1. ©2002 by West Legal Studies in Business A Division of Thomson Learning Chapter 6 Business Torts, Intellectual Property and Cyberlaw

2. ©2002 by West Legal Studies in Business A Division of Thomson Learning 2 Business Torts  Wrongful Interference with a Contractual Relationship: –Valid enforceable contract must exist –Third party must know about contract –Third party must intentionally cause either of the parties to breach the contract. –Case 6.1 Kallok v. Medtronic (1998).

3. ©2002 by West Legal Studies in Business A Division of Thomson Learning 3 Business Torts  Wrongful Interference with a Business Relationship: –Distinguish predatory (illegal) vs. competitive (legal) behavior.  Defenses: Wrongful Interference is Justified or Permissible.

4. ©2002 by West Legal Studies in Business A Division of Thomson Learning 4 Business Torts  Appropriation –Use of a person’s name or likeness –Without permission –For the benefit of the user. –Case 6.2 National Basketball Assn. vs. Sports Teams Analysis (1997).

5. ©2002 by West Legal Studies in Business A Division of Thomson Learning 5 Business Torts  Defamation in the Business Context: –Defamatory statement –Involving a business reputation that –Adversely affects a business’ credit rating or financial dealings.

6. ©2002 by West Legal Studies in Business A Division of Thomson Learning 6 Business Torts  Slander of Quality or Trade Libel: –Publication of false information –About another’s product –Alleging it is not what the seller claims –Plaintiff must prove actual damages

7. ©2002 by West Legal Studies in Business A Division of Thomson Learning 7 Business Torts  Slander of Title –Publication that casts doubt –On another’s legal ownership of property –Resulting in financial loss to owner

8. ©2002 by West Legal Studies in Business A Division of Thomson Learning 8 Trademarks  Distinctive mark or emblem affixed to a product that easily identifies, or distinguishes, the product in the marketplace.  Case 6.3 Coca-Cola Co. v. Koke Co. of America (1920).

9. ©2002 by West Legal Studies in Business A Division of Thomson Learning 9  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) Trademarks

10. ©2002 by West Legal Studies in Business A Division of Thomson Learning 10  Trademark Registration –Federal protection requires registration with U.S. Patent Trademark Office (www.uspto.gov)www.uspto.gov –Mark can be registered if In current use or Applicant intends to put the mark into commerce within 6 months Trademarks

11. ©2002 by West Legal Studies in Business A Division of Thomson Learning 11 Trademarks  Distinctiveness of Mark –Strong Marks –Secondary Meaning –Case 6.4 Qualitex v. Jacobson Products (1995). –Generic Terms –Service, Certification and Collection Marks

12. ©2002 by West Legal Studies in Business A Division of Thomson Learning 12 Trademarks  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.

13. ©2002 by West Legal Studies in Business A Division of Thomson Learning 13  Patents: grant from government gives inventor exclusive right to make, use and sell invention for 20 years from filing the application.  Infringement Patents

14. ©2002 by West Legal Studies in Business A Division of Thomson Learning 14  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. Copyrights

15. ©2002 by West Legal Studies in Business A Division of Thomson Learning 15  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. Copyrights

16. ©2002 by West Legal Studies in Business A Division of Thomson Learning 16  Copyright Infringement –Whenever form or expression of idea is copied –“Fair Use”: exception to infringement if educational, news reporting, scholarship or research. Copyrights

17. ©2002 by West Legal Studies in Business A Division of Thomson Learning 17  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. Trade Secrets

18. ©2002 by West Legal Studies in Business A Division of Thomson Learning 18 Trade Secrets  Can include: customer lists, plans, research, formulae, pricing information, marketing techniques.  Hacking into a competitor’s computer may be criminal.  Economic Espionage Act (1996). Economic Espionage Act

19. ©2002 by West Legal Studies in Business A Division of Thomson Learning 19 International Protection  Berne Convention (WIPO).  Trade-Related Aspects of Intellectual Property (TRIPS) of 1994 (WTO).  World Intellectual Property Organization (WIPO) Copyright Treaty 1996.

20. ©2002 by West Legal Studies in Business A Division of Thomson Learning 20 Virtual Property  Virtual property exists in cyberspace.  Cyber Marks: rights of trademark owners in cyberspace. –Cybersquatting: occurs when person registers a domain name that is similar to the trademark of another and offers to sell the domain back to the trademark owner. –Anticybersquatting Consumer Reform Act of 1999

21. ©2002 by West Legal Studies in Business A Division of Thomson Learning 21 Virtual Property  Meta Tags: key words on webpage that are indexed by search engines. –Case 6.5 Playboy Enterprises vs. Welles (1998).  Dilution on the Web.  Licensing: permits use of intellectual property by licensee.

22. ©2002 by West Legal Studies in Business A Division of Thomson Learning 22 Patents Online  Increasing number of software business patents issued by USPTO.  Availability of online patent databases.

23. ©2002 by West Legal Studies in Business A Division of Thomson Learning 23 Copyrights in Digital Information  Most important protection on the internet.  WIPO give international protection  Digital Millennium Copyright Act gives safe harbors for internet providers from copyright infringement.

24. ©2002 by West Legal Studies in Business A Division of Thomson Learning 24 Trade Secrets in Cyberspace  Internet facilitates illegal copying and distribution of confidential information.  Sometimes mistakes can transfer information.

25. ©2002 by West Legal Studies in Business A Division of Thomson Learning 25 RICO  Racketeer Influenced and Corrupt Organizations Act of 1970  Federal Crime to engage in racketeering  Civil Liability