Fundamentals of USA Intellectual Property Laws
USA

Fundamentals of USA Intellectual Property Laws

Intellectual property refers to any creative work of the human mind, such as a work of art, literature, technology, or science. Intellectual property rights are legal rights granted to an inventor or creator to safeguard his or her creation for a set length of time. These legal rights allow the inventor/creator or his assignee the exclusive right to fully employ his invention/creation for a set length of time. It is widely acknowledged that intellectual property plays a critical role in today’s economy. It has also been proven decisively that the intellectual work associated with innovation should be prioritized so that public benefit can be realized.

Intellectual property regimes aim to strike a balance between creators’ and inventors’ moral and economic rights and society’s larger interests and requirements.[I] The fact that incentives and rewards for inventors result in societal advantages is a major rationale for patents and copyrights.

The United States Constitution’s Article I, Section 8 expressly authorizes Congress to grant authors and inventors exclusive rights to their creations. Section 8 also grants Congress the authority to regulate interstate and international commerce, bolstering Congress’s ability to legislate in this area.[II] The United States Patent and Trademark Office (USPTO) and the United States Patent and Trademark Office (USPTO) are in charge of enforcing intellectual property laws approved by Congress.

Types

Patents

Patent law protects new creations, which can be products, processes, or designs, by providing a framework for their protection.[III] To encourage innovation, the patent law encourages the sharing of new breakthroughs with others. Others are prohibited from making, using, distributing, or importing the protected item if the patent owner has the right to do so. A patent is essentially a property right that can be licensed, sold, mortgaged, and assigned.

If a new and useful process, machine, product of manufacture, or composition of matter is innovative, non-obvious, and patent-eligible in the United States, it may be protected by a patent. Companies planning to sell technology-based products in the United States may consider filing patent applications with the USPTO before making any public disclosure of such technology in order to gain the most benefits under the law.

In the case of Bilski v. Kappos[IV] Under this case, it was held that the machine-or-transformation test was found to be “a valuable and important clue, an investigative tool, for establishing whether some claimed inventions are processes under 101,” rather than the exclusive test for assessing patent eligibility of a method.

Copyrights

In the fine arts, publishing, entertainment, and computer software, copyright law protects artists’ rights in their works. If others copy, present, or display the owner’s work without permission, the laws safeguard the owner. Copyright protection can be a useful tool for safeguarding software programmers that aren’t qualified for patent protection. U.S. law only mandates partial disclosure of the software itself and allows redaction of secret information contained in the source code, corporations interested in preserving computer software benefit from federal copyright protection in the United States. Although registration with the United States Copyright Office is not required for protection, it does establish a public record and can be important evidence of ownership rights in copyright disputes.

In the case of Bong v. Campbell Art Co[V] Under this case, it was held that a copyright cannot be given to a non-citizen whose country has not been recognized by a formal presidential proclamation as having a reciprocal copyright agreement with the United States. They cannot assign copyright for work to a citizen of a country having American copyright advantages since the non-citizen is not awarded copyright. That citizen is unable to register the work’s copyright.

Trademarks

A term, phrase, symbol, or design that is used by a business to identify its goods or service is protected by trademark law. Trademark owners can prohibit others from using their marks, or marks that are confusingly similar to theirs, in order to prevent customers from identifying the source. Being the first to use a trademark in commerce or to register the mark with the United States Patent and Trademark Office gives you trademark rights. 

In the United States, trademark applications can be submitted even if the trademark has not yet been used, as long as the applicant can demonstrate that the mark will be used. This approach can safeguard your organization against copycats who could try to pass off their substandard items as yours even before they hit the market.

In the case of TrafFix Devices, Inc. v. Marketing Displays, Inc.[VI] Under this case, it was concluded that there can be no trademark protection for something that is functional since it would harm competitors based on a factor other than reputation, which is the most important factor in trademark law. 

Trade Secrets

Trade secrets are commercial procedures, formulas, designs, or processes that are employed in a company with the purpose of giving it a competitive advantage. An “outsider” of the firm would not ordinarily be aware of these trade secrets. Trade secrets are protected even if they are not registered, and the owner should take reasonable precautions to maintain secrecy. Up to this point, trade secrets were represented by state law in the United States. Except for New York and North Carolina, all states have embraced a federal trade secret law known as the Uniform Trade Secrets Act (“UTSA”) as of June 2019. The UTSA seeks to bring consistency to the various state trade secret laws.

In the case of Data General Corp. v. Digital Computer Controls, Inc[VII] The court judged Data General Corporation’s secrecy safeguards adequate, granting the design documents trade secret status. As a result, Data General Corporation could not claim copyright protection for the designs because their restricted disclosure did not amount to publication, and as a result, Digital Computer Control’s acquisition of the design documentation was appropriate. When designing the D-116, however, Digital Computer Controls abused the trade secrets. Data General Corporation was given a permanent injunction, and the damages action was referred to a jury in Superior Court.

Protection against Infringement

The unlawful use of the intellectual property is referred to as infringement. Owners should take steps to make the world aware of their rights in order to prevent infringement. By making the owner’s rights more evident to others who might unwittingly infringe on them, providing notice serves to deter infringement. It also brings with it extra-legal benefits, putting the owner in a better position to pursue an infringement in court if necessary. In the event of infringement, intellectual property rights can be enforced in federal court. Owners should speak with an attorney before initiating a case and carefully assess whether litigation is in their best interests. Prosecuting infringement cases is costly. There is always the possibility that the owner’s rights will be discovered to be invalid or less extensive than the owner assumed once they are subjected to the examination of a legal procedure.

Conclusion

It is evident that managing IPR is a multifaceted process that necessitates a variety of activities and methods that must be consistent with national laws as well as international treaties and norms. It is no longer solely motivated by national interests. Market needs, market responsiveness, and the expense of translating IP into commensurate rights all have a significant impact on IP and its associated rights. To put it another way, trade and commerce factors are crucial in IPR management. Varied types of IPR necessitate different treatment, handling, planning, and strategies, as well as the involvement of people with a variety of domain skills, including science, engineering, medical, law, finance, marketing, and economics. Every industry should develop its own IP policies, management styles, and plans, among other things.

References

I- Audrey R. Chapman, Ph.D., Director, A HUMAN RIGHTS PERSPECTIVE ON INTELLECTUAL PROPERTY, SCIENTIFIC PROGRESS, AND ACCESS TO THE BENEFITS OF SCIENCE

II- Intellectual Property Law, HG. Org LEGAL RESOURCES

III- Intellectual Property Law, GEORGE TOWN LAW

IV- 561 U.S. 593 (2010)

V- 214 U.S. 236 (1909)

VI- 532 U.S. 23 (2001)

VII- 297 A.2d 433 (Del. Ch. 1971)