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Intellectual Property Law Fundamentals
Michael E. Jones Walter Toomey M. Nancy Aiken Michelle Bazin
Carolina Academic Press Durham, North Carolina jones 00 fmt auto 5/6/14 8:02 AM Page iv
Copyright © 2014 Carolina Academic Press All Rights Reserved
Library of Congress Cataloging-in-Publication Data
Jones, Michael E., author. Intellectual property law fundamentals / Michael E. Jones, Walter Toomey, M. Nancy Aiken, Michelle Bazin. pages cm Includes bibliographical references and index. ISBN 978-1-61163-390-0 (alk. paper) 1. Intellectual property--United States. I. Toomey, Walter, author. II. Aiken, M. Nancy, author. III. Bazin, Michelle, author. IV. Title.
KF2979.J66 2013 346.7304'8--dc23
2013038163
Carolina Academic Press 700 Kent Street Durham, North Carolina 27701 Telephone (919) 489-7486 Fax (919) 493-5668 www.cap-press.com
Printed in the United States of America jones 00 fmt auto 5/6/14 8:02 AM Page v
Dedication
Michael gives thanks to his wife, Christine, whose love, kindness, and po- etic nature make everything in life possible and worthwhile.
Walter dedicates this book to Alanna and Walter Scott Toomey, the two best parts of his life.
Nancy dedicates this book to Adam, Jack, and George, and to her parents and brother with thanks for their endless support and expertise.
Michelle acknowledges and thanks her husband, children, friends, and fam- ily for their encouragement, interest, and support and dedicates this book to those who desire and strive to learn more about Intellectual Property. jones 00 fmt auto 5/6/14 8:02 AM Page vii
Contents
Preface xxiii Acknowledgments xxv Comparison and Reference Chart xxvii
Chapter 1 · Introduction 3
Unit 1 · Copyright Basics
Chapter 2 · Introduction to Copyright 9 Chapter Outline 9 Chapter Objectives 9 2.1. Introduction to Copyright Law 10 2.2. A Short History of Copyright Law 10 2.3. What Becomes of Old Copyright? 13 2.4. The Policy Goals of Copyright Law 14 Economic Policy 14 Moral Rights/Philosophical Policy 15 2.5. Copyright in Practice 15 Chapter Summary 16 Key Terms 17 Review Questions 17 Web Links 17 Discussion Exercise 17
Chapter 3 · Works Subject to Copyright 25 Chapter Outline 25 Chapter Objectives 25 3.1. Works Subject to Copyright 26 3.2. Works of Authorship 26 Literary Works 27
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Musical Works, Including Accompanying Words 27 Dramatic Works, Including Accompanying Music 28 Pantomimes and Choreographic Works 28 Pictorial, Graphic and Sculptural Works 28 Motion Pictures and Other Audiovisual Works 29 Sound Recordings 29 Architectural Works 29 3.3. Compilations 30 3.4. Originality 30 3.5. Fixation 31 3.6. Works for Hire 32 3.7. Joint Works 34 3.8. Derivative Works 35 3.9. Protected and Non-Protected Subject Matter 35 Chapter Summary 36 Key Terms 37 Review Questions 37 Web Links 38 Discussion Exercise 38
Chapter 4 · Formalities 39 Chapter Outline 39 Chapter Objectives 39 4.1. Filing for a U.S. Copyright 40 4.2. Basic Forms 40 4.3. Registration and Procedure—Online Application 40 4.4. Registration and Procedure—Paper Application 41 4.5. Recordation 43 4.6. Deposit 44 4.7. Notice 44 4.8. Length of Protection and Renewal 45 4.9. Renewal 46 4.10. Duration of Moral Rights 47 4.11. Searching for Copyright 48 Chapter Summary 49 Key Terms 50 Review Questions 51 Web Links 51 Discussion Exercise 51 jones 00 fmt auto 5/6/14 8:02 AM Page ix
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Chapter 5 · Dealings in Copyright 53 Chapter Outline 53 Chapter Objectives 53 5.1. Contracts Related to Copyright 54 5.2. Copyright Transfers 54 Licenses 54 Assignments 55 Termination of Licenses and Assignments 56 Sale of Copyright 56 Sale of Work 56 5.3. Open Source Options 57 5.4. Creative Commons 57 Chapter Summary 57 Key Terms 58 Review Questions 58 Web Links 58 Discussion Exercise 59
Chapter 6 · Exclusive Rights and Limits to Protection and Infringement 61 Chapter Outline 61 Chapter Objectives 61 6.1. Introduction to Statutory Rights 62 6.2. Activities Constituting Infringement 63 6.3. Forms of Infringement 64 6.4. Primary 65 6.5. Secondary 66 6.6. Digital Millennium Copyright Act of 1998 68 6.7. Internet Service Providers (ISPs): Safe Harbor Rule 68 6.8. What Is Not Infringement? 69 6.9. Fair Use Doctrine 70 6.10. Equitable and Statutory Defenses and Licenses 72 Statute of Limitations 72 Equity 72 Licenses 73 6.11. First Sale Doctrine 74 Chapter Summary 74 Key Terms 75 jones 00 fmt auto 5/6/14 8:02 AM Page x
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Review Questions 76 Web Links 76 Discussion Exercise 77
Chapter 7 · Copyright Remedies 79 Chapter Outline 79 Chapter Objectives 79 7.1. Civil Remedies 80 Introduction 80 7.2. Statutory Damages and Relief 80 7.3. Digital Sampling 82 7.4. How Copyright Law Changed Hip Hop 83 7.5. Criminal Remedies 88 Chapter Summary 89 Key Terms 89 Review Questions 89 Web Links 90 Discussion Exercise 90
Chapter 8 · Special Topics 91 Chapter Outline 91 Chapter Objectives 91 8.1. Introduction 92 8.2. Social Media 92 8.3. Creative Commons 94 8.4. Rights of Privacy and Publicity 94 8.5. Software Privacy Protection 94 8.6. Access Key 95 8.7. Digital Rights Management (DRM) 96 8.8. Buy vs. Rent 98 8.9. Digital Marketplace 98 8.10. Google, Art and Copyright 98 8.11. Images 99 8.12. Google Art Project 100 8.13. Digital Watermarking 101 8.14. PRO- IP Act 101 8.15. Aaron Swartz 103 Chapter Summary 104 Key Terms 105 jones 00 fmt auto 5/6/14 8:02 AM Page xi
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Review Questions 105 Web Links 106 Discussion Exercises 106
Chapter 9 · International Aspects of Intellectual Property Law 107 Chapter Outline 107 Chapter Objectives 107 9.1. Brief History 108 9.2. Universal Copyright Convention 108 9.3. Berne Convention 109 9.4. Moral Rights 109 9.5. National Treatment 110 9.6. Visual Artists Rights Act 111 9.7. Limited Works 111 9.8. Attribution and Integrity Rights 112 9.9. Waivers 115 Chapter Summary 115 Key Terms 116 Review Questions 116 Web Links 117 Discussion Exercise 117
Unit 2 · Trademark Basics
Chapter 10 · Introduction to Trademark Law 121 Chapter Outline 121 Chapter Objectives 121 10.1. A Short History of Trademark Law 122 10.2. The Policy Goals of Trademark Law 124 Chapter Summary 124 Key Terms 125 Review Questions 125 Web Links 125 Discussion Exercise 126
Chapter 11 · What Can Be Protected By Trademark? 127 Chapter Outline 127 Chapter Objectives 127 11.1. Types of Trademarks 127 jones 00 fmt auto 5/6/14 8:02 AM Page xii
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11.2. What Can Be Trademarked? 130 Chapter Summary 131 Key Terms 131 Review Questions 131 Web Links 131 Discussion Exercise 132
Chapter 12 · Acquiring Rights 133 Chapter Outline 133 Chapter Objectives 133 12.1. What Rights Does a Trademark Holder Have? 134 12.2. Common Law 134 12.3. The Lanham Act 134 12.4. Use in Commerce 135 12.5. The Spectrum of Distinctiveness 136 12.6. Secondary Meaning 139 12.7. Non- Functionality 139 Chapter Summary 141 Key Terms 142 Review Questions 143 Web Links 143 Discussion Exercise 143
Chapter 13 · Federal Registration of Trademarks 145 Chapter Outline 145 Chapter Objectives 145 13.1. United States Patent and Trademark Office 145 13.2. Application Process 148 13.3. Performing a Trademark Search 149 13.4. The Examination Procedure 158 13.5. Bars to Registration 159 13.6. Duration 162 Chapter Summary 163 Key Terms 163 Review Questions 164 Web Links 164 Discussion Exercise 165 jones 00 fmt auto 5/6/14 8:02 AM Page xiii
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Chapter 14 · Protecting and Losing Rights 167 Chapter Outline 167 Chapter Objectives 167 14.1. Continuous Use and Abandonment 168 14.2. Generic Terms 170 14.3. Tests for Infringement 171 Similarity of the Marks 171 Similarity of the Goods or Services 172 Character of the Market 172 Consumer Sophistication 172 Channels of Trade 173 Intent to Infringe 173 Actual Confusion 173 14.4. Dilution 174 14.5. Passing Off and Reverse Passing Off 177 14.6. Secondary Liability 177 14.7. Defenses 179 First Amendment Protection 179 Abandonment 179 Genericized Mark 180 First Sale Doctrine 180 Gray Market Goods 180 Laches 181 Acquiescence 181 Unclean Hands 182 Fair Use 182 Collateral Use 183 Comparative Advertising 183 Eleventh Amendment Protection 183 Chapter Summary 184 Key Terms 184 Review Questions 185 Web Links 185 Discussion Exercise 185
Chapter 15 · Trademark Remedies 187 Chapter Outline 187 Chapter Objectives 187 15.1. Non- Monetary Remedies 187 jones 00 fmt auto 5/6/14 8:02 AM Page xiv
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15.2. Monetary Remedies 189 15.3. Criminal Penalties 190 Chapter Summary 190 Key Terms 191 Review Questions 191 Web Links 191 Discussion Exercise 191
Chapter 16 · Special Topics 193 Chapter Outline 193 Chapter Objectives 193 16.1. Trademark vs. Copyright 193 16.2. Trademark vs. Patent 195 Chapter Summary 197 Review Questions 197 Web Links 197 Discussion Exercises 197
Chapter 17 · International Aspects of Trademark Law 199 Chapter Outline 199 Chapter Objectives 199 17.1. National Treatment, Non- Self-Executing Force, and Reservations 200 17.2. Paris Convention for the Protection of Industrial Property 201 17.3. Madrid Agreement Concerning the International Registration of Marks of 1891 and the Protocol Relating to the Madrid Agreement 201 17.4. Trademark Law Treaty 201 17.5. Trade Related Aspects of Intellectual Property Rights (TRIPS) 202 Chapter Summary 204 Key Terms 204 Review Questions 204 Web Links 205 Discussion Exercises 205
Unit 3 · Domain Name Basics
Chapter 18 · Domain Names 209 Chapter Outline 209 jones 00 fmt auto 5/6/14 8:02 AM Page xv
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Chapter Objectives 209 18.1. Introduction to Domain Names 209 18.2. Cybersquatting 211 18.3. Anticybersquatting Consumer Protection Act 212 18.4. Uniform Domain Name Dispute Resolution Policy 213 18.5. Truth in Domain Names Act 215 Chapter Summary 215 Key Terms 216 Review Questions 216 Web Links 216 Discussion Exercise 217
Unit 4 · Geographical Indication Basics
Chapter 19 · Geographical Indication 221 Chapter Outline 221 Chapter Objectives 221 19.1. Introduction to Geographical Indication 221 19.2. A Short History of Geographical Indication 222 19.3. The Policy Goals of Geographical Indication 224 19.4. Sources of Geographical Indication Law 225 19.5. Geographical Indication in Practice 227 19.6. Geographical Indication vs. Trademark 231 Chapter Summary 232 Key Terms 233 Review Questions 233 Web Links 233 Discussion Exercises 234
Unit 5 · Patent Basics
Chapter 20 · Introduction to Patent Law 237 Chapter Outline 237 Chapter Objectives 237 20.1. Origins of Patent Law and Policy Goals 239 20.2. A Short History of US Patent Law 241 20.3. Patents in Practice 242 20.4. Building a Modern World and Addressing Humanitarian Needs 242 jones 00 fmt auto 5/6/14 8:02 AM Page xvi
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20.5. Corporate Patent Strategies 243 Chapter Summary 244 Key Terms 245 Review Questions 246 Web Links 246 Discussion Exercise 246
Chapter 21 · Patentability 247 Chapter Outline 247 Chapter Objectives 247 21.1. Types of Patents 248 21.2. Patentable Subject Matter 251 21.3. Business Method Patents and Software Patents 252 21.4. Improvements 255 21.5. Excluded Subject Matter 257 21.6. Laws of Nature 257 21.7. Abstract Ideas 258 21.8. Physical Phenomena 259 Chapter Summary 259 Key Terms 260 Review Questions 260 Web Links 261 Discussion Exercise 261
Chapter 22 · Standards for Obtaining a Patent 263 Chapter Outline 263 Chapter Objectives 263 22.1. Novelty 264 22.2. Sources of Prior Art 265 22.3. Which Prior Art Is Relevant? 266 22.4. Prior to What? 267 22.5. A Timely Application 268 22.6. Nonobviousness 269 22.7. Utility 274 22.8. Definiteness, Enablement and Best Mode 276 Chapter Summary 277 Key Terms 278 Review Questions 279 Web Links 279 Discussion Exercise 279 jones 00 fmt auto 5/6/14 8:02 AM Page xvii
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Chapter 23 · Obtaining a Patent 281 Chapter Outline 281 Chapter Objectives 281 23.1. The Prosecution Process — Filing Before the PTO 282 23.2. The Examination Process by the USPTO 283 23.3. Conducting a Patent Search — Should You Even Apply for a Patent? 284 23.4. Provisional Applications 287 23.5. The Patent Application 287 23.6. Abstract 288 23.7. Specification 288 23.8. Written Description, Enablement and Best Mode 288 23.9. Drawings and the Written Description of the Drawings 290 23.10. Claims 291 23.11. Inventor’s Oath 292 23.12. Post-Grant Proceedings and Challenges 292 23.13. Reissue 292 23.14. Post-Grant Review and Inter Partes Review 294 23.15. Transitional Program for Covered Business Methods 294 23.16. Ex parte Reexam 295 Chapter Summary 295 Key Terms 296 Review Questions 297 Web Links 297 Discussion Exercise 297
Chapter 24 · Scope and Enforcement of Patent Rights 299 Chapter Outline 299 Chapter Objectives 299 24.1. Inventorship 300 24.2. Priority 302 24.3. The Patent 302 24.4. Infringement 304 24.5. Literal Infringement 305 24.6. Claim Interpretation and Literal Infringement 306 24.7. Doctrine of Equivalents 308 24.8. Indirect Infringement 309 Chapter Summary 311 Key Terms 312 jones 00 fmt auto 5/6/14 8:02 AM Page xviii
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Review Questions 312 Web Links 312 Discussion Exercise 313
Chapter 25 · Defenses 315 Chapter Outline 315 Chapter Objectives 315 25.1. Patent Invalidity 316 25.2. Exhaustion 317 25.3. Repair or Reconstruction 318 25.4. Patent Misuse 320 25.5. Inequitable Conduct 320 25.6. Prior User Rights 321 25.7. Experimental Use 322 Chapter Summary 323 Key Terms 323 Review Questions 324 Web Links 324 Discussion Exercise 324
Chapter 26 · Patent Remedies 325 Chapter Outline 325 Chapter Objectives 325 26.1. Legal Remedies 326 26.2. Attorney Fees and Enhanced Damages 327 26.3. Equitable Remedies 328 Chapter Summary 329 Key Terms 330 Review Questions 330 Web Links 331 Discussion Exercise 331
Chapter 27 · Special Topics 333 Chapter Outline 333 Chapter Objectives 333 27.1. Non- Practicing Entities 334 27.2. Patenting the Human Gene 336 Chapter Summary 337 Key Terms 338 jones 00 fmt auto 5/6/14 8:02 AM Page xix
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Review Questions 338 Web Links 339 Discussion Exercise 339
Chapter 28 · International Aspects of Patent Law 341 Chapter Outline 341 Chapter Objectives 341 28.1. The Paris Convention and Patent Cooperation Treaty 342 28.2. TRIPS 343 Chapter Summary 344 Key Terms 344 Review Questions 345 Web Links 345 Discussion Exercise 345
Unit 6 · Trade Secret Basics
Chapter 29 · Introduction to Trade Secret Law 349 Chapter Outline 349 Chapter Objectives 349 29.1. A Short History of Trade Secret Law 350 29.2. The Policy Goals of Trade Secret Law 353 29.3. Trade Secret in Practice 353 Chapter Summary 354 Key Terms 354 Review Questions 354 Web Links 354 Discussion Exercises 355
Chapter 30 · Establishing and Protecting Trade Secret Status 357 Chapter Outline 357 Chapter Objectives 357 30.1. State Statutes and Common Law 357 30.2. Establishing Rights 359 30.3. Corporate Policies 361 30.4. Non- Disclosure and Confidentiality Agreements 363 30.5. Licensing 365 Chapter Summary 365 Key Terms 366 jones 00 fmt auto 5/6/14 8:02 AM Page xx
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Review Questions 366 Web Links 366 Discussion Exercise 366
Chapter 31 · Losing Trade Secret Status 367 Chapter Outline 367 Chapter Objectives 367 31.1. Misappropriation and Defenses 367 31.2. Disclosures 369 31.3. Defenses to Misappropriation 371 No Trade Secret 371 Failure to Maintain Secrecy 371 No Improper Means 372 Contract Defenses 372 Statute of Limitations 372 Laches 373 Unclean Hands 373 31.4. Doctrine of Inevitable Disclosure 374 31.5. Reverse Engineering 375 Chapter Summary 375 Key Terms 375 Review Questions 376 Web Links 376 Discussion Exercises 376
Chapter 32 · Trade Secret Remedies 377 Chapter Outline 377 Chapter Objectives 377 32.1. Non- Monetary Remedies 377 32.2. Monetary Remedies 382 32.3. Criminal Penalties 386 Economic Espionage Act 386 Computer Fraud and Abuse Act and the Racketeer Influenced & Corrupt Organizations Act 387 Chapter Summary 388 Key Terms 388 Review Questions 389 Web Links 389 Discussion Exercise 389 jones 00 fmt auto 5/6/14 8:02 AM Page xxi
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Chapter 33 · International Aspects of Trade Secret Law 391 Chapter Outline 391 Chapter Objectives 391 33.1. Agreement on Trade Related Aspects of Intellectual Property Rights 391 Article 39 392 Article 41 393 Article 42 394 Article 43 394 Article 44 394 Article 45 395 Chapter Summary 395 Key Terms 396 Review Questions 396 Web Links 396 Discussion Exercise 396
About The Authors 397
Index 399 jones 00 fmt auto 5/6/14 8:02 AM Page xxiii
Preface
This introductory text explores the origins, sources, function, and values of the exciting world of Intellectual Property (IP). Topics covered include copy- right, trademark, patent, trade secret, domain names, and geographical indi- cation, with primary attention given to IP law in the United States and ample coverage of key international laws. The history, development, modern use, and enforcement of IP rights are explored in depth. The material is covered in plain language and presented in an easy to absorb modular format. This book is designed as a text for classroom use. Text Outcomes: Paralegal and Legal Studies students using this text should be able to: 1. Identify and describe the basic types of protectable IP rights in the United States; 2. Differentiate between the different forms of IP and the specific common law and statutory rights secured under both United States and to a more limited degree foreign law; 3. Identify the limits of IP rights by duration and statutory interpretation of language like the “fair use” doctrine for copyrights, and constitutional boundaries under the First Amendment; 4. Understand the basic research process used to discover or locate existing protectable interests in IP in the United States; 5. Understand the basic application processes used in the United States to register certain types of IP in order to obtain greater protection, and be familiar with the scope of that greater protection; 6. Demonstrate a basic familiarity with some common government web- sites and online research tools used in IP legal practice; 7. Articulate causes of action to protect IP rights, and understand the com- mon defenses to claims of infringement or unfair competition;
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8. Understand the various remedies available to address IP infringement or unfair competition in the United States, including civil and criminal pro- ceedings and monetary and non-monetary remedies; 9. Discuss the public policy and societal value considerations behind mod- ern IP rights and their limits. jones 00 fmt auto 5/6/14 8:02 AM Page xxv
Acknowledgments
Numerous people played a vital role in shaping this text. One of the most valuable aspects of teaching at a university is the opportunity to develop mean- ingful collaborations with academic colleagues. To that end the authors collectively thank each other for their interaction, commitment and friendship. We were fortunate to have the support of academic administrators including the Provost Ahmed Abdelal, Dean Luis M. Falcon, and Executive Director Pauline Car- roll. Our wise and experienced editor, Beth Hall, assisted us throughout the en- tire writing, editing and publishing process. Her staff at Carolina Academic Press found ways to tweak the manuscript and substantially helped to improve the final product. A former University of Massachusetts Lowell undergraduate and current law student, Ian Schaeffer, provided invaluable research and ideas especially on the copyright material. Our outside reviewers offered meaningful assistance to make the text tighter and more focused.
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Comparison and Reference Chart
Geographical Copyright Trademark Indications Patent Trade Secret Subject Works of original Identifying de- Identifying Process, ma- Undisclosed Matter authorship fixed vices, signs, or devices, signs, chine, manu- information Protected in a tangible symbols, which or symbols, facture, or that is valuable medium of may include which may composition because it is expression such words, names, include words, of matter, or secret, such as as writing, emblems, names, any new and a formula, music, painting, designs, and emblems, de- useful im- customer list, photo, literature, logos signs, and provement or business software, games, logos thereof information sculpture, sound recordings Requirements Originality, Identify and Identify and Novelty, Reasonable expression, distinguish distinguish the nonobvious- effort to main- fixation sources of geographical ness, utility, tain secrecy, goods or serv- source of definiteness information ices without products and not easily confusion enablement obtainable Term of For works cre- 20 year renew- Protected as 20 years from Potentially Protection ated after January able federal trademarks in the effective limitless as 1, 1978, life of terms, poten- the United filing date, 14 long as secrecy the author plus tially unlimited Sates. years for is maintained an additional 70 state protection design patents years. For an with continuous anonymous use work, a pseudon- ymous work, or a work made for hire, a term of 95 years from the year of its first publication or a term of 120 years from the year of its creation, whichever ex- pires first. For works first pub- lished prior to 1978, the term varies Manner of Automatic; Reg- Automatic with Automatic Application to Automatic as Acquisition istration with use. Federal and with use. Fed- the PTO long as secrecy U.S. Copyright state registra- eral and state is maintained Office provides tion grants registration advantages more protection grants more protection Infringement Copying substan- Likelihood of Likelihood of Making, using, Unauthorized tial portion of confusion, mis- confusion, offering to sell, use or work; take, deception, mistake, selling, or im- disclosure of substantial or dilution deception, or porting into information similarity dilution the U.S. obtained through im- proper means Variations GI, Service Design Patent, Marks, Certifi- Plant Patent cation Marks, Collective Marks, Trade Dress xxvii