Unit 5 - Intellectual Property and Franchising

Question 1

Provide the DEFINITION OF COPYRIGHT.

Answer 1

The right of use of a piece of work lies with the original creator. Thus, he may prevent the unauthorised use of it.

Question 2

Name the requirements for the existence of copyright in work.

Answer 2

1. Inherent Requirements
   • Refers to the originality
   • Material embodiment. Thus, it must exist in material form.
2. Formal Requirements
   • Person must be a SA citizen, or
   • The works must have been published in SA first.

Note: If these requirements exist without registration, copyright will automatically exist.

Question 3

Explain the duration of copyright.

Answer 3

Copyright will apply until the death of the creator. Thereafter, it will be protected for a further 50 years.

Question 4

Explain the word INFRINGEMENT.

Answer 4

the action of breaking the terms of a law, agreement, etc.; violation.
“copyright infringement”
synonyms: contravention, violation, transgression, breach, breaking, non-observance, non-compliance, neglect, dereliction, failure to observe;

Question 5

Copyright Infringement can be DIRECT or INDIRECT. Explain

Answer 5

Direct Infringement:
• One person knowingly uses someone else’s works without their authority.

Indirect Infringement:
• An example for better explanation. The above person uses your printer with your permission and therefore involves you indirectly in the act of infringement.

Question 6

Which Civil Law remedies would be available for the copyright owner?

Answer 6

1. Interdict
2. Damages or reasonable royalty payable by licensee
3. Delivery of infringement copies
4. Additional Damages

Question 7

What are the 3 requirements for an invention to be patented?

Answer 7

1. Novelty
   • new and unknown to the public
   • it cannot be sold to the public until a application for registration of the patent has been filed
2. Inventive step
3. Utility
   • it must be usable in trade and industry

Question 8

What is the duration and extent of a patent.

Answer 8

• It will only apply in the boarders of SA

* The duration is 20 years.

Question 9

Provide the definition of a trademark.

Answer 9

It is a mark used to distinguish your goods and services from similar goods and services in the market.

Question 10

What is the duration of a trade mark.

Answer 10

it is 10 years, but it can be renewed.

Question 11

What are the characteristics of a franchise.

Answer 11

1. Business is conducted under the same name
2. Franchisee is allowed to make use of the intellectual property for the period of the franchise.
3. Franchiser is allowed to exercise control over how the business is run.
4. Franchiser is obligated to give assistance.
5. Franchisee must make periodic payments above the initial payment once the contract was concluded.

Question 12

What are the advantages of a Franchise.

Answer 12

1. The business has already proven itself.
2. Franchisee receive continues training and assistance.
3. Franchisee receive an operation manual.
4. Franchisee gets all the benefits of ongoing product development and research.

Question 13

What are the duties of a Franchiser?

Answer 13

1. Must disclose business systems to the franchisee.
2. Must make intellectual property available to the franchisee.
3. Advice franchisee on topics such as design and decor.
4. Provide training to franchisee.
5. Provide continues support services - marketing, product development.