Prelims Flashcards
- Is any product of human intellect that is intangible
but has value in the marketplace. - It is called this because it is the product of human imagination, creativity, and
inventiveness.
Intellectual Property
Common Mistakes Firms Make in Regard to Protecting Their Intellectual Property
- Not properly identifying it.
- Not fully recognizing the value
- Not legally protecting
- Not using it as part of their overall plan for success
Four key forms of intellectual property
- Patents
- Trademarks
- Copyrights
- Trade Secrets
2 criteria in determining what intellectual property to protect
- If it is directly related to the firm’s competitive advantage
- If it has value in the marketplace
- Grant from the federal government conferring rights to exclude others from making, selling, or using an invention for the term of this intellectual property
- Does not give its owner the right to make, use, or sell an invention; rather, the
right granted is only to exclude others from doing so.
Patents
3 Basic requirements in obtaining patent:
*Useful – Must have utility
* Novel – Must be unique/different from prior inventions
* Not Obvious – Must not be obvious to an expert in the field
Type of Patents
- Utility
- Design
- Plant
Type of Patents
New or useful process, machine, manufacturer, or composition of material. Duration 20 years duration from the original application.
Utility
Type of Patents
Invention of new, original, and ornamental design for manufactured products. Duration 14 years from the date of application
Design
Type of Patents
- Any new varieties of plants that can be reproduced asexually.
- Duration 20 years from the data of application.
Plant
Protects an invention that is or facilitates a method of doing business.
Business Method Patent
Process of Obtaining a patent:
- Make sure the invention is practical
- Determine the type of application
- Hire a patent attorney
- Obtain decision from U.S. patent and trademark office
- File a patent application
- Conduct a patent search
- Takes place when one party engages in the unauthorized use of another party’s patent.
- This case costs each side at least $500,000 to litigate.
Patent Infringement
- is any word, name, symbol, or device used to identify the source or origin of products or services and to distinguish those products or services from others.
- Renewable every 10 years as long as the it remains in use.
Trademarks
The Four Types of Trademarks
- Trademark
- Service Mark
- Collective Mark
- Certification Mark
Used to identify the services or intangible activities of a business, rather than a business’s physical products.
Example: 1-800-FLOWERS, Amazon.com
Service Mark
Trademarks or service marks used by the members of a cooperative, association, or other collective group.
Example: Rotary International and International Franchise Association
Collective Mark
Marks, words, names, symbols, or devices used by a person other than the owner to certify a particular quality about a good or service.
Example: 100% Napa Valley and Underwriters Laboratories
Certification Mark
What is protected under trademark law:
- Words
- Numbers and letters
- Designs and Logos
- Sounds
- Fragrances
- Shapes
- Colors
- Trade dress
Excluded from trademark protection:
- Immoral or scandalous matter
- Deceptive matter
- Descriptive marks
- Surnames
Process to obtain trademark:
- Select an appropriate mark
- Perform a trademark search
- Create rights in the trademark
- Grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work.
- Does not have to have artistic merit to be eligible for protection.
Copyrights
What is protected by copyrights?
- Literary works
- Computer software
- Pantomimes and choreographic works
- Musical compositions
- Dramatic works
- Pictorial, graphic, and sculptural works
Excluded from copyright protection:
ideas
The main exclusion is that copyright laws cannot protect ideas.
