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Chapter 11 - Intellectual Property
11-8
Emphasize:
The passage of the Federal Trademark Dilution Act, and its key concepts.
The passage of the Trademark Dilution Revision Act.
IV. Copyright Law (LO 11-5)
A. Copyright Ownership
Emphasize:
The three criteria necessary for copyright protection of a work to occur.
That copyright laws protect authors rather than inventors.
The length of copyright protection.
B. Copyright Infringement
Emphasize:
How an author can enforce copyright.
That large-scale copyright infringement is often referred to as piracy.
C. Copyright Fair Use
Emphasize:
The meaning of copyright fair use.
Case 11.4—“Campbell v. Acuff-Rose Music, Inc.”
Additional Matters for Discussion:
Observe that “streaming” technology has reached levels that will enable the
“Napsterization” of movies.
Note that beginning in 2003 the music industry began filing hundreds of lawsuits
against those who illegally file-shared copyrighted music.
D. Copyright in the Digital Age
Emphasize:
The case of Metro-Goldwyn-Mayer Studios v. Grokster, 125 S. Ct. 2764 (2005).
That criminal prosecutions and civil lawsuits for “file sharing” copyrighted material
over the Internet continue.
Sidebar 11.10—“Is Copyright Law Too Inflexible for the Modern World?”
Chapter 11 - Intellectual Property
11-9
Additional Matter for Discussion:
Discuss how the exclusive right (property) that belongs to a copyright holder includes
copying for commercial use. The holder literally has a property in exploiting the market
during the copyright period. Because of market-related illegal copying, CD sales have
fallen not only in the U.S. but throughout the world. In Germany, CD sales fell by one-
third from1998-2003.
Emphasize:
infringed.
How the Act exempts Internet service providers under certain circumstances.
Sidebar 11.11—“Knowledge of Users’ Infringing Activity”
V. International Intellectual Property Rights (LO 11-6)
Emphasize:
That there are in fact no fully international intellectual property rights, per se.
That there are international standards that most industrialized nations have agreed to
uphold.
That the most important source for standards is an international treaty known as the
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
That in the context of patents, there is the Patent Cooperation Treaty (PCT), which allows
an applicant to obtain a preliminary international examination and then pursue final rights
in multiple countries at the same time.
That the most important two organizations are the WTO and the World Intellectual
Property Organization (WIPO).
VI. A Conclusion about Intellectual Property
Emphasize:
That intellectual property, like property itself, serves the common good.
That the enforcement of intellectual property is something important to all nations that are
part of the global trading system.
Answers to Review Questions and Problems
1. The Justification for Intellectual Property
Chapter 11 - Intellectual Property
11-10
property to research, invention, and production.
2. Intellectual Property and Competition
a. Exclusion allows a company to focus on R & D knowing that their labors can be
3. Capturing Intellectual Property
Information that is not diligently protected can lose trade secret status. Patents not applied
for properly and within established time frames may become part of the public domain.
Allowing names of items to become generic can cause a loss of trademark rights.
Trade Secrets
4. Trade Secret: Taking Reasonable Measures to Keep the Secret
5. Demonstrating Misappropriation
6. Trade Secret: Civil Enforcement
The principal remedies are injunction and damages.
7. Trade Secret: Criminal Enforcement
Criminal misappropriation of trade secrets has become an issue of greater concern in recent
Chapter 11 - Intellectual Property
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years likely because digital technology has made it easier to misappropriate secrets.
Patent Law
8. Obtaining a Patent
9. Patentable Subject Matter
10. Nonobviousness, Novelty, Usefulness
a. Since the remedy has been published and is likely to have been put to use more than a
11. Patent Enforcement
12. Current Issues in Patent Law
a. These so called patent trolls often make money with minimal contribution to the
Trademark Law
13. Types of Trademarks
11-12
14. Trademark Registration
a. Yes, but only if the name is not descriptive of a restaurant business.
15. Trademark Enforcement
16. Trademark Dilution
Students’ answers might vary A store was opened with the name, “Victor’s Secret”, selling
lingerie and adult novelties. Victoria’s Secret, a long established lingerie store sued. The
name was different so there was do direct infringement of the Victoria’s Secret trademark
but dilution occurred because customers were likely to be confused and might consider the
similarity in names to indicate a relationship between the stores and the brand.
11-13
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manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Business Discussion #1
1. What is “property”?
2. Can a company have property in its marketing plans the way you can have property in your
car?
them.
3. Can EMW use Colonial Car’s marketing plans without permission?
Since Colonial carefully kept their plans secret and the plans could not have been discovered
