Ch12 LO's
Identify the most common types of trade secret disputes.
Trade secret disputes arise most frequently when an employee leaves a firm to join a competitor and is accused of taking confidential information along. Firms protect their trade secrets through bot physical measures and written agreements.
Describe the six-step process for obtaining a patent.
Obtaining a patent is a painstaking, six-step process that usually requires the help of a patent attorney. A patent can be sold or licensed, which is a common strategy for entrepreneurial firms.
Specify the rules of thumb for determining whether a particular piece of intellectual property is worth the time and expense of protecting.
Patents' trademarks, copyrights, and trade secrets are the major forms of intellectual property. A common mistake companies make is no thinking broadly enough when identify their intellectual property assets. Almost all companies, regardless of size or age, have intellectual property worth protecting. But to protect this property, firms must first identify it.
Identify the types of material that are eligible for copyright protection.
Copyright law protects original works of authorship that are fixed in a tangible form of expression. This is a broad definition and means that almost anything a company produces that can be written down, recorded, or videotaped or that takes a tangible form itself (such as a sculpture) is eligible for copyright protection. Examples of copyright-able material include literary works, musical compositions, dramatic works, and pictorial, graphic, and sculptural works.
Describe some of the physical measures that firms take to protect their trade secrets.
Firms use a number of physical measures to protect their trade secrets. These include restricting access, labeling documents, password protecting computer files, maintaining log books for visitors, and maintaining adequate overall security measures.
Define the term intellectual property and describe its importance.
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.
Explain the two primary reasons for conducting and intellectual property audit.
There are two primary reasons for conducting an intellectual property audit. First, it is prudent for a company to periodically assess the intellectual property it owns to determine whether it is being properly protected. Second, a firm should conduct a periodic intellectual property audit to remain prepared to justify its value in the event of a merger or acquisition.
Discuss the four major forms of intellectual property: patents, trademarks, copyrights, and trade secrets.
There are two rules of thumb for determining whether intellectual property is worth the time and expense of protecting. First, a firm should determine whether the intellectual property in question is directly related to its current competitive advantage or could facilitate developing of future competitive advantages. Second, it's important to know whether the intellectual property has independent value in the marketplace.
Identify the four types of trademarks.
Trademarks, service marks, collective marks, and certification marks are the four types of trademarks. Trademark law is far reaching helping businesses be creative in drawing attention to their products and services. Examples of marks that can be protected include words, numbers and letters, designs and logos, sounds, fragrances, shapes, and colors. Immoral or scandalous matter, deceptive matter, descriptive marks, and surnames are ineligible for trademark protection.
Discuss the legal environment that facilitates trade secret protection.
Unlike patents, trademarks, and copyrights, there is not a single government agency that regulates trade secret laws. Instead, trade secrets are governed by a patchwork of various state laws. The federal Economic Espionage Act does criminalize the theft of trade secrets.