Tangible_Law

Tangible and Intellectual Property Issues Terry University of Phoenix LAW/531 May 31, 2009 Tangible and Intellectual Property Issues Our learning team decided to research the information technology industry and chose to focus on Apple Incorporated. Steve Jobs, CEO of Apple, has built a multi-billion dollar company through innovations in digital media and mobile technology. Apple has a host of products that have revolutionized the way people experience music and video, manipulate and utilize software, and communicate with one another. Three of Apple’s premier products are iTunes, the iPod Touch, and the iPhone. With the inception of the App Store, consumers do not have to be limited to one piece of hardware in order to enjoy this technology. Depending on what device a consumer owns, they can download music to their iTunes library, transfer purchases to their iPod Touch, or even customize software applications on their iPhone. This degree of versatility is one of the reasons for the vast popularity of these products. Which properties are significant to the industry' “The Company offers a range of personal computing products, mobile communication devices, and portable digital music and video players, as well as a variety of related software, services, peripherals, networking solutions and various third-party hardware and software products” (Oppenheimer, 2009). This section will identify the tangible properties most significant to Apple Incorporated. Personal Computers (PC): The Mac Pro is ideal for business and professional consumers; updated March 2009 to feature two Intel Quad-Core Xeon processors, includes a direct attach storage solution, two SuperDrive disk drives, Bluetooth, and wireless networking capabilities. The iMac targets consumer, education, and business customers; LED backlit displays range from 21.5 inches to 27 inches. Models include built-in video camera, AirPort Extreme wireless networking, and wireless mouse. The Mac Mini is a miniature desktop containing up to 4GB of memory, five USB ports, FireWire Port 800, and DVI connections. Laptops: The MacBook Pro is a variety of notebooks designed for professionals and consumers; 12, 15, and 17-inch models are available. This particular model includes a glass Multi-Touch trackpad, illuminated keyboard, SD card slot, wireless networking, and a distinct graphics processor. The original MacBook, recently updated with a polycarbonate unibody design, is for consumer and education users. The MacBook contains a 2.26 GHz in processor speed, 4 GB of memory, and a Serial ATA hard drive. MacBook Air is an ultra slim laptop that includes a 13.3-inch widescreen display, full size keyboard, video camera, trackpad, wireless networks, and Bluetooth functions. iPhone: “iPhone combines a mobile phone, a widescreen iPod with touch controls, and an Internet communications device in a single handheld product. Based on the Company’s Multi Touch user interface, iPhone features desktop-class email, web browsing, searching, and maps and is compatible with both Macs and Windows-based computers” (Oppenheimer, 2009). The third generation iPhones, introduced in June 2009, provide 12 hours of talk time, nine hours of web browsing, 30 hours of music playback, and an auto-focus camera. iPod: The iPod Touch is another third generation product, introduced in September 2009, which includes peer-to-peer connections, built-in speakers, Wi-Fi, iTunes, is available in 8 GB, 32 GB, and 65 GB, plays 30 hours of audio playback, and six hours of video playback. Application Software: “iTunes is an application for playing, downloading, and organizing digital audio and video files and is available for both Mac and Windows-based computers” (Oppenheimer, 2009). Consumers can locate, purchase, and lease various movies, audio books, videos, and games. This application has improved syncing capabilities, Home Sharing, which enables consumers to transfer music and videos among five computers. What managers in the industry might do to protect an organization’s property rights' Burglary and Theft Laws: The illegal taking of another person’s property without his or her consent is a violation of criminal law and subject to prosecution. The definition of theft covers all or elements of burglary, embezzlement, larceny, looting, robbery, shoplifting, and some forms of fraud. Physical security of buildings, warehouses, manufacturing plants, and distribution centers protect the company from theft. Patents and Patent Rights: A patent is a license or legal authority granted by the United States Patent and Trademark Office to someone, usually the inventor or owner, and prohibits anyone else from making, using, or selling the same or identical product without the consent of the patent owner. To qualify for a patent, the item must be novel, not obvious, adequately described, useful, and patentable. Copyrights: Copyrights are the exclusive rights granted to the author or owner of original work to reproduce, distribute, or modify the work. From a tangible property perspective, a copyright could cover schematics or blueprints for devices capable of use in multiple applications. A patent covers the physical electronic device but the schematics and drawings covered by copyright protect the inventor’s technical interests. Trade Secret: A trade secret is company information that has significant value to a company, gives the company an advantage over its competitors, and is not generally known or easily ascertained by its competitors. Normally trade secrets fall under the intellectual property venue however, if documented and secured in a vault or other safe place, the written document becomes tangible property. Mask Works Rights: Mask work is specific to integrated electronic circuits and protects semiconductor chips and associated product or material covered under the Semiconductor Chip Protection Act. Tangible Research Property Rights: Tangible research property laws and policies protect a company from inventing something and having the inventor copyright or apply for a patent on the discovery. Items produced in the course of research or manufacture, supported by the company, belongs to the company and not the individual inventor. What actions must a manager take to identify and protect his or her organization from violating other’s intellectual property rights' Company innovations, because of Research and Development, are high value assets of organizations belonging to the information technology industry because these discoveries are the integral foundation of the business. In this regard, managers must protect their intellectual property rights from infringement by applying for patent, copyrights, and trademarks. For IT companies, creating an Intellectual Property Protection Committee whose responsibility is to acquire updates on recent patent applications, will ensure that the company does not infringe on any patent or copyright. This will prevent expensive and time-consuming court litigations Research Summery Apple Inc. 1. “The company regularly files patent application to protect inventions arising from its research and development” (Apple Inc. Annual Report, 2009, p. 11) 2. “Because of technological changes in the computer, digital music player and mobile communications industries, current extensive patent coverage, and the rapid rate of issuance of new patents, it is possible certain components of the Company’s products and business methods may unknowingly infringe existing patents or intellectual property rights of others” (Apple Inc. Annual Report, 2009, p. 11). 3. Research reveals several legal proceedings that involve Apple. The company is “vigorously defending more than 47 patent infringement cases, 27 of which were filed during fiscal 2009” (Apple Inc. Annual Report, 2009, p. 17). Some of which include the following: ▪ Harvey v. Apple Inc. Plaintiff alleged infringement of US patent entitled “Recharger for use with a portable electronic device and which includes a proximally located light emitting device” and “Recharger for use with a portable electronic device and which includes a connector terminus for communicating with rechargeable batteries contained within the device.” ▪ Honeywell International, Inc., et al. v. Apple Computer, Inc., et al. Plaintiff alleged that Apple infringed patent entitled “Directional Diffuser for a Liquid Crystal Display.” ▪ Individual Networks, LLC v. Apple, Inc. “Method and System for Providing a Customized Media List.” ▪ Saito Shigeru Kenchiku Kenkyusho (Shigeru Saito Architecture Institute) v. iPod; Apple Japan Inc. v. Shigeru Saito Architecture Institute Alleged infringement of Japanese Patent entitled “Touch Operation Input Device and Electronic Parts Thereof.” ▪ Apple Inc. v. Pystar Corporation Apple filed a copyright infringement case against Psystar Corporation for illegally copying, modifying, and distributing Mac OS X. Apple continues to create new products and technologies to improve the existing products they provide consumers to include computer software, mobile communication, and system software. In addition, the company may be looking into possible expansion through third-party business and technology. Ultimately, the company constantly seeks ways of improving and expanding the various products they sell regardless of the various claims filed against them from many competitors. Reference Cheeseman, H. R. (2010). Business Law. Legal Environment, Online Commerce, Business Ethics, and International Issues (7th ed.). Retrieved from https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader.aspx Oppenheimer (2009). Apple Inc. United States Securities and Exchange Commission Report, Form 10-K. Retrieved May 28, 2010 from https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader.aspx