Part 2- Crimes and Torts, Chapter 8: Intellectual Property and Unfair Competition, Doc 16 | Indiana University Bloomington - Edubirdie

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Indiana University Bloomington
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Financial and Managerial Accounting: Information for Decisions - John J. Wild
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2024
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2
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Here’s a summary of the key issues and court rulings for each case in this exercise on intellectual property and unfair competition: 11. American Italian Pasta Co. v. New World Pasta Co.   Issue: Whether “America’s Favorite Pasta” is actionable false advertising under the Lanham Act or mere puffery. Ruling: The district court ruled in favor of American, agreeing that "America's Favorite Pasta" was nonactionable puffery rather than a factual claim that could mislead consumers. Puffery is understood to be a subjective statement that doesn’t require factual proof (like "best in the world"), which courts typically do not view as deceptive advertising. 12. Pfaff v. Wells Electronics, Inc.   Issue: Whether Pfaff’s patent was invalid under § 102(b) due to an “on-sale” bar triggered by a sale offer more than a year before the patent application was filed. Ruling: The Court of Appeals ruled against Pfaff, concluding that his patent was invalid because the invention had been commercially offered for sale over a year before the patent filing. The Supreme Court ultimately confirmed this interpretation, ruling that a patent is invalidated if there’s an offer for commercial sale and the invention is ready for patenting (even without a prototype) more than a year prior to the patent application. 13. Salinger v. Colting   Issue: Whether Colting’s novel, which reused J.D. Salinger’s copyrighted Holden Caulfield character, constituted copyright infringement. Defense and Ruling: Colting likely argued fair use, claiming that his work was a transformative parody that commented on Salinger’s work and character. However, the court ruled in Salinger’s favor, finding that Colting’s use of the Caulfield character was too close to the original work and not sufficiently transformative to qualify for fair use, especially given Salinger's well-known objections to derivatives of his work. Trademark Dilution - Levi-Strauss & Co. v. Abercrombie & Fitch   Issue: Whether A&F’s use of a stitching design similar to Levi’s doublearched trademark design constituted trademark dilution. Ruling Prediction and Outcome: The appellate court likely upheld the district court’s decision, finding that A&F’s stitching design was not “identical or virtually identical” to Levi’s trademark. Under federal dilution law, trademarks must be very closely similar for dilution claims to succeed. Therefore, without an “identical or virtually identical” design, A&F was unlikely to be found liable for dilution. Indeed, in 2011, the Ninth Circuit Court upheld that the designs were not sufficiently identical to support Levi's claim of dilution.

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