Student Guide LAW/421 Version 1

Week Two Student Guide

This weeks material provides you with an overview of the law of torts, including a description of the categories and types of torts for which personal or business liability can occur. Students will gain an understanding of the risk associated with torts by showing them the manner in which damages are assessed. Emphasis is placed on the business perspective of this area of the law. The law relating to intellectual property is also covered, including a solid exposure to patents, copyrights, trademarks, trade secrets, licensing, and e-business law. Tort law is one of the fundamental areas of the law and, consequently, of business law. It is basic to many areas of the law and, therefore, a common thread throughout the course. For example, the concepts relative to liability for harm to others and their property is present in many areas. Additionally, intellectual property rights have become of great significance to modern business, particularly in technology industries. The intellectual property concepts this week will be applicable to various topics throughout the course to enhance comprehension.

Torts
OBJECTIVE: Classify the types of torts. Resources: Ch. 9 of The Legal Environment of Business Content Ch. 9: Torts and Products Liability of The Legal Environment of Business o

Overview of Tort Law: A tort is a civil wrong where one party has acted or in some cases failed to act and that action or inaction causes a loss to be suffered by another party. The person who commits the tort is called a tortfeasor. o Sources of Law: o Categories of Torts: 1. international torts: one where the tortfeasor will willful in bringing about a particular event that cause harm to another party. 2. Negligence: is an accidental even that cause harm to another party. 3. Strict liability torts where a tortfeasor may be held liable for an act regardless of intent or willfulness, applies primarily in cases of defective products or abnormally dangerous activities. International Business-Related Torts: While the law provides relief for injured parties in a variety of circumstances, there are some intentional torts that are more important to business owners and managers because they have the potential to impact business relationships and operations. -Defamation is a false statement directed specifically at a party, company, or product aired to a third party and resulting in pecuniart harm to the vidtim. Negligence: Tort law also applies in circumstances when one party fails to act reasonably and, even though that party does not intend for harm to occur, the party is still liable for any injurie or damages suffered by another party as a result of the unreasonable conduct. o Strict Liability Torts: is a concept rooted in the notion that the general public benefits when liability is imposed on those engaged in certain activities that result in harm to another party even if the activities were undertaken in the mose careful manner possible. o Products Liability: liability of any seller such as a retailer, manufacturer or wholesaler, of a product that because of a defect causes harm to a consumer.

Student Guide LAW/421 Version 1 OBJECTIVE: Assess the different types of and legal protections for intellectual property. Resources: Ch. 24 of The Legal Environment of Business

Content Ch. 24: Intellectual Property of The Legal Environment of Business o o

Trade Secrets and Protection of Business Information: Trade Secret Protections are provided by states statues or state common law. 1. Misappropriation o Trademarks are a word, symbol, or phrase used to identify a particular sellers products and distingusish them from other products. Trademark protection also extends beyond words, symbols and phrases to include other aspects of the product such as shape or color scheme of its packaging. This is known as Trade Dress. o Source of Law: Trademark protections are a patchwork of federal and state law, but the major provisions and protections are found in a federal statute known as the Lanham Act. The statute prohibits the use in commerce, without the mark holders consent, of any protected trademark in a way likely to cause consumer confusion. The act also prohibits the use of an unregistered common law trademark. o Acquiring Rights for Trademark Protection: Assuming that a trademark qualifies for protection, rights to a trademark can be acquired in one of two ways: (1) by being the first to use the mark in commerce, or (2) by being the first to register the mark with the U.S. Patent and Trademark Office (USPTO or simply PTO). o Copyright Law: Protections of Original Expressions: the right of literary property as recognized and sanctuoined by positive law. Copyright protection is an intangible right granted bt the Copyright Act of 1976. o Copyright Infringement: When a copyright holder pursues a party that it believes has infringed on its copyright, the aggrieved party will generally pursue one of three theories of infringement. 1. Direct infringement occurs when the copyright owner can prive legal ownership of the work in question and that the infringer copied the work without permission. 2. Indirect infringement involfes three parties: the copyright owner, the direct infringer and the facilitator of the infringement. This theory of indirect infringement is one that holds the facilitator liable for damages. o Patents: Legal Protection of Inventions and Processes: A patent is a governmentsanctioned monopoly right that allows an inventor the exclusiveentitlement to make, use, license, and sell her invention for a limited period of time. Patent rights are important in the entire businesses community, but are particularly vital to the manufacturing, technology, and pharmaceutical sectors. Patents are often an important part of the planning for these firms because their business model depends on the benefits of obtaining a patent; that is, the full legal protection of their ideas, methods, and inventions. Once a patent is obtained, a competitor is barred from profiting off the patented device or process during the life of the patent. Thus, a patent can be a firms most important and valuable asset. o Fundamentals of Patent Law: Patent law in the US dates back to 1790 and is governed bt the Patent Act. In order to obtain a patent, an invention must be novel, nonobvious, and a proper subject matter for protection under the patent law. 1. Novelty standard is when an invention or process must be unique and original and a patent applicant must show that no other identical invention or process exists. 2. Nonobviousness standard: requires that an invention must be something more than that which would be obvious, in light of publicly avaialable knowledge to one who is skilled in the relevant field. 3. The patentable subject matter standard bars laws of nature, natural phenomena, and abstract ideas from being patentable. o Infringement, Notice, and Remedies: Infringement is defined in the Patent Act as

Student Guide LAW/421 Version 1 [W]hoever without authority makes, uses or sells any patented invention, within the United States during the term of the patent therefore, infringes the patent. Anyone who actively induces infringement of a patent is considered an infringer as well. Infringement occurs in one of two ways: literal infringement or through equivalence.

"Intellectual property and e-commerce" article

Note. The information above is intended to help you complete your assignments. Read chapters in their entirety, as indicated in the syllabus. Additional information from sections not outlined above may be needed for classroom discussions.