The Legal Environment of BusinessFINA 2244 Christina Sheppard Futrell, Esq.Chapter Nine:Intellectual Property-I. Trademarks- Is a commercial symbol that a manufacturer prints on its goods so they can be readily identified in the marketplace. The Lanham Act allows trademarks to be registered if they are distinctive and nonfunctional. A. Registration- 1. Process-a. Payment of a Fee-b. Submission of a Copy of a Specimen-c. Description of the Goods-d. Declaration of the Applicant- That to the best of the applicant’s knowledge, the mark does not conflict with other marks.2. Advantages- The advantages of registration are:a. Notice- Nationwide notice of the trademark owner’s claim.b. Ownership- Legal presumption of the registrant’s ownership of the mark in the event of a dispute.c. Jurisdiction- Federal court jurisdiction, if desired.d. International Implications- Forming the basis for obtainingregistration in other nations.e. Infringement- Filing the registration with U.S. Customs Service to help prevent importation of foreign goods that infringe on the trademark.B. Classification of Trademarks-1. Arbitrary and Fanciful- Inherently distinctive made up names,not related to the product. Favored by the courts.2. Suggestive- Marks that hint at the Product, more difficult to establish.3. Descriptive- Must be shown to have acquired customer recognition. Not as favored by the law.4. Generic-C. Extent of Coverage- Applies to titles of movies, advertising slogans, titles of comic books and fictional characters, such as Batman.D. Infringement, Dilution, and Cybersquatting-The Legal Environment of BusinessFINA 2244 Christina Sheppard Futrell, Esq.1. Infringement- Occurs when a seller causes confusion about the origins of a product by improper use of a trademark.2. Dilution- When someone uses a mark or trade name in commerce that is likely to cause blurring or tarnishment of the famous mark, i.e., it is difficult to tell the mark’s apart. The marks become confused one with the other.3. Cybersquatting- Occurs when a trademark is used improperlyin a domain name. Defenses to all of the above include:a. Fair Use- Such as to mention a mark in comparative advertising-b. Noncommercial Uses- Such as a parody or editorial commentaryc. News Reporting or Educational Use- E. Counterfeiting- The copying or imitating of a mark without authority to do so. Passing off goods as if original, i.e. handbags. Under the Lanham Act, private parties, such as private investigators, can obtain search and seizure orders to seize counterfeit goods. F. Trade Dress- Concerns the “look and feel” of products and of service establishments, the sound of a Harley Davidson.G. Other Marks-1. Service Marks- Apply to services such as advertising, insurance, hotels, restaurants and entertainment.2. Certification Marks- Any word, symbol, device, or any combination of these that is used, or intended to be used, in commerce to certify regional or other geographic origin.H. Trade Names- The name of a company or a business. Cannot beregistered under the Lanham Act, but are protected by the common law.I. Goodwill- The benefit or advantage of having an established business and secured customers. II. Copyright- Rights to literary property, or intangible assets that are held by the author or owner for a certain time period. Generally, the life of the author plus 70 years. A. Registration-1. Process-a. Fill out a registration form from the copyright office.b. Send two copies of the work.The Legal Environment of BusinessFINA 2244 Christina Sheppard Futrell, Esq.c. Pay a $35 fee.2. Advantages- The Copyright Act gives a copyright owner five exclusive rights over copyrighted works:a. The right to reproduce the work.b. The right to publish or distribute the work.c. The right to display the work in public.d. The right to perform the work in public.e. The right to prepare derivative works based on the original work.B. Infringement and Fair Use-1. Fair Use- The Copyright Act allows use of original material “for purposes such as criticism, comment, news reporting, teaching, … scholarship, or research.”2. Infringement- If copying a work is not authorized or if it does not fall within fair use it is infringement. In determining infringement the court looks at four factors:a. The purpose and character of the copying.b. The nature of the copyrighted work.c. The extent of the copying.d. The effect of the copying on the market for the work.III. Patents- Is a grant from the government to an inventor for “the right to exclude others from making, using, offering for sale, or selling” the invention for twenty years after the inventor files a patent application.A. Utility Patents- Patents for an industrial or technical process, actor method.B. Design Patents- For original and ornamental designs for manufactured articles.IV. Trade Secrets- “A trade secret may consist of any formula, pattern, device, or compilation of information which is used in one’s business, and which gives him an opportunity to obtain an advantage over competitors who do not know or use it.” Information is a trade secret if:A. Information is a Trade Secret if:1. It is not known by the competition.2. The business would lose advantage if the competition were toobtain it.The Legal Environment of BusinessFINA 2244 Christina Sheppard Futrell, Esq.3. The owner has taken reasonable steps to protect the secret from disclosure.B. Economic Espionage- “Whoever, with intent to convert a trade secret that is related to or included in a product that is produced for or placed in interstate or foreign commerce to the economic benefit of anyone other than the owner thereof, and intending of knowing that the offense will injure any owner of that trade