World Intellectual Property Org.

(WIPO)

As a general rule, patent is a government document describing an invention which is considered useful to
society
It gives the inventor the exclusive rights to manufacture, trade, sell and use of such invention

5 Branches of Intellectual Property

Yes, it is called Internet hijacking (Piracy) wherein the victims are companies that have failed to register
their own names, or the brand names of their products and/or internet addresses which includes
computer programs, downloadable software applications, music and pictures

World Intellectual Property Org. (WIPO)

Specialized agency of the UN 1967 to protect rights to literacy and artistic works and to such industrial
property as inventions, designs and trademarks.
- In 1974, it became a UN agency
- By 1995, there are 181 members
- Help members acquire inventions and technology

- Property right in the expression of idea, whether published or unpublished

- Original works of authorship fixed in way intangible of expression
- involves books, poetry, short stories, newspapers, magazines, musical composition, recordings,
choreographic works, photographic works, etc.
- This lasts for the life of the author = 50 years
- It promoted the dissemination of literary, artistic and scientific works

What is Intellectual Property?

What is patent?

"constitutes those original creative works that have economic value and are protected by law..."
- Legal document granted by the government giving the inventor an exclusive right to make, use, sell an
invention for a specified number of years and to stop others from making, using or selling an invention
within its jurisdiction for a limited period of time.

- In US. This lasts for 20 years

- The goal of the patent is to encourage investors to advance the state of technology by awarding them
special rights to benefit from their inventions

Upholding Intellectual
Property Rights
Intellectual Property Law

1. They reward the creators of original works by preventing others from copying, performing or distributing
those words without permission.

2. They also provide incentives for people to produce scientific and creative works that benefit the society.

• Patent Law- protects inventions that demonstrate technological progress (20 years)

• Copyright Law – protects a variety of literary and artistic works, including paintings, sculpture, prose,
poetry, play, musical compositions, dances photographs, motion pictures, radio and TV programs, sound
recordings, and computer software programs. (lasts for the life of the authors/ creator + 50 years)

• Trademark Law- protects words and symbols that serve to identify different brands of goods and service
in the marketplace (trademark right never expire)

•Trade Secret Law – protects confidential information that belongs to a business and gives that business
a competitive advantage.

• Right of Publicity Law –

protects the right to use one’s own name or likeness for commercial purposes.
Is there an expiration date?

- Most intellectual property rights expire after a specified period.

- This permits the rest of society to benefit from the work after the creator has had an opportunity to earn
quite good
- Anyone may manufacture that same device without paying the investors
- Trademark rights never expire so as long as a merchant continues to use trademark to identify a given
product

Is there Privacy in Cyberspace?

What is Trade Secrets

- Highly confidential and important non-public information.
1. About company’s inner structure
2. Classified records
3. Systems
4. Future plans
5. Policies

What is copyright infringement?

-bootlegging, plagiarism (or making a copy of the text of a book), performing a play without permission,
performance or display of any copyrighted work without permission of the owner or without compulsory
license.

What is copyright?
Patent Law

-is one branch of the larger legal field known as intellectual property which also include trademark and
copyright law.

"without patent no new invention is possible"

"it works like a protective shield"

What can be patented?

- Machines, articles of manufacture, methods, composition of matter, any field of human activity which is
new or improvements to any of these.

- Special kind of patents covers the appearance of useful objects

o Industrial design
o Utility Model

What cannot be patented?

- Mental processes, discoveries, mathematical algorithms, arrangements of printed matter, methods of

doing business, naturally occurring, scientific theories, inventions contrary to public order or morality and
human beings cannot be patented

How long is patent valid?

Invention patents – 20 years

Utility Model – 7 years
Industrial design – 5 years +2 yrs renewal

Who is entitled to patent?

- Philippines follow the first-to-file rule

- The patent may belong to the investor, his or her assigns
- Each one is entitled if there are 2 or more investors
- If in case where an employee creates an invention during the course of his employment contract- the
patent shall belong to the employee, if this was not part of his regular duties. However, if the invention is
the result of the employee’s regular duties, it belongs to the employer unless there was a prior expressed
agreement

What is Trademark?
5 Branches of Intellectual Property
R.A 165 (June 20, 1947)
- created the Philippine Patent Office
Prescribed the rules and regulations for the issuance of patents
E.O no. 133
- transferred to Bureau of Patents, trademarks, technology.
Transfers in Feb. 27, 1987

Any word or symbol used by manufacturers or sellers to identify their goods and distinguish them from
goods of others.
What marks may be registered?

Words, names and first names; signatures, numbers; acronyms; letters or combination of letters' number
and signs' logos; slogans; designs; figures; portraits of people; labels; etc.
What mark may not be registered?

-if it is immoral, deceptive or scandalous matter

- if it is flag, coat of armor insignia of the Philippines or any of its political symbol
-a name, portrait or signature identifying a particular living individual without his written consent
- identical with registered mark known internationally
-misleads the public
-signs that are generic for the goods

Who may apply for a trademark?

-natural person; juridical person

- if there are more than one applicant, all of them should be named but anyone may sign the application
in behalf of all.
if any person is a juridical person, any of officer may sign the application.
What is the term of the registration of a mark?

a certificate of registration shall remain in force for 10 years, provided that, without need of any notice
from the Bureau of Trademarks, the applicants shall file a declaration of actual use and evidence that
effect within one year from the 5th anniversary of the date of registration of the mark

-If he failed to use the mark, he should mail an AFFIDAVIT OF NON-USE with the Bureau of Trademarks.

 Difference of Trade Secrets from personal skills?

- Skills and training that an employee acquired an developed from his work experience in the company
are not trade secrets.

Piracy
 Motives in pirating a “LOADED” employee/officer of competitor?
(1) The company wants the experience and skills of employee.
(2) Wants to acquire its competitor’s trade secret.

 What is Technology Piracy in Digital Recording?

- Unauthorized use of a patented/copyright of work.

 Forms of Digital Piracy

 Piracy – refers to illegal duplication and distribution of sound recordings
.
(1)
Pirate recordings
– unauthorized duplication of only the sound of legitimate recordings, as opposed to all packaging.
(2)
Counterfeit recordings
– unauthorized recordings of the pre-recorded sound as well as unauthorized duplication of original
artwork, label, trademark and packaging.
(3)
Bootleg recordings (underground recording)
- recording of live concerts, unauthorized musical broadcasts on radio, TV or movies.
(4)
Online Piracy
– unauthorized uploading of copyrighted sound recording and making it available to the public or
downloading a sound recording from an internet site.

 Bad effects of Digital Piracy?

(1) Music pirates are the first to lose.
(
2) Consumers also lose.
(3) Honest retailers lose.
(4) Recording companies lose.
(5) Creative artists lose.

 What is counterfeiting?
-Criminal offense of making an imitation of an article with intent to defraud others into accepting it as the
genuine item.
Upholding Intellectual property Rights

Objective of Intellectual Property Rights:

The stated objective of most intellectual property law (with the exception of trademarks)is to "Promote
progress
”
. By exchanging limited exclusive rights for disclosure of inventions and creative works, society and the
patentee/copyright owner mutually benefit, and an incentive is created for inventors and authors to create
and disclose their work. Some commentators have noted that the objective of intellectual property
legislators and those who support its implementation appears to be "absolute protection." "If some
intellectual property is desirable because it encourages innovation, they reason, more is better. The
thinking is that creators will not have sufficient incentive to invent unless they are legally entitled to
capture the full social value of their inventions. This absolute protection or full value view treats
intellectual property as another type of 'real' property, typically adopting its law and rhetoric. Other recent
developments in intellectual property law

Morality
According to Article 27 of the Universal Declaration of Human Rights, "everyone has the right to the
protection of the moral and material interests resulting from any scientific, literary or artistic production of
which he is the author. Although the relationship between intellectual property and human rights is a
complex one, there are moral arguments for intellectual property. The arguments that justify intellectual
property fall into three major categories. Personality theorists believe intellectual property is an extension
of an individual. Utilitarians believe that intellectual property stimulates social progress and pushes people
to further innovation.Lockeans argue that intellectual property is justified based on deservedness and
hard work.Various moral justifications for private property can be used to argue in favor of the morality of
intellectual property, such as:

Natural Rights/Justice Argument

: this argument is based on Locke’s idea that a person
has a natural right over the labour and/or products which is produced by his/her body. Appropriating these
products is viewed as unjust. Although Locke had never explicitly stated that natural right applied to
products of the mind, it is possible to apply his argument to intellectual property rights, in which it would
be unjust for people to misuse another' side as. Lokeans argument for intellectual property is based upon
the idea that laborers have the right to control that which they create. They argue that we own our bodies
which are the laborers, this right of ownership extends to what we create. Thus, intellectual property
ensures this right when it comes to production.
Utilitarian-Pragmatic Argument
: according to this rationale, a society that protects private property is more effective and prosperous than
societies that do not. Innovation and invention in 19th century America has been said to be attributed to
the development of the patent system. By providing innovators with "durable and tangible return on their
investment of time, labor, and other resources", intellectual property rights seek to maximize social utility.
The presumption is that they promote public welfare by encouraging the "creation, production, and
distribution of intellectual works". Utilitarians argue that without intellectual property there would be a lack
of incentive to produce new ideas. Systems of protection such as Intellectual property optimize social
utility.

"Personality" Argument
: this argument is based on a quote from Hegel: "Every man has the right to turn his will upon a thing or
make the thing an object of his will, that is to say, to set aside the mere thing and recreate it as his own".
European intellectual property law is shaped by this notion that ideas are an "extension of oneself and of
one’s personality"
.Personality theorists argue that by being a creator of something one is inherently at risk and vulnerable
for having their ideas and designs stolen and/or altered. Intellectual property protects these moral
claimsthat have to do with personality.Lysander Spooner (1855) argues "that a man has a natural and
absolute right
—
and if anatural and absolute, then necessarily a perpetual, right
—
of property, in the ideas, of which he is the discoverer or creator; that his right of property, in ideas, is
intrinsically the same as, and stands on identically the same grounds with, his right of property in material
things; that no distinction, of principle, exists between the two cases".

Writer Ayn Randargued in her book

Capitalism: The Unknown Ideal
that the protection of intellectual property is essentially a moral issue. The belief is that the human mind
itself is the source of wealth and survival and that all property at its base is intellectual property. To violate
intellectual property is therefore no different morally than violating other property rights which
compromises the very processes of survival and therefore constitutes an immoral act. Unfair competition
exists in various forms. It varies from misleading advertisement to copying of another's trademarks and
products, from destroying the reputation of competitors by making false statements about their products
to plain and simple fraud, from technology piracy to personnel piracy.

A manufacturing firm for example, is morally guilty of unfair competition and as such may also be liable for
civil damages when it clothes its goods with a nice appearance so as its goods, gives them general
apperance of goods of another manufacturer (either as to the goods themselves or in the packaging),
which would likely influence the buyers to believe that the goods offered are those of a world class
manufacturer, then (in simple words) that firm is cheating. Unfortunately, manufacturing selling fake
signature products such as Giordano t-shirts, Armani sweaters, Lacoste jackets, Nike shoes are notorious
examples of unfair competition widespread in the Philippines, Hongkong and Taiwan. So is the
counterfeiting of CDs and DVDs. Manufacturers preferred to be great imitators than original creators. The
examples here are not intended to give an exhaustive list of all type of potentially anticompetitive
agreement, but simply to indicate sorts of arrangement, which are
commonly prohibited or controlled by applicable antitrust laws. You have to seek advice in your own jurisd
iction on the locally applicable laws where any activity has an adverse impact on the normal competitive
process. It will be apparent that the question of corporate social responsibility has something to do with
what is legal, particularly when the government does something to protect the fairness of a competition. In
this case, the social responsibility of business is incorporated into law. That is to say that the ethical
question, which is an important aspect of fair competition, is enforced by the exigency of the legal system.

What is Intellectual Property Rights?

Intellectual property constitutes those original creative works that have economic value
and are protected by law. It has got to be “original creation” and has “economic value”. Those
are the conditions. Intellectual property laws actually work like double edged sword: (1) they reward the
creators of original works by preventing others from copying, performing or distributing those works
without permission; and (2) they also provide incentives for people to produce scientific and creative
works that benefits the society at large.

What is a Copyright?
Copyright is technically a branch of law granting authors the exclusive privilege to reproduce, distribute,
perform or display their creative works. The goal of copyright law is to encourage authors to invest effort
in creating new works of art and literature. Copyright is one branch of the larger legal field known as
intellectual property. The law that covers it is the legal foundation protecting the work of many major
industries,
including book publishing, motion pictures production, and music recording and computer software
development.
What is Patent?
Patent works like a protective shield that drives our investors and scientist to go aheadwith confidence
and boldness, in their quest for scientific discoveries and technologicaladvancement.Patent is a legal
document granted by the government giving the inventor an exclusiveright to make, use and sell an
invention for a specified number of years. Patent protection has

great economic importance to a number of industries that rely on technological innovation toremain
competitive, such as chemical, pharmaceutical and computer industries.

What is a trademark?
Trademark is any word or symbol use by manufacturers or sellers to identify their goodsand distinguish
them from the goods of others. Examples of well-known trademarks includeCoca-cola for soft drinks,
Kodak for film, Nike for footwear and Micrisoft for software.

What are Trade Secrets?

A trade secret is a formula,practice,process,design,instrument,pattern,or compilationof information which
is not generally known or reasonably ascertainable, by which a business can obtain an economic
advantage over competitors or customers. Insome jurisdictions,such secrets are referred to as
"confidential information", but are generally not referred to as "classified information"in the United States,
since that refers to government secrets protected by a different set of laws and practices.

HOSTILE TAKEOVER

WHAT IT IS:

A hostile takeover is a type of corporate acquisition or merger which is carried out against the wishes of
the board (and usually management) of the target company.

HOW IT WORKS (EXAMPLE):

In a hostile takeover, the target company's board of directors rejects the offer, but the bidder continues to
pursue the acquisition.

A bidder may initiate a hostile takeover through a tender offer, which means that the bidder proposes to
purchase the target company's stock at a fixed price above the current market price. Another method of
hostile takeover is acquiring a majority interest in the stock of the company on the open market. If that is
impossible or just too expensive, a bidder may initiate a proxy fight, which means that the bidder
persuades enough shareholders to replace the management of the company with one which will approve
the acquisition.

WHY IT MATTERS:

Most acquisitions and mergers occur in the business world by mutual agreement -- both sides agree that
all of the shareholder's interests are served best by the transaction. In those instances, both sides have a
chance to evaluate the costs and benefits, assets and liabilities, and proceed with full knowledge of the
risks and returns.

However, in a hostile takeover, because the management and board of the target company resist the
acquisition, they usually do not share any information that is not already publicly available. As a result, the
acquiring firm takes a risk and may unwittingly acquire debts or serious technical problems.
In addition, the loss of key managers and leadership within the company may cause a shakeup within the
target company that may disrupt its operations and threaten its viability.

THE TOP 5 HOSTILE TAKEOVERS OF ALL TIME

Hostile takeovers don’t often work, but even so, keen negotiators regularly turn bidding wars into
ignominious battles

Topping our list of the five most hostile takeovers is the AOL and Time Warner deal from 2000. Despite
the new group's promising start, AOL Time Warner suffered severe profit blows, a stark reminder that not
all hostile takeovers reap riches

Hostile takeovers have fallen out of favour in recent years, as confidence amongst corporate leaders
shrank during the financial crisis. But now Pfizer is preparing to embark on a no-holds barred battle for
the hostile takeover of Astra-Zeneca, so we look back at some of the biggest attempted takeovers of the
past decade.

1. AOL and Time Warner, $164bn, 2000

When AOL announced it was taking over the much larger and successful Time Warner, it was hailed the
deal of the millennium. But the dotcom boom meant the new AOL Time Warner lost over $200bn in value
in less than two years.

2. Sanofi-Aventis and Genzyme Corp, $24.5bn, 2010

Sanofi fought hard to takeover biotechnology company Genzyme in 2010. It had to offer significantly more
per share than they initially wanted before triggering a top-up option to assume control over around 90
percent of its target company.

3. Nasdaq OMX/IntercontinentalExchange and NYSE Euronext, $13.4bn, 2011

In a battle for control over the New York Stock Exchange, Nasdaq was determined to undermine
Deustche Borse’s bid to buy the NYSE parent company with an unsolicited and valuable bid. Nasdaq was
ultimately forced to withdraw its $13.4bn offer amid concerns from regulators.

4. Icahn Enterprises and Clorox, $11.7bn, 2011

When Clorox refused Icahn’s bid of $10bn, CEO Carl Icahn sent a full-caps letter to the Clorox board
directly telling them shareholders should decide on the takeover. Though the bid was eventually raised to
$11.7bn, Icahn was eventually forced to withdraw and drop the push for a proxy fight.

5. Air Products & Chemicals and Airgas, $7.94bn, 2010

Airgas was forced to take Air Products to court in Delaware to avoid the hostile takeover, after the buyer
attempted to seal the deal over the course of a year. The main point of contention was the price per share
Air Products was offering, and eventually a judge sided with the short-changed seller.