1. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning Chapter 10 Intellectual Property Rights and the Internet Twomey Jennings Anderson’s Business Law and the Legal Environment, Comprehensive 20e Anderson’s Business Law and the Legal Environment, Standard 20e Business Law: Principles for Today’s Commercial Environment 2e

2. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 2 Trademarks and Service Marks Trademark is a distinctive motto, name or symbol on a product. Service Mark applies to a service. Lanham Act grants producer the exclusive right to register and use the trademark.

3. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 3 Trademarks and Service Marks Owners of marks may obtain federal protection by registering the mark with the U.S. Patent and Trademark Office (www.uspto.gov ).

4. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 4 Trademarks identify goods.Service marks identify services. Protection by registration grants registrant exclusive rights. Mark distinguishes owner’s goods or services from those of others. marks that are coined, completely fanciful, or arbitrary Kodak film terms suggestive of some quality of product Frigidaire refrigerators acquired secondary meaning--surname, descriptive or geography Philadelphia cream cheese Examples of registrable trademarks: Trademarks and Service Marks

5. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 5 Trademarks and Service Marks Generic Terms (soap, shirts) may never be protected. Trade Dress Protection involves a product’s total image and the overall packaging look. Limited Lanham Act protection of product design. –Courts are now expanding trade dress to include the design of the product itself.

6. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 6 Trademarks and Service Marks Trademark owner may obtain injunction from imitating or duplicating the mark. A mark can be abandoned and become generic. Examples: aspirin, thermos.

7. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 7 Internet Domain Names Cybersquatters: use someone’s trademark as a domain name. –Federal Anticybersquatting Consumer Protection Act (ACPA) of 1995. –Safe harbor exists for some users. –Dispute Avoidance under ICANN and WIPO.

8. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 8 Copyrights A copyright is the exclusive right given by federal statute to the creator of a literary or an artistic work to use, reproduce, or display the work. Copyrights run for the life of the creator plus 70 years after the creator’s death.

9. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 9 Copyrights Copyrights protect literary, musical, dramatic and artistic work in books, photographs. Even material on the internet.

10. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 10 Copyrights A copyright holder has the exclusive right to: –Reproduce the work; –Prepare derivative works; –Distribute copies; –Publicly perform the work; and –Publicly display the work.

11. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 11 Copyrights “Fair Use” is an exception to the exclusive rights of copyright holders, depending on four factors: purpose and character; nature of the work; amount used; and the effect on the use. Digital Millennium Copyright Act of 1998. –“Safe Harbor” provisions protect internet service providers from copyright liability.

12. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 12 Patents A patent gives the inventor an exclusive right for 20 years from the date of application to make, use, and sell an invention that is new and useful and unique (not obvious). –Utility Patents. –Design Patents. –Plant Patents.

13. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 13 Patents To receive a patent, the invention must be new and not obvious. –May lead to highly technical hearings before a patent officer at the US Patent and Trademark Office. Internet Business Methods can be patentable. Example: Amazon.com “one click” for purchases.

14. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 14 Secret Business Information Trade secrets are protected under state law for an unlimited period so long as they are not made public. Defense measures include: –Non-disclosure agreements. –Injunctions. –Exit Interviews. –Criminal Sanctions under the Economic Espionage Act of 1996.

15. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 15 Protection of Computers and Mask Products Protection of computer programs and the design of computer chips and mask works is commonly obtained, subject to certain limitations, by complying with federal statutes, by using the law of trade secrets, and by requiring restrictive licensing agreements.

16. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 16 Protection of Computers and Mask Products Many software developers pursue all of these means to protect their proprietary interests in their programs.

17. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 17 Protection of Computers and Mask Products Patents have also been obtained for computer programs. Semiconductor Chip Protection Act protects the design of a computer chip. Remedies for violation include: –Actual Damages and –Forfeit Profits to Real Owner.

18. Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning 18 Summary Comparison of Intellectual Property Rights