Avoiding Patent, Trademark And Copyright Problems
INTRODUCTION Patents, copyrights and trademarks, as well as know-how or tradesecrets, are often collectively referred to as intellectual property. Many firmshave such property without even being aware of it or of the need to takemeasures to protect it.
Many people's notions of intellectual property are unrealistic. Some believe,for example, that having a patent on a product will enable one to succeed in themarketplace. Consequently, they may spend thousands of dollars to obtain theexclusive rights to market something that no one wants or can afford to buy.Others may conclude that intellectual property protection is not worth theexpense and bother.
People who may not be interested in protecting their own rights still must takeprecautions to avoid infringing on the rights of others. This calls for morethan the avoidance of copying. Copying is unavoidable; it is a way of life andone way in which we learn. But, one can easily infringe on the rights of otherswithout deliberately imitating specific features of goods or services.
This publication addresses the steps newcomers to a market should take to avoidinfringement and when they should take them.
PATENTS Most people have heard variations on a remark attributed to Ralph WaldoEmerson: If a man can make a better mousetrap than his neighbor, though hebuilds his house in the woods the world will beat a path to his door. To keepthe discussion concrete, let's imagine a present day inventor of a new mousetrapwho not only invents a better mousetrap but is also successful in marketing it.The higher the inventor's profit margin, the more others will want to copy hisinvention. Let's assume that the inventor selects Figaro as the brand name andactively promotes the product. However, he does not legally protect hisinvention, but relies on the consumers' loyalty, goodwill and brandidentification to ensure future sales.
Taking measures to develop loyalty and goodwill may be sufficient until a largerand better known competitor turns up. For example, what if economies of scaleand lack of development costs mean that the competitor can sell the samemousetrap for 20 percent less? Goodwill may not be enough to ensure customerloyalty at a higher price. A patent would be much more helpful, because it wouldprevent the competitor from selling the new
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