Risk_Arising_in_Tangible_Property_and_Intellectual_Property

Introduction Property rights in the automotive industry are of much importance as the livelihood of the companies can be significantly affected if the proper control measures are not implemented in their operations. With respects to intellectual property, “Growth in the trade of illegitimate goods over the past 20 years is astounding, intellectual property crime is one of the fastest growing criminal enterprises worldwide”. (Donohue, 2004) Below is an outline of the types of property and how managers can mitigate infringements. Tangible Property Tangible property in the automotive industry comprises anything that we can see and touch. This includes buildings, land, steel, aluminum, plastic, fabric, wiring, computers, rubber, and wood. Tangible Property Protection Two aspects of tangible property protection should be implemented. Protection from outside threats can be mitigated through alarm systems, security fences, and security guards. Protection from internal threats can be mitigated through background checks of all employees as well as screening of personnel and vehicles when they depart the premises. Intellectual Property Intellectual property in the automotive industry comprises: Trade Secrets - Product formula, pattern, design, compilation of data, customer list, or other business secret. Patents - Rights to an inventor for a set period in exchange for public disclosure of their invention. Copyrights - Tangible writings are subject to copyright registration and protection. This includes books, periodicals, newspapers, lectures, musical compositions, movies, radio and TV productions, maps, paintings, sculpture, photos, cartoons, and video files. Trademarks/Service Mark – A distinctive mark, symbol, name, word, motto, or device that identifies the goods/services of a particular business. Domain Names – Internet domain names companies use to market and sell their product or service. Intellectual Property Protection Trade secrets specifically include product formulas, patterns, designs, compilation of data, customer lists, or other business secrets. Most states have protection under the Uniform Trade Secrets Act where the owner of the trade secret can sue anyone for misappropriation. Patents can be protected under the Federal Patent Statute, which protects patented inventions from infringement. Copyrights can be protected by the Copyright Revision Act of 1976 that protects the work of authors and creative persons. Trademarks can be protected by the Lanham Trademark Act, which establishes the requirements for obtaining a federal mark. It protects marks from infringement that were registered with the United States Patent and Trademark Office (PTO). Domain names can be protected under the Digital Millennium Copyright Act that prohibits unauthorized access to copyrighted digital works by circumventing wrapper or encryption technology. Protection of Others’ Intellectual Property Rights Protecting the intellectual property rights of other companies should include various control measures. First, the use of noncompetitive agreements of understanding for each employee to sign would bind them to uphold loyalty to their employer and not infringe on the rights of other employers in the industry. The second measure would be to conduct a legal briefing to employees during their annual performance reviews to reemphasize nondisclosure and privacy. Last, dissemination of all trademarked, copyrighted and patented information to current and new employees would eliminate the possibility of an employee claiming that they were unaware of the intellectual property at risk. References Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues, Seventh Edition, by Henry R. Cheeseman. Published by Prentice Hall. Copyright © 2010 by Pearson Education, Inc. Thomas J. Donohue, Counterfeiting and Theft of Tangible Intellectual Property: Challenges and Solutions, March 23, 2004