module 5 - property and ideas

Question 1

3 ways to rely on IP rights to create value and profit

Answer 1

licensing, selling patents/IP, using your IP to create profits

Question 2

licensing?

Answer 2

the idea that you created your copyright, trademark, or patents and receive fees from others by lending them your patents/ideas. (through royalties or franchising)

Question 3

selling patents and other forms of IP(?)

Answer 3

not keeping the ideas and letting others use it
- selling that idea to someone else

Question 4

using your IP to make things and make profits (?)

Answer 4

with the protection of IP laws, can be the most profitable/lucrative

Question 5

what are the types of IP?

Answer 5

copyright, trademark, industrial designs, trade secrets, privacy (?)

Question 6

is a company name or logo IP?

Answer 6

yes

Question 7

are training and business strategy manuels IP?

Answer 7

yes

Question 8

what is copyright?

Answer 8

the monopoly over the use of a creative work, but only the expression of the idea, not the idea itself
- you are the only person that has the right to use the creative work

Question 9

what are examples of creative works that copyright can protect?

Answer 9

literary, dramatic, musical, artistic, performances, sound, communication works

Question 9

how does the law create benefits for the creator of ideas?

Answer 9

ideas receive legal protection through creation or registration, then you can benefit financially from your protected ideas and prevent others from taking your ideas

Question 10

why is protection of ideas necessary?

Answer 10

without rules in place to stop people from wrongfully taking your ideas, there would be no incentive for businesses to create new ideas, knowing their ideas can be taken away

Question 11

what is the three criteria needed for copyright act

Answer 11

1. must be original
2. needs to be fixed (needs to be written down, not from something in your head)
3. creative work must be created in Canada

Question 12

if you qualify under copyright, what protection do you get?

Answer 12

in canada, the life of creator + another 70 years
but for a business, maximum is 50 years

Question 13

what is the public domain

Answer 13

works that belong to the community at large

Question 14

who has ownership under copyright?

Answer 14

the creator, but if it’s a business - assumed employer unless there is a contract or agreement otherwise
- creator can assign rights, so other people can use the creation
- but creator still has moral rights

Question 15

moral rights?

Answer 15

cannot distort or harm the author’s image of work
unless these moral rights are waived
- the ability of creators to control the fate of their work

Question 16

fair dealing/use?

Answer 16

when the creation is used for a purpose like research or private study
- no financial benefit
- e.g. when copyright protected material is used in a classroom = not infringement

Question 17

what are the 2 ways of creating value from copyright?

Answer 17

licensing and royalties

Question 18

royalties?

Answer 18

monetary compensation given to the creator or owner of IP for the use of their copyrighted materials and usually done through a licensing agreement (usually as a % of receipts or money received)

Question 19

what is a trademark?

Answer 19

name, symbol, or logo that identifies a business service or product and distinguishes it from a competitor
- it is property and business assets
- need to be protected

Question 20

what is the process of trademark?

Answer 20

• do search to see if its already in use and eligible for registration

Question 21

ineligible? (trademark process)

Answer 21

cannot be obscene, e.g. a random sound, symbols of royalty, or existing trademark
- no surnamess unless “acquired distinctiveness” like McDonalds

Question 22

what are the rights if registered? for trademark

Answer 22

gives protection for 10 years, and can be renewed indefinitely - but must be used

Question 23

international registration? (trademark)

Answer 23

proof of registration in Canada can be proof of registration in another country
- but still must register and country must be part of international agreements

Question 24

what does it mean if trademark does not have to be registered?

Answer 24

you still have rights to your work even if it is not registered
- you are protected against passing off (tort law)
- symbol R for registered trademarks and TM for unregistered

Question 25

passing off? (trademarks)

Answer 25

if someone does a harm to you (tort) by using your image/brand/trademark
- businesses often alert people about this

Question 26

how do trademarks add value to your company?

Answer 26

1. it becomes a visible symbol for marketing and brand reputation
2. it becomes part of your goodwill and can have significant value just from that
3. because the (registered) trademark has value, you can license to others

Question 27

what is franchising

Answer 27

part of TRADEMARK value; licensing your brand and reputation to others to use in accordance with the rules you create

Question 28

what is the key point in identifying trademark infringement?

Answer 28

ask, would someone be confused about who is really offering a product or service in ways that could harm the brand or reputation?
- e.g. the case of Barbie v Barbie’s BBQ - the court decided that the use of Barbie’s does not cause confusion since they are completely different products

Question 29

what is a trademark bully

Answer 29

a typically large company that picks on smaller companies that can’t afford to go to court
- smaller businesses, rather than defending their logo and brand, would likely give up and give in to the TM bully
- e.g. Chick fil A case vs farmer about similar slogans (eat more kale vs. eat more chicken)

Question 30

what is a patent?

Answer 30

a government granted monopoly that allows the inventor the right to produce, sell, or otherwise profit from a specific invention
(typically includes licensing to someone else)

Question 31

how long is a patent valid for?

Answer 31

for a period of 20 years from the date of application
after 20 years, information about the invention becomes public

Question 32

why are patents needed?

Answer 32

it allows the creator to recover investment costs and profit from invention in exchange for the written description of how to make invention and avoid duplication of ideas
- it also encourages and supports innovation
- a win win situation (society benefits from innovation and the original creator’s rights are protected
- without the patent, there would be no incentive to create new things

Question 33

what is patentable? 4 criteria

Answer 33

1. patentable subject matter
2. novelty
3. non-obvious
4. utility

Question 34

patentable subject matter?

Answer 34

cannot patent scientific theory or medical treatment - but you can patent a drug used in medical treatment
business methods are patentable
computer programs are patentable

Question 35

novelty (patentable)?

Answer 35

this means “new” and not previously disclosed/known to the public

Question 36

non-obvious (patentable)?

Answer 36

it must not be obvious to a person skilled in the art. If the solution would have been readily apparent to someone with ordinary skills in the field at the time the invention was made, it may be considered obvious, and the patent may be denied.

Question 37

utility (patentable)?

Answer 37

must serve some useful function (makes society better, life easier, or the production of things easier)

Question 38

patent process

Answer 38

registering is first come first serve
- first to file > first to invent

Question 39

international registration (patent process)?

Answer 39

if you have a valid patent in Canada, then you can use that registration to register your patent in another country (usually within one year)

Question 40

who owns rights after patent?

Answer 40

first, is creator
employers can patent inventions of employees, but there is a presumption in favour of the employee/creator (unlike copyright) (copyright can prioritize the employer)

Question 41

what is evergreening?

Answer 41

making small changes to extend patents for another term (20 years)
patents can only be renewed if there is a significant change or beneficial improvement

Question 42

what values do patents have for the company? (2 ways)

Answer 42

1. you can either develop and innovate the product to market and make profit
2. license the patent (some companies make a business of buying and selling patents)
   - this can be and is a profitable business

Question 43

what are the three kinds of remedies for patent infringement? (3 kinds)

Answer 43

1. injunction (orders them to stop) (good for counterfeit/knockoffs)
2. seizure (wants the goods to be removed from the market before they have a negative impact on the business reputation) (“anton pill order”)
3. accounting (if someone/business has made profits through counterfeit, they must disclose what improper profits were made)

Question 44

what is a trade secret?

Answer 44

formula, pattern, or device that creates a business advantage or product
- the business essentially tries to keep their idea a secret
- easier than patenting b/c there is no “expiration date”
- e.g. KFC recipe