Chapter 5: Intellectual Property Flashcards
Intellectual Property components
- Ideas as property:
The Nature of ideas
The economics of ideas - Intellectual property law
Copyright
Trademarks
Patents
Industrial designs
Two aspects of The Nature of Ideas
- Exclusive possession
- Non-exclusive possession
The nature of ideas: Exclusive possession
Enjoyment of a thing while prohibiting use by others
- Easy with respect to tangible goods (e.g. cars)
- Difficult with respect to information (e.g. ideas)
The nature of Ideas: Non-exclusive possession
Thing can be enjoyed by several persons simultaneously
- One’s enjoyment does not diminish another’s (e.g. me watching a TV show does not stop you from watching same show)
- Natural occurrence for information and ideas
Two aspects of Economics of Ideas
- Natural scarcity
- Artificial scarcity
Economic of Ideas: Natural scaricity
Naturally occurs when demand exceeds supply
Economic of Ideas: Artificial scaricity
IP (“intellectual property”) law creates a market for information
- Reduces supply of information
- Increases value of information-based assets
- Provides incentives to create ideas
Intellectual Property
- IP law aims to protect the products of the mind
- Provide an incentive to create, invent, design, breed
- Balance incentive with public interest
- Solution: the limited time monopoly
E.g. Patent term
E.g. Copyright term
Trademarks
- Words, symbols, or designs that distinguish one’s goods or services from another’s in marketplace
Protect business’s brand (image, reputation, goodwill)
Serves public interest by assuring consumer that will receive expected quality (e.g. the Maytag® repairman) - May be sold or licensed: e.g. as part of franchising deal
- Trademark owner may stop others from using mark with similar wares and services
Registering a Trademark
- Right arises only after mark used with wares or services
- Registration not required for ownership of trademark
- Registration not absolute proof of ownership
Advantages of registering a Trademark
- Protection across Canada for 10 years (previously 15 yrs.). Can be renewed indefinitely with continued use and fee payment
- Burden upon challenger to disprove ownership
- Enforced through statutory remedies
Unregistered Trademarks
- Also known at common law marks and use the ™ symbol instead of the ® used with registered marks
- Unregistered trademarks
Protected only in geographic area of use
Enforced through tort of passing off - Risk management
Register all variations on mark, name, or logo
Categories of Trademarks
- Ordinary marks
- Certification marks
- Distinguishing guises
Describe ordinary marks and give an example.
Distinguish goods and services with words or designs.
Ex. “Tom’s House of Pizza®” “Pizza Made to Perfection TM”
Describe certification marks and give an example
Demonstrate that goods or services meet standards.
Ex. “Organic”
Describe distinguishing guises and give an example
Identify unique shape of product or package.
Ex. Distinctively shaped Coca-Cola® bottle.
New categories of Trademarks in Canada
New categories (sound, motion, smell and holograms) are now allowed in Canada.
Trademark Infringement: Passing-Off
Elements of common law tort of passing-off
- Plaintiff has goodwill or reputation in name, mark, or logo
- Defendant represented itself in manner that resulted in misrepresentation or confusion to the public
- Plaintiff suffered or likely to suffer harm
Scope of tort
- Protection for both registered and unregistered trademarks
- Protection limited to location of reputation
Registered trademark rights may be infringed in additional ways:
- Unauthorized use: exact imitation
- Knock-off: similar product and similar mark
- Trademark dilution: acts that tarnish the value of trademark
- Unauthorized importation of an authentically branded product
- Confusing use in the marketplace
Trademark Infringement: Remedies
- Compensatory damages in tort: Monetarily repair plaintiff’s wrongful loss
- Accounting of profits: Monetarily disgorge defendant’s wrongful gain
- Injunction: Order prohibiting continued infringement
- Delivering up: Order requiring disposal of offending items
What are “compensatory damages in tort” for trademark infringement remedies?
Monetarily repair plaintiff’s wrongful loss.
What is “accounting of profits” for trademark infringement remedies?
Monetarily disgorge defendant’s wrongful gain.
What is “injunction” for trademark infringement remedies?
Order prohibiting continued infringement.