12 intelectual property lecture notes...
- 1. Copyright © 2019 Pearson Education, Ltd. All Rights Reserved. Entrepreneurship: Successfully Launching New Ventures Sixth Edition, Global Edition Chapter 12 The Importance of Intellectual Property
- 2. Learning Objectives (1 of 2) 12.1 Define the term intellectual property and describe its importance. 12.2 Explain what a patent is and describe different types of patents. 12.3 Describe a trademark and explain the process entrepreneurs use to obtain one. 12.4 Describe a copyright and identify what a copyright can protect. 12.5 Describe a trade secret and understand the common causes of trade secret disputes. 12.6 Explain what an intellectual property audit is and identify the two primary reasons entrepreneurial firms should complete this type of audit.
- 3. The Importance of Intellectual Property • Intellectual Property • Is any product of human intellect that is intangible but has value in the marketplace. • It is called “intellectual” property because it is the product of human imagination, creativity, and inventiveness. • Importance • Traditionally, businesses have thought of their physical assets, such as land, buildings, and equipment as the most important. • Increasingly, however, a company’s intellectual assets are the most important.
- 4. Common Mistakes Firms Make in Regard to Protecting Their Intellectual Property • Not properly identifying all of their intellectual property. • Not fully recognizing the value of their intellectual property. • Not using their intellectual property as part of their overall plan for success. • Not taking sufficient steps to protect it.
- 5. Determining What Intellectual Property to Legally Protect Criteria 1 • Determine whether the intellectual property in question is directly related to the firm’s competitive advantage. Criteria 2 • Decide whether the intellectual property in question has value in the marketplace.
- 6. The Four Key Forms of Intellectual Property • Patents • Trademarks • Copyrights • Trade Secrets
- 7. Patents • A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention. •A patent does exclude others from the right of making, using, or selling an invention. • If an inventor obtains a patent for a new kind of computer chip, and the chip copies on a prior patent owned by Intel, the inventor has no right to make, use, or sell the chip. • To do so, the inventor would need to obtain permission from Intel. Intel may refuse permission, or ask that a licensing fee be paid for the rights to infringe on its patent. •Many inventions are improvements on existing inventions, and the system allows the improvements to be (patented) and sold, but only with the permission of the original inventors, who usually benefit by obtaining licensing income in exchange for their consent. Understanding of What a Patent Means
- 8. Patents Figure 12.2 Three basic requirements for a patent
- 9. Types of Patents Table Summary of the Three Forms of Patent Protection, the Types of Inventions the Patents Cover, and the Duration of the Patents Type Type of Invention Covered Duration Utility New process, machine, manufacture, or composition of material. 20 years from the date of the original application. Design Invention of new design for manufactured products. 14 years from the date of the original application. Plant Any new varieties of plants that can be reproduced. 20 years from the date of the original application.
- 10. Business Method Patents (Special Utility Patent) • A business method patent is a type of utility patent that protects a process rather than a physical object. • The most notable business method patents that have been awarded: • Amazon.com’s one-click ordering system. • Priceline.com’s “name-your-price” business model. • Netflix’s method for allowing customers to set up a rental list of movies to be mailed to them.
- 11. The Process of Obtaining a Patent Step 1: Write a Patent specification. Step 2: Filling the form. .. Step 3: Pay the filling fees. ... Step 4: Send the application.
- 12. Patent Infringement • Violation of a patent owner's rights with respect to some invention. Unless permitted by the patent owner, one commits patent infringement by making, using, offering to sell, or selling something that contains every element of a patented claim or its equivalent while the patent is in effect. • The tough part is that patent infringement cases are costly to litigate.
- 13. Trademarks • A trademark is any word, name, symbol, or device used to identify the source or origin of products or services and to distinguish those product or services from others. • Trademarks also provide consumers with useful information. • For example, consumers know what to expect when they see a “Chenone outlet”. • Think how confusing it would be if any retail store could use the name Chenone.
- 14. The Four Types of Trademarks (1 of 2) Summary of the Four Forms of Trademark Protection, the Type of Marks the Trademarks Cover, and the Duration of the Trademarks Type Types of Marks Covered Duration Trademark Any word, name, symbol, or device used to identify and distinguish one company’s goods from another’s. Examples: Apple, Samsung, KFC, Nike Renewable every 10 years, as long as the mark remains in use. Service mark Similar to trademarks; are used to identify the services or intangible activities of a business, rather than a business’s physical products. Examples: Amazon.com, Mobilink, Dropbox Renewable every 10 years, as long as the mark remains in use.
- 15. The Four Types of Trademarks (2 of 2) Type Types of Marks Covered Duration Collective mark Trademarks or service marks used by the members of a collective group or association. Examples: Information Technology Industry Council, International Franchise Association Renewable every 10 years, as long as the mark remains in use. Certification 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. Examples: 100% Napa Valley, Florida Oranges, National Organic Program, Underwriters Laboratories Renewable every 10 years, as long as the mark remains in use.
- 16. What is Protected Under Trademark Law? (1 of 2) Item Example(s) Words Khaddi, coffee beans and tea leaf, National Football League Numbers and letters 3M, Boeing 787, AT&T Designs and logos Logo of Audi, Nike Sounds MGM’s lion’s roar
- 17. What is Protected Under Trademark Law? (2 of 2) Item Example Fragrances Stationery treated with a special fragrance Shapes Unique shape of the Apple iPod Colors Nexium—the “purple pill” Trade dress The layout and décor of a restaurant
- 18. Exclusions From Trademark Protection Item Example Immoral or scandalous matter Blasphemous words Deceptive matter Labeling oranges “Fresh Florida Oranges” that aren’t grown in Florida Descriptive marks Phrases like “beautiful dress” and “fried chicken” are descriptive and can’t be trademarked Surnames Common surnames like “Awan” or “chaudhry” can’t be trademarked
- 19. The Process of Obtaining a Trademark Figure 12.4
- 20. Copyrights • A copyright is a form of intellectual property protection granted to the owner of an intellectual work to determine how the work can be used and to obtain the economic benefits from the work. • The work must be in a tangible form, such as a book or operating manual.
- 21. What is Protected by a Copyright? (1 of 2) Item Example(s) Literary works Books, poetry, reference works, speeches Musical compositions CD, MP3 file Computer software All forms of computer programs Dramatic works Play, comedy routine, newscast, movie, television show
- 22. What is Protected by a Copyright? (2 of 2) Item Example(s) Choreographic works Arrangements of dance movements, including ballets or other types Pictorial, graphic, and sculptural works Photographs, prints, art reproductions, cartoons, maps, globes, jewelry, fabrics, games, technical drawings, diagrams, posters, toys, sculptures, charts
- 23. Exclusions from Copyright Protection • The main exclusion is that copyright laws cannot protect ideas. • For example, an entrepreneur may have the idea to open a soccer-themed restaurant. The idea itself is not eligible for copyright protection. However, if the entrepreneur writes down specifically what his or her soccer-themed restaurant will look like and how it will operate, that description is copyrightable. • The legal principle describing this concept is called the idea-expression dichotomy. • An idea is not copyrightable, but the specific expression of an idea is.
- 24. Copyright Infringement • Copyright Infringement • Copyright infringement occurs when one work of person, is an exact copy, or shows substantial similarity to the original work. • To prove infringement, a copyright owner is required to show that the alleged infringer had prior access to the copyrighted work and that the work is substantially similar to the owner’s. • The illegal downloading of music is an example of copyright infringement.
- 25. Fair Use • Copyright law permits limited infringement of copyrighted material under certain circumstances. • The certain circumstances are called fair use. Fair use allows one to use copyrighted material for purposes such as criticism, comment, news reporting, teaching or scholarship. • This provision is what allows movie critics to show clips from movies.
- 26. Trade Secrets • A trade secret is any formula, pattern, physical device, idea, process, or other information that provides the owner of the information with a competitive advantage in the marketplace. • Trade secrets include marketing plans, product formulas, financial forecasts, and similar types of proprietary information.
- 27. Qualifies for Trade Secret Protection? The strongest case for trade secret protection is information that is characterized by the following. • Is not known outside the company. Is kept confidential. • Is valuable and provides the company a competitive advantage. • Was developed at great cost, time, and effort. • Cannot be easily duplicated, reverse engineered, or discovered.
- 28. Physical Measures for Protecting Trade Secrets • Restricting access • Using Password protecting confidential computer files • Maintaining logbooks for access to sensitive material • Labeling documents • Maintaining logbooks for visitors • Maintaining adequate overall security measures
- 29. Conducting an Intellectual Property Audit • Intellectual Property Audit • The first step a firm should take to protect its intellectual property is to complete an intellectual property audit. • An intellectual property audit is conducted to determine the intellectual property a firm owns. • The Process of Conducting an Intellectual Property Audit • The first step is to develop an inventory of a firm’s existing intellectual property. The inventory should include the firm’s present registrations of patents, trademarks, and copyrights. • The second step is to identify works in progress to ensure that they are being documented and protected in a systematic, orderly manner.
Editor's Notes
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- #9: A utility patent can also be obtained for new and useful improvements to existing processes, compositions of matter, machines, and manufactures. Processes refer to any acts or methods of doing something, usually involving industrial or technical processes. Compositions of matter are basically chemical compositions, which can include a mixture of ingredients or new chemical compounds. Machines include things that are generally defined as a machine, such as a computer, while manufactures are defined as goods that are manufactured or made. In terms of obtaining a design patent, a design is defined as the "surface ornamentation" of an object, which can include the shape or configuration of an object. In order to obtain this type of patent protection, the design must be inseparable from the object. While the object and its design must be inseparable, a design patent with only protect the object's appearance. In order to protect the functional or structural features of an object, a person must also file for a utility patent.
- #11: The Trademark Registry under the Intellectual Property Organization in Pakistan situated in Karachi is the administrative body relating to trademarks in Pakistan.