University:
Indiana University Bloomington
Course:
Financial and Managerial Accounting: Information for Decisions - John J. Wild
Academic year:

2024
Views:

160

Pages:

2
Author:

bratrochanter

The provided text examines a legal dispute involving MasterCard and Ralph Nader’s campaign over intellectual property rights and unfair competition, then broadens into a detailed discussion on intellectual property (IP) law, particularly around patentability and competition. Key elements include: 1. MasterCard vs. Nader Campaign • • • Background: MasterCard’s “Priceless” advertisements, which emphasize intangible moments beyond purchase, became widely known. In 2000, Ralph Nader’s campaign created a parody advertisement that mirrored MasterCard’s format, listing political expenditures alongside the tagline “Finding out the truth: priceless.” Conflict: MasterCard objected, claiming copyright or trademark infringement, and asked Nader’s campaign to stop using the format, threatening legal action. Legal Questions: The chapter explores which IP rights (trademark, copyright) MasterCard could claim, how trademark protection might apply, and potential defenses Nader’s team could argue, including fair use or free speech. 2. Intellectual Property Law Overview • • • Patent Law: Patents provide exclusive rights for new, nonobvious, and useful inventions. The U.S. historically followed a "first-to-invent" rule but moved towards a "first-to-file" system to align with global standards. Categories of Patentable Subject Matter: Include processes, machines, manufactures, compositions of matter, improvements, ornamental designs, and asexually reproduced plants. Business methods have become patentable if they meet criteria for patentability. Patent Application Process: Applications must describe the invention in detail to be reproducible by others and are reviewed by the U.S. Patent and Trademark Office. Rejections can be appealed within the Patent Office and subsequently in federal courts. 3. Unfair Competition and IP Infringement • • Legal Protections: Civil recoveries are possible for abuses like infringement of IP, trade secret misappropriation, injurious falsehoods, interference with contracts, and other unfair practices (Lanham Act § 43(a)). Criteria for Unfair Competition: Acts are unfair when they harm creative effort or make commerce intolerably hostile. For instance, trademark law helps prevent confusion or dilution of brand identity. 4. Specific Case Law – Bilski v. Kappos • This Supreme Court case clarifies patentability requirements for business methods, emphasizing the "machine-or-transformation" test as a measure for eligibility. The court denied the patent application for an abstract hedging method as it did not meet the criteria for patentable processes, stressing patents should not cover basic principles accessible to all. 5. Learning Objectives and Application • The chapter lists key objectives for understanding IP rights: determining patentable subject matter, identifying copyright protection limits, applying fair use principles, and recognizing elements of trademark infringement and dilution. Overall, this chapter uses the MasterCard-Nader scenario to introduce and clarify IP protections, specifically the balance between protecting creators and encouraging fair competition within IP and trademark law frameworks.