1. Speas – Reagan High School PATENTS, COPYRIGHTS, TRADEMARKS, & TRADE SECRETS 3.06 Acquire Foundational knowledge of business laws and regulations to understand their nature and scope

2. What is an invention? To invent is to create thorough independent investigation, experimentation, and basic brain power something which is useful and which is not previously in existence. Inventions can be nearly anything and can come as a result of a moment of ingeniousness, as a solution to a problem, or as a development from years of research. Inventions can be common things such as paperclips or more complex things such as the latest drug to tackle headaches. Anyone can be an inventor! Patents

3. Invention Protection  Inventions can be worth money for the inventor. To protect the invention and maintain rights to prevent others from producing and selling the product, the inventor must protect his or her invention.  Inventions are protected from copying and theft by patents.

4. What is a Patent?  A patent for an invention is the grant of a property right to the inventor, issued by the United States Patent and Trademark Office.  Are temporary property rights as they expire after 20 years.  Patents only protect your property in the United States, United States territories, and United States Possessions.  To quote the United States Patent and Trademark Office, a patent gives “the right to exclude others from making, using, offering for sale, or selling” the invention in the United States or “importing” the invention into the United States.

5. Types of Patents  Utility Patents: These patents protect processes, machines, manufactured items, or compositions of matter. Some examples include medicine, electronics, etc.  Design patents: These patents protect new, original, and ornamental designs for manufactured items. Examples are the design of athletic shoes, or an automobile body.  Plant Patents: These patents cover asexually reproduced and distinct plant varieties. For example, plant patents covered hybrid tea roses, as well as Better Boy Tomatoes.

6. Who can obtain a Patent?  Anyone can apply for a patent.  Patents are obtained through the process of applying to the U.S. Patent and Trademark Office.

7.  A patent application is typically submitted with several forms and a fee.  Components of the application include basic information such as:  Applicant name  Design title  Cross reference to related applications  Summary of the invention  Drawings with explanations  A detailed description.

8. Click on the URL below: Read “Getting Started – The Cycle of Invention. Go back and click on “Spot the Invention” category. http://www.uspto.gov/kids/teens.html 10-Minute Activity!

9. Trademarks provide us with valuable information. They are source indicators that allow us as consumers to know what to expect in the quality of a product or service. They allow us to buy with the assurance that we are getting products or services that we liked in the past or to avoid those products or services we did not like. In addition to offering protection to the consumer, trademarks are often a company’s most valuable assets. They stand as emblems of a company’s reputation and good will. Often consumer confidence and trust built upon brand loyalty encourages product sales. What is a Trademark?

10. Brand vs. Generic  A Trademark is known as a brand name.  Most inventions have a brand name and a generic name.  Example: Coca-Cola has the brand name “Coke”, but its generic name is soda, pop, or softdrink.

11. Why are brand and generic names important?  People identify it generically, and associate the brand with quality and desire to purchase.  Companies spend millions of dollars to advertise their products, so no company wants their trademark to be used generically.

12. Match the following trademarks w/generic names:  ROLLERBLADE®  COKE®  KLEENEX®  XEROX®  FEDEX®  Overnight courier service  Facial tissue  Photocopier  Soft drink  In-line skate TrademarkGeneric Name

13. Why Are Trademarks Important?  They help make an invention sell.  They identify the source of origin of a product or service.  Trademarks or brand names can also come to signal quality of a product to consumers.  Examples: Uggs vs. Bear Claws Apple vs. Acer Tylenol vs. Generic Pharmacy Brands

14. Symbols of Trademarks Designation marks used to alert the public of your claim:  TM – Trademark  SM – Service Mark  ® - Federal Registration Symbol (Note: you may use the registration symbol with the mark ONLY on or in connection with the goods and/or services listed in the federal trademark registration.

15. 3.06 Invention Handout Assignment (Patents & Trademarks)

16. What is a Trade Secret? A Trade Secret is information that a company keeps to give them an advantage over their competitors. Trade Secrets can include: - Formulas - Patterns - Plans - Designs - Physical Devices - Processes - Software - “Know-how” Trade Secrets

17. What Makes a Trade Secret?  Although it varies from field to filed and among jurisdictions, there are three (3) general guidelines as to what defines a trade secret:  It must not be generally known to the relevant portion of the public.  It has economic benefit for the holder (economic benefit comes FROM it not being known).  The holder makes reasonable attempts to maintain its secrecy.

18. Trade Secrets vs. Patents  A trade secret is protected without disclosure of the secret.  Holders protect the secret by taking steps such as making employees sign agreements not to reveal information or by keeping information known to only a handful of employees.

19. Formula  Examples:  Coco-Cola – Did you know that Coca-Cola has no patent? The formula is kept secret. A patent would allow anyone to read the formula and they would have been able to produce the exact soda when the patent expired (20 years from the time the patent began).  Others – Food, drugs, cosmetics.

20. Pattern, Plan or Design  Examples:  Color TV circuitry  Schematics for an analog circuit  Molds for the manufacture of street markers  Design for a grating

21. Device  Examples:  Device for manufacturing radio parts.  Machine for inking carbon paper and ribbons  Adhesive tape machine

22. Process, Method or Technique  Examples:  Process to treat metal  Process to manufacture fiberglass  Process for an environmentally sound method to manufacture coated paper

23. “Know-how”  Information and expertise related to using formulas or processes.  Examples:  Methods to manufacture typewriters  Know-how to identify malfunctions in CAT scanning equipment and components.

24. 3.06 Trade Secrets Assignment

25. When business owners cannot afford to pay back liabilities to their creditors, they may file bankruptcy to settle their debt and avoid costly legal action. As a result, creditors may be prevented from collecting on the debt owed to them until the bankruptcy process is completed. Bankruptcy

26. Forms of Bankruptcy  Chapter 7 – Liquidation  Chapter 11 – Reorganization  Chapter 12 – Reorganization  Chapter 13 - Reorganization  Individual or Sole Proprietorship Business  Trustee will sell assets to satisfy debts outstanding.  Individual or Small Business  Has no limits on the amount of debt  Usually changes the terms on loans (i.e., lower interest and/or lower payments)  Debtor keeps their assets  Family Farmers or Fishermen (Individuals, Corporations, or Partnerships)  Total debt not more than $4.03 million if they are famers, or $1.87 million if they are fishermen  Repayment plans on debt(s) are 3-5 years  Individuals  Has debt limit (less than $383,175)  Individuals keep assets and make monthly payments to the Chapter 13 trustee, which are allocated to all creditors.  Debtor may not incur new debt

27. What is a Copyright? Based on the concept that someone who creates a work of authorship deserves to be compensated for it. Copyright in a work does not have to be registered, or protected by a notice. Works are protected by copyright law even if the copyright notice is not shown. Copyright

28. What Is NOT Protected by Copyright:  Works that have not been fixed in a tangible form of expression.  Titles, names, short phrases, and slogans; familiar symbols or designs; mere variations of typographic ornamentation, lettering, or coloring, etc.  Ideas, procedures, methods, systems, processes, principles, discoveries, or devices.  Works consisting entirely of information that is common property containing no original authorship such as: standard calendars, height/weight charts, tape measures and rulers, and lists or tables taken from public documents or other common sources. Note: Some of these may be covered under other forms of intellectual property protection such as patents.

29. Public Domain  If it is no longer under copyright protection, or if it failed to meet the requirements of copyright protection.  Public Domain works may be used freely without the permission of the former copyright owner.

30. Copyright Duration  Works created on or after January 1, 1978 by individuals lasts for the life of the author + 70 years.  Works created by employees for their employer belongs to their employer and lasts for 95 years from the date of publication, or 120 years from the date of creation, whichever occurs first.

31. 3.06 Copyright Assignment

32. Intellectual property is a broad term used to identify any product of the human intellect that has commercial value such as: - Songs - Movies - Software - Medicine - Mechanical Inventions - Corporate Logo - Etc. Summary of Intellectual Property

33. Sample 1  June does extensive research and spends much time perfecting a technique to be used in surgery to cut down on scar tissue. June patents the process that is a result of all her time and energy. This patent would allow her to charge a fee for its use by anyone else. This fee is her “reward” for the time and effort she put into perfecting the process. If the process isn’t useful or needed, others won’t pay for it. However, if it is innovative, June will make money.

34. Sample 2  Mike has spent decades researching, traveling and writing. He is writing a book on traveling to foreign countries. His book is recently complete, and he is ready to have it marketed and sold. As the author, he has the legal right to prevent others from reprinting the book, copying the text on a Web site, or even creating a television series from it. This right can make money for Mike – he can sell the publishing rights to others for a flat fee or royalties.

35. Laws of Protecting Intellectual Property  Copyright: Provides temporary protection of creative expression that is put into tangible form such as writings, songs, movies, or software. It protects the actual words in a novel, but not the topic or plot of that novel. Once protection expires, they become public domain.  Patents: Provides temporary (20 years) property rights; preventing others from using, making, importing or selling your product idea. There are 3 types of patents:  Utility Patents: These patents protect processes, machines, manufactured items, or compositions of matter. Some examples include medicine, electronics, etc.  Design patents: These patents protect new, original, and ornamental designs for manufactured items. Examples are the design of athletic shoes, or an automobile body.  Plant Patents: These patents cover asexually reproduced and distinct plant varieties. For example, plant patents covered hybrid tea roses, as well as Better Boy Tomatoes.

36. Laws of Protecting Intellectual Property cont…  Trademarks: Registered owners are granted the exclusive right to use the marks in commerce in the United states. They exclude others from using the mark, or a comparable mark.  Trade Secrets: Confidential business information. Law protection works as an alternative to patent protection. They include scientific and business information (i.e., market strategies); however, if the information is obtained or learned through legitimate means, it can be used freely by others.

37. 3.06 Alexander Graham Bell Assignment (Wrap-up!)

38. Materials Quoted From: http://www.uspto.gov/kids/icreatm_guide_hs.pdf http://www.uspto.gov/kids/teens.html Conduct a Patent Search: http://patft.uspto.gov/ Reference