CHAPTER 14 Trademarks, Copyrights,

Patents and Trade Secrets

14-1 Introduction
Intellectual Property it is known to describe a collection of
intangible rights, including trademarks Copyrights, Patents
and trade secrets.

14-2 Trademarks
Trademark is used by manufacturer or merchant to identify
and distinguish its goods from those sold by others and to
indicate the source or quality of a product.

14-3 Creating and Protecting Trademarks

Creating trademark has value because the buying public
associates the mark with a certain source of the product
and using the mark in commerce creates a common law or
right of exclusivity.

14-3a Selection of a Trademark

Selecting a very strong and very durable trademark is one of
the most important decisions that any business can make
or do.

Four Categories of the strength spectrum:

1.) Fanciful, coined marks
2.) Arbitrary marks
3.) Suggestive marks
4.) Descriptive marks

14-3b Proper Use of Trademarks and Service Marks

The Fastest way to lose ones trademark to the graveyard of
generic terms is to abandon the mark through improper
use.

Rules in Properly using a trademark

1.) Distinguish the mark from its surroundings.
2.) Use Only as an Adjective.
Example:
Correct: Please pass those delicious AJAX muffins.
Incorrect: Have fun at your next beach party, pick up a few
AJAX. (Noun).
Incorrect: Really let yourself go, AJAX your next block party.
(Verb).
Incorrect: My hair was AJAXed until it took on this
wonderful shine. (verb)

3.) Use Notice Symbol

Example of Notice Symbol:

 14-3c Enforcement Standards and Remedies

A Trademark owner may seek to prevent another user from
using a mark that is confusingly similar to his own mark.

14-4 Copyrights
protects the rights of authors and creators of writings,
artworks, craft, manuals, brochures, sculptures, plays,
computer software, motion picture, sound recordings, and
works of architecture.

The Exclusive right to use and exploit the work:

The exclusive right to reproduce the work in copies or
musical tapes or CDs
The exclusive right to prepare derivative works based on
the copyrighted work
The exclusive right to distribute copies of the work of the
public,
The exclusive right to perform the work in public
The exclusive right to display the work in public

14-4a Creating and Registering Works Subject to Copyright

a copyright attaches to the work the instant it is created but
the only exception to this rule and have a limited exception
is for works made for hire.

When Should an Author register a Copyright?

Registration of a copyright is done with the copyright office
in Washington D.C., and is easy and inexpensive to
accomplish.

How Long Does a Copyright Remain in Effect?

the copyright remains in effect for the life of the author,
plus fifty years following his/her death but works made for
hire 75 or 100 years

How to Use Correct Copyright Notices

What Steps Are Available to Enforce Copyright?

owner may bring a lawsuit in federal court for damages
suffered as a result of the infringement.

14-5 Trade Secrets

(1) provide a competitive advantage, and would have
economic value if it fell into the hands of a competitor and
(2) is subject to reasonable efforts to keep it secret.

Does a Trade Secret Need to be Registered Anywhere to be

Enforceable?
No, unlike patents, a trade secrets need not to be filed with
any federal agency. State laws generally allow an owner of a
trade secret to file a case of injunctive relief which a court
might order an infringer to cease the infringing activity
and/ or for damages.

What is the Duration of a Trade Secret?

trade secret has no defined life.

14-6 Patents
U.S. patent laws offer a fascinating deal to an inventor.

What can be Patented?

Must fall within broad statutory categories, defined as
follows: Whoever invents or discover any new and useful
process, machine, manufacture of composition of matter,
or any new and useful improvement thereof, may obtain a
patent
Must be new
Must be useful
Must be non-obvious to one of ordinary skill in the art to
which the subject matter pertains.

14-7 Intellectual Proper Rights in Franchising

Intellectual Property it is between the legal relationship
between the franchisor and franchisee

14-8 Antitrust Law and Franchising

Within the hundred years the antitrust law have improved
within franchising.
Anti trust law: Sherman act on 1890, The Clayton Act 1914
and The Robinson-Patman Act 1936.

14-8a Selling Products to Franchisees

The most common antitrust situations encountered by
franchisors and franchisees surround the franchisor selling
goods and services to franchisees.

Tying Arrangements
Clayton act prohibits a seller from conditioning the sale of
one product on the purchase of another product, if that
tying arrangement injures competition.

Also a tying arrangement will be found to be unlawful

when court finds:
There are two distinct and separate products involved.
The seller has sufficient economic power in tying
product
Product A to restrain competition in the tied product of
product B
The arrangement substantially lessens competition in
the market of the tied product.

Pricing Issues
Franchisees are free to set their own prices, regardless of the
pricing suggestion of the franchisor.