BUSINESS LAW

Business Law

Business Law

SELECTED SCENARIO

Paul is a director of CERCO Designs, Sylvia works for Paul as a designer. One day during coffee break Paul tells Sylvia of a great idea, to sell pink board marker pens to the CRC teachers. Sylvia jumps on the idea, markets and sells these markers successfully to teachers. In connection to this scenario, following two questions will be answered in the following discussion.

Who has IP ownership of the pink marker pens?

Before going deep in the discussion regarding intellectual property rights, it is important to discuss the idea. The term intellectual property refers to monopoly rights held in intangible products or creations. According to the law, IP is the bundle of monopolies held in immaterial goods and services, such as inventions, literary or artistic expressions, musical compositions, business goodwill or reputation, and industrial designs. While these immaterial objects are usually embodied in physical form—and often must be in a tangible form to obtain IP protection at law—the rights are held in the immaterial, or intangible, value within the goods and services, rather than in the tangible embodiment of the physical item.

As in this case, Paul has not earned any copy rights for his innovative business idea, thus he do not have the IP rights. However, Sylvia also do not have the rights to claim the idea as her own. However, she can claim the idea as her own because she has already executed the idea and have proof of selling the pink marker which make her the rightful owner of IP in accordance with the law, unless she personally acknowledges that Paul is the owner of the idea.

Paul wants to trademark the pink marker pens- can he?

Trademarks are adopted by businesses and then recognized as private property through the operation of law. Trademarks are the legal side of branding. Trademark law governs many aspects of branding practice. Trademarks give legal recognition and protection to brand icons. Paul in accordance with the law can apply for a trademark for the pen, because no trademark has been registered yet as per the situation reveal in the scenario.

SECOND PART OF THE SCENARIO

Paul tells Sylvia to add real diamonds on her pens as she will sell more. Sylvia tries to trademark these pens under the name of “I-fone".

Who has IP ownership of the pens? Who decides whether this is possible and what criteria is used for the decision?

The IP ownership has been discussed in detailed above. However, Sylvia has the rights to make decision as she again take the lead and have applied for the registration of the trademark for the pen.

THIRD PART OF THE SCENARIO

Sylvia designs a beautiful logo for CERCO, and Paul sells the design outright to AMTEX, a US company for £1 million.

Who is the IP owner of the CERCO logo? And does Paul have the right to sell the design?

Intellectual property is traditionally divided into two branches: industrial property and copyright. The Convention Establishing the World Intellectual Property Organization (WIPO), concluded in Stockholm on July ...