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MGMT 3850 Exam 3 With
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Intellectual property - ANSWER Intellectual property is any product of human intellect that is intangible but valued in the marketplace. It is called "intellectual property" because it is the product of human imagination, creativity, and inventiveness
Types of Intellectual Property - ANSWER patent, trademark, copyright, trade secret
patent - ANSWER A patent is a grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for the term of the patent
Types of Patents - ANSWER utility, design, plant
Utility Patents - ANSWER Patents in this category may be granted to anyone who "invents or discovers any new and useful improvement thereof." There are three basic requirements for utility patents: the invention must be useful, it must be novel in relation to prior arts in the field, and it must not be obvious to a person of ordinary skill in the field.
Design Patent - ANSWER cover the invention of new, original, and ornamental designs for manufactured products. A design patent is good for 14 years from the grant date. Whereas a utility patent protects the way an
invention is used and works, a design patent protects the way it looks.
Plant Patent - ANSWER Plant patents protect new varieties of plants that can be reproduced asexually. Such plants are reproduced by grafting or crossbreeding rather than by planting seeds.
Who Can Apply for a Patent? - ANSWER Only the inventor of a product can apply for a patent. If two or more people make an invention jointly, they must apply for the patent together.
The Process of Obtaining a Patent - ANSWER 1. make sure the invention is practical
- document when the invention was made
- hire a patent attorney
- conduct a patent search
- file a patent application
- obtain decision from U.S. patent and trademark office
Patent Infringement - ANSWER Infringement takes place when one party engages in the unauthorized use of another's patent. You must enforce your patents and it can be very expensive. However, if you win the case, you will be handsomely rewarded.
What Is Protected Under Trademark Law? - ANSWER Words
Numbers and letters
Designs or logos
Sounds
Fragrances (as long as the product is not known for its fragrance)Shapes
Colors (as long as the color is not functional)
Trade dress
Exclusions from Trademark Protection. - ANSWER Immoral or scandalous material
Deceptive matter
Descriptive marks
Surnames
The Process of Obtaining a Trademark - ANSWER Select an appropriate mark.
Perform a trademark search.
Create rights in the trademark.
Trademark Infringement - ANSWER A trademark is infringed when an unauthorized use is done in a manner to cause confusion. The key here is to prove that confusion is caused. As the text says, the name Acebook is
confusingly similar to Facebook and so Facebook may legitimately object.
Copyright - ANSWER A copyright is a form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work. The work must be in tangible form, such as a book, operating manual, magazine article, musical score, or computer software program
What Is Protected by a Copyright? - ANSWER Literary works
Musical compositions
Computer software
Dramatic works
Pantomimes and choreographic works (dance moves)
Pictorial, graphic, and sculptural works
Exclusions from Copyright Protection - ANSWER There are exclusions from copyright protection. The main exclusion is that copyright laws cannot protect ideas. The legal principle describing this concept is called the idea-expression dichotomy. An idea is not copyrightable, but the specific expression of an idea is.
How to Obtain a Copyright - ANSWER First, copyright protection can be
include marketing plans, product formulas, financial forecasts, employee rosters, and logs of sales calls
What Qualifies for Trade Secret Protection? - ANSWER Not all information qualifies for trade secret protection. In general, information that is known to the public or that competitors can discover through legal means doesn't qualify for trade secret protection. The general philosophy of trade secret legislation is that the law will not protect a trade secret unless its owner protects it first. Companies can maintain protection for their trade secrets if they take reasonable steps to keep the information confidential
Trade Secret Disputes - ANSWER Trade secret disputes arise most frequently when an employee leaves a firm to join a competitor and is accused of taking confidential information with him or her. A company damaged by trade secret theft can initiate a civil action for damages in court. The action should be taken as soon after the discovery of the theft as possible
Trade Secret Protection Methods - ANSWER Aggressive protection of trade secrets is necessary to prevent intentional or unintentional disclosure. In addition, one of the key factors in determining whether something constitutes a trade secret is the extent of the efforts to keep it secret. Companies protect trade secrets through physical measures and written agreements
Internal Growth Strategies - ANSWER Involve efforts taken within the firm itself, such as new product development, other product-related strategies, and international expansion
Advantages - ANSWER Incremental, even-paced growth.
Provides maximum control.
Preserves organizational culture.
Encourages internal entrepreneurship.
Allows firms to promote from within.
Disadvantages - ANSWER Slow form of growth.
Need to develop new resources.
Investment in a failed internal growth strategy can be difficult to recoup.
Adds to industry capacity
New Product Development - ANSWER Involves the creation and sale of new products (or services) as a means of increasing firm revenues
In many fast-paced industries, new product development is a competitive necessity
Keys to Effective New Product and Service Development - ANSWER Find a
by using their resources to sell products or services in multiple countries
Foreign Market Entry Strategies (Part 1) - ANSWER Exporting- Producing a product at home and shipping it to a foreign market.
Joint Ventures- Involves the establishment of a firm that is jointly owned by two or more otherwise independent firms. • Fuji-Xerox is a joint venture between an American and aJapanese company. •
Licensing- An arrangement whereby a firm with the proprietary rights to a product grants permission to another firm to manufacture that product for specified royalties or other payments.
Foreign Market Entry Strategies (Part 2) - ANSWER Franchising- An agreement between a franchisor (a company like McDonald's Inc., that has an established business method and brand) and a franchisee (the owner of one or more McDonald's restaurants).
Turnkey Project- A contractor from one country builds a facility in another country, trains the personnel that will operate the facility, and turns over the keys to the project when it is completed and ready to operate.
Wholly Owned Subsidiary- A company that has made the decision to manufacture a product in a foreign country and establish a permanent presence
External Growth Strategies - ANSWER Rely on establishing relationships with
third parties, such as mergers, acquisitions, strategic alliances, joint ventures, licensing, and franchising
Advantages - ANSWER Reducing competition.
Gaining access to proprietary products or services
Gaining access to new products and markets.
Obtaining access to technical expertise.
Gaining access to an established brand name.
Economies of scale.
Diversification of business risk
Disadvantages - ANSWER Incompatibility of top management
Clash of corporate cultures.
Operational problems.
Increased business complexity.
Loss of organizational flexibility.
Antitrust implications
Merger and Acquisitions - ANSWER A merger is the pooling of interests to combine two or more firms into one.
Various studies show that participation in alliances can boost a firm's rate of patenting, product innovation and foreign sales. Strategic alliances tend to be informal and do not involve the creation of a new entity.
Setting up an alliance and making it work can be tricky.
Technological Alliances - ANSWER Feature cooperation in R&D, engineering, and manufacturing.
Marketing Alliances - ANSWER Typically match a company with excess distribution capacity with a company that has a product to sell.
Joint Ventures - ANSWER A joint venture is an entity created when two or more firms pool a portion of their resources to create a separate, jointly owned organization.
A common reason to form a joint venture is to gain access to a foreign market. In these cases, the joint venture typically consists of the firm trying to reach a foreign market and one or more local partners.
Scale Joint Venture - ANSWER Partners collaborate at a single point in the value chain to gain economies of scale in production or distribution.
Link Joint Venture - ANSWER Positions of the partners are not symmetrical, and the partners help each other access adjacent links in the value chain.
Strategic Alliances and Joint Ventures Advantages - ANSWER Gain access to a specific resource.
Economies of scale.
Risk and cost sharing
Gain access to a foreign market
Learning.
Speed to market
Neutralizing or blocking competitors
Strategic Alliances and Joint Ventures Disadvantages - ANSWER Loss of proprietary information.
Management complexities.
Financial and organizational risks.
Risk becoming dependent on a partner.
Partial loss of decision autonomy.
Partners' cultures may clash.
Loss of organizational flexibility.
Franchise - ANSWER Franchising is a form of business organization in which a firm that already has a successful product or service (franchisor) licenses its
The Cost of a Franchise - ANSWER Initial franchise fee
Capital requirements
Continuing royalty payment
Advertising fee
Other fees
Advantages of buying a franchise - ANSWER There are two primary advantages to buying a franchise over other forms of business ownership. First, franchising provides an entrepreneur the ability to own a business using tested and refined business methods. This attribute lessens the probability of business failure. Second, when an individual purchases a franchise, the franchisor typically provides training, technical expertise, and other forms of support.
Advantages and Disadvantages of Buying a Franchise - ANSWER The main disadvantage of buying a franchise is the cost involved.
International Franchising - ANSWER International opportunities for franchising are becoming more prevalent as the markets for certain franchised products in the United States have become saturated. Foreign firms are also taking advantage of the trend toward globalization and are offering franchises in the United States and other countries.
