Intellectual Property Flashcards
Define intellectual property
Intellectual Property (IP) is a term that describes the application of the mind to develop something new or original. IP can exist in various forms; a new invention, brand, design, process, recipe or artistic creation. Intellectual property rights act to prevent others replicating the ideas of the inventor or creator. Acts as an incentive to innovate.
Domain names
A domain name is your online address on the internet. All computers on the internet have a unique identifying number - an Internet Protocol address. Because this address is difficult to remember, we use a domain name.
A domain name is promoted so that customers can easily find your specific goods or services. Each website has its own distinct domain name, allowing it to be distinguishable from other sites. For the most part, domain names are easy to remember because they are usually made up of a business name and a commonly understood term or language that their customers will recognise.
A domain name is registered with the Australian Domain Name Administrator and gives you a license to use the name for two years. A formal complaint can be made if you think someone is using your domain name. In 2008, the laws governing the domain names were changed in Australia. People registering a domain name will no longer have to have a company or business registered to prove a link between the name and business activity. People can register more than one related domain name.
Patents
A patent is the legal right to be the exclusive producer or user of a newly invented process or product, for a finite period of time. Regulated by The Patents Act (1990). A patent lasts for 20 years in Australia. Patents are public records so a competitor can look at the patent to see how the patent works. A patent is granted after the inventor has registered and satisfied the conditions stipulated by the government. Ownership of the patent can then act as a barrier to entry since the patent prevents rivals from using the invention (without consent from the patent holder). Also entitled to sell the technology or invention to another business.
E.g. the Tetra Pak used for packaging drinks such as milk and fruit juice. Ruben Rausing came up with the tetrahedral container idea and successfully patented it the following year. Today, Tetra Pak is the world’s largest supplier of drinks cartons.
Drawbacks of a patent: whole process is time consuming and bureaucratic. Also, most applications are rejected.
Copyrights
legal protection for artists and authors by preventing others from using or copying their published work without permission. Governments grant the permission to hold copyrights for a finite period of time. Copyrights are popular in the music, film, drama, art, photography, software and publishing industries. Copyright lasts for 70 years. There should be copyright notices on business websites, publication and products to remind people. Legislation – Copyright Act (1968) and the Copyright Amendment Act.
Trademarks
a sign or logo that represents a business or a product belonging to that business. Protection is regulated by the Trade Marks Act (1995). Unregistered has TM, registered has the r symbol. If the trademark is registered at a patent office, it acts as a barrier to rivals wanting to imitate the product name or symbol. Suggestive trademarks are used to give customers a suggestion about the nature or characteristic of a product, e.g. the Apple Nano (small). A descriptive trademark is used to show a direct link between the brand and the product, e.g. Pictionary and Monopoly board. Arbitrary trademarks are purely random and meaningless names, e.g. Kodak cameras and Apple computers.
Trade Secrets:
A trade secret can encompass any information with the following characteristics;
o It is not generally known or readily accessible;
o It has commercial value because it is secret;
o The owner has taken reasonable steps to keep it secret.1
Therefore, unlike patents, the scope of trade secrets is virtually unlimited. Trade secrets extend to such diverse categories as: formulas; know-how; contract terms; software; customer lists; marketing, finance, or strategy information; and information about suppliers, competitors, and other industry participants Commercial value encompasses potential as well as actual value. Therefore, trade secret protection also applies to uncommercialized experimental work and unreleased products or strategies. Moreover it can cover combinations of elements, each of which is in the public domain. The ultimate criterion being the information’s value and not its actual use, trade secrets can even protect “negative know-how”, e.g., erroneous research approaches or results of failed experiments.
Designs:
A design refers to the features of shape, configuration, pattern or ornamentation which give a product a unique appearance, and must be new and distinctive. Design registration is intended to protect designs which have an industrial or commercial use. A registered design gives you, the owner, exclusive rights to commercially use it, licence or sell it.
A design is what gives a product a unique visual appearance – legislated by The Design Act (1906) and the Design Act (2003), regulates the protection of designs.
State the organisation responsible for intellectual property registration
IP Australia - Government organisation providing legal information and registration material for trademarks, patents, designs and intellectual property.
Taking action to protect your IP:
If a business has intellectual property and another business seems to be using it, the first thing to try is to discuss it with them. Make sure the other business is aware that they are using protected IP and ask them to stop. If an informal approach does not work a more formal one is required. A ‘letter of demand’ uses the threat of legal action to try and stop the use of protected IP. If a written warning doesn’t work, court action is the next option. A temporary injunction can be applied for them to immediately stop the use of the IP. If successful, the temporary injunction gives a business time to demonstrate to the court the legal rights of the business, the damage done by the unauthorised use of IP and apply for a final injunction.
Penalties include up to five years’ jail and fines of $50,000 for an individual and $250,000 for a company.
If copyrights are successfully defended, it means that the pirated goods become the property of the holder of the copyrights. The infringer will have to pay for any damages to account for income earned and profits made with the copied goods and hand over all of the remaining products.
