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SECTION 9C – INTELLECTUAL PROPERTY AND ETHICS
CASE 9.11 – TIFFANY, LOUIS VUITTON, eBAY, LANDLORDS, AND KNOCK-OFFS
Use PowerPoint Slide 329.
Answers and Key Discussion Items
1. We worry about knock-off goods because of the free-rider problems. Someone who has not
developed the product or invested the money in brand recognition, reputation, and advertising is able
2. There is a certain frustration on the part of trademark holders who are trying to enforce their rights,
something that must be done privately, with the exception of assistance from customs. The theory is
that the landlords would be able to spot and “out” those who are selling infringing products. However,
3. The stakeholders are the trademark owner and its shareholders, creditors, customers, and suppliers.
There are also the landlords and innovation, both harmed in the process of these knock-off
4. The landlords are involved in one of the ethical categories – not speaking up when you know others
are involved in an ethical breach. If you say nothing, then you become part of the problem. The
CASE 9.12 – THE LITTLE INTERMITTENT WINDSHIELD WIPER AND ITS LITTLE
INVENTOR
Use PowerPoint Slide 330.
Legal Issues
It is infringement to use another's idea without compensation. The issue in this case was whether the
idea was obvious and would have been developed independently by the car manufacturers' engineers.
Apparently, the courts have found the idea would not have been developed as quickly as the car
manufacturers alleged and Kearns expedited the process for them.
Answers and Key Discussion Items
1. The decision to go forward with an idea because the person who had the idea is a "little guy" and
probably would not go forward with litigation is an unethical choice. The company would not want to
2. The intermittent system was an original idea, a helpful addition to an auto, and a means of
3. Many small inventors are learning to file their ideas with independent third parties before presenting
them to large corporations. This pre-filing enables them to establish that they did indeed have the
idea and that the company later appropriated it. In one case, an inventor videotaped his presentation
4. An executive could not correct the past decision to bypass Kearns, but could make the decision to
treat him fairly now and offer to settle with him as opposed to carrying through with the litigation with
5. Perhaps the battle was so fierce because they did already have the product in mind and in
CASE 9.13 – COPYRIGHTS, SONGS, AND CHARITIES
Use PowerPoint Slides 331 - 333.
Answers and Key Discussion Items
1. Copyright laws are self-enforcing. ASCAP may seem as if it is picking on campers, but it is simply
2. The songs fall into public domain and they lose their copyright protection.
3. The use of the songs by the children at these camps, cancer camps and otherwise, is something that
is helpful to them and the disallowance evokes a great deal of emotion on the part of the public
4. The camps could pay a nominal fee for a certain number of uses and then the ASCAP needs would
5. Donate the fee back to the camp. Collect the same fees as for other uses, but donate it back to the
camp. Mr. Berlin has combined donations and philanthropy with solving the problem of the right to use
