Chapter 4 Patents Trademarks and Trade Secrets Trademarks

Chapter 4 Patents, Trademarks and Trade Secrets

Trademarks, Servicemarks • Word, name, symbol or device • Used in trade with goods to indicate the source of the goods (or service) and to distinguish them from the goods of others • Goal- consumer protection Pg. P BUSA 331 2

Trademarks, Servicemarks • Mixture of: • • Lanham Act of 1945 Madrid System US Anti-Dilution Act State Law Pg. P BUSA 331 3

Registration • Ownership arises from use, not registration, but… • Registration has benefits • • • Public record of claim Proof of ownership Invocation of federal jurisdiction Basis foreign registration Customs prevent importation • IZOD alligator, gray market goods Pg. P BUSA 331 4

Search • TESS • Trademark Electronic Search System • Not current, not all inclusive • WHO IS • All. Who. Is Pg. P BUSA 331 5

Loss of Trademark • Abandonment-Failure to use trademark • Enter common usage, public domain • Dry Ice, Corn Flakes, Zipper • Trademark owners must promote use of trademark as adjective, not noun or verb • Benefits Advertising Industry Pg. P BUSA 331 6

International Trademarks • Nike conflict in Spain • European Community registration • Madrid System- international • One global application • Madrid Agreement • Madrid Protocol • Single application valid for 10 years Pg. P BUSA 331 7

Symbols • TM -Trademark, not federally registered • ® - Trademark, federally registered Pg. P BUSA 331 8

Trademark Infringement • Test- likely to cause confusion Pg. P BUSA 331 9

Trademark Dilution • Requires • Commercial use • Famous mark • Causes dilution of the distinctive quality Pg. P BUSA 331 10

Trademark Blurring • Famous trademark used on noncompeting goods • Smith & Wesson toasters Pg. P BUSA 331 11

Trademark Tarnishment • Ridiculing mark’s distinctive quality • Hormel vs Muppets over SPAM or Spa’am Pg. P BUSA 331 12

Trademark Parody • Conveying two simultaneous contradictory messages • PETA-People for the Ethical Treatment of Animals • PETA-People Eating Tasty Animals • Not a parody • Google vs Booble Pg. P BUSA 331 13

Patent • Government grant • Monopoly rights • Exclude others from making, using, offering for sale or selling invention for a period of 20 years from the filing date Pg. P BUSA 331

Patent • Like Copyright, Patent cannot cover idea • Not a law of nature • Not a physical phenomena • Must be invention Pg. P BUSA 331

Inventions-Utility Patent • Process • Machine • Manufacture • Composition of matter • Improvements on above Pg. P BUSA 331

Patent vs Trade Secret • Patent-full disclosure of invention in return for 20 year monopoly-federal law • Trade Secret-secret, no disclosure required, infinite life-state law Pg. P BUSA 331

Patent Value-Licensing! • Exclusive license-to one licensee • Nonexclusive license- to multiple licensees • Limited use license • Cross licensing-create a cartel Pg. P BUSA 331

Patent Types • Utility patent-most common, inventions • Design patent-appearance of object • Plant patent-appearance and color Pg. P BUSA 331

Utility Patent Requirements • Novel • Non-obvious • Useful Pg. P BUSA 331

Utility Patent Application • Filing application required, not optional • Prior art search • Patent Attorney-specialist • Process is expensive and time consuming • Patent Litigation is extremely expensive Pg. P BUSA 331

Utility Patent Application Sections • Petition • Abstract • Specification • Claims • Drawings • And strict time limits! Pg. P BUSA 331

Internet & Patents • Protect software-. gif files • Protect business methodology- Amazon ‘One-click’ Pg. P BUSA 331

Business Methods Criticism • Not ‘Novel’ • Not ‘Non-obvious’ Pg. P BUSA 331

Patent Infringement • Compare patent claims to infringing product • All claim elements must be present in product • Patent presumed valid (court assumes examiners competent), therefore infringer must proved patent invalid • Threat of litigation expensive, use patents as shield Pg. P BUSA 331

International Patents • World Intellectual Property Organization (WIPO) • Based on Paris Convention of 1883 • One year filing deadline for intl • Patent Cooperation Treaty of 1970 • One intl patent application Pg. P BUSA 331

Trade Secrets • Business Practices • Methods • Processes • Designs Pg. P BUSA 331

Trade Secret Elements • Not generally publicly known • Information secrecy confers economic benefit • Secrecy maintained by reasonable efforts Pg. P BUSA 331

Trade Secret Law • State Law-except Economic Espionage • Varies by Jurisdiction • Model statute-Uniform Trade Secrets Act • 45 states adopted Pg. P BUSA 331

Trade Secret Examples • Google Search code • Supplier lists Pg. P BUSA 331

Misappropriation • Independent research or reverse-engineering is allowed • Remedies • Injunction • Lost profits • Royalties Pg. P BUSA 331

Economic Espionage Act of 1996 • Misappropriation or theft of trade secrets • Federal offense • Fines up to $5 million • Jail terms up to 10 years • Apple sues Ciarelli over leaks Pg. P BUSA 331