Chapter 4 Patents, Trademarks and Trade Secrets

Trademarks, Servicemarks Word, name, symbol or device Used in trade with goods to indicate the source of the goods (or service) and to distinguish them from the goods of others Goal- consumer protection PgP BUSA3312

Trademarks, Servicemarks Mixture of: Lanham Act of 1945 Madrid System US Anti-Dilution Act State Law PgP BUSA3313

Registration Ownership arises from use, not registration, but… Registration has benefits Public record of claim Proof of ownership Invocation of federal jurisdiction Basis for foreign registration Customs prevent importation IZOD alligator, gray market goods PgP BUSA3314

Search TESS Trademark Electronic Search System Not current, not all inclusive WHO IS AllWhoIs PgP BUSA3315

Loss of Trademark Abandonment-Failure to use trademark Enter common usage, public domain Dry Ice, Corn Flakes, Zipper Trademark owners must promote use of trademark as adjective, not noun Benefits Advertising Industry PgP BUSA3316

International Trademarks Nike conflict in Spain European Community registration Madrid System- international Madrid System- One global application Madrid Agreement Madrid Protocol- Single application valid for 10 years PgP BUSA3317

Symbols TM -Trademark, not federally registered ® - Trademark, federally registered PgP BUSA3318

Trademark Infringement Test- likely to cause confusion PgP BUSA3319

Trademark Dilution Requires Commercial use Famous mark Causes dilution of the distinctive quality PgP BUSA33110

Trademark Blurring Famous trademark used on noncompeting goods Smith & Wesson toasters PgP BUSA33111

Trademark Tarnishment Ridiculing mark’s distinctive quality Hormel vs Muppets over SPAM or Spa’am PgP BUSA33112

Trademark Parody Conveying two simultaneous contradictory messages PETA-People for the Ethical Treatment of Animals PETA-People Eating Tasty Animals Not a parody Google vs Booble PgP BUSA33113

Patent Government grant Monopoly rights Exclude others from making, using, offering for sale or selling invention for a period of 20 years from the filing date PgP BUSA331

Patent Like Copyright, Patent cannot cover idea Not a law of nature Not a physical phenomena Must be invention PgP BUSA331

Inventions-Utility Patent Process Machine Manufacture Composition of matter Improvements on above PgP BUSA331

Patent vs Trade Secret Patent-full disclosure of invention in return for 20 year monopoly-federal law Trade Secret-secret, no disclosure required, infinite life-state law PgP BUSA331

Patent Value-Licensing! Exclusive license-to one licensee Nonexclusive license- to multiple licensees Limited use license Cross licensing-create a cartel PgP BUSA331

Patent Types Utility patent-most common, inventions Design patent-appearance of object Plant patent-appearance and color PgP BUSA331

Utility Patent Requirements Novel Non-obvious Useful PgP BUSA331

Utility Patent Application Filing application required, not optional Prior art search Patent Attorney-specialist Process is expensive and time consuming Patent Litigation is extremely expensive PgP BUSA331

Utility Patent Application Sections Petition Abstract Specification Claims Drawings And strict time limits! PgP BUSA331

Internet & Patents Protect software-.gif files Protect business methodology- Amazon ‘One-click’ PgP BUSA331

Business Methods Criticism Not ‘Novel’ Not ‘Non-obvious’ PgP BUSA331

Patent Infringement Compare patent claims to infringing product All claim elements must be present in product Patent presumed valid (court assumes examiners competent), therefore infringer must proved patent invalid Threat of litigation expensive, use patents as shield PgP BUSA331

International Patents World Intellectual Property Organization (WIPO) Based on Paris Convention of 1883 One year filing deadline for intl Patent Cooperation Treaty of 1970 One intl patent application PgP BUSA331

Trade Secrets Business Practices Methods Processes Designs PgP BUSA331

Trade Secret Elements Not generally publicly known Information secrecy confers economic benefit Secrecy maintained by reasonable efforts PgP BUSA331

Trade Secret Law State Law-except Economic Espionage Varies by Jurisdiction Model statute-Uniform Trade Secrets Act 45 states adopted PgP BUSA331

Trade Secret Examples Google Search code Supplier lists PgP BUSA331

Misappropriation Independent research or reverse-engineering is allowed Remedies Injunction Lost profits Royalties PgP BUSA331

Economic Espionage Act of 1996 Misappropriation or theft of trade secrets Federal offense Fines up to $5 million Jail terms up to 10 years Apple sues Ciarelli over leaks PgP BUSA331