2007 by West Legal Studies in Business / A Division of Thomson Learning ‹#›