Trade Secret & Intellectual Property Rights

BUSINESS ETHICS

Group No: 8

14 Nilesh Dodani17 Mehul Goswamy29 Amit Maisheri34 Sye Nihalani41 Dhaval Prajapati

•Intellectual Property Rights are legal rights,which result from intellectual activity inindustrial, scientific, literary & artistic fields.

•IPR safeguards creators & producers ofintellectual goods & services

•IPR grants time limited rights to control theiruse.

INTELLECTUAL PROPERTY

Intellectual property is divided into two categories:

Industrial Property

Copyright

Industrial Property –

•Patents for inventions

•Trademarks

•Industrial designs

•Geographical indications

Copyright –• Literary works (such as novels, poems and plays)• Films & music• Artistic works (e.g., drawings, paintings, photographs and sculptures)• Architectural design.

INTELLECTUAL PROPERTY

Types of Intellectual Property

1. Patents

2. Copyrights

3. Trademarks

4. Industrial Design

5. Trade Secrets

6. Geographical Indications

7. Trade Dress

PATENTS

A patent is an exclusive right granted for an invention.

The word patent originates from the Latin patere, which means "tolay open" (i.e., to make available for public inspection).

A patent provides the patent owner with the right to decide how orwhether - the invention can be used by others.

In exchange for this right, the patent owner makes technicalinformation about the invention publicly available in the publishedpatent document.

Like any other property right, it may be sold, licensed, mortgaged,assigned or transferred, given away, or simply abandoned.

PATENTS – MIRCOMAX & ERICSSON CASE

• Ericsson, the world's largest mobile networkinfrastructure player, has sued homegrownhandset major Micromax for patentinfringement, marking the arrival of bigtickettechnology patent litigation to Indian shore.

• Ericsson sued Micromax claiming about Rs100 crore in damages stating that it had totake legal recourse after three years ofnegotiations failed to yield a licenseagreement on standard-essential patents, orpatents on technologies that are standardsfor certain equipment such as mobilephones.

COPYRIGHTS

• Copyright is a legal term used to describe the rights that creators have over their literary and artistic works.

•Works covered by copyright range from books, music, paintings, sculpture and films, to computer programs, databases, advertisements, maps and technical drawings.

COPYRIGHTS Example..

Photograph: Mannie Garcia – 2006 (via The New York Times); Poster: Shephard Fairey – 2008 (via Wikipedia)

COPYRIGHTS Example..

• Famous street artist Shephard Fairey created the Hope poster during PresidentObama’s first run for presidential election in 2008.

• The design rapidly became a symbol for Obama’s campaign, technicallyindependent of the campaign but with its approval.

• In January 2009, the photograph on which Fairey allegedly based the designwas revealed by the Associated Press as one shot by AP freelancer MannieGarcia — with the AP demanding compensation for its use in Fairey’s work.

• Though there wasn’t a court case and an actual verdict, this case created a lotof discourse around the value of work in these copyright battles.

• It’s unlikely that Garcia’s work could have ever reached the level of fame it did,if not for Fairey’s poster

Outcome• The artist and the AP press came to a private settlement in January 2011, part

of which included a split in the profits for the work.

TRADE SECRET

•A trade secret is a formula, practice, process, design, legalinstrument, pattern or compilation of information which is notgenerally known, by which a business can obtain an economicadvantage over competitors or customers.

•Trade secrets are aspects of your company that, if discovered by acompetitor, could significantly impact your bottom line or yourability to compete in marketplace.

• In some jurisdictions, such secrets are referred to as"confidential information" or "classified information".

Why Trade Secret Protection is Important ?

• Patents, trademarks andcopyrights are obtained throughapplication to governmentagencies and defended bylawsuits against infringers.

•Trade secrets are neglectedsibling, and yet may representlargest single contribution tointangible assets.

•Today, value of a company'sintangible assets exceed those ofits tangible assets.

TRADE SECRET Example..

•125-year-old secret formula of Coca-Cola is at World of Coca-Cola in Atlanta

•Mrs. Fields Chocolate Chip Cookies

•Twinkie Cake Recipe

•Listerine•Dr. J.J. Lawrence invented the antiseptic liquid compound Listerine, then licensed its secret formula

TRADE SECRET Example..

•Procter & Gamble Co unit Gillette filed a lawsuit against four former employees for disclosing trade secrets to ShaveLogic Inc, their current employer.

•Breached their contracts with Gillette by disclosing highly confidential information and trade secrets

•Employees shared information related to technical innovations for enhancing shaving technology

•Defendants were working in an R&D capacity during their tenure at Gillette

•Shavelogic has adopted the practice of hiring former Gillette employees and advisors to gain trade secrets

•Gillette, which is more than a century old, said in the filing that monetary compensation would be determined at the trial

THANK YOU…